# Respondents Brief — Kinsella v. Krueger > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386418_1068%3A2 ## Record - **Collection:** Supreme Court brief - **Document type:** Respondents Brief - **Published:** January 1, 1956 - **Citation:** 351 U.S. 470 ## Text ohms ree eee a . \ yn” LOR ert, arn TABLE OF CONTENTS OF BRIEF PAGE 1. Citations to Opinions Below ................... 2 ELS S'ne KUEN a Kank yO G40dKKGOee saNRERKS 2 a; SUN UO 5 vce a cack a ccccccaceaccves 2 i OE ass Lit ew acne etnbe wks shanacnen 3 NE Pe tt ClLd. neh Lian ae ce hendcaak hehe 3 FSP POP CT OLE T TT eT eT EEE CT TST e 5 A. The Filing of a Petition in Bankruptcy Does Not Confer Rights Upon Chattel Mortgagees Greater Than Those Conferred Under State Law; Nor Does It Give Such Mortgagees yo gg a Sr eer re 5 B. The Decision Below is Correct, and Does Not Conflict With any Decision of This Court or SP EE RIES 0.6 bub akschessaceuaeenses 8 C. The Decision Below Raises No Important Question of Federal Law ................... 10 SR ee a er en 13 NG Sc thaes che ak. has sSsnd Gicteeeunsed sss 15 Section 1, Act of Assembly (Pa.) June 12, Re ee eer ere e rr 15 Title and Section 1 of the Pennsylvania Chattel PE IEE a sacra scenes cnssaneh ies 15 TABLE OF CASES CITED Ambler National Bank v. Maryland Credit Finance Co., 147 Pa. Superior Ct. 496, p. 502, 24 A. 2d 123 City of New Orleans v. Harrell, 134 F. 2d 399 ........ Commercial Credit Plan v. Mahoney, et al., 67 Pa. Dis- trict & County Meperts, OTT 2... csc cccsenccwres Ferbro Trading Corp. v. Jo-Mar Dress Corp., et al., 78 Pa. District & County Reports, 337 .............. First National Dank of Jamestown v. Sheldon, 161 Pa. a gt err re eT eT Tee errs eee In re Industrial Sapphire Manufacturing Co., 182 F. 2d | BENET ee TTT TCT ETET ET CET ETT CUT Eee In the Matter of Quaker City Uniform Co., Inc., Bank- PU Ae Ws I, I ook sink esha acacscancuswne Kaufmann & Baer v. Monroe Moior Line, 124 Pa. Su- on gk ae OP Se eee eee eee eee Klaus v. Majestic Apartment House Company, 250 Pa. OF | Pee ee er ere Peer eer rere Personal Finance Co. v. General Finance Co., 133 Pa. Superior Ct. 582, 3 A. 2d 174 ......... cee wees Re George Townsend Co., Inc., unreported (reprinted in petitioners’ appendix, p. 47) ...............44. Roberts’ and Pyne’s Appeal, 60 Pa. 400 ............... Seymour v. Wildgen, 137 F, 2d 160 .................. PAGE a ad Cad gna Lawn bs Dae ih i PT nn, A ate Ne is ts TABLE OF STATUTES AND AUTHORITIES CITED PAGE Act of Assembly (Pa.), June 12, 1878, P. L. 207, Section SLA a RUabORRRERARES EAWAR ROAR SEMEN TLE ES Gee 3,9 Act of Assembly (Pa.), June 1, 1945, P. L. 1358, Title and Section 1 (Chattel Mortgage Act) .......... 3,5 Bankruptcy Act, 49 Stat. 11 U.S. C. 96 et seq.: | RE Geen Preee Ty ree Tory re tren 8,9 eee a Ty CE) CR ccna esos teva learns 8 Ee rr rer Tre errr ree cVaRS Ca wee eer 11 NEN Ee CED 5 isan bd usecnber cree reese hrereineens 2,8 4 Collier on Bankruptcy, 296, 1347 (14th Ed.) ........ 7 Restatement Conflict of Laws, Sections 265, 272,279... 6 PRD ay SSS RRS OE laa oe OR Ps IN THE Supreme Court of the United States October Term, 1956. No. 717. In the Matter of: QUAKER City UniForM Co., Inc., Bankrupt. DANIEL P. VELoRIC and FIDELITY-PHILADELPHIA Trust CoMPANY, Petitione’s, and CoLLEGE HALL FASHIONS and SYNTHETIC SPECIALISTS, INC., Respondents. On PETITION FOR A WRIT OF CERTIORARI TO THE UNITED States Court oF APPEALS FOR THE THIRD CIRCUIT. BRIEF FOR RESPONDENTS IN OPPOSITION. Ce ee ee 2 I. CITATIONS TO OPINIONS BELOW. The citations to opinions below are as set forth in the peti- tion for a writ of certiorari. II. JURISDICTION. Petitioners invoke the jurisdiction of this court under 28 U. S. C., Section 47c. III. QUESTIONS PRESENTED. 1. Do chattel mortgagees acquire greater rights and prior- ity of payment, as the result of the filing of a petition in bankruptcy, than the rights and priority of payment to which, it is conceded, they are entitled, under state law? 2. Where state law subordinates the lien of a chattel mortgage to the lien of a landlord’s distraint, and where such law accords a priority of payment to wage claimants out of the fund arising from the distraint, are the wage claimants entitled to a priority of payment out of the fund realized from the sale of mortgaged chattels upon which the landlord has caused a distraint and levy to be made? 3. Where state law subordinates the lien of a chattel mort- gage to the lien of a landlord’s distraint, and also subordi- nates the lien of a landlord’s distraint in that it accords priority of payment to wage claimants; and, in addition, under Section 67 (c) of the Chandler Act, the lien of a land- lord’s distraint is postponed