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IN RE BERLIN

March 1, 1946

In re BERLIN


The opinion of the court was delivered by: BARD

This matter arises upon a certificate for review of an order of a referee in bankruptcy (1) denying petitioner's claim for payment of a garage charge for storage of the bankrupt's truck against which petitioner had asserted a lien, and (2) denying petitioner's claim for payment of costs incurred by him in the successful prosecution of his reclamation petition before payment of administration expenses and relegating the claim for litigation costs to an administration expense sharing pro-rata with other expenses of like Riority.

Daniel Berlin, individually and trading as Nilreb Manufacturing Company, was adjudged a bankrupt on November 13, 1942. Petitioner, a brother of the bankrupt, filed a reclamation petition to recover a truck from the Trustee, asserting a lien for monies advanced to the bankrupt exceeding the value of the truck. This claim was resisted by the Trustee under the direction and authority of the referee.

 In a letter sent by the attorney for the reclamation petitioner to the attorney for the Trustee, the petitioner offered to purchase the truck from the Trustee at a price of $ 491.50, the fund so realized to stand in place of the truck. This letter of offer, which reduced to writing the results of prior oral negotiations, reads as follows:

 'April 30, 1943.

 'Re: Nilreb Manufacturing Company, Bankrupt

 'Harry Fischer, Esquire

 '213 South Broad Street

 'Philadelphia, Penna.

 'Dear Harry:

 'Confirming my verbal offer made to you on April 25, 1943, you are advised that Mr. Daniel Berlin, without prejudice to his claim under the Reclamation Petition filed in this case, offers to purchase the truck for the sum of $ 491.50, as follows:

 '$ 300.00 to be allowed as a credit by assignment of the Bankrupt's exemption in this amount, and

 '$ 191.50 representing the balance in cash.

 'He will then waive any claim held against the estate because of storage charges which he had paid for storing the truck since the bankruptcy proceedings commenced. His right under the Reclamation Petition is to be transferred to the fund so realized, which shall ...


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