Adeline Frasch v. Thomas C. Wilson and Sally B. Wilson

Mrs. Adeline Frasch appeals from an order of the district court affirming the order of a referee in bankruptcy who, in the exercise of summary jurisdiction, directed appellant to turn over to the trustee in bankruptcy a certain promissory note secured by a deed of trust. Appellant contends that the referee was without jurisdiction over her in a summary proceeding and that, on the merits, the trustee was not entitled to the turnover order.

On December 6, 1966, the trustee in bankruptcy for Thomas C. Wilson and Sally B. Wilson, his wife, applied to the referee for an order requiring Mrs. Frasch to turn over to the trustee a note and deed of trust, signed by R. A. Died-rich and V. J. Shrader, given to Mrs. Frasch by the bankrupt as security for a note to her signed by the bankrupt. The trustee alleged that to permit Mrs. Frasch to keep the Diedrich-Shrader note and deed of trust would be to allow her to retain a preferential transfer to which she was not entitled.

An amended order to show cause was issued by the referee on December 9, 1966, and served upon Mrs. Frasch on December 15, 1966. This order set the turnover application for hearing on December 20, 1966, and provided that…