Employers Mutual Casualty Co. v. Hinshaw

RIDGE, Circuit Judge.

In this bankruptcy proceeding the District Court, on petition to review, filed pursuant to Section 39, sub. c of the Bankruptcy Act (11 U.S.C.A. § 67, sub. c), rejected as “clearly erroneous” the Referee’s conelusory finding “that there was no reasonable cause” for appellant, a surety on a completion bond, “to believe bankrupt was insolvent at the time” it received from the bankrupt two chattel mortgages covering specified automobiles and machinery and transfers of title to other assets of the bankrupt.

The question presented to us by this appeal is whether the District…