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Davison-Paxon Co. v. Caldwell
115 F.2d 189
5th Cir.
1940
Check Treatment

*1 1S9 conducting regulate the manner of United Congressional See elections. 476, 477, Gradwell, 482- 243 States 857. 61 L.Ed. 37 S.Ct. .At however, only provisions time, form any relating federal statute voting in ballot the manner of Con- contained gressional elections “All provides: Title 2 U.S.C.A. § Congress Representatives votes ballot, printed must be written or been machine the use of which has voting law; authorized the State duly contrary to recorded votes received There of no effect.” this section be shall manifestly nothing in this which au- up set elec- thorizes the courts either machinery order or to declare ballot blanket form of or Australian SIBLEY, Judge, dissenting. Circuit prac- be or that other election must used must be Not tices true, followed. where, here, provision is printing or furnish- made law public authorities ballots qf appropriation funds been purpose, is difficult to see made for that the use directing how order possibly could blanket or Australian ballot justified or made effective. stated, ap- For the reasons order pealed will be affirmed.

Affirmed. White, ap- Atlanta, Ga., for Houston CALDWELL. DAVISON-PAXON CO. pellant. No. 9645. Pullen, D. Allen and R. B. both John Atlanta, ‍​​​‌​​​‌​​​​​​‌‌‌​​‌​‌​​‌​‌‌​‌‌​‌‌​‌​​‌‌​​‌​‌‌‌​‍Ga., appellee. Appeals, Fifth Circuit. Court of Circuit FOSTER, Before Oct. 1940. HUTCHESON, Judges. Circuit Rehearing 1941. Jan. Denied

