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Palmer v. Warren
108 F.2d 164
2d Cir.
1940
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*1 nаte from jury’s positive minds adverse which might effect have been cre- testimony.” ated again, “im- peaching contradictory are statements destroy ‘admitted credit witnesses, to annul and not to substitute ” their testimony.’ jury Whatever the may have concluded us to the impeaching effect affida- vit, the information it contained presumption evidence. The that at the accident, time of the McAdams was driv- ing the truck on employer’s business, his completely disappeared from up- the case

on the coming in of defendant’s uncontra- evidence, dicted as to McAdams’ duties obligations with reference to the truck and as to was doing, what he at the time. Plaintiffs, offered rebuttal, no evidence in presumption entirely and their gone, they

¡stood, wholly without evidence to take

their jury. case judgment should have been re- versed. respectfully I dissent from its

(cid:127)affirmance.

On Petition For Rehearing.

PER CURIAM. As neither of the judges who concurred

<in judgment of the сourt in the above numbered and entitled opinion cause is of petition for rehearing should be granted, it is ordered that the said be and the hereby same is denied.

PALMER WARREN et et al. v. al.

Nos. 38-98. Appeals,

Circuit Court Second Circuit. Dec. 1939.

Rehearing Denied Jan.

Writ of Certiorari Granted March

See 60 S.Ct. 84 L.Ed.-.

