Clark v. Baen

FINCH, P. J.

The complaint alleges that the defendants are indebted to the plaintiff in the sum of $435.50 for “lumber lath sold and delivered” to them by plaintiff. The action was dismissed as to the defendant administratrix. The defendant Baen filed an answer denying the allegations of the complaint and alleging, as an affirmative defense, that the International Brokerage Company, a Delaware Corporation, doing business as California Grape Distributors, was adjudged a bankrupt by the federal court at Chicago and that a receiver was there appointed to take charge of the bankrupt’s estate; that the federal court at San Francisco appointed defendant ancillary receiver of the bankrupt’s estate in California; that the bankrupt, prior to. said adjudication, had carried on the business of “dehydration and drying of fruits and vegetables and of packing and

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shipping the same” at Santa Rosa, California; that “at the time of the appointment of said defendant as ancillary receiver . . . the said bankrupt estate had remaining assets consisting of leasehold property and improvements on leasehold property consisting of drying and packing machinery, drying sheds, a warehouse and other improvements attached to the leasehold and the business connected therewith”; that under and by virtue of orders of the court “said defendant as ancillary receiver was duly authorized to carry on business of the said named bankrupt in Santa Rosa and in California”; that the defendant did “as ancillary receiver, and not otherwise, carry on and conduct . . . the business of the said bankrupt in the city of Santa Rosa” and employed “George 0. Whitney in and about the conduct of the business of said bankrupt at Santa Rosa”; and that the merchandise described in the complaint was “sold and delivered to said bankrupt estate upon the order of said George 0. Whitney.”

The court found that the allegations of the complaint are true; that the defendant was appointed ancillary receiver as alleged in the answer; that the business of the bankrupt was as therein alleged; that the defendant was duly authorized to ‘‘ continue the business of the International Brokerage Company for the balance of the drying season for the year 1921, at the plant of said International Brokerage Company at Santa Rosa”; that the defendant employed Whitney as alleged; that “during said time the said defendant Baen also conducted the business of buying, selling and shipping grapes at said City of Santa Rosa, and shipping said grapes to eastern markets, under the name and designation of Santa Rosa Dehydrating Company, and in and about which said last business the said defendant Baen also employed the said Whitney as agent and manager. That during the times herein mentioned and between September 30, 1921, and October 19, 1921, the said defendant Baen by and through said manager and agent, George 0. Whitney, did purchase from the said plaintiff herein, at Santa Rosa, in the said County of Sonoma, lumber lath for use in shipping green grapes purchased by the said defendant Baen under the name of Santa Rosa Dehydrating Company, and which said lumber lath were •"of the reasonable value of $435.50, and for which the said defendant Baen, by and through said agent and