Kennedy v. Powell

366 F.2d 346 Robert A. KENNEDY, as Treasurer of the State of Arizona, Roy L. Thornbrugh, as Registrar of Contractors of the State of Arizona, and Garner Electric Company, Appellants, v. Louise POWELL, Trustee in Bankruptcy of the Estate of Leon Showalter,bankrupt, Appellee. No. 20555. United States Court of Appeals Ninth Circuit. Sept. 19, 1966. Darrell F. Smith, Atty. Gen. of Arizona, Frank A. Parks, Asst. Atty. Gen., Phoenix, Ariz., for appellants. Louise C. Powell, Phoenix, Ariz., for appellee. Before HAMLEY, KOELSCH, and ELY, Circuit Judges. ELY, Circuit Judge: 1 This appeal is from a judgment of the District Court of which an order of the Referee in Bankruptcy was upheld. The order directed the Treasurer of the State of Arizona to surrender to the bankrupt's trustee $500.00 which the Treasurer had received and held as a deposit. 2 The bankrupt was an Arizona contractor. An Arizona statute provides that as a condition precedent to the State's granting of a contractor's license, the applicant must file a surety bond or make a deposit with the State. Ariz.Rev.Stat.Ann. 32-1152(A) (1965 Supp.). The bankrupt had made the deposit in cash. The statute further provides, 'Such cash…