No. 2,924 | E.D. Pa. | Feb 10, 1910
The facts of this case are as follows :
The bankrupt owed James L. Cocker $6,655.40 upon two bonds, secured by two mortgages upon two houses and lots of ground. The mortgages were foreclosed, and the sheriff sold the property to Cocker for $100. There was no other bidder at the sale, and the sum paid by Cocker was applied tq the costs. He received official deeds and went into possession. Afterwards, he presented a claim against the bankrupt estate for the full amount of the bonds. In his examination before the referee he testified that the houses rented for $53 a month; that their combined value was about $5,000; that he would have bid $5,500 at the sheriff’s sale in order to protect his mortgages; and that he was willing to. take now $6,500 for the property, as he had spent about $400 in improvements since the sale. He summed up his position very frankly by saying that he thought in fairness the bankrupt owed him about $500; but when the referee took him at his word, and reduced his claim to that sum, he declined to acquiesce and had the question certified.
.The allowance of the claim in full was resisted on the ground that only a small part, if any, of the debt was equitably due, and this contention was sustained by the learned referee (George E. Darlington, Esq.), who allowed only $500, as has already been stated. The pre-
On the authority of Winter’s Appeal, the order of the referee is affirmed.