97 F.2d 65 (9th Cir. 1938), 8682, Credit Bureau of San Diego v. Petrasich

Docket Nº:8682.
Citation:97 F.2d 65
Party Name:CREDIT BUREAU OF SAN DIEGO, Inc., et al. v. PETRASICH et al.
Case Date:May 27, 1938
Court:United States Courts of Appeals, Court of Appeals for the Ninth Circuit

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97 F.2d 65 (9th Cir. 1938)




No. 8682.

United States Court of Appeals, Ninth Circuit.

May 27, 1938

Liggett & Liggett and Ruel H. Liggett, all of San Diego, Cal., for appellants.

William H. Wylie, of San Diego, Cal, for appellees.

Ben Harrison, U.S. Atty., and Francis C. Whelan, asst. U.S. Atty., both of Los Angeles, Cal., for collector.

Before GARRECHT, HANEY, and STEPHENS, Circuit Judges.

HANEY, Circuit Judge.

Appellants petitioned for, and were allowed an appeal from an order requiring

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certain defendants to interplead, and litigate their rights to $1,020.37 paid into court.

One Salazar, a citizen of the Republic of Mexico, prior to June, 1933, conducted in San Diego, California, a business of importing lobsters and fish from Mexico and selling such products among the wholesale fish dealers. Salazar in June, 1933, having been advised that he had been indicted for violation of the revenue laws, fled to Mexico, where he has since been a resident, and has continued his business at Ensenada, Mexico, since that time. Salazar, has since June, 1933, employed his brother-in-law, Parades, as a common laborer in his business at Ensenada.

Petrasich and Kuglis were partners doing business as 'Star Fisheries'. Pursuant to a contract entered into by the partners and Salazar, there had been delivered to the partners certain lobsters. Credit Bureau of San Diego, Inc., a California corporation hereinafter called the Credit Bureau, conducts a collection agency. On February 27, 1936, the Credit Bureau, 'as assignor' of Parades, brought an action against the partners to recover the purchase price of the lobsters mentioned, in a California state court.

Prior to August 27, 1936, the United States levied a distraint upon all property belonging to Salazar, for recovery of $84,863.02 due from Salazar for internal revenue taxes. On the date last mentioned, a collector of internal revenue, hereinafter called the collector, served upon the partners, a notice of the seizure and levy and a demand for payment to him of any amounts owing Salazar by the partners, not exceeding $84,863.02.

On March 2, 1937, after trial of the state court action, judgment was rendered therein in favor of the Credit Bureau and against the partners for $719.22 and costs in the sum of $301.15. Immediately after entry of the judgment, the collector made demand on the partners for the amount of the judgment, and gave notice to the partners 'that the purported assignment * * * made in the name of * * * Parades to Credit Bureau * * * was executed and delivered to Credit Bureau * * * for collection of said obligation in pursuance of a scheme and device entered into by and between * * * Salazar and * * *...

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