Royle

This is an appeal from an order of a court in bankruptcy reversing a decision of the referee on review of an order for the payment of a dividend upon the claim of the appellant William Royle. The question involved on'the appeal is an interpretation of an agreement entered into between William Royle, the owner of a judgment foreclosing certain labor liens, and Grace V. Ward, the owner of a decree foreclosing a mortgage on the same property, and Wayne T. Wilson, who joined in the agreement by reason of certain costs and expenses of litigation due him.

A difficulty arises in the case because of the fact that when the stipulation was entered into an arrangement had been made to sell the encumbered property of the bankrupt for $13,500. The proposed sale was not effected, and the property was subsequently sold for $12,000. This fund was insufficient to pay the full amount agreed upon in the settlement. The appellant claims that he is entitled to preferential payment of his $5,000 because of a parenthetical condition with reference thereto contained in the contract of settlement, reading as follows:

The trial court in a carefully prepared opinion stated the facts and circumstances…