In re Clear Lake Beach Co.

Fidelity & Deposit Company of Maryland, a corporation, on September 5, 1934,-filed with the referee in bankruptcy its unsecured claim in the sum of $1,412.97, the correct amount of which claimant now concedes is $1,371. On May 20, 1935, the referee disallowed and expunged said claim from the record. Claimant filed a petition for review alleging, (1) “that said order is not supported by the evidence and is contrary to law,” and (2) “that said claim of Fidelity & Deposit Company of Maryland is a valid and existing claim against the Bankrupt and should he allowed.”

The claim which petitioner asserts against the bankrupt estate is based, for the most part, upon an extraordinary state of facts, as shown by certain stipulations entered into by counsel for the respective parties. Concisely stated, those facts are as follows:

On May 8, 1929, in the superior court of California, Los Angeles county, C. S. Ellis and D. J. Haugeberg commenced an action (No. 278001) against Clear Lake-Beach Company, a copartnership, composed of R. J. Palmer and L. M. Becker, John Doe and Richard Roe; R. J. Palmer and L. M. Becker, individually. This action came on for trial on February 7,. 1930, and…