McCallum v. Stem

MOORMAN, Circuit Judge.

Without complying with the Bulk Sales Laws of Tennessee (Shannon’s Code, § 3193al), appellee sold his half interest in a drug business to his partner, Allison, who executed to appellee a note for the purchase price, secured by a mortgage on the stock of goods. Allison was later adjudged a bankrupt, and appellee filed proof of his claim as a preferred claim against the estate. The trustee objected to the claim on the ground that it grew out of an illegal and void sale of merchandise in bulk. The court below allowed it as an unsecured claim.

Section 3193al of Shannon’s…