George Benz & Sons v. Lovett (In re Schwen's, Inc.)

This is an adversary proceeding under the Bankruptcy Act of 1898, as amended. The plaintiff, George Benz & Sons, is a secured creditor of the bankrupt, Sehwen’s, Inc., a maker of ice cream in Blue Earth, Minnesota. The plaintiff held a mortgage on the real estate used by Schwen’s in its business. Plaintiff claims that James H. Levy, formerly trustee of the bankrupt estate, unlawfully sold some equipment that had been attached to Schwen’s building as fixtures and had thus become subject to Benz’s lien. Plaintiff seeks damages for this alleged conversion.

The Bankruptcy Court1 found on…