C.A. Swanson & Sons Poultry Company v. William A. Wylie, Trustee in Bankruptcy for the Manuel Delatorre D/B/A R & M Egg Farms, Bankrupt

This bankruptcy proceeding was commenced by the filing of an involuntary petition in bankruptcy on August 20, 1953, and Manuel Delatorre (herein occasionally called “bankrupt”) was adjudged a bankrupt on September 9, 1953.

On May 29, 1953, within four months of the commencement of this bankruptcy proceeding, the bankrupt was indebted to the appellant, C. A. Swanson & Sons Poultry Co. (herein occasionally called “Swanson”), in the sum of $16,830.78 for merchandise previously sold and delivered to the bankrupt on open account.

Beginning on June 5, 1953, the bankrupt made seven payments to the appellant, C. A. Swanson & Sons Poultry Co., a corporation. These payments amounted to a total sum of $12,267.05. Each one of these seven payments was made within four months of the commencement of the bankruptcy proceedings against Manuel Delatorre.

The district court found that Manuel Delatorre, doing business as the R & M Egg Farms, was insolvent on May 29, 1953, and continued insolvent at all times thereafter. The court further found that on May 29, 1953, and at all times thereafter, and specifically on the dates of the payments to appellant, Swanson had reasonable cause to believe that…