Hanson v. Citizens State Bank of Litchfield

Action by the plaintiff as trustee in bankruptcy to set aside as preferential a payment of $446.29, alleged to have been made by the bankrupt to the defendant on August 3, 1921. The action was dismissed at the close of the plaintiff’s testimony. Plaintiff appeals from the order denying his motion for a new trial.

The bankrupt owned a stock of millinery goods and fixtures in Litchfield. The plaintiff had a mortgage on them. The bankrupt remained in possession, selling in the usual course of trade. We assume that it was invalid within the case of Secord v. Northwestern Tire Co. 159 Minn. 473,…