RALPH E. WILLIAMS, AS TRUSTEE OF THE ESTATE OF FUTURE MFG. COOPERATIVE, INC., BANKRUPT, APPELLANT,
v.
LEAMON T. MCDONALD, APPELLEE
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The court held that the evidence was insufficient to establish that the president had reasonable cause to believe the cooperative was insolvent when he paid himself.
The president of a bankrupt cooperative paid himself approximately $1700 in salary after a fire closed the establishment. The bankruptcy petition was …
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PER CURIAM.
This is a suit by appellant, Trustee of the bankrupt estate named in the caption, to recover from appellee an allegedly voidable preference.
The bankrupt was a cooperative grocery concern of which appellee was president and manager. On January 2, 1956, a serious fire occurred in the establishment, forcing a closedown. Two days later appellee, who had not recently been collecting his salary, paid himself out of the assets of the cooperative the sum of approximately $1700, representative of the amount owing him. Within four months thereafter the petition in bankruptcy was filed and the cooperative adjudicated a bankrupt.
On consideration of the evidence the trial court found that the payment by the bankrupt within the statutory four months’ period was not a voidable preference under § 60, sub. b, of the Bankruptcy Act, 11 U.S.C.A. § 96, sub. b, in that at the time of the payment appellee did not have knowledge or reasonable cause to believe that the cooperative was insolvent. Judgment was entered accordingly, and this appeal followed.
The Trustee’s contention here is that the finding on the issue of reasonable cause to believe is erroneous. We are not disposed to so hold. The evidence bearing on the knowledge available to appellee concerning the financial situation of the cooperative as of the time of the payment is slender and inconclusive. Accordingly the judgment is affirmed.