Cowing v. Altman

Headnote

Assignee in bankruptcy — cannot take extra compensation — section 45 of bankrupt act.

One EL, at the request of several of the creditors of a bankrupt, consented to act as assignee, on condition that they would pay to him the sum of $2,000 in addition to his legal fees. Subsequently the defendant bought up the claims against the bankrupt, agreeing with the creditors to pay the said sum to H., and in pursuance of this agreement he subsequently gave a check for that amount,

upon which this action was brought. Held, that the agreements were illegal, under section 45 of the bankrupt act, and that as they were still unexecuted, this court would not enforce them.

Appeal from an order made at tbe Special Term, granting a motion for a' new trial, made upon tbe minutes of tbe justice before whom the case was tried.

This action has already been before the General Term, tbe decision being reported in 1 New York Supreme Court (T. & C.), 494.