In re Gulfport Furniture Co.

HOLMES, District Judge.

The referee ordered the trustee to pay, as a prior claim, an indebtedness due upon an enrolled judgment against the bankrupt. The trustee, having appealed from the decision of the referee, contends that the judgment creditor lost its lien by negligence in failing to pursue its remedy with due diligence, and in accepting partial payments from the bankrupt during a delay of many months, after the entry of judgment, without the issuance of an execution.

The facts are not in dispute. On May 11, 1931, the New Orleans Furniture Company obtained a judgment against the bankrupt;…