J. H. Fralin and J. Whit Brown v. David Aronovitch, Debtor

HAYNSWORTH, Circuit Judge.

The claimants in bankruptcy, secured creditors of the debtor, sold the security under a deed of trust and seek to have the deficiency allowed, as the claim of a common creditor, against the estate of the bankrupt debtor. The Referee in Bankruptcy disallowed the claim, principally upon the ground there had been no loss in fact. The District Court confirmed the findings and the order of the Referee. This appeal followed.

The controversy arises out of successive real estate transactions.

In January 1951, the claimants, appellants here, purchased a 995 acre farm' in…