Sorrin v. Pacific Finance Corp.

GALSTON, District Judge.

The' Knickerbocker Automobile Warehouse, Inc., prior to the filing of the petition in bankruptcy, was engaged in the business of buying and selling used automobiles. In the operation of its business it had frequent financial dealings with the defendant corporation. As security for the loans made by the defendant to the bankrupt company, the bankrupt executed and delivered various chattel mortgages on specifically named automobiles. During the period from July 2, 1936, to February 1, 1937, a considerable number of such transactions took place between those parties.

In…