William Klein, Bernard B. Stimmel, and David Blonder v. Rancho Montana De Oro, Inc.

This is an appeal from two orders entered by the district court in an arrangement proceeding brought under chapter XI of the Bankruptcy Act, § 301 et seq., 11 U.S.C.A. § 701 et seq. The debtor and appellee is Rancho Montana De Oro, Inc., a California corporation.

The appellants, all attorneys, are William Klein, Bernard B. Stimmel, and David Blonder. Their interest in the arrangement proceedings is based upon their claims for compensation for legal services. Klein and Stimmel assertedly rendered legal service to the debtor before the arrangement proceedings were instituted. Blonder claimed to have rendered legal service to the estate, as attorney for the debtor, in the early stages of the proceeding.

The two orders appealed from are dated October 21 and 25, 1957, respectively. In the order of October 21, the court disallowed the major portion of the claims of Klein, Stimmel, and Blonder. In the order bf October 25, the court denied a motion to vacate and to set aside an order of June 25, 1957, confirming a plan of arrangement.

We will first discuss the appeal from the order of October 21, 1957. On June 4, 1958, we denied appellee’s motion to dismiss this appeal. When the case…