Sara Patapoff v. Vollstedt's Inc., a Corporation, Crown Mills, a Corporation and Pacific Supply Co-Operative, a Corporation

After a petition for involuntary bankruptcy had been filed against the appellant, she executed an “Admission or Confession of Bankruptcy”. On the basis of this she was adjudged a bankrupt by the referee to whom the proceeding had been referred by order of the Clerk, acting in the absence of the Judge. Ten days later appellant moved to vacate these orders under the provisions of Rule 60(b) (1) and (6) of the Rules of Civil Procedure.

The motion was heard upon affidavits filed in support of, and in opposition to the relief sought, and was denied. This appeal is from that order.

The record shows the following uncontroverted facts. While appellant executed her “Confession” on the advice of her counsel, the latter’s affidavit, filed in opposition to the motion, states that when he gave that advice he told appellant that she “would be given an opportunity to be heard before the referee for the purpose of finally determining whether or not they were in fact bankrupts.” This advice was wholly wrong, as appellant asserts. Appellee does not dispute that.

The petition alleged that appellant was “doing business as Bill & Moris Seed Company of Halsey, Oregon”; that petitioners had provable…