In re Baxter
In re Baxter
Opinion of the Court
This is an application by one of a committee chosen by the creditors to assist the trustee in the management of the bankrupt’s estate under Rev. St § 5103, for relief against the action of the trustee in the allowance of what are alleged to be excessive counsel fees for services rendered to the estate. It is not claimed that the allowances made by the trustee, and approved by the majority of the committee, are not made in good faith. It is claimed that they are grossly excessive for the services performed; that it is within the power of the court to correct such an error of judgment on the part of the committee; and especially that the committee can only act by unanimous vote, and that as one of them dissents from the allowances made, their action on this matter is thereby nullified, and of necessity the court must decide the question.
I think the question how' much the trustee shall pay counsel for services is clearly one of those matters which under the statute are submitted to the discretion of the committee, and that the court cannot, if their discretion is exercised in good faith, interfere with their decision, even though the amount allowed is largely in excess of what the court would think reasonable. The purpose and construction of that part of the bankrupt law' providing for an administration of the estate by a trustee, under the direction of a committee of the creditors, [Act March 2, 1867, (14 Stat. 529, 538, §§ 27, 28, 43,)] are so fully and carefully stated in the case of In re Cooke, [Case No. 3,169,] by Mr. Justice Strong, that it is only necessary to refer to that case as an authority on this point. The present case comes clearly within the reasoning of that
Reference
- Full Case Name
- In re BAXTER
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- 1 case
- Status
- Published