188 F. 675 | E.D. La. | 1911
In this matter appeal has been taken from the ruling of the referee; First, as to his action in reducing on his own motion the fee of the attorney of the bankrupt; and, second, for disallowing the claim of the Provident Building & Loan Associátion for attorney’s fees in connection with the payment of its mortgage on the bankrupt’s property.
“The claim of the mortgage creditor for attorney’s fees incurred by kirn, after the maturity of the note and for services rendered to secure payment of his note, is well founded.
“It was agreed by the act of mortgage that the mortgagor bound himself and his assigns to pay the holder of the note all attorney’s fees, as he may incur, in the event of the nonpayment of the notes at maturity.
“The evidence shows that, after the sale of the mortgaged real estate, the syndic ruled the mortgagee to show cause why the inscription of his act of mortgage should not be canceled to give a title to the purchaser.
“The mortgagee was thus constrained to employ counsel to represent him and see that, if the amount went to the syndic, it would be secure in his hands. This was not a mere formality. Responsibility rested on the counsel, for which the mortgagee, under the clause, is entitled to recover the compensation, as fixed in the contract.”
I do not find that this decision has ever been questioned or overruled in the slightest degree, and it applies with the same force to proceedings, in bankruptcy as it did to proceedings under the in
And it is also well settled that the attorney’s fees, when due, are considered capitalized and recoverable by the mortgagee, of course, for the benefit of the attorney to whom they must ultimately be paid, and no doubt usually are.
The ruling of the referee as to the reduction of the fees allowed the attorney for the bankrupt is approved and affirmed. His ruling with regard to the fee claimed by the Provident Building & Loan Association is reversed.