In re Miller
In re Miller
Opinion of the Court
The bankrupt made, upon good consideration, a contract obligating him absolutely to pay to the creditor $3 per day during the creditor’s life. No default existed at the time of the voluntary petition in bankruptcy and the adjudication. No payments under the contract have been made since the bankruptcy. The creditor seeks to prove an amount which is the present worth of $3 per day during his expectation of life, as shown by the mortality tables. Mr. Referee Gibbs allowed tlic claim, and the case is here on review.
I see no reason why that method should not be followed in bankruptcy proceedings. Cases in which the bankrupt’s obligation is other than contractual, or may be changed by subsequent events, e. g., alimony, or where the duration.of it is limited upon contingencies other than death, which cannot be estimated upon data now existing, e. g., the chance of a woman’s remarriage (Dunbar v. Dunbar, 190 U. S. 340, at 345, 23 Sup. Ct. 757, 47 L. Ed. 1084), and cases in which the bankrupt’s obligation to pay rests, not upon a past and executed consideration received by him, but upon future consideration to be received by him from time to time, e. g., rent under lease (Roth v. Appel, 181 Fed. 667, 104 C. C. A. 649, 31 L. R. A. [N. S.] 270 [C. C. A. 2d Circuit]; Slocum v. Soliday, 183 Fed. 410, 106 C. C. A. 56 [C. C. A. 1st Circuit]), are, I think, plainly distinguishable. The essential grounds upon which proof is rejected in such cases do not exist here. Upon the questions of law involved, this case is undistinguishable from Cobb v. Overman, 109 Fed. 65, 48 C. C. A. 223 (C. C. A. 4th Circuit); and the referee has followed the procedure there approved. That decision was referred to, certainly without disapproval/in Dunbar v. Dunbar, 190 U. S. 340, at 351, 23 Sup. Ct. 757, 47 L. Ed. 1084. Notwithstanding the criticism of Cobb v. Overman in In re Pettingill (D. C.) 137 Fed. 143, at page 147, it seems to me to be correct. The creditor had the right to treat the bankruptcy and the cessation of payment thereafter as a breach of the entire contract. In re Swift, 112 Fed. 315, 50 C. C. A. 264 (C. C. A. 1st Circuit). The referee was right in allowing the claim, arid his decision is affirmed.
Both petitions for review are denied.
Reference
- Full Case Name
- In re MILLER
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- 2 cases
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- Syllabus
- 1. Bankbtjttoy 318, 340—Pbovable Debt—Allowance—Annuity. A bankrupt, for full consideration, received by him before bankruptcy, entered into an absolute promise to pay to the claimant $3 per day during the remainder of the claimant's life. Bankr. Act July 1, 1898, c. 541, § 63a, 30 Stat. 562 (Comp. St. 1913, § 0647) declares that debts of the bankrupt, which are a fixed liability and absolutely owing at the time of the filing of the petition and are founded upon a contract, absolute or implied, may he proved. Held, that the claim might lie proven against the bankrupt’s estate, and that the only uncertainty, which was the duration of the claimant’s life, might be determined as in other cases by reference to inoi’tnlity tables. [Ed. Note.—-For oilier cases, see Bankruptcy, Cent. Dig. §§ 481, 482, 527; Dec. Dig. 318, 3Í0.] 2. Ban kihittoy 342%—Findings of Referee—Evidence,. Where the evidence in a proceeding to review allowance of claims was not reported, the referee’s findings of fact must stand, unless they appear erroneous on the face of the certificate. I Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 530; Dec. Dig. 342%.] For other cases see same topic & KEY-NUMBJER in all Key-Numbered Digests & Indexes