193 F. 271 | D.S.D. | 1912
On the 26th day of December, A. D. 1911, Charles N. Harris, Esq., referee in bankruptcy, made an order in the above-entitled matter, denying the bankrupt’s claim to exemptions, and further decreeing that the property claimed by said bankrupt be and remain the property of the estate in bankruptcy, to be disposed of as part of the assets of said estate, and the proceeds thereof distributed for the creditors of said bankrupt. The bankrupt thereupon petitioned the referee to certify the question as to whether said Sidney Abrams was entitled to the exemptions claimed by him in this proceeding.
The court finds from the record herein that the said Sidney Abrams and Henry Friedlander entered into a partnership about January 1, 1911, at Aberdeen, Brown county, S. D'., under the name of the 'Palace Clothing Company. It appears from the evidence that in the month of August, 1911, this partnership was insolvent. It further appears that Friedlander was not a resident of Brown county, or of the state of South Dakota. It further appeared that the}I *****7 went through the form of a dissolution of the partnership, the bankrupt, Sidney Abrams, keeping possession of all the partnership property excepting a lease, that the record shows had no value; and the referee finds in his certificate of facts that this dissolution—
“was an attempted dissolution or abandonment of the partnership property, with the sole purpose and object of placing the bankrupt partner, who subsequently filed a voluntary petition in bankruptcy, in a position to claim his individual exemptions from the stock of merchandise purchased by and owned and operated by the bankrupts as a partnership, to within some three weeks of the time of the filing of the voluntary petition of the bankrupt herein.”
I find, upon careful consideration, that the testimony, with the reasonable inferences to be drawn therefrom, sustain the foregoing finding of the referee. This court finds that the fact that this partnership was insolvent was known to both of the partners in August, at the time the dissolution was made'; that the bankrupt took the stock.of merchandise, and Friedlander received and kept no part of the partnership property, except the lease of certain real estate in Aberdeen, S. D., which had no value; that Friedlander came to Aberdeen on the 26th day of August, for the purpose of “turning the business over to the creditors”; that all of the partnership goods, including those claimed by Abrams as exempt, were purchased by the firm of Fried-lander & Abrams on the credit of the firm; that the debts due and owing by the bankrupt, as shown by his schedules, were the firm debts of said partnership.
“In case of the bankruptcy of a. partnership, neither member of the firm can claim any portion of the firm property to be set apart to him as his individual exemptions.” In re Lentz et al. (D. C.) 97 Fed. 486.
It was thereafter contended that the re-enactment in the revision of the laws of the state of South Dakota in A. D. 1903, in which section 363 of the old Code of Civil Procedure was brought forward into the Revised Code of 1903, operated to extend the exemptions to a partnership, and the question was discussed and again determined by this court in the negative, holding that subdivision 5 of said section 363, as re-enacted in the Revised Statutes of A. D. 1903, is wholly inoperative, for the reason that it has no law granting partnership exemptions upon which it can operate. In re Novak et al. (D. C.) 150 Fed. 602.
Upon this record it seems very clear to the court that no error was committed hv the referee, and an order should therefore be entered, in all things affirming the order of December 26, A. D. 1911, brought here for review.