Motel Corporation v. Motel Corporation

450 F.2d 499 In the Matter of U. S. A. MOTEL CORPORATION, a California corporation, Debtor. CARUSO ENTERPRISES, INC., et al., Appellants, v. U. S. A. MOTEL CORPORATION, a California corporation, Curtis B. Danning, Trustee, Appellees. Nos. 24074, 24075. United States Court of Appeals, Ninth Circuit. Oct. 21, 1971. George Treister (argued), Bruce H. Spector, of Quittner, Stutman, Treister & Glatt, Sulmeyer, Kupetz & Alberts, Stephen P. Feldman, Los Angeles, Cal., for appellees. Nathan Markowitz (argued), of Gendel, Raskoff, Shapiro & Quittner, Robert W. Driscoll, Los Angeles, Cal., for appellants. Before ELY, CARTER and TRASK, Circuit Judges. ELY, Circuit Judge: 1 U.S.A. Motel Corporation (hereinafter USA) petitioned for reorganization under Chapter X of the Bankruptcy Act, 11 U.S.C. Secs. 501-676 . USA's petition was approved, a trustee and a special master were appointed, and a hearing date was set. 11 U.S.C. Secs. 517 , 541, 556, 561. Two stockholders of USA, Henry Caruso and Caruso Enterprises, Incorporated (hereinafter CEI), filed two pleadings controverting the allegations of USA's petition and urging dismissal of the Chapter X proceedings. 1 After USA responded to…