Bloch v. Mill Factors Corporation

L. HAND, Circuit Judge.

This is an appeal from an order in bankruptcy, reversing the order of a referee which had dismissed the petition of the trustee to direct the defendant, a factor, to turn over the proceeds from the sale of certain goods of the bankrupt. The question turns upon whether the factor had acquired a lien upon the goods so sold. The facts were as follows. On July 30, 1937, the bankrupt, a dealer in shirts and pajamas, entered into a contract by which the defendant was to lend it money and as collateral security the bankrupt was to assign all its accounts receivable. Upon these…