In re Lombardy Inn Co.

266 F. 394 | D. Mass. | 1919

MORTON, District Judge.

At the time when the receiver in bankruptcy was appointed he found the bankrupt still in possession of the premises, claiming to hold under a written lease. The lessor, alleging a breach of condition, had already instituted ejectment proceedings in the state court. The learned referee temporarily enjoined the prosecution of these proceedings to give the receiver time to turn around. The premises are- a hotel of some 30 rooms and a restaurant having a substantial business of its own.

In holding that the receiver should not be immediately turned into the street, but should have an opportunity to look things over and decide whether or not to defend the ejectment case and try to re--tain the lease for the benefit of the estate, and in staying the ejectment proceedings for that purpose, it seems to me that the learned referee was right. Under the circumstances a high degree of diligence will be required of the receiver; and after a reasonable time has elapsed the lessor can move to vacate the restraining order,

Order of referee affirmed.