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BLOCH v. MILL FACTORS CORPORATION

No. 141.

134 F.2d 562 (1943)

BLOCH v. MILL FACTORS CORPORATION.

Circuit Court of Appeals, Second Circuit.

April 2, 1943.

Attorney(s) appearing for the Case

London, Simpson & London, of New York City (David W. Kahn and Ephraim S. London, both of New York City, of counsel), for appellant.

Sperry & Yankauer, of New York City (Walter D. Yankauer and Samuel Weinberg, both of New York City, of counsel), for appellee.

Phillip W. Haberman, Joseph S. Fechteler, White & Case, Dwight, Harris, Koegel & Caskey, and Dills, Muecke, Schelker & Levinson, all of New York City, amici curiae, on behalf of certain factors whose business practices are essentially similar to those of appellee.

Before SWAN, AUGUSTUS N. HAND, and FRANK, Circuit Judges.

SWAN, Circuit Judge.

Melbourne Shirt Co., a New York corporation, engaged in manufacturing shirts and pajamas, was adjudicated bankrupt upon an involuntary petition filed June 14, 1938. During the preceding ten months it had borrowed money from Mill Factors Corporation, a New York factoring concern, pledging as security for the loans all accounts receivable arising from its sales of goods. Following the bankruptcy, litigation developed between Melbourne's trustee...

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