In the Matter of F. H. McGraw & Company, Bankrupt. Appeal of Fellows Corporation

OPINION OF THE COURT

ALDISERT, Circuit Judge.

This appeal from the district court’s affirmance of an order of the referee in bankruptcy disallowing appellant’s proof of claim, presents the question whether the referee erred in concluding that his order constituted a binding release of a subsequent claim.

F. H. McGraw & Co., general contractor for the construction of a five million dollar manufacturing plant for Fellows Corp. in Springfield, Vermont, filed a Chapter XI Petition in Bankruptcy and a receiver was appointed. In order to prevent job delay and weather damage, Fellows elected to…