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McKEE v. PARADISE

Nos. 4 and 5.

299 U.S. 119 (1936)

McKEE, TRUSTEE IN BANKRUPTCY, v. PARADISE, TRUSTEE.

Supreme Court of United States.

Decided December 7, 1936.

Attorney(s) appearing for the Case

Mr. William E. Leahy, with whom Messrs. William J. Hughes, Jr., A.L. Schapiro, and B.C. Schiff were on the brief, for petitioner.

Mr. Stanford Clinton, with whom Mr. Jack N. Pritzker was on the brief, for respondent.

MR. CHIEF JUSTICE HUGHES delivered the opinion of the Court.

The question relates to the propriety of a preference allowed in a bankruptcy proceeding upon the ground of a constructive trust.

The facts were stipulated. The bankrupt, Grigsby-Grunow, Inc., maintained an unincorporated welfare association, known as the Majestic Employees Welfare Association, to provide life, health and accident insurance for its employees...

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