Julia L. Boston, Trustee in Bankruptcy on the Estate of Luella v. Gardner v. Luella v. Gardner, Bankrupt
Opinion
Opinion
Merrill, J.
By decree of divorce entered some years ago appellee, now an Oregon bankrupt, was awarded custody of the minor child of the parties to the marriage, and the father was ordered to pay $40 per month for support of the child. At the time of bankruptcy the father was in arrears in making support payments.
The trustee, on behalf of creditors of the bankrupt, claimed the judgment for accrued support payments as an asset of the bankrupt’s estate. A payment offered in full satisfaction of that judgment was made by the father. The trustee here, over appellee’s opposition, seeks recovery of that payment and a declaration of her authority to enter satisfaction of judgment.
The referee ruled in favor of the trustee. Upon review, the District Court reversed, and this appeal by the trustee followed.
The District Court, after carefully considering and analyzing such Oregon law as had found expression, concluded that in Oregon a custodial parent deals with support payments in a fiduciary capacity, either as trustee or natural guardian, and thus “lacks ownership for bankruptcy purposes of the choses in action here involved.”