In re McNair & Ryan

The Review of the Order of the Referee, dated May 8, 1950, relating to the claims of Ruth McNair, heretofore argued and submitted, is now decided as follows:

(1) The said Order of the Referee is hereby affirmed.

(2) The Court, however, finds that the portion of Finding 2 reading: “* * * in order to evade an agreement with the husband’s partner not to engage in a business competitive to the business of the bankrupt.” is unsupported by the evidence.

(3) The Minute Order, dated October 23, 1950, is hereby ordered vacated.

Comment.

The Referee allowed a general claim of Ruth McNair, wife of one of the partners, for $2500, alleged to have been loaned to the partnership out of her separate funds, but subordinated it to the claims of the other creditors. On review, the Order was affirmed in open court. However, disagreement as to the scope of the decision made on October 23, 1950, made it necessary to reopen the matter for further argument. Since such reargument, I have re-examined the entire record, including the transcript of the testimony given before the Referee. And I am of the view that the Minute Order of October 23, 1950, was incorrect insofar as it provided for the…