In the Matter of JOSEPH KANNER HAT CO., INC., Bankrupt. Stuart I. LEVIN, Trustee-Appellant, v. CITY TRUST COMPANY, Petitioner-Appellee, 482 F.2d 937

Summary

A proof of claim filed by appellee, bank, alleged bankrupt had obtained loan from appellee, evidenced by a note. In consideration for the money, bankrupt absolutely assigned, transferred and sold any and all right, title and interest it had, or may have, in and to all the moneys due it from an agency by virtue of a certain reimbursement claim for compensable moving expenses. The amount due from agency had been reduced as a result of a payment to a mover, which agency turned over to trustee in bankruptcy. In appellee's opinion, the assignment constituted a transfer of an absolute right to collect the sum due. The trustee, however, alleged the claim against agency was a transaction creating an unperfected security interest. Thus, trustee argued its interest in the fund was prior to the appellee's interest by virtue of Conn. Gen. Stat. § 42a-9-301. The lower court denied petition to review referee's decision that outright sale of the claim was not governed by requirements of Article 9. ...