Acme Distributing Co. v. Collins

LEMMON, Circuit Judge.

In at least three recent decisions,1 this Court has stressed the principle that a court of bankruptcy is a court of equity. If this pronouncement is to amount to more than a mere succession of words making grammatical sense, it means that the parties in a bankruptcy proceeding should act with uberrima fldes.

In other words, the participants in a bankruptcy suit are to be judged, to borrow the classic prose of Mr. Justice Cardozo, according to standards that are “stricter than the morals of the market place”.2

In the instant case, we do not believe that the bankrupt has met…