National Bank & Trust Company v. Allied Supply Company and N. G. Runyan, in the Matter of Martin Robert Romanac, Bankrupt

BOREMAN, Circuit Judge:

This (dean appeal from an order of the United States District Court for the Western District of Virginia reversing an order of a Referee in Bankruptcy. The District Court held that the referee had an equitable duty to give to lienhold-ers notice of any action taken by the referee which affected their perfected liens on an asset of the bankrupt estate. We affirm.

Martin Romanac, the bankrupt, began construction of a duplex dwelling on a lot in Charlottesville, Virginia. Allied Supply Company (hereafter Allied) had supplied building materials to Romanac for use in the…