United States v. Leo Lutz

WISDOM, Circuit Judge.

The United States, plaintiff-appellant, seeks recovery from Leo Lutz, defendant, for debts owed by two corporations the defendant owned and managed. Lutz was the president, a director and, except for qualifying shares held by other directors, the sole shareholder of both corporations.

In October 1952 the Army contracted to purchase $35,897 worth of canned tomatoes from two Indiana food processing corporations, Lutz Canning Co. ($27,168) and Delphi Canning Co. ($8,729). Although the Army made immediate payment, the tomatoes were not to be de livered until March 1953. The…