LEWIS
v.
ROBERTS

U.S. | 1925-03-16
No. 284
267 U.S. 467 Supreme Court of the United States (1925) Caution
Also reported at: 69 L. Ed. 739 · 45 S. Ct. 357 · SCDB 1924-224 · 1925 U.S. LEXIS 820
Cited by 38 cases

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Synopsis

Lewis recovered a judgment against a mining company for personal injuries caused by negligence, and when the company filed for bankruptcy, the lower courts disallowed his tort judgment as a provable claim in the bankruptcy proceeding. The Supreme Court reversed, holding that tort judgments constitute provable debts under the Bankruptcy Act because Section 63a expressly includes "a fixed liability, as evidenced by a judgment" without limitation to contract-based debts, and Congress's express exception of certain tort judgments from discharge in Section 17 confirms that tort judgments were intended to be provable claims.


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Opinion of the Court
Mr. .Justice Sanford

Mr. .Justice Sanford delivered the opinion of the Court.

The petitioner, Lewis, recovered a judgment against the Montevallo Mining Company for personal injuries caused by its negligence.' The Company was thereafter adjudicated a bankrupt in the Northern District of Alabama. Lewis filed in-the bankruptcy proceeding a proof of claim upon the judgment. The District Court confirmed an order of the referee disallowing this claim, upon the ground that-a judgment founded upon a tort was not provable, in bankruptcy. This decree was affirmed by the Circuit Court of Appeals. 294 Fed. 171. The writ of certiorari was then granted. 264 U. S. 578.

This decision is in conflict with an unbroken line of decisions in other Circuit Courts of Appeals and in the District. Courts. Re New York Tunnel Co. (C. C. A.), 159 Fed. 688, 690; Moore v. Douglas (C. C. A.), 230 Fed. 399, 401; Re Putnam (D. C.), 193 Fed. 464, 468. And see Re Lorde (D. C.), 144 Fed. 320; Ex parte Margiasso (D. C.), 242 Fed. 990; In re Madigan (D. C.), 254 Fed. 221.

We think these prior decisions were correct.

Section 63a of. the Bankruptcy Act,1 entitled' “ Debts which, may be Proved,”'provides-.that: “Debts of the bankrupt may be proved and allowed against his estate which are (l).a fixed liability, as evidenced by a judgment . . . absolutely owing at the time of the filing of the petition. . . . ” Section 1, (11) declares that the word “ debt ” as used in the Act shall, unless inconsistent with the context, be construed to include “ any debt, demand, or claim provable in bankruptcy.”

It is clear that a judgment for tort is provable under the express provisions of § 63a(l). The language is broad and unqualified. It includes “ a fixed liability ” evidenced by a judgment ex delicto as well as by a judgment ex contractu, and makes the one as well as the other a provable “ debt.” There is nothing in the language or in the context which suggests its limitation to judgments founded on debts or warrants the reading in of such a limitation.

This conclusion is confirmed by a consideration of other provisions of the Act. By § 17, as originally enactéd, it-was provided that: “ A discharge in bankruptcy shall release a bankrupt from all his provable debts, except such as . . . .(2) are judgments in actions for fraud, or obtaining property by false pretenses or false representations, or for wilful and malicious injuries to the person or property of another.” 2 This express exception of certain judgments for torts from the “ provable debts ” released by a discharge, plainly indicates that Congress understood that under . § 63a judgments for torts were “ provable debts ”, and is strongly persuasive as a construction of that section.

Furthermore, if a judgment for tort is not a provable claim in bankruptcy under § 63a, it could not, under § 1; (11), be considered in determining whether one against whom an involuntary petition has been filed, is insolvent within the meaning of-§ 1, (15), providing that “ a person shall be deemed insolvent . . . whenever the aggregate of his property . . . shall not. . . . be sufficient in amount to pay his debts.” The result of this would be that a person having property in excess of his other debts could not be adjudged an involuntary bankrupt under § 3b of the Act, although owing judgments for tort exceeding the amount of his property. Clearly Congress did not. intend so anomalous a result.

