Lowenthal v. Block

This is a suit by a trustee in bankruptcy to recover a balance due for merchandise sold by the bankrupt to the defendants. The total amount due was $5,500.86, of which $2,629.56 was paid, leaving a balance of $2,871.30, to recover which this action was brought. Against this amount the defendants attempt to set off the sum of $2,619.83, representing payments made by them to merchandise creditors of the bankrupt whose obligations to these creditors they had guaranteed. If the setoff is allowed the trustee is entitled to judgment in the sum of $251.47. It is his contention that in the…