George E. Danielson v. United States

The parties to this appeal are creditors of David and Betty Jane Farrell. The case presents a dispute as to the respective rights of the parties to a fund of $94,127.53 paid into the Registry of the Court by the Internal Revenue Service pursuant to judgment of the Tax Court entered June 29, 1967 to the effect that the Farrells were entitled to this sum for overpayment of income taxes for 1962 and years prior thereto.

Appellants are trustees in bankruptcy of Los Angeles Trust Deed and Mortgage Exchange. In 1962 a controversy existed between Appellants and the Farrells as to the extent to which the Farrells personally were liable for debts of the Exchange. On June 27, 1962, a compromise agreement was reached which entailed transfer by the Farrells to Appellants of all assets of the Farrells with the exception of certain specifically enumerated properties. On November 21, 1962, on application of Appellants an order was entered by the Referee in effect approving and adopting the terms of the compromise agreement and decreeing that any property in which the Farrells had an interest as of June 27, 1962, should be deemed transferred to Appellants. The claim of the Appellants to the…