First Security National Bank & Trust Co. of Lexington v. Peter

STEINFELD, Judge.

Appellant, First Security National Bank & Trust Company of Lexington, was appointed liquidating agent for George Franklin Vaughan, Jr. (hereinafter Vaughan) in an arraignment proceeding under Chapter 11 of the Bankruptcy Act. It was ordered to enter into an option contract with ap-pellee, Edward H. Peter, for the sale of certain real estate. When a title insurance company declined to insure the title free of restrictions this suit was brought as a class action for a declaration of rights to determine whether the property was encumbered. The other appellees are the owners of…