Woodruff v. Heiser

• Decision Date: 11 August 1945
• Docket Number: No. 3053.,3053.
• Citation: 150 F.2d 873
• Parties: WOODRUFF v. HEISER.
• Court: U.S. Court of Appeals — Tenth Circuit

150 F.2d 873 (1945)

WOODRUFF v. HEISER.

No. 3053.

Circuit Court of Appeals, Tenth Circuit.

August 11, 1945.

H. A. Ledbetter, of Ardmore, Okl., for appellant.

Leonard J. Meyberg and Rupert B. Turnbull, both of Los Angeles, Cal. (T. G. Gibson, of Ardmore, Okl., on the brief), for appellee.

Before PHILLIPS, BRATTON, and HUXMAN, Circuit Judges.

BRATTON, Circuit Judge.

The United States Court for Eastern Oklahoma adjudged Leonard J. Woodruff a bankrupt. Willie Mae Woodruff, wife of the bankrupt, filed in the proceeding a claim against the estate. It was stated in the claim that the exact amount due was unknown. The claimant asked that the bankrupt be required to render an accounting, and permission was sought to amend the claim to conform to the amount determined to be due. M. E. Heiser, another claimant, submitted an application for authority to file objections to the claim. An order was entered granting the application, and the objections were filed. The referee allowed the claim in the amount of $812,176.15. Heiser petitioned for review, and the referee made the usual certificate on review. The district court on review allowed the claim for only $18,000. The claimant appealed from the disallowance of the claim for the amount thereof in excess of $18,000.

By motion, it is urged that the judgment of the district court be reversed and the order of the referee affirmed. The basis of the motion is that Heiser did not have the right to petition for review of the order of the referee. While one creditor in a proceeding in bankruptcy does not have the absolute right to petition for review of an order of the referee allowing the claim of another claimant which merely affects the estate generally, the court did not err in the exercise of its power to review the order of the referee allowing this claim. Heiser v. Woodruff, 10 Cir., 150 F.2d 867.

Though the evidence relating to the claim was extensive and presented issues of fact, the trial court did not make any formal findings of fact and conclusions of law. It was the duty of the court to make findings and conclusions, in compliance with Federal Rule of Civil Procedure 52(a), 28 U.S.C.A. following section 723c. Mayo v. Lakeland Highlands Canning Co., 309 U.S. 310, 60 S.Ct. 517, 84 L. Ed. 774; Kelley v. Everglades Drainage District, 319 U.S. 415, 63 S.Ct. 1141, 87 L.Ed. 1485. And where the issues cannot be decided satisfactorily on appeal without findings of fact by the trial court, the judgment may be vacated and the cause remanded in order that specific findings may be made. Mayo v. Lakeland Highlands Canning Co., supra; Kelley v. Everglades Drainage District, supra. But where the trial court embodied in its written opinion specific findings on the material issues of fact and set out conclusions on the important questions of law involved, the cause should not be remanded for formal findings and conclusions. Carter Coal Co. v. Litz, 4 Cir., 140 F.2d 934. The written opinion of the trial court presents a clear understanding of the basis of the decision. The issues can be satisfactorily decided on appeal and therefore it is unnecessary to remand the case for the making of formal findings and conclusions.

The basis of the claim is breach of trust. The parties were married in 1914. Thereafter, the husband conveyed to the wife by warranty deed a tract of land in Oklahoma. An oil and gas lease covering the land was executed and delivered and oil was developed in 1919. From 1920 to 1930, the wife received large sums of money in payment for royalty oil. During that period, she delivered to her husband or to others at his direction money in various amounts with the understanding and agreement that he would invest or cause it to be invested in stocks and bonds for her benefit. Investments, dispositions, and reinvestments were made from time to time. About $30,000 of the money was used to...