International Canning Machinery, Ltd. v. Murrieta Hot Springs (In re Murrieta Hot Springs)

MEMORANDUM OP DECISION

On July 10, 1980, the above-captioned adversary proceeding came on regularly for trial, Arthur D. Cohen, Esq., of Ball, Hunt, Hart, Brown & Baerwitz, appearing for the plaintiff and cross-defendant International Canning Machinery, Ltd.; David Weinstein, Esq., of Danning, Gill, Gould & Joseph, appeared for the defendant and cross-complainant Leonard A. Goldman, Trustee in Bankruptcy of the Estate of Murrieta Hot Springs, a California corporation (hereinafter referred to as “the Trustee”).

An involuntary petition in bankruptcy was filed against Murrieta Hot Springs on March 3, 1978. Prior to trial, the then alleged bankrupt filed a petition for relief under Chapter XI of the Bankruptcy Act of 1898 on July 31, 1978. On April 10, 1979, the debtor was adjudicated a bankrupt.

Pursuant to the Bankruptcy Reform Act of 1978, Pub.L.95-598, title IV, § 403(a), this case is to be governed under the old Bankruptcy Act as if Public Law 95-598 had not been enacted.

The basic facts on which this adversary proceeding turns are undisputed; the following 16 are taken verbatim from the Stipulation of Facts filed June 12, 1980, by the parties:

1. Plaintiff, INTERNATIONAL…