Mason v. Mitchell

7 Citing cases

  1. In re Imperial "400" National, Inc.

    429 F.2d 671 (3d Cir. 1970)   Cited 28 times

    A partnership may be an entity for some purposes and not for others. See Charles Edward Associates v. England, 301 F.2d 572, 574 (9th Cir. 1962); Mason v. Mitchell, 135 F.2d 599, 600 (9th Cir. 1943). When, as in this case, the partnership business is an integral part of the debtor's entire business operation and the creditors of the partnership are also creditors of the debtor, the artificial concept of a separate entity should not hinder the reorganization of the debtor in a single proceeding.

  2. Charles Edward Associates v. England

    301 F.2d 572 (9th Cir. 1962)   Cited 2 times

    Although the Bankruptcy Act of 1938 adopted the entity theory for some purposes and the aggregate theory for other purposes, the entity theory is specifically rejected in § 5, sub. j of the Act, 11 U.S.C.A. § 23, sub. j, which provides that the discharge of a partnership does not discharge the individual partners from partnership debts. See Mason v. Mitchell, 9 Cir. 1943, 135 F.2d 599, 31 N.C.L.Rev. 457 (1953), 29 Ref.J. 18 (1955). Under either theory, a partner who has engaged in conduct proscribed by the Act, either on behalf of the partnership or on his own behalf, is not entitled to a discharge.

  3. Kaufman-Brown Potato Co. v. Long

    182 F.2d 594 (9th Cir. 1950)   Cited 19 times
    In Kaufman-Brown Potato Co. v. Long, 9 Cir., 182 F.2d 594, apparently the objecting partners had not objected to the bankruptcy court's administration of the partnership assets until after they had been sold.

    More loosely stated, a partnership is not insolvent so long as any of its members are individually solvent. See Mason v. Mitchell, 9 Cir., 1943, 135 F.2d 599. There is no evidence in the case to the effect that Kaufman-Brown Potato Company is bankrupt; indeed what evidence there is bearing upon that subject tends to show such firm perfectly solvent. Upon this record, therefore, the partnership (Gerry Horton Farms (combination partnership) created by the written agreements between Kaufman-Brown Potato Company and Gerry Horton Farms could not be adjudged insolvent or bankrupt.

  4. Viburnum One Associates v. Flavin Enterprises

    446 F. Supp. 652 (W.D. Mo. 1978)   Cited 4 times

    See 11 U.S.C.A. §§ 1(19) and 107, sub. (d)(1); Tom v. Sampsell, 9 Cir., 1942, 131 F.2d 779. More loosely stated, a partnership is not insolvent so long as any of its members are individually solvent." See Mason v. Mitchell, 9 Cir., 1943, 135 F.2d 599. The Court in In Re Segal, 157 F. Supp. 232, 236 (S.D.Cal. 1957) stated: "[A] partnership cannot be insolvent in the bankruptcy sense unless all the general partners are insolvent."

  5. Matter of Steen

    399 F. Supp. 494 (D. Nev. 1975)   Cited 1 times
    Proceeding under 1898 Bankruptcy Act

    A partnership is to be treated as an "entity" only for some purposes and as an "aggregate of individuals" for other purposes. Cf. Mason v. Mitchell, 135 F.2d 599 (9th Cir. 1943). The first sentence of § 5i of the Act, 11 U.S.C. § 23(i), implies that a partnership is not adjudged bankrupt until the last partner is adjudged bankrupt.

  6. In re Pauline's Fashion Salon

    121 F. Supp. 845 (S.D. Cal. 1954)   Cited 3 times

    In Collier's on Bankruptcy, 14th edition, Section 5.03, p. 693 it is said that the introduction of the "entity" theory of the firm, coupled with the refusal of the courts to apply it with rigorous logic to all problems * * * "has made this one of the most confusing branches of the law of bankruptcy". However, any confusion as to the law on the subject, at least in the Ninth Circuit, is dispelled by the principles clearly set forth in the opinion of Chief Judge William Denman in Mason v. Mitchell, 9 Cir., 1943, 135 F.2d 599, 602. The following language in the concluding paragraph of this opinion leaves no room for discussion:

  7. In the Matter of Senator Bill's

    2 B.R. 227 (Bankr. D. Del. 1980)

    Under Delaware law, each partner is personally liable for the debts of the partnership. Thus, to determine whether a partnership is insolvent, we must look not only to the assets and liabilities of the partnership but also to the assets of its individual members, after payment of their individual debts. If then there is insufficient assets to make up the deficiency on the firm debts, the partnership is insolvent. 6 Del. C.Ch. 15; Mason v. Mitchell, 135 F.2d 599 (9th Cir. 1943); See also In re Imperial "400" National, Inc., 429 F.2d 671, 679 (3rd Cir. 1970). Although the proof adduced was lengthy, there is need for only a limited number of findings of fact. They are: