Noroian v. Hern, 22962.
| Citation | 422 F.2d 1092 |
| Decision Date | 13 March 1970 |
| Docket Number | No. 22962.,22962. |
| Parties | George NOROIAN, Bankrupt, Appellant, v. William C. HERN, State Labor Commissioner and Chief of Division of Labor Law Enforcement, Department of Industrial Relations, State of California, Appellee. |
| Court | U.S. Court of Appeals — Ninth Circuit |
LeRoy J. Reinhardt, Fresno, Cal., for appellant.
Douglas M. Phillips (Argued), Div. of Labor, Law Enforcement, San Francisco, Cal., Richard V. Boulger, Asst. U. S. Atty., Small Business Admin., Fresno, Cal., for appellee.
Before MADDEN, Judge of the United States Court of Claims,* and HAMLEY and ELY, Circuit Judges.
George Noroian, who had voluntarily petitioned for a discharge in bankruptcy, appeals from a district court order affirming a referee's order denying such discharge. Discharge was denied pursuant to section 14(c) (2) of the Bankruptcy Act (Act), 11 U.S.C. § 32(c) (2). The referee determined that Noroian, without justification, failed to keep books of account or records from which his financial condition and business transactions might be ascertained, and that, under all of the circumstances of the case, such failure was not justified. Noroian questions these determinations.
In 1954, Noroian and his sister, Archie Noroian, organized three corporations, the principal business of which was to carry on the Noroians' previous partnership business of growing, canning and selling fresh and canned fruits and other crops. These corporations were George Noroian Company, Fruitful Valley Farms and Bear Mountain Orchards. Two years later Bear Mountain Orchards was merged with Fruitful Valley Farms.
Noroian and his sister had equal stock ownership in the corporations. Noroian, however, was the corporate officer in charge of their operations and controlled their affairs. With the knowledge of his sister, Noroian commingled the assets, liabilities and properties of George Noroian Company with those of Fruitful Valley Farms, and commingled his own assets, liabilities and properties with those of the two corporations. He had no other assets, business interests, occupation or source of income other than as an employee, stockholder and officer of the two corporations.
On January 18, 1963, George Noroian Company filed a petition in bankruptcy under Chapter XI of the Act. In those proceedings, the schedule of liabilities lists a total of $71,029.95 for wages due employees, all of which claims had been assigned to the California Division of Labor Law Enforcement (California Division). After this petition had been filed, the business was operated by Noroian as debtor in possession until October, 1963, when a receiver was appointed. The corporation was adjudicated a bankrupt November 1, 1963.
On April 1, 1964, the trustee in bankruptcy in that proceeding abandoned the company plant, real property and equipment. The corporation thereafter sought to reactivate the cannery business during the 1964 and 1965 seasons, but without success. George Noroian Company has not applied for, or been granted, its discharge in bankruptcy in the Chapter XI proceedings. In the meantime, through a series of six foreclosures, Fruitful Valley Farms lost all of its assets except for some worthless automotive equipment.
On June 16, 1966, Noroian filed a debtor's petition in bankruptcy under section 4 of the Act, 11 U.S.C. § 22. He listed, among his liabilities, the same wage claims, aggregating $71,029.95, held by the California Division, as were listed in the corporation's Chapter XI proceedings. On October 10, 1966, Sigmund Arywitz, State Labor Commissioner and Chief of the California Division, filed a specification of objections to the discharge in bankruptcy of Noroian. Arywitz has since been succeeded by William C. Hern, and the two will be referred to herein as appellee.
Invoking section 14(c) (2) of the Act...
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In re French, 06-1405.
...courts have consistently determined that a debtor's books "need not be perfect nor follow any particular system." Noroian v. Hern, 422 F.2d 1092, 1094 (9th Cir.1970); see also In re Schifano, 378 F.3d 60, 69 (1st Cir.2004) (concluding that Bankruptcy Code does not require perfect bookkeepin......
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In re Goldstein, Bankruptcy No. 90-11473S
...as to allow the Trustee, the creditors, and the court to meaningfully reconstruct the debtor's financial status. See Noroian v. Hern, 422 F.2d 1092, 1094 (9th Cir.1970); Broad Nat'l Bank v. Kadison, 26 B.R. 1015, 1018 (D.N.J.1983); In re Dias, 95 B.R. 419, 422-23 (Bankr.N.D.Tex.1988); In re......
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Horton, Matter of
...same standard of clearly erroneous, with reversal for gross abuse of discretion, is applicable. Rhoades v. Wikle, supra; Noroian v. Hern, 422 F.2d 1092 (9th Cir. 1970); Burchett v. Myers, 202 F.2d 920 (9th Cir. Using these standards, we have assessed the record in this case. It shows that H......
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Hyun Suk Cho v. Seung Chan Park (In re Seung Chan Park)
...F.2d 1226, 1232 (3d Cir.1992). A debtor's financial records “need not be perfect nor follow any particular system.” Noroian v. Hern, 422 F.2d 1092, 1094 (9th Cir.1970). The Fourth Circuit has instructed that § 727(a)(3) does not require a debtor to maintain a bank account; it simply require......