Segal Brokerage Co. v. Lloyd L. Hughes, Inc.

The appeal is from an order of the District Court approving the report of a special master rejecting claims of appellant for administrative expenses against appellee Lloyd L. Hughes, Inc., in proceedings for reorganization under section 77B of the Bankruptcy Act, 11 U.S.C.A. § 207 and note.

The petition for allowance set up two claims. One of these was based upon commissions said to have been earned by ap *209 pellant under a brokerage contract for the sale of hops. The other claim is for the reasonable value of services alleged to have been rendered in negotiating a settlement between appellee and the E. B. Hittleman Brewery, a concern which appellant had procured as purchaser of the hops. For convenience appellant will be referred to as Segal, the appellee as Hughes, and the purchaser as Hittleman.

Segal’s petition alleges that on May 19, 1933, he entered into a written agreement with Hughes whereby he was appointed exclusive sales agent for Hughes in an eastern territory for a period of five years. Pursuant to this agreement, Segal negotiated several contracts with Hittleman for the sale of hops to be grown during the years 1934 to 1937, inclusive. Hittleman failed to perform…