Monte G. Mason v. Ernest Utley, Trustee in Bankruptcy of the Estate of Monte G. Mason, Also Known as M. G. Mason

Monte G. Mason, by the referee, was adjudged an involuntary bankrupt on May 20, 1957. Creditors in an amended petition had sought the adjudication upon the grounds that he had sworn falsely concerning his assets in supplementary proceedings brought by a judgment creditor in the Superior Court of the State of California in and for the County of Los Angeles; thus had committed an act of bankruptcy.

Mason resisted the petition with a timely motion to dismiss. Apparently on April 16, 1957, the referee denied the motion to dismiss, allowing 20 days to answer. No answer having been filed, the referee on May 20, 1957, on his own motion, or ex parte, entered an order adjudicating Mason a bankrupt.

On May 23, 1957, Mason filed an answer to the amended petition for adjudication of bankruptcy and filed a motion to set aside the adjudication on the ground of inadvertence and excusable neglect. In due course, the motion was denied. The adjudication of bankruptcy stood. On review, the district court sustained the referee.

Obviously, Mason’s answer came in after his allotted 20 days had expired. This may not be a typical case of excusable neglect, but this court holds it is at least that and…