U.S. Court of Appeals for the Fourth Circuit, 1933

Family Small Loan Co. of Richmond, Inc. v. Mason

U.S. Court of Appeals for the Fourth Circuit · Decided October 14, 1933 · Parker, Northcott, Soper

67 F.2d 207; 1933 U.S. App. LEXIS 4408 (Federal Reporter, Second Series)

Counsel

Simeon M. Atkinson, of Richmond, Va. (Walter M. Evans, Virgil R. Goode, and W. H. Cardwell, all of Richmond, Va., on the brief), for appellant., T. Nelson Parker, of Richmond, Va., for appellee.

Cases that cite this one

13 later published cases cite this decision.

In re Redwood Furniture Co. (District Court, W.D. North Carolina 1965)
Personal Finance Co. v. Martinez (10th Cir. 1940)
Federal Life Insurance Co. v. First Financial Group of Texas, Inc. (District Court, S.D. Texas 1980)
First National Bank v. Haymes (Civil Court of the City of New York 1966)
In re Gadansky (District Court, E.D. New York 1965)
Public Finance Corp. v. Xarhakos (Conn. App. Ct. 1964)
Beneficial Finance Co. v. Hill (La. Ct. App. 1959)
In re Armour. Personal Finance Co. Of Chicago v. Armour (7th Cir. 1951)
In re Alvino (2d Cir. 1940)
Hisey v. Lewis-Gale Hospital, Inc. (District Court, W.D. Virginia 1939)
In re Blakesley (District Court, W.D. Missouri 1939)
Holmes v. Davidson (9th Cir. 1936)
Personal Finance Co. of Louisiana v. Thomas (La. Ct. App. 1936)

This list shows which later cases cite this one. It does not say how they treated it, and no review of that has been done. Not a substitute for Shepard’s or KeyCite — verify before relying.

Opinion

PER CURIAM.

This is an appeal in a bankruptcy case from an order staying proceedings in a state court on a claim alleged to be a dischargeable debt of the bankrupt. While the pleadings in the state court were not made a part of the record, it is admitted by counsel that the action was one for fraud and deceit. The facts were stipulated; and from this stipulation it appears that the bankrupt had obtained $100 from appellant by means of a false statement to the effect that he owed no other debts, whereas in fact he was largely indebted at the time. This constituted the obtaining of money by false pretenses and resulted in the creation of a liability which would not be discharged by bankruptcy. Forsyth v. Vehmeyer, 177 U. S. 177, 182, 20 S. Ct. 623, 44 L. Ed. 723; Friend v. Talcott, 228 U. S. 27, 33 S. Ct. 505, 57 L. Ed. 718. A court of bankruptcy may stay suits against the bankrupt, not involving his property, only where same are founded upon claims from which a discharge would be a release. 11 USCA § 29 (a). And a discharge will not release a bankrupt from liabilities for obtaining property by false pretenses or false representations. 11 USCA § 35 (second). Since, therefore, it was admitted that the suit in the state court was one to enforce a liability arising out Of the obtaining of money by false pretenses, it was not one in which the court of bankruptcy was authorized to stay proceedings. Interesting questions discussed in the briefs as to whether the bankruptcy court should hear evidence on the nature of the debt where the pleadings in the state court show a debt that is not dischargeable, need not be considered, as here the court considered the evidence presented in the form of a stipulation by counsel; and this evidence, as well as the pleadings in the state court, showed a debt which was not dischargeable. The order of the court below will be reversed.

Reversed.

Case-law data current through December 31, 2025. Source: CourtListener bulk data.