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GERDES V. LUSTGARTEN, 266 U. S. 321 (1924)

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U.S. Supreme Court

Gerdes v. Lustgarten, 266 U.S. 321 (1924)

Gerdes v. Lustgarten

No. 70

Submitted October 13, 1924

Decided November 24, 1924

266 U.S. 321

Syllabus

1. Under the provision of § 14b of the Bankruptcy Act denying a discharge to a bankrupt who has

"obtained money or property on credit upon a materially false statement in writing made by him to any person . . . for the purpose of obtaining credit from such person,"

the vice inherent in the original falsity of a statement is not remedied by lapse of time, and if the creditor extend credit upon such a statement while it is still in force and binding upon the bankrupt, within the time in which the bankrupt intended it should serve that end, it does not lie in the bankrupt's mouth to say that, by reason of extrinsic circumstances, the creditor was not justified in relying upon it. P. 266 U. S. 326.

2. Under § 14b of the Bankruptcy Act, to withhold discharge from a bankrupt upon the ground that he failed to keep books of account, chanroblesvirtualawlibrary

Page 266 U. S. 322

etc., with intent to conceal his financial condition, this intent must be shown. P. 266 U. S. 327.

3. Upon review of a bankruptcy case wherein decision of the law involved left the outcome dependent upon questions of fact which had not been determined by either the referee or the district court or the circuit court of appeals, held appropriate that the case be remanded to the district court, although this Court could determine the questions itself from an examination of the testimony, or remand to the circuit court of appeals. P. 266 U. S. 327.

289 F.4d 1 reversed.

Certiorari to a judgment of the circuit court of appeals which reversed an order of the district court refusing a discharge in bankruptcy.





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