Benner v. Scandinavian American Bank
Washington Supreme Court
Appeal from a judgment of the superior court for Pierce county, Easterday, J., entered May 16, 1912, upon findings in favor of the plaintiff, after a trial on the merits before the court without a jury, in an action by a trustee in bankruptcy to recover the value of property transferred to creditors.
1Opinion of the CourtFullerton, J.
This action was instituted by J. D. Benner, as trustee in bankruptcy of the Gawley Foundry & Machine Works, against The Scandinavian American Bank, to recover the value of a coasting vessel which the machinery company had transferred to the bank as security for a debt owing by it to the bank. The action was based on the ground that the transfer was void as against the creditors of the machinery company because made within four months of the filing of the petition in bankruptcy against it, thereby creating a preference in favor of the bank forbidden by the *490bankruptcy act. The trustee recovered…
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