In re Keeton, Steele & Co.
In re Keeton, Steele & Co.
Opinion of the Court
That, under the laws of Texas, stipulations for the payment of reasonable attorney’s fees are valid and binding, is well settled. In re Roche, 101 Fed. 956, 42 C. C. A. 115, and authorities cited. The only question, therefore, necessary to be considered, is whether, within the purview of the bankruptcy act of 1898, the fees demanded by the attorneys in the present case constituted a claim provable against the estate of the bankrupts. By section 63 of the act (Act July 1, 1898, c. 541, 30 Stat. 562 [U. S. Comp. St. 1901, p. 3447]) it is provided:
“Debts Which may be Proved. Debts of the bankrupt may be proved and allowed against his estate which are (1) a fixed liability, as evidenced by a judgment or an instrument in writing, absolutely owing at the time of the filing of the petition against him, whether then payable or not, with any interest thereon which would have been recoverable at that date or with a rebate of interest upon such as were not then payable and did not bear interest”
Brandenburg on Bankruptcy (3d Ed.) § 1412; Collier on Bankruptcy (4th Ed.) p. 839.
It is thus seen that provable debts are those which are a fixed liability, absolutely owing at the time of the filing of the petition against the bankrupt. The thought of the lawmaker is not clearly expressed
It follows from what has been said that the ruling of the referee was correct; and, replying to the question certified by him, the court answers “No.”
The order of the referee is affirmed.
Reference
- Full Case Name
- In re KEETON, STELE & CO.
- Cited By
- 6 cases
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- Published
- Syllabus
- 1. Bills and Notes — Collection — Provisions for Attorney’s Pees — Validity. Under the laws of Texas, a stipulation in a note for the. payment of a reasonable attorney’s fee for collection is valid. 3. Bankruptcy — Claims—Notes—Attorney’s Pees. Where a note of a bankrupt provided for a collection fee of 10 per cent. If suit was brought thereon, or if it was placed in the hands of an attorney for collection, or if collected through the probate court, and, though the note was due prior to the filing of a petition in bankruptcy by The makers, it was not placed in the hands of an attorney until after the filing of such petition, the claim for attorney’s fees was not a liability absolutely owing at the time of the filing of the petition, within Bankr. Act July 1,1898, c. 541, § 63, 30 Stat. 562 [U. S. Comp. St. 1901, p. 3447], and was therefore not provable against the bankrupt’s estate. 11. See Bills and Notes, voL 7, Cent Dig. § 221.