Smith v. Dial Finance Co.
Smith v. Dial Finance Co.
Opinion of the Court
OPINION
By the Court,
This appeal is from an order of the district court dismissing the Smiths’ counterclaim for damages in an action commenced
Although Section 11 (c) of the Bankruptcy Act [11 U.S.C.A. § 29(c)] is silent as to the right of the bankrupt himself to begin a suit in the time which intervenes between the filing of a petition and the appointment and qualification of the trustee, the authorities declare that when that section is read in conjunction with Section 70(a) [11 U.S.C.A. § 110(a)] it is clear that the bankrupt retains a sufficient interest in his estate to begin such a suit.
Reversed.
Sec. 11(c) reads: “A receiver or trustee may, with the approval of the court, be permitted to prosecute as receiver or trustee any suit commenced by the bankrupt prior to the adjudication, with like force and effect as though it had been commenced by him.”
Sec. 70(a)(6) provides: “The trustee of the estate of a bankrupt and his successor or successors, if any, upon his or their appointment and qualification, shall in turn be vested by operation of law with the title of the bankrupt as of the date of the filing of the petition initiating a proceeding under this title, except insofar as it is to property which is held to be exempt, to all of the following kinds of property wherever located ... (6) rights of action arising upon contracts, or usury, or the unlawful taking or detention of or injury to his property. . . .”
Reference
- Full Case Name
- JAMES C. SMITH, CLAUDIA M. SMITH, aka CLAUDIA M. BOBISH, and JIM R. SOUTER v. DIAL FINANCE COMPANY OF NORTH LAS VEGAS
- Cited By
- 1 case
- Status
- Published