S. F. Brothers Co., Bankrupt v. Walter G. Wiseman, Trustee in Bankruptcy

The issue in this case is whether there was an abuse of discretion by the Referee in Bankruptcy in the district court in approving a compromise settlement. The compromise was entered into by the Trustee in Bankruptcy with a claimant who had pending litigation with the bankrupt in the district court.

Title 11 U.S.C.A. § 50, Sec. 27 of the Bankruptcy Act, provides that the receiver or trustee may, with the approval of the court, compromise any controversy arising in the administration of the estate upon such terms as he may deem for the best interest of the estate.' The evidence disclosed that…