In the Matter of Lawrence Lee Peterson, Bankrupt-Appellee v. Clark Leasing Corporation, Trustee-Appellant

Appellee Peterson filed a voluntary petition in bankruptcy, listing the Clark Leasing Corporation as his only creditor. Clark Leasing objected to discharge on the ground that Peterson had not kept adequate books and records segregating his personal assets from those of his corporation, Better Trucking, Inc., as required by Section 14c(2) of the Bankruptcy Act. Clark Leasing convinced the Referee that Peterson should be collaterally estopped from litigating this issue by virtue of a state court judgment that pierced the corporate veil of Better Trucking, Inc. and declared its assets to be…