In the Matter of Ludlum Enterprises, Inc., Bankrupt. American Industrial Leasing Company v. David S. Searles, Trustee

RONEY, Circuit Judge:

The bankruptcy court decreed the Trustee in bankruptcy of a bankrupt lessee to be the owner of leased restaurant equipment for bankruptcy purposes against the claim of ownership by the lessor, where the lease had not been recorded and possession had been with the bankrupt over two years. The court relied on Florida Statutes § 726.09 concerning fraudulent loans. Since this district court is the first state or federal court ever so to apply this 150-year old Florida statute to a lease of personal property, this case is of first impression in this Court. Holding that Florida…