Bogert

Billings Credit Men's Ass'n v. Bogert

Good Law
5 F.2d 307·1925 U.S. App. LEXIS 2652
United States Court of Appeals for the Ninth CircuitMay 11, 1925No. 4399California735 words

Opinion

Lead Opinion

Hunt, J.

(after stating'the facts as above). The petitioner takes the position that the order to show cause made after the decision of this court and the subsequent order based thereon, removing petitioner as trustee, are void as in excess of the jurisdiction of the District Court, while respondent contends that the District Court had the power to remove the petitioner as trustee for cause, without complaint of the creditors.

Under the Bankruptcy Act of 1867, § 18 (section 5039, Rev. St.) the court, after due notice and hearing, was expressly given power to “remove an assignee for any cause” which in the judgment of the court rendered such removal “necessary or expedient.” Constructions of that statute were that the removal of an assignee was entirely within the discretion of the District Court; that it was the judgment of the District Court upon the necessity or expediency of the removal that decided the question of removal; and that the discretion lodged could not be reviewed by the Circuit Court. In re Adler, 1 Fed. Cas. No. 82. But under the Bankruptcy Act of 1898, § 2 (Comp. St. § 9586), the bankruptcy courts are invested with such jurisdiction at law and in equity as will enable…

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