Keenan Pipe & Supply Company, a Corporation v. B. E. Shields, as Trustee in Bankruptcy of James T. Inman

A Trustee in Bankruptcy brought an action to recover as a preference $9,223.-03, on the theory that this sum was paid by James T. Inman, the bankrupt, who was- a subcontractor under John H. Dee-ter, the principal contractor on the construction of extra work connected with the California Epileptic Hospital at Por-terville, a State of California Public Works project, to Keenan Pipe & Supply Company, within four months of the filing of the petition in bankruptcy. However, it was alleged that Deeter made checks for moneys due Inman on this job payable jointly to Keenan and Inman, and the latter endorsed them to Keenan.

Keenan answered that it had furnished plumbing supplies, fixtures and equipment to Inman on this very project amounting, with interest, to $4,361.06, general contractor, agreed and that Deeter, the and Inman, the subcontractor, with Keenan that, if it waived all rights to the security of Section 1190.1 of the California Code of Civil Procedure, Deeter would issue joint checks to Inman and Keenan. It was set up that Keenan waived its rights, and the time had expired. It was further an had furnished Inc contractor, with plumbing supplies on a job in Kern County in the…