Sulmeyer

This is an appeal from a judgment of the United States District Court confirming an order of the referee in bankruptcy which refused to subordinate the claims of certain creditors of the bankrupt’s estate, in the same class as appellants, to the claims which appellants hold against the bankrupt Deleon Corporation. The district court had jurisdiction to review the referee’s order under the provisions of 11 U.S.C.A. §§ 46 and 67, sub. c. This court has jurisdiction to reveiw the district court’s judgment under the provisions of Section 47 of Title 11 United States Code Annotated.

This is the third act of this controversy. Act one is reported as Miller v. Sulmeyer, 9 Cir., 1959, 263 F.2d 513 , cert. denied 361 U.S. 838 , 80 S.Ct. 55 , 4 L.Ed. 2d 78 . There this court held a chattel mortgage recorded 79 days after it had been executed was invalid as against appellee-trustee in bankruptcy by virtue of Moore v. Bay, 1931, 284 U.S. 4 , 52 S.Ct. 3 , 76 L.Ed. 133 . The judgment for $82,-500 against appellants (being the fair market value of the mortgaged property which appellants had repossessed and sold) was affirmed, though appellants were to have a claim against the bankrupt estate for…