Muffler v. Petticrew Real Estate Co.

ALLEN, Circuit Judge.

This case presents a problem of conflicting jurisdiction between a state court and the federal court. It arises out of the denial by the federal court of a motion to vacate an adjudication of bankruptcy, to set aside an order of reference, to dismiss the bankrupt’s petition, and to dissolve a restraining order theretofore issued enjoining proceedings in the state court. The state court receiver and two mortgagees who were parties to the state court proceedings join in the appeal.

The following facts are conceded:

Prior to March 5, 1933, appellee was a corporation doing a…