McDonell v. Sampsell

DENMAN, Chief Judge.

This is an appeal from an order of the district court affirming the order of a referee in bankruptcy that the claim of appellant for a total of $16,664 in unpaid salary be wholly subordinated to the claims of other general creditors.

The appellant McDonell was employed by the bankrupt, Hacker-Byrnes Corporation, in September 1947 as manager of the carpet department at a salary of $15,000 per annum plus 50% of the net profits of that department. On December 1, 1947, the sole shareholder of the bankrupt made appellant a director and the general manager of the corporation at…