In re Club New Yorker

On December 31, 1935, and before the adjudication, an action was begun by Roy Cutter (to be hereinafter referred to as “the attaching creditor”) against the bankrupt Frank Kerwin, doing business as the Club New Yorker, and others in the municipal court of the city of Los Angeles, *695 county of Los Angeles, state of California, a court of record. An attachment was issued and levy made upon the business of the bankrupt on the same day by the marshal of the city of Los Angeles. Upon the deposit by Frank Kerwin with the marshal of a cash bond in the amount of $275.00, the attachment was released. On January 10, 1936, an involuntary petition in bankruptcy was filed against the Club New Yorker, a partnership alleged to consist of Frank Kerwin, A1 Kerwin, and certain fictitious persons, to be referred to hereinafter as “the partnership bankrupt,” and Walter C. Durst was appointed receiver. On January 28, 1936, the two named persons sued as partners filed their answers denying bankruptcy. Frank Kerwin, in his answer, stated that the business was not a partnership, but that he was its sole and exclusive owner and that he was insolvent. Coincident with this he filed his schedules. The…