- 90 -
In Reiter v. Cooper, supra, the unrelated claim was properly
ignored by the Supreme Court, because it couldn't have affected
the outcome. In In re Greenstreet, Inc., 209 F.2d 660 (7th Cir.
1954), a claim that the Court of Appeals for the Seventh Circuit
chose to regard as unrelated was very much before the Court,
which refused to allow that claim to have any effect on the
amount of recoupment allowed. Instead, the claim belonging to
the same transaction to which the recoupment counterclaim also
belonged alone determined the extent to which recoupment was
allowed. That is to say, only the single transaction was
considered.
In In re Greenstreet, Inc., supra, the Government filed
claim, in the bankruptcy proceedings of a manufacturer of Army
clothing, for $302,500, the purchase price of property that it
had furnished to the debtor for the manufacture of such clothing,
and for an additional $68,279.72 damages for the bankrupt's
failure to complete the contract. The bankruptcy trustee in turn
filed counterclaims amounting to $155,593.49, asserting certain
liens and unsecured money demands against the property and the
Government's general claim. The District Court held that it had
37(...continued)
Bankruptcy Court in this case. In re Carolina Motor Express, 84
Bankr. 979, 981, 991 (Bankr. W.D.N.C. 1988). The Supreme Court
only mentioned the debts owing under the main issue. Reiter v.
Cooper, 507 U.S. 258, 113 S. Ct. at 1217.
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