In re Stotler

The instant matter concerns review of two orders of the Referee, viz.:

1. An Order dated September 29, 1952 directing the bankrupts as plaintiffs in action No. LBC 18660 then pending in the Los Angeles County Superior Court to dismiss that action as to the Trustee in Bankruptcy in the within matter who is named as a defendant in that action;

2. An Order dated October 14, 1952 made by the Referee with findings of fact and conclusions of law which declared void the declaration of homestead filed by said bankrupts and which refused to allow the homestead as exempt.

1. The Order of September 29, 1952:

It is just as logical to permit a creditor to sue a trustee in the State Courts to establish the amount and validity of a' claim, without the consent of the Bankruptcy Court, as it would be to permit the suit against the trustee by the bankrupts to establish the validity of their homestead. Such suits are clearly not permissible.

The bankrupt relies upon American Graphophone Co. v. Leeds & Catlin Co., C.C.S.D.N.Y., 174 F. 158 , but that case is not at all in point as clearly appears from reading the opinion which shows that the Receiver was not a party to the patent case during the…