In re Gem Stores Co.

SWINFORD, District Judge.

This matter is here on petition to review the findings of the Referee denying an allowance out of the bankrupt estate of a reasonable attorney’s fee and costs of court incurred in a state court proceeding. The claims are presented on the following facts:

The creditors through their attorney sued in Campbell County Circuit Court to set aside a .mortgage lien of the Ritz American Ice Cream Company on the property of the bankrupt, given to secure a claim of this company against the bankrupt. The suit was instituted after the petition in bankruptcy was filed, but before…