In the Matter of Minskoff-Dorman Co., a Bankrupt. Myron Klapper v. Curtis B. Danning, Trustee

The bankruptcy proceeding below followed a Chapter XI proceeding which was dismissed. In the Chapter XI proceeding Klapper, the appellant, filed an application to recover $5011.52 as an expense of administration for the use by the receiver of certain equipment. Dan-ning, the appellee, who was then the receiver in the Chapter XI proceeding, stipulated that “Said sum shall constitute an administrative expense of this estate [the Chapter proceeding] and of any bankruptcy estate in the event that the debtor is subsequently adjudicated a bankrupt * * * ”. The referee approved the stipulation in the Chapter XI proceeding.

Subsequently the debtor was adjudicated a bankrupt, and Danning was appointed trustee of the bankruptcy estate.

Danning’s first and final account in the bankruptcy showed expenses of administration in that proceeding of $224.-46 and total cash of $2,313.43.

Meanwhile one Weirick and the Franchise Tax Board had filed claims in the superseding bankruptcy proceeding for administrative expenses. Weirick’s claim was $6900.00 for rent. The Franchise Tax Board's claim was $156.04 for taxes. Both arose during Danning’s operation as receiver in the Chapter XI…