Beruflich Dokumente
Kultur Dokumente
2d 257
This is an appeal from the denial of the District Court of a petition to review the
order of the Referee in Bankruptcy denying appellants' motion to have assets in
the hands of the Trustee under a Section XI proceeding impressed with an
equitable trust in its favor.
Appellants had, upon an agreement of the Debtor, found a purchaser for the
assets of the Debtor within a few weeks of the filing of this Chapter XI
proceedings. This had resulted in the execution of a contract of sale. Appellants
had an agreement for the Debtor to pay a modified 5% commission upon the
closing of the deal.
Before the closing could occur, the Debtor petitioned for a Chapter XI
In light of the provisions of 11 U.S. C.A. 96(a) (6)1 and in view of the fact that
the referee did not authorize the incurring of any expense by the appellant for
services in connection with "preserving the estate subsequent to the filing of the
petition" we conclude that the trial court did not err in dismissing the petition
for review.
The record discloses that the sales contract was fully executed and the
commission earned prior to intervention of the Chapter XI proceedings
although not to be paid until the closing. The referee held that the appellant was
a common creditor for its earned commission. We are unable to find any basis
for converting what the parties considered an unsecured obligation to pay the
commission unto a secured claim.
Notes:
1