In the Matter of Ocean Air Tradeways, Inc., Bankrupt No. 90989. Ocean Air Tradeways, Inc. v. Arkay Realty Corp. And Duncan, Korb & Trimble, Inc.

This is an appeal from an order of the district court, affirming, without opinion, the order, findings and conclusions of the referee in bankruptcy. The referee allowed two claims in bankruptcy: (1) Arkay Realty Corp. (hereafter Arkay) claimed $150,517.00 for breach of a contract to buy real property from the bankrupt, Ocean Air Tradeways, Inc. (hereafter Ocean Air); and (2) Duncan, Korb & Trimble, Inc. (hereafter DKT), a licensed real estate broker, claimed broker’s fees in the same transaction of $17,500.00, plus interest. We affirm.

Facts

Ocean Air owned certain real property in San Leandro, California, including a building occupied by Airpower Overhaul, Inc. (hereafter Overhaul). Overhaul maintained airplanes for United States Overseas Airlines, Inc. (hereafter Airlines) and others.

Airlines owned all the stock of Overhaul. In turn, 75.5 percent of Airlines, and 70 percent of Ocean Air, were owned by Ralph Cox, Jr. The remaining stock of each was owned by members of Cox’s family. Cox was a director of all three corporations, the president of Ocean Air and of Airlines, and the vice president of Overhaul. The referee found that Cox “unilaterally directed and…