HUTCHESON, Judge. enjоin The suit was enforcement against plaintiff of a garnishment state brought for debt. It was court bankruptcy ground bankrupt debt had been cy, settled but erroneous Georgia,1 ****plaintiff of the decisions state compelled jurisdic invoke court.2 tion of the Mfg. Hunt, Jacobs, Local Loan Atlanta Skirt U. Co. Ga.App. Levy 54 S.Ct. S.E. S. Ga.App. 113, Company, Kiser M. C. A.L.R. 34; Crawford v. Davison-Paxon S.E. Co., Ga.App. 166 S.E. *2 ground setting upon which out therein debt that the fendant contested the suit on predicated dischargeable for decision was (1) one suit was that the matter was 3rd, plea bankruptcy. invoca- in April On and not for state courts (2) jurisdiction overruled, jurisdiction; was as waived the bankruptcy stay was a in filing plea defendant’s her for a judgment that the it had obtained was adjudication judgment the debt there as conclusive that was a and bankruptcy. follows: discharged in on judge jurisdiction maintaining trict “The me within case on before coming determining the Hunt v. Loan and petition for trial amended after the was judgment on effect of the state and support facts introduced to the amend- court, pleadings that that concluded in dischargeable allegations ment with reference there- been dis- and had debt was charged petition, in and the ' prayed. granted relief considered, adjudged “It is ordered and appeal of that correctness tests the pltf. that recover of the defendant which it ruling. This on is the record Twenty the sum of Three Hundred rests. ($320.88) Dollars all costs 88/100 this appellant action.” here February On municipal against appellee in the filed suit Appellee granted her and it on account court Atlanta for $444.58 was ordered dischargеd “be she from purchased it for the from merchandise period all debts and claims September, Decem- from provable by against are made estate excepted said her acts ber, at- per statement as itemized excepting such debts as are law 2, 1939, March petition. tached to On operation from the of a plea of the jurisdiction she filed to the bankruptcy.” In July, 1939, she filed non-resi- alleged based her state court dence, bankruptcy court, application for 6, 1939, her filed and on March she injunction, reciting these facts and that bankruptcy scheduling voluntary petition in notwithstanding discharge, her Davison- her creditors and defendant as one of Paxon, plaintiff suit, in the state court bankrupt. duly adjudged garnishment out a against sued her em- ployer to collect on debt 24th, appellant filed ‍​​​‌​​​‌​​​​​​‌‌‌​​‌​‌​​‌​‌‌​‌‌​‌‌​‌​​‌‌​​‌​‌‌‌​‍in the March On bankruptcy. had been alleging: state court suit an amendment below, It was not denied it is not denied pur- defendant “1. That at the time the here, that the decisions of are listed on the item- chased the merchandise as, the effect that a debt contracted ac A’ ‘Exhibit and at- ized statement marked cording petition to the amended this debt petition, in- to the defendant was tached is, was, exception within the of Sec. present and had no intention solvent Act,3 Bankruptcy sub. a lia “a insolvency pay concealed her for same and bility obtaining money for property by pay same, for con- and intention to pretenses or false insolvency intentions cealed her question below, What inwas what inis purchases peti- respect your said question whether here is a debt created as tioner. was, according one allegations to the your petitioner “2. That relied on petition, liability. amended is such a promise pay same, defendant’s for judge The district thought damaged in it lost merchandise of agree. We not. But for the Georgia the value listed in itemized statement decisions goods marked ‘Exhibit A.’ present with no intention to “3. That action of the defendant in in a which is results debt for ob purchasing said merchandise without a taining by false pay same, intention present for representations, and false we should tenses promise pay knowing her same was regard admitting false, was deceitful and fraudulent. petition one answer. The amended care your petitioner damaged That “4. in fully charging refrains the de $444.58,plus interest per sum 7% represented anything made fendant August 1937 to date.” annum charges pretenses. that she was in 29th, present Whereupon, appellee solvent, on March had no that she intention plea purchased stay, suit in that filed a for the fendant and that a(2). 3 11 U.S.C.A. sub. Blount, Cir., insolvency Zimmern and intention she concealed com- plaintiff and we “A fraud have said so: the same from the ways making of mer- mitted in purchasing conduct representations, and be аctionable. intention chandise without count, orig- *3 considering In an was third as knowing that she the for same and action, independent the inal solvent, false, fraudulent. cause of was deceitful plea bankruptcy, discharge it would that in hardly be doubted think can We it alleged unimportant in the be fraud whether the doing was deceitful conduct in so rep- straight- by making was the of false a committed not act in that shе did sense However, making full way or not resentations otherwise. honest forward and condition, replication to the considering the second of her financial disclosure exception. plea bankruptcy, suffi- discharge as the a not within such conduct is discharge, it, debts important cient is to deter- except from answer It does not it through only replication con- suffi- mine whether the by obtaining crеdit created inability ciently fraud, 'by obtain- insolvency charges but fraud cealment pretenses rep- “Lia- excepts discharge from false or It false property resentations,’ only or fraud obtaining which is the kind of bilities for bankrupt prevents pretenses that the release of or then, provable Bank- meaning of that statute his 17a Within debts. Section pretenses, no ruptcy no false there were Act 1898 as amended.” merely There representations here. D.C., Nuttall, In to the re is dis- full credit without obtaining of following same effect as state are also the dis- knowledge if that full with closure Sutliff, cases: Miller 241 Ill. 89 N. well required, might credit closure had been 735; L.R.A.,N.S., E. Radford M. J. A was all. given, that have Grocery Company Halper, Tex.Civ.App., bankrutpcy statute, like that remedial us, S.W. No cases -are cited must, debtors, the relief intended for none, except Georgia we found have there- discharges and insofar as denial of debts, these holding cases that incurred as strictly relief, so be construed fore of were-, excepted discharge. from the are with- coming exactly except all debts those Appellant and de does indeed cite texts discharged. exception will stand buyer at the cisions that wherе the Thaw, 35 S.Ct. 236 U.S. Gleason purchase insolvent and in time of the is 287, 59 L.Ed. goods, it not to for the is a fraud tends Appellant, conceding of course which will his title It render voidable. not res court suit is judgment the state 96-206, too, Section, Georgia cites a Code question debt judicata whether the providing: “Where one is insolvent who dischargeable because and, purchases goods, intending to before the judgment was rendered therefor, insolvency inten conceals con- charge, is judgment insists that may disaffirm tion not to the vendor pleaded in the clusive, are as that the facts goods, if and recover the no the contract no that, though there was amendment, person acquired in innocent third an made, representation statement or overt But terest in them.” it cites no cases rep- purchase on сredit construing either federal or state courts appellee intended resentation excluding statute as purchased goods. could kind, where, discharge though of this cases appellant may support 'this view in addi- be conceded that the debts were In by fraud, cases reliance there no false to its created were tion representations. Indeed, generally settled puts reliance on tenses or it could its any, kind it is settled law that debts of law cite rule bankrupt of that pleaded deceitful created the fraud are is operation is excepted deceit, sale be rescinded. the dis certainly question charge, not the unless created while he was true is so is, capac acting That does the stat- officer or in a fiduciary us. as an before except obliga- ity. Burke, from the Crawford ute 147; O’Beirne, Bullis v. deceit fraud in their with or S.Ct. affected tions is incurring the deceit or fraud 25 S.Ct. S.Ct. whether 195 U.S. Blount; only Nuttall, supra. implied, except or does it Zimmern re actual prevent is overt fraud which will where there actual false The kind of those

