Bass

Bass v. Aetna Factors Co.

Good Law
272 F.2d 707
United States Court of Appeals for the Ninth CircuitDecember 7, 1959Nos. 16042, 16228California129 words

Lead Opinion

The trustee in bankruptcy in this case is seeking to obtain certain accounts receivable of the bankrupt which had been assigned to Aetna Factors Co. in violation of express terms of the contracts under which the accounts arose. The Bankruptcy Act empowers the trustee to reach any asset which an ideal lien creditor of the bankrupt could reach. 11 U.S.C.A. § 110 , sub. c. The rights and powers of such a creditor are determined by state law. Under California law, the state in which the transaction occurred, a creditor would be unable to defeat the assignment. Johnston v. Landucci, 21 Cal.2d 63 , 130 P.2d 405 , 148 A.L.R. 1355 . The judgment of the District Court holding that the trustee could not reach the accounts is affirmed.