Forester v. Steward

529 F.2d 310 In the Matter of George Francis FORESTER, doing business as Forester's Flying Realty, Bankrupt. A. E. MILLER, Trustee-Appellant, v. Bide STEWARD et al., Creditors-Appellees. No. 74--2132. United States Court of Appeals, Ninth Circuit. Jan. 12, 1976. Harold A. Block (argued) of Dinkelspiel & Dinkelspiel, San Francisco, Cal., for trustee-appellant. Dennis K. Cowan (argued), Redding, Cal., for creditors-appellees.OPINION Before HUFSTEDLER and TRASK, Circuit Judges, and HILL, * District Judge. TRASK, Circuit Judge: 1 The trustee in bankruptcy appeals from the district court's order granting the Stewards' petition for reclamation, which sought rights to $7,000 in proceeds from certain collateral security. 2 In July 1968, Bide Steward, Winnie Steward, Fern S. Wescott, Gilbert Faulstich and Winola Faulstich (Stewards) sold George Forester land in California and Nevada called the Z--Bar Ranch. Forester borrowed $140,000 from the Federal Land Bank of Berkeley to finance the purchase, giving the bank in return a first deed of trust on the ranch property. Forester gave the Stewards the $140,000 and two notes totaling $125,000 in payment for the land. These notes were secured…