in payment to both administra- tion expenses and wage claims, are the wage claimants en- titled to a priority in payment ahead of the landlord and IE a — | | al SUNG DI Radi eas ee — - aor tea NDE Dre 3 the chattel mortgagees, when a petition in bankruptcy is filed after a landlord has distrained for rent? IV. STATUTES INVOLVED. The statutory provisions involved are as set forth in the petition for a writ oi certiorari, and in addition, Section 1 of the Act of Assembly (Pa.) of June 12, 1878, Public Law 207, 43 Purdon’s Penna. Statutes 230; and Title and Section 1 of the Chattel Mortgage Act, Act of Assembly (Pa.) of June 1, 1945, Public Law 1358, 21 Purdon’s Penna. Statutes 940.1, which Acts are printed in the appendix infra, pp. 15 and 16. V. STATEMENT. College Hall Fashions and Synthetic Specialists, Inc., re- spondents in this action, are the assignees of various wage claimants of Quaker City Uniform Co., Inc., bankrupt. By a stipulatior: of facts entered into by and between counsel for the receiver, counsel for the petitioners, counsel for the landlord, counsel for the Philadelphia Joint Board, Amal- gamated Clothing Workers of America, and counsel for the respordents, it was stipulated and admitted, inter alia, that “18. Proof of claim for wages was filed by College Hall Fashions in the amount of $1,517.00, as assignees of a number of wage claims of persons employed by the Bankrupt, which wages were earned within three months of the filing of the petition in bankruptcy, and therefore entitled to priority as such. 19. Proof of claim for wages was filed by Synthetic Specialists, Inc., in the amount of $7,001.60, as assignee of a number of wage claims of persons employed by the Bankrupt, which wages were earned within three = ee ee at OS elle - een ee ee be - 15 VIII. APPENDIX. Section 1, Act of Assembly (Pa.), June 12, 1878, (43 Purdon’s Penna. Statutes 230). It is the true intent and meaning of the provisions of the . act of assembly, entitled “An act for the better protection of the wages of mechanics, miners, laborers and other,” passed the ninth day of April, 1872, that the several classes of laborers in said act mentioned shall have a preference over landlords, in all claims for rent of any mines, manu- factories or other real estate, held under lease, where the lessee or lessees are the parties employing the miners, me- chanics, laborers or clerks: Provided, That any person or persons claiming a preference as above provided, shall give notice of the nature and amount of his claim to the land- lord or his bailiff, before the actual sale of the property levied upon. Title and Section 1 of the Pennsylvania Chattel Mortgage Act, (21 Purdon’s Penna. Statutes 940.1 et seq.). Relating to chattel mortgages on any chattel or chattels of any kind or description, including, but not limited to, livestock, poultry, farm machinery, farm equipment and crops, grown, growing or to be grown; designating the oper- ation and effect of the lien of such mortgages; providing for the filing, indexing and docketing of such mortgages and related instruments in prothonotaries’ offices; and prescrib- ing prothonotaries’ fees; providing for the filing in Pennsyl- vania of similar lien instruments originally filed or recorded in other states; regulating the assignment, release, satisfac- tion and extension of the lien of such mortgages; prescrib- ing methods of foreclosure; defining defaults and violations; and fixing penalties. Sa i AEE VEN LOL, 16 Section 1. Any person, association, partnership or cor- poration may give as security for any funds borrowed or to be borrowed or any pre-existing indebtedenss, a bond or note, with or without a confession of judgment clause, se- cured by a chattel mortgage upon any chattel or chattels of any kind or description, including, but not limited to, live- stock, poultry, farm machinery, farm equipment and crops, including annual or perennial crops, and other plant prod- ucts, either grown or growing at the time of the execution of such chattel mortgage, or to be planted or grown within one year thereafter. For the purposes of this act all such chattels and crops shall be deemed to be personal property and mortgageable as such. The indebtedness secured by any such chattel mortgage shall not bear interest in excess of the rate which the creditor is permitted by law to charge at the time of the execution of such mortgage. (Emphasis supplied.) (Repealed by the Uniform Commercial Code— Secured Transactions, Act of Assembly (Pa.) of April 6, 1953, Public Law 3, 12A Purdon’s Penna. Statutes, Section 10-102.) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386418_1068%3A2. Public record. Not legal advice.