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84 F.2d 388

Docket No. 5745.

Michael Yundt Co. v. Phillips

Seventh Circuit Court of Appeals · decided 1936-06-08

2 counsel of record

Relies on In re Lake's Laundry, Inc. · John Deere Plow Co. v. Hamilton · Reardon v. Rock Island Plow Co.

Good law ✅— No negative treatment on recordhow we know

Opinion by (per_curiam) · Decided 1936-06-08

How this case has been cited

Cited by 13 later decisions — most recently April 1959

9 federal appellate ·

70193619401950decided

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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¶1*389Malcolm K. Whyte and Herman E. Friedrich, both of Milwaukee, Wis., for appellant.

¶2Frederick A. Thulin and J. C. Gregory, both of Chicago, 111., for appellee.

¶3Before EVANS and SPARKS, Circuit Judges, and LINDLEY, District Judge.

¶4PER CURIAM.

¶5Appellant sold debtor, on May 16, 1933, bottle washing equipment under a conditional sales contract. The purchase price was $15,000 of which $6,000 has been paid. On October 16, 1934, a petition was filed under section 77B of the Bankruptcy Act (11 U.S. C.A. § 207) for the reorganization of debtor. Appellee was named trustee after a ruling that the petition showed jurisdiction and was filed in good faith. Notice to creditors was given, but appellant filed no claim. Later it filed a petition for reclamation — the immediate possession of the equipment. The court denied the relief sought and dismissed the petition and ruled that appellant should not participate in any plan of reorganization.

¶6This order was erroneous. Appellant was not required to file a claim against debtor. Title to the machinery was in the vendor, the appellant. In re Abell (C.C.A.) 19 F.(2d) 965; Reardon v. Rock Island Plow Co. (C.C.A.) 168 F. 654. It could not be divested of title by the passage or application of section 77B of the Bankruptcy Act.

¶7The established law of conditional sales contracts in bankruptcy is applicable in 77B proceedings. In re Lake’s Laundry, Inc. (D.C.) 11 F.Supp. 237, affirmed (C.C.A.) 79 F.(2d) 326, 102 A.L.R. 247.

¶8Appellant was entitled to the property upon condition broken unless appellee paid the amount due upon the contract. What is said here is not intended to limit the power of a court of equity with jurisdiction of the res, to determine when and in what manner one seeking to recover a part of such res shall enforce his remedy.

¶9The order of the District Court is reversed, with directions to proceed in accordance with the views herein expressed.

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