228 F. 1003 | E.D. Tenn. | 1915
After careful consideration, I have reached the following conclusions:
“A person shall not, in proceedings before a referee, (1) disobey or resist any lawful order, process, or writ.”
The effect of the order of the referee is that the trustee shall sell the property to the highest bidder. The buying off o.f one bidder in order that the property shall not realize the highest price, but shall be bid in at a lower price by another, to the prejudice of the bankrupt estate, is an act which pro tanto defeats the order of the referee and frustrates its primary purpose of having the property sold to. the highest bidder. The first definition of the verb “resist,” as given in the Century Dictionary, is:
“To withstand; oppose, passively or actively; antagonize; act against; . exert physical or moral force in opposition to.”
Clause “b” of this section of the act further provides that if any person shall do any of the things forbidden therein the referee shall certify the facts to the judge, who shall, after a hearing, if the evidence so warrants, “punish such person in the same manner and to the same extent as for a contempt committed before the court of bankruptcy.”
I am hence of opinion that the motions of the several defendants to dismiss these proceedings on the ground, in effect, that the referee’s certificate, which was duly filed under this clause, fails to show any acts on their part rendering them guilty of contempt or which can. properly be certified to the judge under this section of the Act, are not well taken.
4. Under all the circumstances, however, I am of opinion, especially in view of the fact that this is apparently the first case of this character to come before the courts, and there was, I think, no general knowledge in the community that conduct of this kind constituted contempt of the authority of the referee, that the ends of justice will be sufficiently met by the imposition of a suitable fine, as authorized by section 268 of the Judicial Code, with costs.
5. An order will accordingly' be entered overruling the several motions of the defendants to dismiss the proceedings; discharging -the defendant Dethridge; adjudging that the defendants Boyd and Sawyer have resisted an order of the referee in proceedings before him, and that each of them pay the United States of America a fine of one hundred dollars, together with all costs incident to the making of each of them a party to this proceeding; and on the application of the defendant Heard, and on account of his illness, continuing this proceeding as to him for hearing on pleadings and proof at a time and place to be hereafter designated by the court upon application of the parties.