In the Matter of Wing Sing Chew, Alleged Bankrupt, and Rose Wong Chew, Alleged Bankrupt. Howard B. Crittenden, Jr. v. Kal W. Lines, Receiver-Appellee

This is an appeal from an order of the district court affirming on review the orders of a bankruptcy referee. We affirm.

The essential facts are:

1. On October 13, 1971, Mr. and Mrs. Chew executed a deed of trust and assignment of rents.

2. Under the deed, twenty-four (24) parcels of income producing real property in San Francisco, together with their *20 contents, were transferred to Mr. Crit-tenden, their attorney, as trustee.

3. The deed provided that the purpose of the trust was to secure and pay the secured and unsecured creditors of the Chews in the order and amounts as the trustee determined from time to time and to return to the trustors the balance after a liquidation of the trust property. The trustee was granted full power to sell and convey the trust property.

4. On January 7, 1972, within four (4) months of the execution of the deed of trust, an involuntary bankruptcy petition was filed against the Chews by the Bank of America, the Federal Deposit Insurance Corporation and the Bank of Canton, claiming to be creditors in excess of $1,365,000.

5. The petition alleged as an act of bankruptcy among others the execution of the deed of trust.

6. On January…

(concurring) :

While I concur in the opinion, I wish to record my objection to the handling of this bankruptcy case.

The receiver was appointed, as he had to be, “in aid of bankruptcy.” Yet without any adjudication of bankruptcy of the Chews, the receiver has sold, parcel by parcel, most of the debtors’ properties. (It appears 17 parcels have been sold.) This strange sequence must be accounted for by the fact that the debtors appear, after the receiver was appointed, to have aligned themselves with their banker, turning their backs on their former lawyer, Crittenden, and normally there is more that a banker can do for a debtor than a lawyer.

Even though no one was pressing, it is simply wrong to let a receiver proceed with a liquidation without an adjudication of bankruptcy.

I see an abuse of the federal bankruptcy power.

495 F.2d 18 In the Matter of WING SING CHEW, Alleged Bankrupt, and Rose Wong Chew, Alleged Bankrupt. Howard B. CRITTENDEN, Jr., Petitioner-Appellant, v. Kal W. LINES, Receiver-Appellee. No. 72-2822. United States Court of Appeals, Ninth Circuit. March 28, 1974, Rehearing Denied May 16, 1974. 1 A. Brooks Berlin (argued), San Francisco, Cal., for petitioner-appellant. 2 Lawrence Goldberg (argued), of Glicksberg, Kushner & Goldberg, Robert E. Phelan of Rothschild & Phelan, San Francisco, Cal., for receiver-appellee. 3 Patrick A. Murphy (argued), Charles E. Cooper, Eldon C. Parr, San Francisco, Cal., for amicus curiae. 4 Before CHAMBERS and DUNIWAY, Circuit Judges, and FERGUSON, District Judge. 1 OPINION PERGUSON, District Judge: 5 This is an appeal from an order of the district court affirming on review the orders of a bankruptcy referee. We affirm. The essential facts are: 6 1. On October 13, 1971, Mr. and Mrs. Chew executed a deed of trust and assignment of rents. 7 2. Under the deed, twenty-four (24) parcels of income producing real property in San Francisco, together with their contents, were transferred to Mr. Crittenden, their attorney, as trustee. 8 3. The deed…