Wohl Shoe Company v. Peter M. Elliott, Receiver, Etc. And Commercial Credit Co.

The Wohl Shoe Company herein appeals from a judgment of the District Court for the Central District of California, affirming a bankruptcy referee’s decree.

Most of the relevant facts were stipulated below. In 1960 the Wetherby-Kay-ser Shoe Company, a division of Wohl (and hereinafter referred to for convenience as “Wohl”), entered into a concession license agreement with the bankrupt, Rankin Department Stores, Inc. According to the agreement, Wohl was to turn over all of its sales to Rankin, which would deduct its concession fee and certain other expenses charged to Wohl, and remit the balance at specified intervals. It was agreed that cash from Wohl’s sales might be commingled with Rankin’s other receipts. Charge sales were to be submitted to Rankin for approval (which was not to be unreasonably withheld), with Rankin then assuming responsibility for collecting the amounts due on all such approved sales; and, regardless of whether those amounts were collected, Rankin guaranteed Wohl remittance of the amount of all such sales at the end of the interval in which they were made.

In the district court Wohl filed an “Application to Reclaim . . . Proceedings of Accounts Receivable.”…