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

This is the second time this matter has come before this Court. The opinion in the first appeal is reported in 9 Cir., 263 F.2d 764 . In the first appeal this Court approved a Chapter XI bankruptcy arrangement proceeding, and remanded for additional findings of fact concerning an alleged contract for legal and financial services between debtor Rancho Montana De Oro and attorneys Klein and Stimmel for services rendered prior to the instant bankruptcy proceedings. On remand the district court took additional testimony and found that there was no express contract for such services, and that the reasonable value of the services rendered was $350 plus amounts already received by Klein and Stimmel. Judgment was given for this amount, and from these findings and judgment Klein and Stimmel press this appeal. The district court had jurisdiction under Chapter XI of the Bankruptcy Act, § 301 et seq., 11 U.S. C.A. § 701 et seq., and this Court has jurisdiction of this appeal under 11 U.S. C.A. § 47.

In late November of 1955 Klein, Stim-mel and the president and principal stockholder of Rancho Montana De Oro, Inc., a corporation (a Mrs. McAllister), had a conference concerning the financial…