165 rejected its lease the New Haven 3, 1936) (June of the Old to de- 31, and December deficit declare whether termine and or- road. was liquidated der, April entered charged it as a deficit, amount of was creditors—there general Providence mortgage. Boston & owner corporation and the a Massachusetts implies, railroad, running, as its name of a Providence; 1888it between Boston and years to the property for 99 leased all its corpora- also a Massachusetts tion, operating network owning and lines in that In 1893the Old state. including the in turn leased its own lines— years term it held of the Haven; also for Providence—to the years. oper- a term of 99 until, having become ated three roads insolvent, put reorganization it was into Act, Bankruptcy Oc- under .on 77 of § 23, 1935, others were and Palmer and tober made its trustees. The trustees continued operate Colony as lessee's until the Old 3, 1936, when, by order of the bank- June lease, ruptcy they rejected the they of an thereafter virtue order, presumably made under subdivision c(,6) although the order did of § All had run at a so recite. three roads months, for the first seven deficit put was also June reorganization into under Since § shares, majority of its New Haven held proceedings, as the court united the two appointed (sub. a), statute allows the the same trustees. continued, The deficits still Mass., Griswold, Cambridge, Erwin N. the court instructed the appellants. reject the Boston & trustees to Providence Gardner, Jr., H. Hermon Wells and did; lease, they J. J. con Haven, Conn., appellees. both of New before, tinued, operate roads both c(6) order under sub. the court’s § HAND, N. AUGUSTUS Before L. 4th, August the Boston & Provi HAND, CLARK, Judges. Circuit reorganization, and into put dence HAND, Judge. Circuit L. appointed its trus and others were Warren tees. That proceeding was in the District Corpora- Boston & Providence R. R. Massachusetts, could not have Court of ap- reorganization its trustees in tion and joint bar, with the one at be united orders, joint been entered in a ‍‌​‌​​​​​‌​​​​​​​​​​​‌‌​‌​‌​​​​​​​‌‌​​​​‌​‌‌‌​​​​‍peal from two Haven, nor neither the New Bankruptcy proceeding under 77 of the § majority Colony, owned a of the Bos reorganize Act, 11 U.S.C.A. § shares, required by & Providence ton York, R. New Haven and Hartford New R. (over appeals both of 77. The a of Colony R. Co. The R. Co. jurisdiction, Robertson v. we have orders, entered first of these Cir., 530) involve Berger, 2 102 F.2d bankruptcy cоurt decided that the Con questions: (1) whether following jurisdiction to determine the amount declare necticut court had operation of the the deficit caused Providence that the Boston & day when Boston & Providence between the res, between must at some surrender time the Boston & and can a lien know whom it should delivei reversion; so, (2) whether in case it either decides declaring possession itself, that court was right in the action awaits lien; (3) competent deficit did whether constitute a such other tribunal as the claim *3 may the amount found was correct. ant choose. .. The second course sub jects it to delay dispatch an indefinite in the (1) the Connecti of The Jurisdiction of it, may effectively before cut Court. cripple powers. its not The same is in demands, deed true where the claimant not Supreme The laid Court has it right possession, to but a lien or other court, down numerous decisions that a res; similar interest the custodial federal, lawfully- state or has once which court then itself with content learn custody adjudi property, may assumed ing who possession, was entitled to any it, only cate claims not when any leave unadjudicated; other interests the claimant suit asks intervenes in the indeed that is what it does like in cases a rights declared, that his when be possessory bare admiralty, libel in the for court cites him in in invitum.1 Courts of instance. But this incomplete would leave jurisdictions other recognize judg its will purpose suit, if, of the gen main as is judicata, may enjoin ment as res and it case, erally the that is the distribution of rights claimants from prosecuting their hands, the assets in its presupposes which elsewhere, except as finds more con it it that all liens have been ascertained. In the venient allow All to them do so. this is to not, case at bar the New Haven is it is entirely law, familiar and the Boston & true, resisting a lien; it is itself the claim it; dispute says does it ant, putative But, a although, lienor. inapplicable, it is district because the court found, far as we have that situation has possession property. never came into courts, come before it seems to us argument Colony got is plainly a variant right of a claim to the years; a for and that the term 99 dis possession. private If the roads were possession trict court could take of no more corporations, there could be doubt no about than lessee had had. This misconceives this. would in doctrine, &.Providence depends of the the nature posses asserting right that case be possession merely upon in the natural sense sion, which the New Haven and Old Col court’s are in control officers ony resisting ground would be on the property de can exclude all facto road; they had lien on a it would be a scarcely prac Indeed it be others. would typical case which would adopt juris for have any ticable other basis jurisdiction. Because Provi necessary Were court diction. servant, cannot, public is dence possession have should insolvent’s least, present operated sep be as adjudicate legal interest in order to carrier, disguised; every result is erroneous arate judg follow that would proper jurisdic and the Old must be un beyond ment would possession control right tion, to act New and it Haven; Moreover, c(6) correctly. 77. But we can see it acted we when this, falsify the meaning why whatever no reason rela can attach themselves; roads legal interest in tions between two “possession” thing, them, possession indeed, except thing means is as it it has effect conclusion, to confirm our object lying The reason nature. likely possession Haven’s be dis is not practical whole back of the doctrine rath may plain possibly turbed. true that conceptual, appears very It er than to resort Connecticut dispute t< court will have when the concerns the custody through Massachusetts court, its trustees possession. A has 533; 292, Taubel, Christy, etc., parte Fox, 11 68 L.Ed. 3 How. Co. 1Ex L. v. 426, Whitney Wenman, 603; 432-33, 44 396, 198 264 U.S. v. U.S. S.Ct. 68 Ed. 770; 1157; 539, 778, 49 Wab L.Ed. Isaacs v. 25 S.Ct. L.Ed. Hobbs & T. Tie College, Co., 734, 270, 208 282 U.S. Adelbert 51 S.Ct. 75 Railroad Co. v. ash L.Ed. 379; 645; New, 318, 38, 182, 321, v. 28 52 L.Ed. Straton 283 S.Ct. U.S. U.S. Co., 1060; parte Murphy 211 51 S.Ct. 75 v. John Hofman U.S. L.Ed. Ex 327; Baldwin, 291 29 S.Ct. 53 L.Ed. Hebert 54 U.S. S. Crawford, Avery 228 33 S.Ct. Ct. 78 L.Ed. v. v. U.S. Harris Brundage 800; Chicago Co., Board of L.Ed. Trade 305 U.S. 59 57 S. Johnson, 264 44 S.Ct. Ct. 83 L.Ed. 100. v. U.S. so, it is reorganiza- lien. If sets to own court realize be dealt with in its tion, other; Prov because like dividend in bank- distribution of the allo properly ruptcy, example. idence the new Nevertheless assets —more corpo- con cation of in them —has been mere first interests fact that court But fided to the Massachusetts court. ration it has liquidates the claim because power property, need the Connecti ‍‌​‌​​​​​‌​​​​​​​​​​​‌‌​‌​‌​​​​​​​‌‌​​​​‌​‌‌‌​​​​‍ does possession affect second’s liquidate fix rank reorganizations court to one. cut not make the. two applica true, Nor would a consistent That would not even be require to extend reasoning by assuming tion of this us court followed corpo- the Connecticut declare what interest the second exchange of unsecured claims collection ration receive