Lake v. Callis

A trustee in bankruptcy is here contesting with the bankrupt and his wife for a portion of the cash surrender value of certain insurance policies. Questions involving the law of subrogation, bankruptcy and tenancy by the entirety have been raised. The case had its origin in a mortgage foreclosure proceeding instituted in the Circuit Court for Queen Anne’s County.

Originally Eugene M. Callis and his wife, Esther Perry Callis, as tenants by the entireties, owned a large dairy farm, but on January 1, 1949, they conveyed approximately 400 acres of the land to a newly created *584corporation called…