Summary
In Household Finance the court merely held that the Referee was justified in his factual finding that since the finance company had dealt with the bankrupt husband and wife for a period of five years with the result that the company knew or should have known the financial condition of the bankrupts that the financial statements in question were immaterial.
Summary of this case from Avco Finance Co. of Marshall v. BakerOpinion
Nos. 12611, 12612.
February 20, 1956.
Spieth, Spring Bell, Cleveland, Ohio, for appellant.
Joseph H. Ellison, Mansfield, Ohio, for appellee.
Before MARTIN, McALLISTER and STEWART, Circuit Judges.
The Household Finance Corporation has appealed from the orders of the district court overruling its petition for review as an objecting creditor to the discharge of the bankrupt, and affirming the judgment and order of the Referee in Bankruptcy. The basis of the objection to the discharge was placed on Section 14, sub. c(3) of the Bankruptcy Act, 11 U.S.C.A. § 32, sub. c(3), which prevents the discharge if the bankrupt has obtained money or property on credit, or has obtained an extension or renewal of credit by making a materially false statement in writing respecting his financial condition.
The Referee found from the evidence that, in fact, the finance company did not rely upon the financial statements in question, having dealt with the bankrupt husband and wife for a period of five years with the result that the company knew, or should have known, the financial condition of the bankrupts. The district judge affirmed the ruling of the Referee, thereby making the findings concurrent.
Accordingly, upon the reasoning disclosed in the Certificate of Review filed by the Referee, and upon the basis of his findings and conclusions sustained by the evidence and upheld by the district judge, the judgment is affirmed.