Cheek v. Caine & Weiner Company

• Decision Date: 10 November 1971
• Docket Number: No. 71-647.,71-647.
• Court: U.S. District Court — Central District of California
• Parties: Crules R. CHEEK, as trustee in bankruptcy for the estate of P. W. M. Aircraft Supplies, Inc., a California corporation, fdba P & W Aircraft Supply, Bankrupt, Plaintiff, v. CAINE & WEINER COMPANY, Inc., a corporation, and Avnet Electronics, Defendants.

335 F. Supp. 1319

Crules R. CHEEK, as trustee in bankruptcy for the estate of P. W. M. Aircraft Supplies, Inc., a California corporation, fdba P & W Aircraft Supply, Bankrupt, Plaintiff, v. CAINE & WEINER COMPANY, Inc., a corporation, and Avnet Electronics, Defendants.

No. 71-647.

United States District Court, C. D. California.

November 10, 1971.

Craig, Weller & Laugharn, by Robert A. Fisher, Los Angeles, Cal., for plaintiff.

E. Stuart Meyers, Los Angeles, Cal., for defendants.

MEMORANDUM OF DECISION

WHELAN, District Judge.

In this action, the case came on for trial on the issue as to whether or not defendant Caine & Weiner Company, Inc., a corporation, was a secured creditor more than four months prior to the filing of a voluntary petition in bankruptcy by P.W.M. Aircraft Supplies, Inc., a corporation only. The parties stipulated that the trial might be so bifurcated. The parties at the time of trial entered into a stipulation of facts, and exhibits attached to the pretrial conference order were received in evidence.

Plaintiff is trustee in bankruptcy for the bankrupt estate of P.W.M. Aircraft Supplies, Inc. On June 2, 1970, defendant Avnet Electronics assigned to defendant Caine & Weiner Company, Inc. for collection, all of Avnet Electronics' right, title and interest in and to a claim which Avnet then had against P.W.M. Aircraft Supplies, Inc. in the amount of $12,956.53 plus interest thereon, which claim was for goods sold and delivered by Avnet to P.W.M. Aircraft Supplies, Inc. on open account in December 1969. On July 16, 1970, Caine & Weiner Company, Inc. had brought a legal action against P.W.M. Aircraft Supplies, Inc. upon such claim, and on July 16, 1970, the latter two parties entered into a stipulation whereby it was agreed that Caine & Weiner Company, Inc. should have judgment against P.W.M. Aircraft Supplies, Inc. in the total sum of $13,593.58.

On July 17, 1970, P.W.M. Aircraft Supplies, Inc. and Caine & Weiner Company, Inc. signed a financing statement which was filed on July 20 with the California Secretary of State. Such financing statement is marked Exhibit B and attached to the pretrial conference order. The financing statement disclosed the address of P.W.M. Aircraft Supplies, Inc. as well as the address of Caine & Weiner Company, Inc. The financing statement covered the tools, machinery, equipment and office equipment, tanks, pumps, located at 1326 West Brooks, Ontario, California, and Chino Airport, Chino, California, which were stated in the financing statement to be the addresses of P.W.M. Aircraft Supplies, Inc. The financing statement states that it covers the list of tools, machinery, equipment and office equipment, tanks, pumps, on an attached list, which attached list is a part of such Exhibit B. The list shows the location of certain of the items of property to be at 1326 West Brooks St., Ontario, California, and lists the items of property located at Fire Base, Chino Airport, California.

The financing statement includes the following language: "This document is also intended to be a security agreement."

The petition in bankruptcy filed by P.W.M. Aircraft Supplies, Inc. was filed on December 22, 1970. The stipulation for judgment and the filing of the financing statement thus occurred more than four months prior to the filing of the petition in bankruptcy. However, the monies...