Dalton Equipment Company, Inc., Creditor-Appellee v. Charles E. Brown, AKA Charles Elmer Brown, Debtor-Appellant

This is an appeal from a district court decision reversing a bankruptcy court’s denial of a creditor’s motion to extend time to object to discharge.

On March 8, 1974, Brown filed a voluntary petition in bankruptcy. He was adjudged a bankrupt. On March 15 the court ordered that the first meeting of creditors would be held on April 2. This same order fixed July 1, 1974 as the last date for the filing of objections to determine the dischargeability of debts.

The schedule of assets filed by the bankrupt included an entry as follows:

The outboard motors mentioned in this entry and the Dalton-Brown leases covering them are the subject of this dispute. Dalton was not listed as a creditor in the schedules filed by Brown.

Dalton has admitted it had actual knowledge of the bankruptcy proceeding. The bankruptcy court found that in March 1974 the Sacramento Bee published an article setting forth the fact of the bankruptcy and the contents of the judge’s order relative to the time deadlines. The court further found that this article was read by Mandel Feldstein, General Manager of Dalton.

Dalton claims that on April 29, 1974 Brown talked to Mandel Feldstein and told him that the “motors…