Charles W. Wolverton v. Shell Oil Company

This is an appeal from an order setting aside a private sale by a trustee in bankruptcy to the bankrupt, Wolverton, of an antitrust cause of action. We affirm.

The bankrupt had been in the retail oil business and owned 60% of the stock of a corporation, Wolverton Oil Company. On September 30, 1963, he acquired from that company a cause of action against major oil companies for claimed violation of the antitrust laws. On April 16, 1964, he filed a voluntary petition in bankruptcy. As a result, the cause of action and his stock in Wolver-ton Oil Company passed to the trustee in bankruptcy.

On March 10, 1965, the trustee petitioned for confirmation of a sale to the bankrupt of “90% of the stock in said Wolverton Oil Company for the sum of $100.00.” The petition recited that the company’s only asset was the antitrust cause of action; it said nothing about any cause of action belonging to the bankrupt estate. On the same day, the referee entered an order authorizing and confirming sale to the bankrupt “for the sum of $100.00 of 90% of the stock in Wolverton Oil Company.”

Section 58(a) (4) of the Bankruptcy Act provides:

No notice was given; no order was made shortening time or…