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SONNENSCHEIN v. RELIANCE INSURANCE CO.

353 F.2d 935 (1965)

Adolph SONNENSCHEIN, Isidore Sonnenschein and Harry L. Bermack, individually and as co-partners doing business under the firm name and style of Stratford Factors and the co-partnership known as Stratford Factors, Appellants, v. RELIANCE INSURANCE CO., and Merchants Fire Assurance Corp. of New York, Appellees. In the Matter of Adolph Sonnenschein et al., Debtors.

United States Court of Appeals Second Circuit.

Decided December 10, 1965.

Attorney(s) appearing for the Case

W. Harvey Mayer, New York City, (Friedlander & Gaines, New York City, on the brief; Saul Brenner, New York City, of counsel), for appellants.

Herman B. Zipser, New York City (Herman L. Falk, New York City, on the brief), for appellees.

Before WATERMAN and MOORE, Circuit Judges, and TYLER, District Judge.

MOORE, Circuit Judge:

In 1959, Waldeck & Schwartz, Inc., the licensed insurance agent of appellees, Reliance Insurance Company and Merchants Fire Assurance Corporation of New York (claimants), entered into a contract with appellants, partners in Stratford Factors Company (debtors), pursuant to which the agent transferred insurance premiums due to the claimants to the factoring company as security for loans and advances...

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