In re Sullivan

Petitioner, trustee in bankruptcy, seeks relief from the referee’s order dismissing thé petition for lack of jurisdiction.

The facts are as follows: On May 13, 1952, the bankrupt, doing business as a plumbing and heating contractor, filed a petition under Chapter XI of the Bankruptcy Act, 11 U.S.C.A. § 701 et seq., submitting a plan of arrangement for his creditors. The plan was not accepted. On June 12, 1952, the debtor was adjudicated a bankrupt.

Petitioner, appointed trustee of the bankrupt estate, instituted proceedings against Dennis L. Woodman, attorney for the bankrupt, who holds approximately $2,600 in trust for the bankrupt. The bankrupt acquired such money by reason of contracts entered into in the normal course of business during the thirty-day period ending June 12, 1952. He used the facilities and assets of the business in obtaining and in performing the contracts. Respondent admits no interest in the fund.

The trustee in bankruptcy, in an order to show cause, asked the Court to direct respondent to turn over the $2,600 to the trustee. This, respondent refused to do, relying on In re California Paving Company, D. C., 95 F.Supp. 909 , affirmed in California Paving…