pretense representation? We think it that committed fraudulent is excepted. misrepresentations latter of fact or such con- arе clear - pretended pur- purchaser having duct fraudulent to be a but was in or artifice guard and truth a pose throw deadbeat and It as will one off his is not a.cheat. will,cause case of inquiry or examina- mere failure to to omit mention fact him where relationship It is there is make. he confidential which would otherwise require misrepre- By not claimed that there was such ‍​​​‌​​​‌​​​​​​‌‌‌​​‌​‌​​‌​‌‌​‌‌​‌‌​‌​​‌‌​​‌​‌‌‌​‍it. the act of offering to merely in sentation, place It presents or trick. artifice of trade he himself as purchaser application credit good claimed that least of intentions. Many occur, plaintiff’s coupled instances even in criminal with silence law, solvency “present conduct, constitut- where such coupled intention” morally purpose, misrepresentation pretense. ed fraudulеnt esteemed representation punished, though do. The think will We do not that this If pur- falsehood told. right. affirmed. *4 chaser without supposed knows means he is by storekeeper the person to be .some Judge (dissenting). wealth, by and point silence on ob- the amending account in The of the suit on credit, tains no one would doubt there was damages for the court into one for State pretence. a fаlse He be pretending to regular. obtaining goods was deceitful person. another presents So one who an 1913, p. 164, Though 37(c). Ga.Laws of money order for payable which is to another upheld done a to meet it impliedly represents himself to be Co., 113, Ga.App. 120 S.E. Levy v. 31 Kiser Story, other. Rex v. R. R. 60. One who entirely resulting judgment 34. The is sells property knowing his, the is not to valid, ought accepted as establish- and be buyer, by offering has to sell lose impliedly represented was ob- goods value of a $320.00 Reg. that it was his. alleged. District Court tained In the Samson, L.T.Rep.,N.S., 52 v. 772. One who sought neither show what evi- side gives a check which he knows bad is was, or the dence before the State court says goods, though obtain he not a word case, permis- real if that were truth of it, goods about has obtained a ought Judge sible. The District prеtence, practice by a universal speculated majority have about it. The only against is drawn check a bank which opinion concedes this. gets is bound to If he in like manner liability adjudged The not one for a one endorse check to the such indorser’s damages implied goods purchased, damage, pretence. debt for there is an Guernsey-Newton obtaining goods that Napier, dеceit in would v. 151 a Co. Wash. have been delivered. It 318, girl bought otherwise not a little 275 P. 724. When principle that one twenty-five arises under familiar goods to the cents amount op has the making deceived into a contract payment twenty a dollar and tendered in piece and re thought tion either rescind the contract was a dol- gold which she parted very goods he lar, merchant, perceiving cover what with —the and the the mis-: —, and recover take, dollar, saying or to the contract stand gave let change ‍​​​‌​​​‌​​​​​​‌‌‌​​‌​‌​​‌​‌‌​‌‌​‌‌​‌​​‌‌​​‌​‌‌‌​‍for a damage him Harts nothing, done the deceit. swindler. he was a cheat Newlin, 546, 430, Ga.App. State, 25 54 field v. S.E. Co. v. 97 Ga. Jones State, Dry Am.St.Rep. v. S.E. Louisville Goods Co. 433. So Crawford Ky. Lanman, 762, opinion by Judge 121 S.W. 117 Ga. 43 S.E. Am.St.Rep. Lamar, L.R.A..N.S., Lamar, See afterwards Justice Moody, swindling cheating Co. 117 Ga. charged alsо Bacon & dictments damage falsely 482. The measure of the “did S.E. because the defendants agreed paid, but price represent” to be is the is not the boundaries fraudulently making really they the con selling loss were the tim- suffered land on which goods they value of true knew the tract —the were otherwise ber equal may price charged. to be. was that months truth The evidence merely proven showing рreviously good had in faith case the defendants boundaries, purchase by an insolvent who does not afterwards so stated insolvency, although large portion he after- his become that- a disclose aware bankruptcy. goes into Brooks timber theirs. wards included Pitts, Ga.App. negotiation, anything, saying 100 S.E. 776. new without conveyance offering signed that in he written they must be shown paying, purchaser thought knew he could he still had no intention which showed previously get repre- boundaries were as intended not be made mistake, -short, paying; correct without he. sented. failure will not money paid under some future amount taking act the act swindling. legal acceptation, although subse- fraud in cheating was held mistake quently This authority, the most broken without excuse. Though legal not a money. especially promise tо history instruc- true of celebrated deceit case in Ananias; any contract would here, of the Otherwise breach of that of tive Apostles, Chap. Acts By Mfg. Co. the amount to Atlanta Skirt 1 to fraud.” Verses Jacobs, 1077, 1078. by selling Ga.App. 68 S.E. preceding appears that verses ‍​​​‌​​​‌​​​​​​‌‌‌​​‌​‌​​‌​‌‌​‌‌​‌‌​‌​​‌‌​​‌​‌‌‌​‍it consistently ad- ruling putting :the entire property their since Appeals. The proceeds the hered to in common relief fund the Court into a repute Supreme high Georgia in Wells acquiring were Court of contributors Blitch, 86, 90, along order to right support. Ga. 187 S.E. to