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IN RE SUMMIT HARDWARE, INC.

No. 14548.

302 F.2d 397 (1962)

In the Matter of SUMMIT HARDWARE, INC., Bankrupt. John A. SCHWEMLER, Trustee in Bankruptcy, Plaintiff-Appellant, v. Everett L. FOOTE, Defendant-Appellee.

United States Court of Appeals Sixth Circuit.

April 19, 1962.

Attorney(s) appearing for the Case

Clair E. Whitmer, Akron, Ohio (Kent W. Woodward, Johnson, Whitmer & Sayre, Akron, Ohio, on the brief), for appellant.

Clarence W. May, Akron, Ohio (Brouse, McDowell, May, Bierce & Wortman, Akron, Ohio, on the brief), for appellee.

Before MILLER, Chief Judge, WEICK, Circuit Judge, and MAGRUDER, Senior Circuit Judge.

WEICK, Circuit Judge.

This case involves the question whether a factor's lien on inventory taken as security for the payment of a loan was valid under Ohio law as against the creditors of the bankrupt borrower.

The material facts, with one exception, were not in dispute.

The bankrupt, Summit Hardware, Inc., an Ohio corporation, was engaged in the business of selling hardware at retail. On December 17, 1957 it negotiated a loan from the factor, Everett...

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