Irving I. Bass, Trustee of the Estate of Continental Escrow Co., a Corporation, Bankrupt v. Milo v. Olson

This is an appeal by Irving I. Bass, as trustee in bankruptcy of Continental Escrow Company, from an order of the district court declaring Milo V. Olson to be the owner of and entitled to $7895.00 of the moneys presently held in a special trust account.

There is little dispute over the facts. Olson, an attorney, performed legal services for Continental during the period immediately preceding its adjudication on August 27, 1959. Within three months of that date he had received from a third person a check payable to Continental and which, pursuant to an agreement with Continental’s President, Alexander T. Chohon, he claimed in payment of his fee. However, Chohon’s receiver, C. Douglas Wikle, also claimed it. Pending determination of the dispute, the check was cashed and the proceeds were deposited in a trust account in the joint names of Wikle as receiver and ■Olson as trustee.

Thereafter, Wikle relinquished his claim, but Bass, the trustee in bankruptcy of Continental, asserted that the moneys belonged to the estate. To settle this new controversy, Olson petitioned the referee in Continental’s bankruptcy for an order declaring Bass to have no interest in the moneys and directing…