Cossack

Alexander Faerstein conducted a retail clothing store and haberdashery in San Bernardino, Cal. On December 26, 1930, he consulted with the defendant-appellant, an attorney, as to Faerstein’s financial difficulties. As a result of that conference, it was decided to execute an assignment for the benefit of Faerstein’s creditors, which was done ,on that same day. Faerstein brought his books with him to the appellant’s office, where they remained from December 26,1930, to January 2, 1931.

The defendant-appellant, as member of the firm of Cossack & Krumm,, mailed out a form letter to all creditors of Faerstein, stating that the assignment had been made and requesting the consent of the creditors thereto. Later, the appellant met about a dozen of the creditors, and was notified that they would not accept the appellant’s father, R. IL Cossack, as the assignee, and that they would file an involuntary petition in bankruptcy on the afternoon of that day; namely, December 31, 1930. The creditors’ petition was filed on the date announced, in the United States District Court for the Southern District of California.- On the same afternoon, one of the same creditors filed a petition for the…