213 F. 335 | 8th Cir. | 1914
' “The deduction to be taken from the said stock of groceries, $500; or its equivalent in cash out of the proceeds of said stock, $500.”
The trustee disallowed the exemption, and the referee sustained him, on the ground that the bankrupt had not specifically selected the articles to the allowed value. The District Court reversed the referee, and directed that the amount of the exemption he paid in cash from the proceeds of the stock which had been sold in’the meantime. The statutes of Nebraska provide for an exemption of a homestead and household furniture, clothing, family pictures, etc.; but, if the head of a family has no homestead, then (section 521, Civil Code) “he may have in lieu thereof the sum of five hundred dollars in personal property.” The bankrupt duly claimed the articles specifically exempt
But it is urged the court gave the full amount in money, and therefore the bankrupt did not bear his share of the shrinkage on the sale. Even were there a shrinkage, which does not appear, the bankrupt’s claim was in the alternative, with the choice in the trustee for the advantage of the estate. In sales of stocks of merchandise it is frequently beneficial to general creditors that the face value of claims or liens on part be transferred to the proceeds of all. But, if that should not have been done here, it was the Muty of the trustee to set off the exemption in specie and to ignore the alternative. The exemption should not be destroyed by his act or neglect. If precedent were needed for the order of the trial court, it may be found well reasoned in Burke v. Trust Co., 67 C. C. A. 486, 134 Fed. 562; In re Kane, 62 C. C. A. 616, 127 Fed. 552; In re Friedrich, 40 C. C. A. 378, 100 Fed. 284; In re Andrews & Simonds (D. C.) 193 Fed. 776; In re Hargraves (D. C.) 160 Fed. 758.
The petition to revise is denied.