In the Matter of Robert Jackson Horton, Bankrupt. Stewart Enterprises, Inc. v. Robert Jackson Horton, M. Nolten, Trustee

The defendant, Robert Jackson Horton, sought a discharge of his debts in bankruptcy. This was refused by the bankruptcy judge in December 1974. The reason for refusing discharge was “Horton’s unjustified failure to keep adequate books of accounts or records from which his financial condition and business transactions could be discerned”. Maintaining such records is required. Bankruptcy Act § 14(c)(2), 11 U.S.C. § 32 (c)(2). This decision was affirmed by the district court which entered judgment against Horton after a consideration of the merits of his claim. Horton now appeals to this court, contending that the lower courts erred in not granting him relief.

The defendant advances three main contentions. First, Horton argues that Judge Hughes should have disqualified himself from presiding over Horton’s bankruptcy petition. Second, Horton also contends that the findings of fact and conclusions of law are erroneous for the reason that the courts below allegedly did not give the proper weight to certain financial records belonging to his daughter. Finally, Horton contends that he was held to too high a burden of proof and that the courts below applied Bankruptcy Rule 407 improperly.…