Curtis B. Danning, Trustee in Bankruptcy v. Daylin, Inc.

OPINION

EUGENE A. WRIGHT, Circuit Judge:

Plaintiff Danning, trustee in bankruptcy of First Gibson Stores, appeals from a judgment of the district court which denied the trustee’s attempt to set aside as “fraudulent and void” under California law [Cal.Commercial Code § 6101, et seq. (West 1964)] an alleged bulk transfer of the bankrupt’s inventory to Daylin. The court had jurisdiction under Section 70(e)(3) of the Bankruptcy Act [11 U.S.C. § 110(e) (3)]. We reverse and remand.

The bankrupt, First Gibson Stores of California, was incorporated in July 1966 for the purpose of establishing and…