Supreme Court Corner: Re Wood and Henderson, 210 U.S. 246 (1908)

By M. Jonathan Hayes

Issue: Where the Bankruptcy Code gives “the court” power to re-examine (and avoid) prepetition transactions between the debtor and his attorneys, may the bankruptcy referee do that in a summary proceeding even when the attorneys are outside of the state and not subject to personal jurisdiction in the state?

Holding: Yes.
Justice William R. Day, 6-3
Brewer dissenting, joined by Peckham and Moody

The debtor gave his attorneys $9,775 “in contemplation of the filing of a petition in bankruptcy against him, within four months of the filing thereof, for legal services to be . . .

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