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Kothe v. R. C. Taylor Trust, 280 U.S. 224 (1930)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Kothe v. R. C. Taylor Trust, 280 U.S. 224 (1930)
Kothe v. R. C. Taylor Trust No. 48 Argued December 4, 1929 Decided January 6, 1930 280 U.S. 224
CERTIORARI TO THE CIRCUIT COURT OF
APPEALS FOR THE FIRST CIRCUIT
Syllabus
1. A stipulation in a contract to pay a fixed sum as liquidated damages in case the contract be broken will not be enforced if the amount fixed is plainly without reasonable relation to any probable damages from a breach. P. 226.
2. In a lease for two years, the lessee agreed that the mere filing of a petition in bankruptcy against him should be deemed a breach, and that thereupon, ipso facto, the lease should terminate and the lessor become entitled to reenter and also to recover damages equal to the full amount of the rent reserved for the remainder of the term. The lessee became bankrupt, and the lessor claimed $5,000, equal to 15 months’ rent. Held, that the claim should not be enforced against the trustee in bankruptcy, as, on the case submitted, the provision in the lease must be regarded as one for a penalty apparently designed to insure to the lessor preferential treatment in the event of the lessee’s bankruptcy. P. 226.
3. Agreements tending to defeat the purpose of the Bankruptcy Act to bring about an equitable distribution of the bankrupt’s estate among creditors holding just demands based upon adequate consideration must be regarded with disfavor. P. 227.
30 F.2d 77 reversed
Certiorari, 279 U.S. 830, to review a judgment of the circuit court of appeals reversing the district court and upholding a claim against Kothe, as trustee in bankruptcy.
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Chicago: U.S. Supreme Court, "Syllabus," Kothe v. R. C. Taylor Trust, 280 U.S. 224 (1930) in 280 U.S. 224 Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=A9ZE7QWZF47SHIS.
MLA: U.S. Supreme Court. "Syllabus." Kothe v. R. C. Taylor Trust, 280 U.S. 224 (1930), in 280 U.S. 224, Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=A9ZE7QWZF47SHIS.
Harvard: U.S. Supreme Court, 'Syllabus' in Kothe v. R. C. Taylor Trust, 280 U.S. 224 (1930). cited in 1930, 280 U.S. 224. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=A9ZE7QWZF47SHIS.
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