Pepper v. Litton
United States Supreme Court
308 U.S. 295 (1939)
Litton (defendant) is the sole shareholder of the Dixie Splint Coal Company (Dixie Splint). Pepper (plaintiff) sued Dixie Splint for royalties due under a lease. While the case was pending, Litton sought and obtained a judgment against Dixie Splint for claims of back salary. Pepper then obtained a judgment. Litton executed on his judgment and purchased the corporation’s assets in an execution sale. Litton then caused Dixie Splint to file for bankruptcy. The bankruptcy trustee brought suit in state court to have Litton’s judgment and the execution sale set aside, but was unsuccessful. Litton then filed a claim in bankruptcy court for the remainder of his judgment that was not satisfied by the execution sale. The bankruptcy court disallowed Litton’s entire claim and ordered that the bankruptcy trustee should recover all of the assets that Litton purchased at the execution sale. The court of appeals reversed.
Rule of Law
Holding and Reasoning (Douglas, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 160,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,700 briefs, keyed to 186 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.