S. A. Peters and Timber, Inc., of California v. Kal W. Lines, Trustee in Bankruptcy of the Estate of Snow Camp Logging Co., Bankrupt

Before us is an appeal from an order of the United States District Court confirming an order, judgment and decree entered by the referee in bankruptcy in these proceedings. The order, judgment and decree was entered against appellants and in favor of appellee in the sum of $674,627.47, upon the objections of the appellee to the proof of claim filed by appellants in the bankruptcy proceedings of Snow Camp Logging Co., a co-partnership. This relief was granted by the referee, and confirmed by the district court, upon the trustee’s petition for an order disallowing the claim in question and for a judgment for affirmative relief. The opinion of the district court is reported in D.C.N.D.Cal.1958, 168 F.Supp. 420 .

The district court has jurisdiction to review the order of the referee by virtue of Title 11 U.S.C.A. § 67 , sub. c. The notice of appeal was timely filed, Title 11 U.S.C.A. § 48 . This Court has jurisdiction to review the order of the district court under Title 11 U.S.C.A. § 47 .

In order to place in proper focus the questions presented on this appeal, we will present a brief background leading up to the order, judgment and decree of the referee. On June 1, 1951, Clarence…