Block

Mount Vernon Hotel Co. v. Block

Good Law
157 F.2d 637·1946 U.S. App. LEXIS 3088
United States Court of Appeals for the Ninth CircuitOctober 16, 1946No. 11243California2,019 words

Opinion

Lead Opinion

Orr, J.

Appellants, as creditors of appellees, N. J. Block and N. J. Block and lima Jane Block, doing business as West Coast Forest Products Company, filed a petition in the District Court in involuntary bankruptcy asking the adjudication of said N. J. Block and said West Coast Forest Products Company, as bankrupts. The petition was denied by the trial court on the ground that one Con Lind had either purchased the claim of *638 Smith & Russell, a petitioning creditor, or had guaranteed to buy said claim, in which event the trial court found, said Con Lind would be in fact a petitioning creditor and as such.was estopped by a certain stipulation he had entered into in a receivership proceeding in the superior court of the state of Washington. Elimination of the Smith & Russell claim would render the amount-claimed and the number of remaining petitioning creditors insufficient to meet the requirements of 11 U.S.C.A. § 95 , sub. b.

Our problem is squarely pointed up by an inquiry as to whether the finding of the trial court that the Smith & Russell claim has been transferred to Lind or that Lind has agreed to purchase it finds support in the evidence. Being aware of the rule that a finding…

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