In Re Branding Iron Steak House

536 F.2d 299 In re BRANDING IRON STEAK HOUSE, a corporation, Bankrupt. Thomas C. WOOD, Trustee in Bankruptcy of the Estate of Branding Iron Steak House, a corporation, Bankrupt, Plaintiff-Appellant, v. Gordon X. RICHMOND, Defendant-Appellee. No. 74-2922. United States Court of Appeals, Ninth Circuit. May 24, 1976. William J. Tierman, Santa Ana, Cal., for plaintiff-appellant. Scott D. Richmond, Orange, Cal., for defendant-appellee. OPINION Before ELY and WALLACE, Circuit Judges and VAN PELT, * District Judge. ELY, Circuit Judge: 1 Richmond, the appellee, filed a claim against the bankrupt estate of Branding Iron Steak House, a corporation. The Bankruptcy Judge subordinated Richmond's claim to the claims of all other creditors of the bankrupt. The District Court reversed without opinion, and the Trustee appeals. We affirm. 2 The Bankruptcy Judge's findings of fact reveal the following: In 1961 Richmond and Alexander agreed to build, equip, and operate a restaurant known as the Branding Iron Steak House. Alexander, a restauranteur, was to manage and operate the restaurant, while Richmond, an attorney, was to provide almost all of the project's financial backing. The restaurant opened…