Engleman v. Commodity Credit Corp.

JAMES M. CARTER, District Judge.

The case is one of first impression. The action is for declaratory relief and the question presented is the effect of Revised Statutes, § 3466, 31 U.S.C.A. § 191, generally giving priority to debts due the United States, on an assignment for the benefit of creditors where the defendant holds the claim of one of the creditors, transferred to it after the assignment for the benefit of creditors.

Peters, a grain merchant, on August 14, 1951, made to plaintiff Engleman an assignment for the benefit of his creditors. At that date Peters was indebted to Smith, another…