Lawrence E. Sexton v. Leopold Louis Dreyfus
Supreme Court of the United States
APPEALS FROM THE CIRCUIT COUR't. OF APPEALS FOR THE SECOND CIRCUIT. The facts, which involve the construction of certain provisions of the Bankruptcy Act of 1898, are stated in the opinion. The bankruptcy law forbids the allowance of interest on provable debts after the date of the filing of the petition.
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APPEALS FROM THE CIRCUIT COUR't. OF APPEALS FOR THE SECOND CIRCUIT. The facts, which involve the construction of certain provisions of the Bankruptcy Act of 1898, are stated in the opinion. The bankruptcy law forbids the allowance of interest on provable debts after the date of the filing of the petition. Sections. 57, 57h, 63; and see corresponding provision,. § 19, law of 1867; Collier on Bankruptcy, 7th edi, 701. Interest accruing after petition filed is obviously not a debt existing at the time of filing, .and so by. the express provisions of the act is excluded-from proof. See official…
1Opinion of the Court
Me. J ustice Holmes
delivered the opinion of the court.
In both , of these cases secured creditors selling their security some time after the filing of' the petition in bankruptcy and finding the proceeds not enough to pay the whole amount of'their claims, were allowed by the referee to apply the proceeds first to interest accrued since the filing of the petition, then to principal, and to prove for the balance. The referee certified the question whether the creditors had a right to the interest. The District Judge answered the question in the affirmative, giving the matter a very thorough and…
2Cases cited3 opinions
- Coder v. ArtsSupreme Court of the United States · 1909
- Merrill v. National Bank of JacksonvilleSupreme Court of the United States · 1899
- Story v. LivingstonSupreme Court of the United States · 1839
3Cited by1 opinion
- Sexton v. DreyfusSupreme Court of the United States · 1911