Desser, Rau & Hoffman and Jack L. Rau, Individually v. George T. Goggin, Trustee in Bankruptcy of Stockholders Publishing Company, Inc., a Bankrupt

Before its demise the Daily News of Los Angeles was published by the now bankrupt Stockholders Publishing Company, Inc. During the period December 1, 1953, to December 31, 1954, the company was represented by the Los Angeles law partners, Desser, Rau & Hoffman.

On December 31, 1954, a petition in involuntary bankruptcy was filed against the company. Subsequently an adjudication of bankruptcy was made. The lawyers were not only not paid for their services, which must have been extensive, but they are out of pocket moneys in the amount of §3,217.68 expended for Stockholders on travel about these United States and for telephone toll charges paid. The accuracy of the balance has never been questioned.

On January 5, 1955, Desser, Rau & Hoffman reported to Goggin, then receiver and now trustee, that they held a balance of $16,163.15 belonging to Stockholders in a separate account established on December 20, 1954, in the Union Bank & Trust Co. of Los Angeles under the name of “Jack L. Rau, Special Account.” Rau, of course, was one of the partners. Shortly after January 5, Rau remitted the undisputed amount of $12,-945.47 to the receiver. The balance then left $3,217.68, an amount…