Sternberg v. Canavan

EVAN A. EVANS, Circuit Judge.

Appellant filed a claim against the bankrupt estate of A. V. Wills & Sons for $7,336.50 and sought its allowance as a preferred debt. The issues were referred to a master, who found for appellant. The District Court approved the allowance of the claim, but denied to it any preferential status.

Claimant and the bankrupt attempted to form a copartnership whereby they jointly agreed to take over and carry out a ditching contract previously entered into by A. V. Wills & Sons, a copartnership, the predecessor of bankrupt, with the Cache River drainage district of…