future both, acquire thought, and the same a dis- Ananias his line of held that sold paid charge express in a without statement did relieve part bankrupt proceeds, that it to his intending sister emphatically land selling understood to be Peter which arose incumbered all. his pronounced though lie, cash, her to understand leading conduct representation. Sapphira’s an he would the incumbrance case, follows, upon rested time intending with the representation. accept No difference not to do so. The court said: “To *5 punishment. recognized money in their agent, present one’s without * ** money for using tention of do, here to criminal We have not with bailor, repre- is а false benefit statutes, their their strict construction intention, of avoid sentation one’s will distinctions, bankruptcy refined but with discharge.” discharge which honest statute intends to their but re debtors from honest debts to Georgia does not alone. stand prove dishonesty, expressly commercial Guernsey-Newton Na case Co. v. of discharge “liability denies for ob 724, P. pier, Wash. above taining property by false еxpress cited, in which the without endorser In de tences or false put his misrepresentation was induced to liberately Congress in chosen words check, discharge on holds name a bad pretences a difference between false dicates lia bankruptcy did not relieve from the representations. and false The latter bility check to to the endorser who misrepresenta appropriately express mean In Cicero Lumber Boerner v. Smith appropriate “False pretences” tions. ly more Co., Tex.Civ.App., 293 S.W. representations, refer- to con bought with intention held lumber no intended to foster a duct create and false prop pay liability to for it for creates impression. In both course in cases of pretences erty obtained false tended deceit essential. In either dis discharged bankruptcy." Higgin In * charge made ineffectual. Powell, botham-Bartlett Co. v. Tex. Civ. recog provision App., 270 the same law was applying S.W. the Bank- of nized, though Act, the case ended be Judge Russell, otherwise (cid:127)ruptcy later the Chief State, intent not to says cause fraudulent for the court on Justice the exact Dry point proven. now “A Louisville Goods Co. before us: Lаnman, Ky. representation may purchas- S.W. consist in the L.R.A.,N.S., Am.St.Rep. present purpose with goods no them, intent goods with paying contemplation for of a deceit, insolvency. buy an election to sue held goods fraudulent To with- liability present create in bank out a intention is a Blount, Cir., representation ruptcy. Zimmern v. of one’s intention. There- majority opinion, buy 740, cited goods fore to without a inten- way a case of fraudulent discharge. will resembles avoid a Of I perform goods. regard course, ordinarily, promises buying of do it as * Fox, fraud.” Rev.St.U.S. The stat- United States v. post void as ex facto and ute was held dealt -with statute police power; inváding punished anyone States’ who within three months hardly pre- that a can doubt false color one before “under carrying business, carrying business, pretence оn as Con- on tence might ordinary words, dealing gress used be made course express any person trade, than an other declaration. obtains credit any goods intent chattels with representa- express that an always necessary tion is to avoid the effect of a case re- discharge. The federal Nuttall, lied on In re F. Judge District in his Court. The did with the cussion discontent Appeals, ruling Court went no fаrther decision enough justi- hold the doubtful fy enjoining State court the suit granted and until the should be deliberately the matter examined. be more I think it who offers clear that one "promises pay, expressly or goods and purpose impliedly, and at the time paying, intends obtain the them a false nothing, obtain does is not pretence to a entitled from his in tort. Charles M. Cork and C. Jones, Baxter both Macon, Ga., аppellants. Asst, Kitchin, Mills Sp. Atty. Gen., Hoyt T. Davis, U. *6 Atty., S. of Ma- con, Ga., appellee. IN NAT. BANK & TRUST CO MA-

FIRST GA., CON, STATES. UNITED SIBLEY, Before HOLMES, and Mc- CORD, Judges. Circuit No. 9566. Appeals, Circuit. Court Fifth Circuit Judge. 30, 1940. Oct. George S. in his 1936 income tax Jones return took deductions in full of a loss sustained his stock in Realty Standard Company having become its valueless and having him; and the surrendered further loss of a $1,000 debt of about against Realty Standard Company having been ascertained to be worthless charged off during year. The deduc- denied, tions were additional taxes were paid, assessed and and a suit in the district to recover them did not succeed.' appeal followed. owned capital one-fourth Jones stock Realty Company of Standard year had cost him $12,588. city owned a block of stores, originally $80,000, worth and its renting business them. mortgaged, The stores were the balance December, being $21,- due in about mortgage and the note was indorsed and two other stockholders and Jones Dunwoody W. E. and S. T. Coleman. Company also owed bank notes for indorsed, $3,550 similarly owed its propor-

stockholders advances made

Case Details

Case Name: Davison-Paxon Co. v. Caldwell
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Oct 29, 1940
Citation: 115 F.2d 189
Docket Number: 9645
Court Abbreviation: 5th Cir.
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