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IN RE BUNA PAINTING & DRYWALL CO., INC.

No. 73-2447.

503 F.2d 618 (1974)

In the Matter of BUNA PAINTING & DRYWALL CO., INC., and B & M Drywall, Inc., Bankrupts. BONJOUR, GOUGH & STONE, a professional corporation, as Trustee in Bankruptcy of Buna Painting & Drywall Co., Inc. and Irving J. Kornfield as Trustee in Bankruptcy of B & M Drywall, Inc., Petitioners-Appellants, v. PACIFIC EMPLOYERS INSURANCE CO., DIVISION OF LABOR LAW ENFORCEMENT, et al., Respondents-Appellees.

United States Court of Appeals, Ninth Circuit.

August 27, 1974.

Attorney(s) appearing for the Case

Lynn Anderson Koller, of Kornfield & Koller, Bonjour, Gough & Stone, Oakland, Cal., Milton Maxwell Newmark, Lafayette, Cal., for petitioners-appellants.

Frederic E. Van Dorn, San Francisco, Cal., Eugene B. Baird, Div. of Labor Law Enforcement, San Francisco, Cal., Martin Hineser, Norman Spellberg, Hineser, Spellberg & Murtha, Pleasant Hill, Cal., for respondents-appellees.

Before KOELSCH and KILKENNY, Circuit Judges, and McGOVERN, District Judge.

OPINION

PER CURIAM:

The only question involved in this appeal1 is whether the trustees are empowered by Section 70(c) of the Bankruptcy Act, 11 U.S.C. § 110(c), to require the surety to pay into the bankruptcy estate the penal sums on the contractors' licensing bonds. The answer is clearly "no".

The reasoning of Betzer v. Olney, 14 Cal.App.2d 53, 57 P.2d 1376 (1936), the only case directly in point, is persuasive...

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