Gray

Gray v. Little

Good Law
1929 Cal. App. LEXIS 789·97 Cal. App. 442·275 P. 870
Court of Appeal of CaliforniaMarch 11, 1929Docket No. 3676.California3,028 words

Opinion

Lead Opinion

Jamison, J.

This action was brought by appellant as trustee in bankruptcy to set aside a transfer made by the bankrupt within four months of the bankruptcy proceedings, and during the alleged insolvency of the bankrupt, upon the ground that a voidable preference was thereby created.

It appears from the evidence that respondent and William M. Brown, for a period of four years prior to May 24, 1926, were copartners engaged in the cleaning and dyeing business in the city of Marysville, under the name of “Brown’s Cleaning & Dyeing Works,’’ respondent owning a one-third interest in said partnership, and said William M. Brown owning a two-thirds interest therein, said Brown receiving a salary of $200 per month and respondent a salary of $175 per month. During the last of April, 1926, and in May of that year, an audit of the business of said partnership was had, which disclosed that William M. Brown had ab stracted from the funds of said partnership, up to May 22, 1926, $11,766.04; that debts of said partnership were outstanding to the amount of $618.19, and that the partnership owed respondent back salary amounting to $1,188.01. Respondent becoming aware, through this audit, that William M. Brown…

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