In the Matter of Mary Jane Lee, Individually and Doing Business as "The Breakers." O. W. Irwin, Trustee in Bankruptcy v. United States

I dissent, and would affirm the District Court. The facts are undisputed. The trial court found, applying California law:

“III. The Court concludes from the facts as found herein, applying California law to the question in issue:

A. That the bankrupt breached her trust and fiduciary duty as administratrix of the decedent’s estate when in March and early April of 1963, prior to her bankruptcy, she used the cash sum of $12,000, out of a total cash sum of approximately $25,000 in her hands at that time, to purchase the subject state liquor license for her own personal business use and thereby…