Bradshaw v. Kirkwood & Sons [1904] ScotLR 42_187 (10 December 1904)

Bradshaw v. Kirkwood & Sons [1904] ScotLR 42_187 (10 December 1904)

An offer of composition by a bankrupt is not reasonable if it omits to take into account a valuable expectancy (spes successionis) in a deceased parent's estate, even if the interest is not yet vested, where such expectancy is capable of valuation and could satisfy creditors' claims in full.

Citation
[1904] ScotLR 42_187
Parties
Appellant (bankrupt): Henry Bradshaw; Respondent (objecting Creditor): James Kirkwood & Sons
Jurisdiction
Scotland
Judgment Date
10 December 1904
Procedural Posture
Bankruptcy Appeal / Appeal From Sheriff Substitute's Refusal of Discharge
Outcome
appeal dismissed; interlocutor of Sheriff-Substitute affirmed
Legal Topics
Composition With Creditors, Spes Successionis, Vesting of Interests, Reasonableness of Composition Offers
Bankruptcy Succession Composition With Creditors Spes Successionis Vesting of Interests Reasonableness of Composition Offers

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Parties

Henry Bradshaw

Appellant (bankrupt)

James Kirkwood & Sons

Respondent (objecting Creditor)

Procedural Posture

Bankruptcy Appeal / Appeal From Sheriff Substitute's Refusal of Discharge

Legal Issues

  1. 1 Whether a bankrupt's offer of composition is 'reasonable' when it omits a valuable expectancy (spes successionis) in a deceased parent's estate.
  2. 2 Whether the bankrupt's interest in his father's estate was a vested interest or a mere expectancy at the relevant time.

Ratio Decidendi

An offer of composition by a bankrupt is not reasonable if it omits to take into account a valuable expectancy (spes successionis) in a deceased parent's estate, even if the interest is not yet vested, where such expectancy is capable of valuation and could satisfy creditors' claims in full.

Court Disposition

appeal dismissed; interlocutor of Sheriff-Substitute affirmed

Orders

  • Refusal of bankrupt's discharge
  • Affirmation that the offer of composition was not reasonable