George Ullman and Joe Simon, Interested Parties v. Kyle Z. Grainger, Jr.

Kyle Z. Grainger, Jr., is the Reorganization Trustee (Trustee) in a proceeding under Chapter 10 of the Bankruptcy Act. This appeal from three orders made by the Bankruptcy Court raises one question: i. e., the right of appellants Ullman and Simon to purchase some real and personal property which were assets of the estate.

In December, 1966, the Court ordered that the property be sold. A hearing was had on January 19, 1967; and on February 10,1967, and order was entered which provided, in part:

The Escrow Instructions which were attached to the order were dated Feb ruary 3, 1967, but were not signed by the parties. They did, however, contain this clause:

On February 10, 1967, Escrow Instructions were executed by the parties. These instructions contained the above quoted clause and also additional clauses which had not been incorporated in the February 3rd instructions:

The first quoted clause referred to a lease which had been given to Charter Auto Parks, a parking lot operator. Charter Auto Parks was in possession of the property and the lease under which it held possession did not contain a thirty day cancellation clause. It is sufficient for the purposes of this opinion to…