Donald W. Bower, Inc. v. Robert B. Frank, Trustee of Manning-Winthrop Corporation, Bankrupt

The Manning-Winthrop Corporation, which had the general contract for renovating property in Montgomery County, Maryland, owned by the Girl Scouts of America, was substantially indebted to its plumbing and heating subcontractor, Donald W. Bower, Inc., for its part of the work. Being in financial difficulties, Manning-Winthrop persuaded Bower to release whatever lien on the Girl Scouts’ property it may have had or may have been entitled to under Maryland law, and to accept the principal contractor’s postdated check for the amount due.

This arrangement enabled Manning-Winthrop to collect from the…