RESPONDENT: Gold Seal Liquors, Inc.
LOCATION: Matlock Residence
DOCKET NO.: 73-804
DECIDED BY: Burger Court (1972-1975)
LOWER COURT: United States Court of Appeals for the Seventh Circuit
CITATION: 417 US 467 (1974)
ARGUED: Apr 23, 1974
DECIDED: Jun 17, 1974
Paul R. Duke - for petitioners
Theodore J. Herst - for respondent
Facts of the case
Media for Baker v. Gold Seal Liquors, Inc.Audio Transcription for Oral Argument - April 23, 1974 in Baker v. Gold Seal Liquors, Inc.
Audio Transcription for Opinion Announcement - June 17, 1974 in Baker v. Gold Seal Liquors, Inc.
Warren E. Burger:
The disposition of number 73-804, Baker against Gold Seal Liquors, an opinion written by Mr. Justice Douglas will be announced in his behalf by Mr, Justice White.
Byron R. White:
This case is here from the Court of Appeals for the Seventh Circuit.
It involves the suit by trustee of a railroad in reorganization under Section 77 of the Bankruptcy Act for freight charges, the suit being against the shipper.
Shipper counterclaimed for cargo loss and damage.
The trustee had his judgment for his freight charges and the shipper for his cargo damages and the question arose whether the shipper could set off his judgment for the cargo damage against what he owed to railroad for freight charges and pay over only the balance.
The Court of Appeals held that the shipper could set off on judgment against the other.
In an opinion that Mr. Justice Douglas has written for the Court, we reverse that judgment and hold that in the circumstances present here in this railroad reorganization, the set off was improper.
Mr. Justice Stewart has filed an opinion concurring in the result.
Mr. Justice Powell joined him and Mr. Justice Rehnquist has filed a dissenting opinion.
Warren E. Burger:
Thank you, Mr. Justice White.