California v. Moore

NETERER, District Judge.

From an order of the referee in bankruptcy, affirmed by the bankruptcy court, disallowing the claims of the state comptroller for penalties claimed under the California tax law as a preferred lien claim entitled to full payment from the assets of the bankrupt estate, the State has appealed.

The Paul Kent Truck Company was adjudicated a voluntary bankrupt October 20, 1933. Respondent was appointed trustee thereafter. On June 23, 1933, the tangible assets of the bankrupt were seized and sold by a claimant of a conditional sales contract. In a suit by the trustee charging…