Palter v. Lake Sales, Inc.

435 F.2d 120 In the Matter of Earl L. PALTER, aka Earl Leland Palter, formerly doing business as Palter Floor Fashions, Bankrupt-Appellant, v. LAKE SALES, INC., Creditor-Appellee. No. 23758. United States Court of Appeals, Ninth Circuit. December 9, 1970. Rehearing Denied January 7, 1971. Milton Stern, Jr. (argued), San Francisco, Cal., for bankrupt-appellant. Paul M. Koenig, Berkeley, Cal. (argued), William K. Day, San Francisco, Cal., Howell, Elson & Grogan, Berkeley, Cal., for creditor-appellee. Before BARNES, ELY and KILKENNY, Circuit Judges. BARNES, Circuit Judge: 1 This is an appeal from an order affirming an order of the referee in bankruptcy refusing to grant the bankrupt a discharge. The refusal was based on Section 14c(3) of the Bankruptcy Act, 11 U.S.C. § 32c(3), which provides that a discharge in bankruptcy may be denied where it is shown that the bankrupt (1) obtained money or property on credit * * * (2) by making or publishing * * * a materially false statement in writing respecting his financial condition * * * and on case law which provides there must be proof that the statements were relied upon by the creditor, from whom credit was obtained. 2 Appellant…