Frasher v. Robinson

458 F.2d 492 Burton FRASHER and Kay Frasher, Creditor Claimants-Appellants, v. Gilbert ROBINSON, Trustee-Appellee. In the Matter of FRASHER'S INC., a California Corporation, Bankrupt. No. 26201. United States Court of Appeals, Ninth Circuit. March 24, 1972. As Modified on Denial of Rehearing May 5, 1972. Stanley O. Epstein (argued), Gardena, Cal., for creditor-claimants-appellants. Richard R. Clements (argued), of Sprague & Clements, Los Angeles, Cal., for trustee-appellee. Before ELY, HUFSTEDLER and WRIGHT, Circuit Judges. PER CURIAM: 1 Burton Frasher and his wife were majority shareholders in Frasher's Inc., a retail stationery and camera business. Frasher was president of the corporation and active in its management; Mrs. Frasher was vice-president and treasurer. 2 In 1967 the company filed a voluntary petition in bankruptcy. The Frashers were listed as creditors in the amount of $11,947.41 (balance due on an unsecured installment loan). Frasher was listed as a creditor in the amount of $522.84 (wages due). 3 The referee subordinated both of the Frasher claims to the claims of all of the general creditors, on the ground that the Frashers were majority shareholders. The…