Canright v. General Finance Corporation

KERNER, Circuit Judge.

Defendant seeks to reverse a judgment rendered against it in an action brought by the plaintiff, the trustee in bankruptcy of Edward Wennerholm, for preferential payments made by the bankrupt.

Wennerholm, a retail automobile dealer, was adjudged a bankrupt on May 2, 1939. The court, trying the case without a jury, found that on March 25, 1939, the bankrupt owed defendant $5177.64, for which it held no security; that after April 14, 1939, and up to April 21, 1939, the bankrupt, while insolvent and at a time when defendant had reasonable cause to believe that bankrupt was…