Lewis H. Saper, as Trustee in Bankruptcy of Riverside Iron & Steel Corporation v. Thomas A. Wood

The claim of the plaintiff-appellant Trustee, set up in an action in the District Court, is that the defendant-appellee Wood received a preference from Riverside Iron & Steel Corporation, in that, within four months prior to the filing of a voluntary petition in bankruptcy by the latter, Wood had by writ of execution received payment of an antecedent debt whereby Wood obtained a greater percentage of his debt than any other creditor of his class. The court tried only this one issue upon stipulated facts, reserving questions of insolvency of Riverside and knowledge thereof by Wood at time of alleged transfer. The salient facts are set out below.

Wood filed action in the Superior Court of the State of California against Riverside for attorney fees on December 5, 1946. This will be referred to herein as the “Wood action.” Some time previous to the institution of the Wood action, one E. T. Foley had brought action in the same state court against Riverside and others, in which Riverside had filed a cross-complaint against Foley. Hereinafter this will be called the “Foley action.” This action was pending, but not decided, when Wood filed his action.

A writ of attachment was issued in…