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AMERICAN SURETY CO. V. MAROTTA, 287 U. S. 513 (1933)

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U.S. Supreme Court

American Surety Co. v. Marotta, 287 U.S. 513 (1933)

American Surety Co. v. Marotta

No. 131

Argued December 8, 1932

Decided January 9, 1933

287 U.S. 513

Syllabus

1. In § 1(9) of the Bankruptcy Act, which declares that "creditor" shall "include" anyone owning a claim provable in bankruptcy, "include" is a word of extension or enlargement, not of limitation. P. 287 U. S. 516. chanroblesvirtualawlibrary

Page 287 U. S. 514

2. In § 3a(1) of the Bankruptcy Act, by which a conveyance with intent to hinder, delay or defraud creditors is declared an act of bankruptcy, the word "creditors" has the meaning usually attributed to it when used in the common law definition of fraudulent conveyances. P. 287 U. S. 518.

3. Under the common law rule and the Bankruptcy Act, a creditor having only a contingent claim is protected against fraudulent conveyance. P. 287 U. S. 518.

So held of a surety company's claim to be indemnified against a liability that arose before the indemnitor transferred his property, and was paid off by the surety afterwards.

4. Where the Circuit Court of Appeals reversed upon an erroneous construction of a statute without disposing of other questions presented to it, its decree was reversed and the case remanded to it for further proceedings. P. 287 U. S. 518.

57 F.2d 829 reversed.

Certiorari to review the reversal of an adjudication of bankruptcy.





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