In the Matter of Loren Logsdon, Whose Wife is Laurine Mae Logsdon, Bankrupt. R. G. McBroom Trustee v. Arden Farms Company

In bankruptcy proceedings in the Eastern District of Washington appellee filed a petition to reclaim, from the proceeds of sale of certain fixtures, a sum representing the vendor’s interest in the fixtures. An order of reclamation was entered by the referee which, on review, was affirmed by the District Court. This appeal followed.

The fixtures had been sold to the bankrupt under a conditional sales contract obligating the bankrupt for a total sum. of $62,945.60, payable at the rate of $957.42 a month over a period of fifty-nine months. This contract was duly filed for record pursuant to Washington law.

A few weeks later the bankrupt became concerned over his ability to meet such high monthly payments and contacted appellee (whose customer he was) respecting refinancing. The result was that appellee acquired the vendor’s interest by assignment and extended the bankrupt’s payment period with payments reduced to $718.55 a month. The terms of the extension were embodied in a document entitled “Lease of Personal Property,” which, as did the original conditional sale, provided for acquisition of title upon completion of the prescribed payments. The lease was not recorded.

Appellant…