Colonial Trust Company v. George Goggin, Trustee in Bankruptcy of the Estate of Intercontinental Airways, Inc.

Intercontinental Airways, Inc., filed a petition under Chapter XI, 11 U.S.C.A. § 701 et seq., and George Goggin, by consideration of the Bankruptcy Court, was appointed Trustee of the estate pending administration. In this proceeding, Colonial Trust Company filed a petition for reclamation of a C-46 aircraft then in possession of the Trustee as a part of the assets of this estate.

A short résumé of the facts taken from the record is hereinafter set forth. Colonial Trust Company leased to American Airways, Inc., by written agreement, this C-46 aircraft on August 30, 1951. Colonial Trust Company had no dealings with Intercontinental Airways, Inc., direct, but the latter, at the request of Air America, Inc., U. S. Airlines and various individuals, took the aircraft into its possession and performed work thereon in Los Angeles County, State of California, for which it claims a lien. Intercontinental knew that Colonial Trust was the owner of the aircraft, but macle no attempt to secure written or oral consent of that company for the work or the lien and did not notify Colonial Trust of the contemplated work.

When Intercontinental was adjudicated, Goggin as Trustee, took possession of…