Robert H. Jackson

Name: City of New York v. Saper — Opinion of the Court
Author: Robert H. Jackson

City of New York v. Saper — Opinion of the Court

Summary

“City of New York v. Saper — Opinion of the Court”, is a work by Robert H. Jackson. It explores elements such as the Chandler Act, sub and bankruptcy.

Quotes from City of New York v. Saper — Opinion of the Court (Robert H. Jackson)

Robert H. Jackson, City of New York v. Saper — Opinion of the Court

“ There was no basis for belief that the lower courts, much less this Court, had applied any judicial gloss to § 57, sub. j, requiring similar preferred treatment, interest-wise, for tax claims. If any conclusion could have been drawn from the cases it was that § 64, sub. a, might have justified a judicial belief that taxes need not be considered, for any purpose, the same as other debts. And, as we have seen, both significant provisions of that section were amended with adverse effects on the status of tax claims. ”

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Source: Wikisource

Robert H. Jackson, City of New York v. Saper — Opinion of the Court

“ But we do not believe those cases support petitioners' contention that the pre-Chandler allowance of post-bankruptcy interest reflects a construction of § 57, sub. j. The Kallak opinion itself refutes that contention insofar as it may be based on that line of cases. The court there first decided that since § 64, sub. a, of the Act of 1898 [12] gave taxes absolute priority over claims of every kind, 'public taxes do not constitute a 'claim' in bankruptcy.' 147 F. 276, 277. The statute did not require that taxes be proved but that the trustee should seek them out and pay them in full. ”

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Source: Wikisource

Robert H. Jackson, City of New York v. Saper — Opinion of the Court

“ To read into such a statute an exception to that rule would be unwarranted and, as an original proposition, we should decline to do so. However, the issue comes here after forty years of bankruptcy administration under the Act of 1898 followed by ten years under the 1938 Chandler Amendments. Petitioners contend that judicial decisions during those periods have now been incorporated into a legislative policy allowing interest on tax claims to payment, thereby producing a rule of law beyond further judicial scrutiny. ”

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Source: Wikisource

Robert H. Jackson, City of New York v. Saper — Opinion of the Court

“ Debts Which Have Priority.-a The court shall order the trustee to pay all taxes legally due and owing by the bankrupt to the United States, State, county, district, or municipality in advance of the payment of dividends to creditors * * *. b The debts to have priority * * * and to be paid in full out of bankrupt estates, and the order of payment shall be ( (1) costs of preserving the estate (2) certain filing fees (3) administration expenses including attorneys' fees (4) wages as specified (5) debts entitled to priority under state or federal laws. ”

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Source: Wikisource

Robert H. Jackson, City of New York v. Saper — Opinion of the Court

“ Moreover, there is no interest except that which accrues according to law-it is exactly such interest that the 'fundamental principle' cuts off as of bankruptcy. Section 57, sub. n, 11 U.S.C. § 93, sub. n, 11 U.S.C.A. § 93, sub. n, requires governmental claims to be proved in the same manner and within the same time as other debts and only for cause shown may a reasonable extension be granted. Tax claims are treated the same as other debts except for the fourth priority of payment, § 64, sub. ”

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Source: Wikisource

Robert H. Jackson, City of New York v. Saper — Opinion of the Court

“ Interest on general unsecured debts, on unsecured Government debts other than taxes, and on debts entitled to priority under section 64a, is suspended at the date of bankruptcy so that, except in the rare case of a solvent estate, interest is allowable only to such date. ”

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Source: Wikisource

Robert H. Jackson, City of New York v. Saper — Opinion of the Court

“ Consequently the latter section's reenactment could not be considered a legislative adoption of any 'judicial gloss' on that section resulting from the Kallak line of cases. The only section relied upon in Kallak, § 64, sub. a, has been significantly amended to deprive taxes of their preferred status, first by the amendment of 1926, and later by the Chandler Act. ”

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Source: Wikisource

Robert H. Jackson, City of New York v. Saper — Opinion of the Court

“ In such a situation, it is said, the courts cannot modify what has now become legislative poli y even though originally it may have been a judicially developed rule and one which now, as a matter of statutory construction, we should reject. ”

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Source: Wikisource

Robert H. Jackson, City of New York v. Saper — Opinion of the Court

“ And on overruling the Kallak case see In re Union Fabries, Inc., D.C., S.D.N.Y. 1947, 73 F.Supp. 685, appeal pending.↑ The United States cites, as confirming the construction it has placed on § 57, sub. j, federal taxing statutes beginning with the Revenue Act of 1924 which direct that upon nonpayment of the tax there shall be added, as part of the tax, interest at the specified rate from due date to date of payment. It has been held that federal taxes ordinarily bear interest even in the absence of statute. ”

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Source: Wikisource

Robert H. Jackson, City of New York v. Saper — Opinion of the Court

“ See 2 Blackstone, Commentaries, *488.↑ 'Debts owing to the United States or any State or subdivision thereof as a penalty or forfeiture shall not be allowed, except for the amount of the pecuniary loss sustained by the act, transaction, or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs occasioned thereby and such interest as may have accrued thereon according to law.'↑ 'Sec. ”

Robert H. Jackson

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