Rutherford v. Elliott

KNAPPEN, Circuit Judge.

This case is here on appeal from an order of the District Court affirming an order of the referee in bankruptcy made in the matter of the estate of the above-named bankrupts, disallowing the claim of appellant upon a note for $38,000 given to appellant by W. P. T. Varney /hereinafter called Tolby Varney), dated March 26, 1925, and indorsed by the two bankrupts April 6, 1925. The defenses made by the trustee, so far as important here, are (a) that the consideration for the bankrupt’s indorsement was illegal, viz. the compounding of a felony alleged to have been committed…