Application to Bankruptcy Proceedings of Federal Rules Concerning Compulsory Counter Claims: In Meacham v. Haley' the Tennessee Court of Appeals was faced with the problem of to what extent Rule 13 of the Federal Rules of Civil Procedure concerning compulsory counter claims applies to a bankruptcy proceeding. In the instant case a trustee in bankruptcy of the Dr. Pepper Bottling Company sued the defendants, Haley and Johnston, for alleged fraud practiced on the bankrupt debtor prior to the bankruptcy. However, some time before the present case, Haley and Johnston had filed claims in the bankruptcy matter of Dr. Pepper Bottling Company. In the bankruptcy proceeding the claim apparently was allowed but was deferred to the claims of all other creditors. The claim of fraud which trustee asserted in the case at hand was predicated upon alleged fraud in the transaction which gave rise to the claim of the creditors (Haley and Johnston) in the bankruptcy proceeding.
Paul J. Hartman,
Creditors' Rights and Security Transactions -- 1955 Tennessee Survey,
8 Vanderbilt Law Review
Available at: https://scholarship.law.vanderbilt.edu/vlr/vol8/iss5/6