Reber v. Louis Shulman & Bro.

Citations

• 179 F. 574
• 1910 U.S. Dist. LEXIS 288

Syllabus

<p>Bankruptcy (§ 303*) — Preference—Burden, of Proof.</p> <p>In an action by a trustee in bankruptcy against an accommodation indorser of the bankrupts’ paper to recover an alleged preference, consisting of the bankrupts’ payment of the debt to the holder of the paper within the statutory period relieving defendants from their contingent liability, the burden was on the trustee to prove by evidence establishing more than a suspicion that the bankrupts intended thereby to prefer defendants when the debt was so paid, and that defendants knew or had reasonable cause to believe that such preference was intended.</p> <p>[Ed. Note. — Eor other cases, see Bankruptcy, Cent. Dig. § 458; Dec. Dig. § 303.*]</p>