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238 F. 142

Docket Nos. 4-7.

In re Pierson

Second Circuit Court of Appeals

Decided November 4, 1916.)

Second Circuit Court of Appeals · decided 1916-11-04

<p>Bankruptcy <&wkey;140(3) — Brokers—Rights of Customers.</p> <p>Where bankrupt brokers have not enough stock in their box and hy-pothecated to cover all their customers who were long of it on the day of failure, such customers may recover their pro rata shares; the shares of any who make no specific claim going to the general creditors.</p> <p>[Ed. Note. — For other cases,, see Bankruptcy, Cent. Dig. § 225; Dec. Dig. &wkey;140(3).]</p>

4 counsel of record

Relies on Duel v. Hollins · In re Pierson

Good law ✅— No negative treatment on recordhow we know

Former opinion modified, and affirmed · Opinion by (per_curiam) · Decided 1916-11-04

How this case has been cited

Cited by 9 later decisions — most recently April 1956

4 federal appellate · 2 district ·

4019161920193019401950decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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¶1Bankruptcy <&wkey;140(3) — Brokers—Rights of Customers.

¶2Where bankrupt brokers have not enough stock in their box and hy-pothecated to cover all their customers who were long of it on the day of failure, such customers may recover their pro rata shares; the shares of any who make no specific claim going to the general creditors.

¶3[Ed. Note. — For other cases,, see Bankruptcy, Cent. Dig. § 225; Dec. Dig. &wkey;140(3).]

¶4Petitions to Revise Order of the District Court of the United States for the Southern District of New York.

¶5On rehearing.

¶6Former opinion modified, and affirmed.

¶7For former opinion, see 233 Fed. 519, 147 C. C. A. 405.

¶8Bayard U. Peck, of New York City, for-petitioner Quinn.

¶9Goldman, Heide & Unger, of New York City, for petitioners Levy, Van Thyn, and Vrieslander.

¶10James Gillin, of New York City, for petitioner Gott.

¶11Stanchfield & Levy, of New York City, for alleged bankrupts.

¶12Before WARD and ROGERS, Circuit Judges, and MAYER, District Judge.

¶13PER CURIAM.

¶14The decision of the Supreme Court in Duel v. Hollins, 241 U. S. 523, 36 Sup. Ct. 615, 60 L. Ed. 1143, requires us ta modify our opinion lately handed down, so as to direct that the court below permit the claimants Van-Thyn, Vrieslander, Levy, and Quinn to recover their pro rata shares of the respective stocks on hand. But their shares must be ascertained by including in the calculation the shares of all long customers in the same position, whether they made claim for their shares in the stock on hand or not. That the shares of those who claim should be increased by the circumstance that other long customers made no claim would be inequitable. What would otherwise have gone to those customers should go to the general creditors.

¶15Reconsideration does not cause us to change our opinion in other respects, viz. as to the claims of Quinn and Gott.

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