Dant & Russell, Inc. v. J. D. Halstead Lumber Co.

This is an appeal from an order of the District Court for the Southern District of California by the J. D. Halstead Lumber Company, the defendant in a receivership suit, ordering the payment by the receiver of a dividend to the Halstead Company’s creditors.

*307 The proceeding in which the order for the payment of the dividend was made, began on December 14, 1937, in the filing of a petition by the receiver setting forth the then condition of the estate and recommending the payment to the creditors of a sum equal to S percent of their claims. The petition further stated that, in the opinion of the receiver, a further distribution of assets in the form of additional cash dividend “can be made within a period of approximately four months from the date [of the petition]”. The prayer asked leave and direction from the court to pay to the creditors of the Halstead Company “such an amount upon said claims as a partial distribution of the assets of this receivership in the form of cash dividend, and for such other and further order as to this Honorable Court may seem just and proper in the premises.”

The Halstead Company’s answer to the petition denied “that a sum equal to five…