Thomas Eistrat v. Massachusetts Bonding & Insurance Company, as Surety for Tom G. Jones, Bankrupt

On June 24, 1949, Tom G. Jones filed his Petition for an Arrangement under Chapter XI of the Bankruptcy Act, 11 U.S.C.A. § 701 et seq. On the same day the Bankrupt Jones obtained an ex parte restraining order from the Referee in Bankruptcy, enjoining appellant from entering land of appellant, further proceeding in an action pending in the Superior Court of Tulare County, California, and from interfering with the conduct of the business operations of Bankrupt Jones.

Appellant thereafter petitioned the District Court for an order to dissolve said restraining order, which was denied by said Court on July 15, 1949. The order denying the petition required Bankrupt Jones to file a surety bond in the sum of $2500.00 to indemnify appellant against loss from the operations of Jones. Said order provided that the bond remain in effect from the date thereof to the time of the first meeting of creditors. The first meeting of creditors was scheduled for August 12, 1949, but on that date it was continued until September 9, 1949, and the bankrupt continued his operations until said date. The bond with appellee as surety was filed on July 16, 1949, for the period from July 15, 1949, to August 15,…