in the first should persons. pro third indeed for the lien. To do so wоuld *4 presence within reach the debtor upon plan of second impinge tanto the the process upon the court’s is not condition a lien was (except in rare where the the case power legal interests exercise of to declare “adversely materially by and affected property gremio legis. is in which in e, plan” 77); but would still the § go no court could that Connecticut fact the оnly say be untrue there would to that the Boston & Providence hold and power single reorganization. if the a may liable, why it generally is reason no liquidation, the with first court end must Haven not declare what the New interests corporation can receive in and the first Colony in its road. Old have and exchange adjudicated only for its that Finally, argues Providence plan the Boston & gives interest second ju- gave that since 77 sub. “exclusive a it, plainly say it would be absurd to that court over risdiction” to the Massachusetts single reorganization. there was We lo- property its wherever “the debtor and agree cannot that the order therefore cated”, may adjudicate that court alone January 16, power.which assumed a That, however, two is a sword with No 77 forbade. doubt chosen, Connecticut § court edges, had an thе Connecticut court might, had it have left to jurisdiction” over equally “exclusive liquidate the Massachusetts court to New “property located” of the wherever claim; any having custody of a res Colony. is Haven and of may was always do that. But there “property” much as the encumbered their justification doing so plainest for not here. Providence’s, and the fee is Precisely questions the same arose between the same res which the lien attaches is to the New Haven and the Old and Granting which the resides. as that in fee proceeding; in this had to be dealt with has each court “exclusive arguendo that duplica- it have involved legal over the interests its jurisdiction” tion of labor to refuse but.it res, in far as those interests debtor contradictory rulings in resulted conflict, each cannot have when do not upon sаme issue. order is af- do, priori no reason á there is firmed. In prefer one court over the other. that On the Merits. we can to the logical dilemma resort cases; applicable in such normally doctrine appeal, order on Order No. over e., court first taking that i. liquidated the until December power res, itself draws to determine it went no further because the upon it. claims “Report New of Administration” Haven’s year. stopped the end conclusion affected The con- Nor fact at judge’s deliberately pro- troversy ruling refused arises over Congress joint participation pro- in certain reorganization of les- earlier for the vide lessees, ceedings, especially terminating those major- unless one held a in sors & ity the others’ shares. Mere Order No. Providence joint estopped contest the New reorgani- is in sense a Haven’s the lien no Colony’s demand. This quite three roads. It is Old involves true zation of proceedings corporation some reorganization in statement if one short- suit. Connecticut On has a of another in claim the assets reorgani- Colony went after the Old into reorganization, has first court of 75, par- zation, passed judge Order No. part of power liquidate claim as corporation agraph that in case of which declared reorganization; nine the first contract reject any present must be claim and the content to gives lease plan second it or take lease —the Boston & Providence what merely operation of exchange, of its own as- one was not named —“the * * * petition, leased property shall have been held hearings on the trustees’ “Report pay- and such of the lessor May account Administration” in * * * June, proof. charged ment shall be on at which the New Haven made its land, earnings properties The Boston & part Providence took mortgage hearings, witnesses, lien”. The court these other examined No- already had order on offered Thereupon, made a similar some evidence. 30, 1935, Haven respecting vember the New the court entered “Order No. un- —Order No. its trustees had approving “Report 17—and Adminis- “segregation tration”, dertaken studies” certain fixing joint defi- & that the Boston which seemed to show of the Old cit dence, the Boston & Provi- at a loss. being Providence, Providence and the Warren & Trust Railroad, the Bankers October Bristol from October Haven, Company, mortgagee 1937, $11,789,000. This (“Petition $5,775,000 ‍‌​‌​​​​​‌​​​​​​​​​​​‌‌​‌​‌​​​​​​​‌‌​​​​‌​‌‌‌​​​​‍filed allocated as against follows: stop the rent- 217”) requesting Colony, $5,461,000 against the Bos- Providence, ton & $552,000 Providence lease. als the Boston & Providence, Providence, May the Warren The 27, & Bristol. The appeared generally deficits already and the Bos- ton & charge upon suit, this, opposed were declared “earnings time, the relief at that but directed *5 refused Colony Company Railroad as an prepare a the New Haven trustees to plete com- expense of prior any administration up year the end the of account mortgage or other lien thereon”. On the they did, adopt- This for his information. day next the court decided “Petition the Formula”, by ing “Segregation which to for Order No. 217” of the Bankers Trust equitably apportion between the the deficit Company by directing the Colony Old trus- Providence, & Boston Old the reject tees lease, making any to cease Providence, road, Warren & a third Bristol, payments opеrate under and to the road period from October over the under subdivision c(6) 77. This order They submit- 1937. concluded as follows: “The Court reserves Commerce report to the Interstate ted this for hearing to determine approval, the Bos- for its Commission any the existence and obliga- amount of appeared before the ton & tion arising of the Boston & Providence also, seeking a more favorable Commission operаtion property payments out of of its or burden. The Commis- distribution of the prior made to it or on its behalf to the re- reported April on back the court sion lease, jection liability of its was “as fair that the account and and Boston & Providence therefor Old to the permit”, equitable circumstances Colony way by subrogation estate and the New Haven and Old Col- on the 19th ony tration”, And pending to the New Haven estate. “Report of filed their Adminis- trustees such determination the Court will withhold accounting including their ruling final on “Petition for Order No. action. While this was Commission’s Colony The New Haven 276”. and Old prayer petition, concluded with a form a petition ap- 29th filed a for >on approve the annexed court proval of their accounts the Boston accounts, should declare the deficit to Providence, $3,955,- showing & a deficit of earnings prop- charge on the be “a and/or prayed should charged be subsidiary prior of said debtors erties prior property (“Petition ‍‌​‌​​​​​‌​​​​​​​​​​​‌‌​‌​‌​​​​​​​‌‌​​​​‌​‌‌‌​​​​‍lien on its as for Order mortgage or any other lien thereon as ex- 301”). The amount No. claimed The Boston penses of administration”. & from differed the deficit awarded objections report filed to this Providence April by the Boston & Providence Order No. day before it had filed accounting period of the because petition (“Petition 276”) Old repudiation of the began with the Or- paragraph 9 modifying for order an lease, 4, 1936. Colony in case provide that der 75 so as to August open on Thus there remained Colony by Old rejection any lease & 1938, only petition deter- “for future the court should reserve pe- 276, and the No. for Order Providence tition of the any questions arising out of mination all * * * rights concerning such rejection * * * No. 301. trustees for Order operation for and liabilities in- gone Providence, having meanwhile & payments properties and the leased objections to filed reorganization, first dispose did not made”. The court

