Ellsworth v. Lyons
Court of Appeals for the Sixth Circuit
Appeal from the District Court of the United States for the Eastern District of Michigan. In the matter of the Lansing Veneered Door Company, bankrupt. From an order of the District Court reversing an order of the referee directing certain, payment, John E. Ellsworth appeals adversely to T. Rogers Lyons, trustee of the estate.
1Opinion of the Court
KNAPPEN, Circuit Judge.
The appellant, on behalf of himself and other holders of preferred stock of the Lansing Veneered Door Company (hereafter referred to as the “Door Company”), petitioned the referee for an order directing the payment to him and such other stockholders of the proceeds of a certain policy of insurance upon the life of Charles Broas, taken out by the bankrupt company for the purpose of securing the payment of the dividends upon said preferred stock and the ultimate redemption of the same at par. The referee granted the petition. The District Court, upon review of the…
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