Citations
- 262 F.2d 157
Full opinion text
HAMLIN, Circuit Judge.
This is an appeal from an order of the District Court, Southern District of California, Central Division, approving and adopting a report of the Referee in Bank-ruptey. The case is before this Court upon an agreed statement of facts.
There is no question of the jurisdiction of the court below, nor of this Court.
It appears that Mallard Pond Builders, Inc., the bankrupt herein, engaged in a construction project which included the erection of many houses. The bankrupt obtained construction loans from a predecessor of Perpetual Savings & Loan Association, hereinafter Perpetual, and entered into a series of construction loans with the lending agency. These loan agreements provided, inter alia, that the proceeds of the loans would be disbursed as progress payments in accord-anee with agreed schedules.
Bankrupt had no general contractor for the whole project, but did employ one Schmidt, the holder of a general contractor s license, to supervise all construetion. T. F. Korherr, hereinafter Appellant, a licensed flooring contractor, entered into a contract with the bankrupt to furnish the material and labor in installing flooring in certain houses to be constructed. The bankrupt entered into numerous other similar contracts with plumbing contractors, electrical contractors, sheet metal contractors, etc., in the construction project.
Appellant having been paid only in part for the flooring he furnished and installed, filed with Perpetual pursuant to Section 1190.1(h) of the Code of Civil Procedure of California a so-called “stop notice” requesting the withholding of further payments to bankrupt in an sufficient to cover Appelant's unpaid Íaim' + Tt 18 agreed by f ® par*ies +tbat,.thlS stop notice was filed within tbe ,time+ requlrf by la^ and prior to bankr?ptcy’ and that it was accomfamed by 1 a bond a? re