.169 jurísSiction order “the over “Petition meant than that existence 301”, judge obligation” over amount of the left Order No. to be by large, ruled That is the or аt and not deemed concluded Or- Indeed, He already der affirmed. der No. 300. indicated which we have merits; hearings hearings upon then but be several times “Re- held on the at the port thought questions had been he that all of Administration” that he understood , finally by he re settled Order No. the Boston & Providence must 300 separate upon fused as to the. hearing liability. to receive evidence cor a Formula”, “Segregation opinion, quoted rectness lan- although in his he permit liquidation of the Boston fresh guage paragraph Order five No. He Providence’s share of the deficit. effect, he did being apparent- discuss its liquidated prayed claim at the amount ly concerned with that of Order No. that was declared se 300, alone. open, taken What so left upon cured e., “existence obliga- i. tion,” and amount of the Prоvidence, reduction dispute. covered whole Certain- imposed upon the lien obligation” “amount included May Order 300. On 5th he entered No. apportionment opened the deficit and denying another order “Petition Or “Segregation Formula” to If it attack. appeal der No. is from 276”. open argued that it did existence April Order No. entered securing “obliga- rank of tion” and that- No. 300 Order Haven and estoрpel lays that, toas the last sentence support seek judge’s ruling any doubts, for it declared that himself; grounds same is, gave which he action defer “Petition for Or- ap the Boston & Providence that asked a modification of peared generally proceeding, had ob deficit, Order 75 so that among other *6 jected to Bankers Trust Co.’s “Petition payments, should not become and to trustees’ of the Boston & Prоvidence. “Report of Administration” which followed estoppel then was left for What of Or- say that, having They it. been heard proposed If 300? it was No. treat length, at road was free not to reliti estoppel ‍‌​‌​​​​​‌​​​​​​​​​​​‌‌​‌​‌​​​​​​​‌‌​​​​‌​‌‌‌​​​​‍as to that order as of these gate questions decided, among matters, was, paragraph five say proper apportionment was the least, extremely misleading. Whether validity Had it appealed Providence would Boston & the concluding paragraph been for assured, No. not so from Order we if 217, conceivably Order reasoning No. know; surely cannot indeed but it was en- might prevail; we cannot see how that titled to assume it need do so. can survive what was there declared. appears this record to have had its originally When to the judge, submitted court, day in and the order must be re- provided paragraph five of the order that that shall. versed expenses 3rd, since June made on behalf of should be deemed Order of affirmed. Providence and should be No. reversed. Order However, Co., the Bankers' Trust liens. .order, agreed presented the to add Rehearing. On Petition quoted language we above. as a suffix the protested PER CURIAM. liability this would determine its and leave have been misun- seems to opinion Our nothing accounting, to decide but if not clear. We perhaps was derstood and that; even left observed Haven it means agree the New with provisions, the main suffix nullified & .Providence the Boston more than that suggested part the earlier be omitted. procure any change by the cannot now objected It was then Order No. 75 in “Segregation Formula” Commission provided thing. substance be- However, same To this we meant decide itself. fore, judge replied: say “I again, these items shall now and we decide charged by oppose such method as the court free to Boston & Providence is now, shall application by determine. And Court of that at Mr. War the District request, say ren’s am going I shall its account formula to the freely Or- hearing”. be determined In with the debtors view had not of this cannot see else der No. 300 been entered. we what

Case Details

Case Name: Palmer v. Warren
Court Name: Court of Appeals for the Second Circuit
Date Published: Mar 4, 1940
Citation: 108 F.2d 164
Docket Number: 38-98
Court Abbreviation: 2d Cir.
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