In the Matter of Summit Hardware, Inc., Bankrupt. John A. Schwemler, Trustee in Bankruptcy v. Everett L. Foote

I think that the district court’s order was correct and should be affirmed.

The referee’s order denied a claim by Everett L. Foote of a factor’s lien on certain inventory, which the referee treated merely as an unsecured claim against the bankrupt estate. The district court, on the contrary, ruled that the lien was good and had priority over the claims of the unsecured creditors and over the trustee in bankruptcy, appellant herein, representing those creditors.

The statutory material with which we are concerned is the Ohio Factors Lien Law. The factors lien laws were enacted because of the…