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BEL MARIN DRIWALL, INC. v. GROVER

No. 26899.

470 F.2d 932 (1972)

In the Matter of BEL MARIN DRIWALL, INC., Bert O. Summers, doing business as Erbentraut & Summers, Appellant, v. William B. GROVER, Trustee in Bankruptcy, Appellee.

United States Court of Appeals, Ninth Circuit.

November 27, 1972.

Attorney(s) appearing for the Case

Dennis J. Montali (argued), of Rothschild & Phelan, San Francisco, Cal., for appellant.

Philip M. Arnot (argued), Eureka, Cal., for appellee.

Before KOELSCH, BROWNING and CARTER, Circuit Judges.

JAMES M. CARTER, Circuit Judge:

This appeal was taken from the district court's affirmance of the bankruptcy referee's turnover order. The question is whether direct payments by the bankrupt's debtor (a general contractor) to the bankrupt's creditor (a supplier to the bankrupt), made under obligation of California law, were invalid as setoffs under § 68b(2) of the Bankruptcy Act, 11 U.S.C. § 108b(2) (1964), against the debtor's obligations to the bankrupt...

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