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MILLER v. SULMEYER

No. 15781.

263 F.2d 513 (1959)

Elias MILLER, Paul Miller, Anna Miller and Helen Miller, and Elias Miller and Paul Miller, as executors of the estate of George Miller, deceased, Appellants, v. Irving SULMEYER, trustee in bankruptcy of the estate of Delcon Corporation, bankrupt, Appellee.

United States Court of Appeals Ninth Circuit.

Rehearing Denied April 17, 1959.

Attorney(s) appearing for the Case

Sylvan Y. Allen, Max Mayer, Willis & McCracken, Ernest R. Utley, Los Angeles, Cal., for appellants.

George M. Treister, Quittner, Stutman & Treister, Los Angeles, Cal., for appellee.

Before STEPHENS, CHAMBERS and BARNES, Circuit Judges.

CHAMBERS, Circuit Judge.

The Millers sold a business in June, 1954, to the now bankrupt Delcon Corporation. They took back from Delcon a purchase money mortgage on chattels transferred to Delcon. There was a 79 day delay in recording of the chattel mortgage.1 This failure of the Millers to record was due to the negligence of a "trusted employee" who was apparently too busy with his defalcations of his employers' cash to attend to routine...

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