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IN RE JOHNSON

Nos. 74-1373, 74-1374.

518 F.2d 246 (1975)

In the Matter of Roy M. JOHNSON, Debtor. Otey JOHNSON, Individually and as Trustee, et al., Appellants, v. Gordon D. CLARK et al., Appellees. The FIRST NATIONAL BANK AND TRUST COMPANY OF MUSKOGEE (Trustee in Succession of the Roy M. Johnson Trust), Appellant, v. Gordon D. CLARK et al., Appellees.

United States Court of Appeals, Tenth Circuit.

Decided May 29, 1975.

Rehearing Denied June 19, 1975.

Certiorari Denied October 14, 1975.

Attorney(s) appearing for the Case

Andrew Wilcoxen, of Wilcoxen, Lunn, Mayes & Cate, Muskogee, Okl., for appellants Johnson and others.

A. Carl Robinson, of Robinson, Summers & Locke, Muskogee, Okl., for appellant The First Natl. Bank and Trust Co. of Muskogee, Trustee in Succession.

J. D. DeBois, of DeBois, Peck & Sherrill, Duncan, Okl., and Henry W. Simon, Sr., of Simon & Simon, Fort Worth, Tex. (O. L. Peck, Jr. of DeBois, Peck & Sherrill, Duncan, Okl., and John W. Hughes of Simon & Simon, Fort Worth, Tex., on the brief), for appellee Gordon D. Clark.

Before LEWIS, Chief Judge, and BREITENSTEIN and DOYLE, Circuit Judges.

Certiorari Denied October 14, 1975. See 96 S.Ct. 191.

DOYLE, Circuit Judge.

The main issue presented is whether the trustee of a creditors trust established pursuant to Chapter XII of the Bankruptcy Act is to be surcharged for substantial losses to the trust, which losses resulted from defalcations of the bookkeeper; the losses amounted to about $50,000 and occurred during a period starting in 1960 and continuing to 1969.

Appellee Clark was the trustee...

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