LEUSCHNER v. FIRST WESTERN BANK AND TRUST COMPANY

No. 15618.

261 F.2d 705 (1958)

Richard D. LEUSCHNER, Appellant, v. FIRST WESTERN BANK AND TRUST COMPANY, a California Banking Corporation, and United States of America, Appellees.

United States Court of Appeals Ninth Circuit.

July 1, 1958.


Attorney(s) appearing for the Case

C. Ray Robinson, Merced, Cal., Lewis, Field, DeGoff & Stein, Sidney F. DeGoff, M. S. Huberman, A. B. Canelo, San Francisco, Cal., for appellant.

Charles K. Rice, Asst. Atty. Gen., Arthur I. Gould, A. F. Prescott, Lee A. Jackson, Attys., Dept. of Justice, Washington, D. C., Lloyd H. Burke, U. S. Atty., Lynn J. Gillard, Asst. U. S. Atty., San Francisco, Cal., for appellee United States.

Orrick, Dahlquist, Herrington & Sutcliffe, Christopher M. Jenks, San Francisco, Cal., for appellee First Western Bank & Trust Co.

Before HEALY, POPE and FEE, Circuit Judges.


JAMES ALGER FEE, Circuit Judge.

In this case there are only two questions for decision. First, the trial court held that the right of the United States to collect unpaid income taxes prevails over spendthrift provisions of a trust notwithstanding the statute of the State of California, which exempts a portion of the right of a beneficiary thereunder for his education and support. Second, it was also held that the claim of the United States for preference on the unpaid...

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