The trustee contends, however, that despite the broad language of § 63a(l),'the decision in Wetmore v. Markoe, 196 U. S. 68, necessarily leads to the conclusion'that only judgments founded in debt are provable claims. It was there held that under § 17 of the Act the arrears of alimony previously awarded to the wife of the bankrupt for . the support of herself and their minor children under' a final decree of absolute divorce was not a provable debt which was. released by the bankrupt’s discharge. The ' ground of the decision was that the court could look into the proceedings to determine the nature of the liability which had been reduced .to judgment; that a decree awarding alimony was not in any just sense a debt which had been put into the form of a judgment, but rather the ' legal means of enforcing the obligation of the husband to support his wife and children which was imposed upon .him by the policy of the law; and that it' could not be presumed, in the absence of a direct enactment, that Congress Intended that the Bankruptcy Act should be made :an.instrument by which the wife and children should be deprived of the support which it Was the purpose of the .law',to enforce. • It is .clear that this decision rested on the péculiar and. exceptional nature of a decree for alimony. There was. no suggestion in the opinion that an ordináty claim ex delicto that had been previously, reduced :to judgment was.not a provable debt; and we think that its'.reasoning neither leads to nor warrants such a conclusion. Nor is there anything to support this conclusion in Schall v. Camors, 251 U. S. 239, which dealt solely with unliquidated claims arising in tort, hot previously reduced to judgment, and held* merely that such unliquidated' claims, not being included in. the enumeration of provable. debts under § 63a, could not be liquidated and proven under-the provisions of § 63b.

The decrees of the District Court and of the Circuit Court of Appeal are reversed, and the cause ig remanded to the District Court for further proceedings in .accordance with, this opinion.

Reversed and'remanded.

Act of July 1, 1898, c. 541, 30 Stat. 544;

By the amendments of 1903 and 1917 the word “ judgments ” in .clause 2 was changed to “liabilities”, and other changes were made, which are not here material. 32 Stat. 797, c. 487, § 5; 39 Stat. 999, c. 153.


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Cited By (12 total)

  • Perez et ux. v. Campbell, 402 U.S. 637 (U.S. 1971)
    …ment debt [*639] to the Pinkertons. The District Court entered orders on July 8, 1968, discharging both Mr. and Mrs. Perez from all debts and claims provable against their estates, including the Pinkerton judgment. 11 U. S. C. §35; Lewis v. Roberts, 267 U. S. 467 (1925). During the pendency of the bankruptcy proceedings, the provisions of the Arizona Motor Vehicle Safety Responsibility Act came into play. Although only one provision of the Arizona Act is relevant to the issue presented by this case, it is a…
    1 / 3
  • Kesler v. Dep't of Pub. Safety of Utah, 369 U.S. 153 (U.S. 1962)
    …on which leaves the States free — subject only to this Court’s veto power — to impair such an important and historic policy of this Nation as is embodied in its bankruptcy laws. I therefore respectfully dissent. 11 U. S. C. § 35. Lewis v. Roberts, 267 U. S. 467. Section 41-12-15 of the Utah Motor Vehicle Safety Responsibility Act, Utah Code Ann., 1953. 314 U. S. 33. Toolson v. New York Yankees, 346 U. S. 356. See also James v. United States, 366 U. S. 213, 230-235 (separate opinion concurring in part an…
  • Reitz v. Mealey, 314 U.S. 33 (U.S. 1941)
    …he judgment to the commissioner, who thereupon issued the order of suspension. The power thus granted the judgment creditor contravenes § 17 of the Bankruptcy Act. Judgments on claims of the kind involved here1 are provable (Lewis v. Roberts, [*41] 267 U. S. 467) and do not fall within any of the categories of debts excepted from discharge by § 17. Since they are dischargeable, a state cannot supply a device for their collection which survives a discharge in bankruptcy. The bankruptcy power is “unrestricted…

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