In re de Lahongrais
In re de Lahongrais
Opinion of the Court
delivered tbe following opinion:
On February 9, 1923, there was filed in tbe office of tbe clerk of tbis court a petition on bebalf of certain creditors of tbe above-named bankrupt setting forth one fact which is admitted, which is the effect that on or about January 18, 1922, an order was made by the former referee in bankruptcy at Ponce allowing to R. Y. Perez-Marchand, as attorney for the said bankrupt, the sum of $2,500 for services claimed to have been rendered herein. Immediate payment of said sum was ordered and the said R. Y. Perez-Marchand received the money. It is further alleged in and by said petition that while it was stated that the bankrupt estate was worth $60,000, its actual value was at most $12,000, and that the amount distributed to creditors on the first dividend was less than $1,300, and therefore the sum of $2,500 allowance to attorney for ’the bankrupt is extremely excessive and improperly made.
The important and material allegation in the petition is, however, that this allowance was made without any notice to the creditors and that these petitioners learned of the granting of said allowance about January of the present year, and that they acted immediately upon receiving such information, and have therefore been guilty of no laches. It is further alleged that application was made to the trustee in bankruptcy in this case to take action toward obtaining reimbursement to the bankrupt estate of said allowance, or the greater part thereof, and that the trustee refused to take any action. The petition closes with a prayer that this court order the said R. V. Perez-Marchand to return forthwith to the trustee the sum of $2,250, which sum, when returned, shall constitute part of the assets
Numerous affidavits have been filed in support of tbis petition, and tbe court believes that tbe facts therein set forth are true and correct. Numerous pleadings have been filed on be-balf of tbe said R. V. Perez-Marchand, which tbe court has carefully considered, and all these objections to tbe petition are summarized in an answer which was filed on June 21, 1928. I will take these up in their order.
Tbe first point made is that tbis court has no jurisdiction to review an order made by a referee in bankruptcy over a year previous to tbe filing of tbe petition. It is claimed that tbe time for filing a petition to review cannot be antedated by an order nunc pro tunc when tbe time therefor has already expired, and that tbe same cannot be arrested or recalled by a simple order of tbe court. In answer to tbis it is sufficient to say that there is no pretense of any application being made to tbe undersigned judge to sign any order nunc pro tunc. Tbis is a simple question as to tbe power of tbe judge of tbis court to pass upon an order made by a former referee in. bankruptcy without knowledge of tbe creditors of tbe bankrupt and never reported to tbe court in any way until tbe knowledge of tbe action of tbe referee reached tbe creditors. It is my view that when an action of tbis kind is taken tbe creditors have a perfect right to seek a review by the judge of tbis court of proceedings of this illegal and improper character just as soon as they learn that such proceedings have taken place.
Tbe next point made is that Rule 88 of tbis court and General Order 21 in Bankruptcy constitute certain rules of practice which must' guide tbis court in cases like tbe one now under
Therefore, the action sought by the petitioners in the present case is in no way to be regarded as an attempt to ask this court to punch through the letter and spirit of its own rules. On the contrary, I consider that it is an honest and proper attempt on the part of these creditors to protect themselves against an illegal, unauthorized, and unjustified action taken by the former referee in bankruptcy in favor of a certain attorney representing the bankrupt, and that it is the duty of the court to correct such action.
I further held that the respondent has no vested rights, as claimed by him in his answer. When he received that money
It is next alleged in the answer filed by the said K. Y. Perez-Marchand that the said former referee in bankruptcy in good faith followed precedents of this court in similar eases when he ordered payment, of fees to the said K. Y. Perez-Marchand. No such precedents are cited in support of this allegation. I will say, however, that since I have become judge of this court I have found that the same former referee did commit similar acts of gross and excessive allowances in other bankruptcy cases to certain attorneys in the city of Ponce, and these cases are now before me for review under circumstances similar to these existing in the present case, and I am ordering such refunds to be made, as I deem proper.
The answer of the respondent concludes with the claim that the remedy now sought in this court will result in an unjust discrimination against the said R. V. Perez-Marchand, if his fees and his remuneration are to be the only matters reviewed; because he claims that the attorney for the petitioners has received $600 out of this same bankrupt estate for services rendered in the collection of debts due the said estate for and in behalf of the temporary receiver in the case, which services and collections netted exactly $1.50 as an addition to the estate. All that it is needful to say in regard to this closing paragraph of the answer is that if the statement be true, then the proper action to be taken is to apply to the undersigned judge of this court to compel the attorney for the receiver to make a refund of the larger portion of the said alleged payment of $600. Mr. R. V. Perez-Marchand knows very well that this court does not propose to require a refund by any attorney without a formal petition followed by a notice and a hearing.
I therefore am obliged to hold that the said payment of $2,500, which was made by direction of the former referee in bankruptcy at Ponce to the said R. V. Perez-Marchand, dated January 17, 1922, based upon a petition filed by R. Y. Perez-
It is therefore Ordered that said P. Y. Perez-Marchand pay to the trustee in bankruptcy in the above-entitled cause on or before the 21st day of July, 1923, the sum of $2,250. Failing to make such payment, the trustee will report the matter to this court immediately for such further action as this court may see proper to take to enforce this order.
To this order Mr. P. Y. Perez-Marchand excepts;
Done and Ordered in open court at San. Juan, Porto Pico, this 25th day of June. 1923.
Reference
- Full Case Name
- IN THE MATTER OF A. DE LAHONGRAIS, Bankrupt
- Status
- Published