In re Nassau
District Court, E.D. Pennsylvania
In re Nassau, 140 F. 912 (1905)
1905 U.S. Dist. LEXIS 121
In re Nassau
Opinion of the Court
The two questions involved in this controversy are questions of fact, and the referee’s conclusions thereon are not to be disturbed, except for plain mistake. Such mistake I do not find, after a careful examination of the testimony, although •there may be room for a fair difference of opinion concerning the bankrupt’s solvency at the time when the mortgages were given. Upon the second question, I have no difficulty in agreeing with the referee that the circumstances accompanying the transaction were such as to put the mortgagee’s agent upon inquiry, and it can scarcely be doubted that very slight investigation would have led to knowledge of the bankrupt’s financial condition.
The referee’s order vacating the mortgages is therefore affirmed.
Reference
- Full Case Name
- In re NASSAU
- Cited By
- 1 case
- Status
- Published
- Syllabus
- 1. Bankruptcy — Voidable Preferences — Reason to Believe Debtob Insolvent. Where the agent of a creditor, when taking mortgages to secure the indebtedness to his principal within four months prior to the debtor’s bankruptcy, had knowledge of facts which should have put him on inquiry as to the debtor’s solvency, he and his principal are legally chargeable with knowledge of such facts as the inquiry would have disclosed. [Ed. Note. — For eases in point, see vol. 6, Cent. Dig. Bankruptcy, § 258.] 2. Same — Evidence. Evidence considered, and held to show that a bankrupt was insolvent at the time of giving mortgages to secure a prior indebtedness within four months prior to his bankruptcy, and that the agent who acted for the mortgagee in taking the security had reasonable cause to believe him insolvent, and that a preference was intended, which rendered the mortgages voidable by the bankrupt’s trustee.