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CONRAD, RUBIN & LESSER V. PENDER, 289 U. S. 472 (1933)

U.S. Supreme Court

Conrad, Rubin & Lesser v. Pender, 289 U.S. 472 (1933)

Conrad, Rubin & Lesser v. Pender

No. 718

Argued May 9, 1933

Decided May 29, 1933

289 U.S. 472


1. Payments made by the debtor in contemplation of bankruptcy "to an attorney and counselor at law, solicitor in equity, or proctor in admiralty," "for services to be rendered," are subject to be summarily

Page 289 U. S. 473

reexamined by the referee as to their reasonableness, under § 60(d) of the Bankruptcy Act. P. 289 U. S. 475.

2. The payments covered by § 60(d) are to be distinguished from the allowances contemplated by § 64(b)(3) which are made out of the bankrupt estate for legal services in its administration. P. 289 U. S. 476.

3. The jurisdiction to reexamine under § 60(d) depends not on the specific nature of the services to be rendered, but upon the state of mind of the debtor -- upon whether his thought of bankruptcy was the impelling cause of the transaction. P. 289 U. S. 477.

4. The test of jurisdiction under § 60(d) is not whether the services to be rendered are "germane to the aims of the Bankruptcy Act." P. 289 U. S. 478.

5. The payments may well be "in contemplation of bankruptcy" though the purpose was to bring about an arrangement with creditors that would prevent bankruptcy. P. 289 U. S. 478.

61 F.2d 771 affirmed.

Certiorari to review an order of a court of bankruptcy requiring the present petitioners to turn over to the trustee part of a sum that had been paid to them by the debtor for future legal services shortly before the filing of a bankruptcy petition against him.

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