Frasher v. Robinson, 458 F.2d 492 (9th Cir. 1972). · Go Syfert
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Frasher v. Robinson, 458 F.2d 492 (9th Cir. 1972). Cases Citing This Book View Copy Cite
“however, absent inequitable conduct, bona fide claims based upon loans from majority shareholders will not be subordinated to the claims of other creditors.”
25 citation events across 17 distinct courts.
Strongest positive: Matter of Martin's Point Ltd. Partnership (ganb, 1981-06-19)
Treatment trajectory · 1972 → 2026 · click a year to view as-of
1972 1999 2026
Top citers, strongest first. 15 distinct citers. How cited ↗
discussed Cited as authority (verbatim quote) Matter of Martin's Point Ltd. Partnership (2×) also: Cited "see"
Bankr. N.D. Ga. · 1981 · signal: see · quote attribution · 1 verbatim quote · confidence high
however, absent inequitable conduct, bona fide claims based upon loans from majority shareholders will not be subordinated to the claims of other creditors.
discussed Cited as authority (rule) In Re Comtec Industries, Inc.
Bankr. E.D. Pa. · 1988 · confidence medium
Comstock v. Group of Institutional Investors, 335 U.S. 211, 229 , 68 S.Ct. 1454, 1463 , 92 L.Ed. 1911 , 1923 (1948); Spach v. Bryant, 309 F.2d 886, 889 (5th Cir.1961); Frasher v. Robinson, 458 F.2d 492, 493 (9th Cir.1972), cert. denied, 409 U.S. 1009 , 93 S.Ct. 443 , 34 L.Ed.2d 302 (1972). (ii) The misconduct must have resulted in injury to the creditors of the bankrupt or conferred an unfair advantage on the claimant.
cited Cited as authority (rule) In Re Medical Equities, Inc.
Bankr. S.D. Ohio · 1987 · confidence medium
Frasher v. Robinson, 458 F.2d 492, 498 (9th Cir.1972) cert. denied, 409 U.S. 1009 , 98 S.Ct. 443 , 34 L.Ed.2d 302 (1972).
discussed Cited as authority (rule) Unsecured Creditors' Committees of Pacific Express, Inc. v. Pioneer Commercial Funding Corp. (In Re Pacific Express, Inc.)
9th Cir. BAP · 1986 · confidence medium
In re Westgate-Califomia Corp., 642 F.2d 1174, 1177-78 (9th Cir.1981); In re Ahlswede, 516 F.2d 784, 788 (9th Cir.), cert. denied, 423 U.S. 913 , 96 S.Ct. 218 , 46 L.Ed.2d 142 (1975); Frasher v. Robinson, 458 F.2d 492, 493 (9th Cir.), cert. denied, 409 U.S. 1009 , 93 S.Ct. 443 , 34 L.Ed.2d 302 (1972), it has not established clear guidelines to be applied to facts such as those presented herein.
cited Cited as authority (rule) Unsecured Creditors' Committee of Pacific Express, Inc. v. Pioneer Commercial Funding Corp. v. Pioneer Commercial Funding Corp. (In Re Pacific Express, Inc.)
Bankr. E.D. Cal. · 1985 · confidence medium
Frasher v. Robinson, 458 F.2d 492, 493 (9th Cir.1972) cert. denied, 409 U.S. 1009 , 93 S.Ct. 443 , 34 L.Ed.2d 302 (1972).
discussed Cited as authority (rule) Official Creditors' Committee v. Charles Gordon & Sons, Inc. (In Re Americana Apparel, Inc.)
Bankr. E.D. Pa. · 1985 · confidence medium
Pepper v. Litton, 308 U.S. 295 , 60 S.Ct. 238 ; Frasher v. Robinson, 458 F.2d 492, 493 (9th Cir.1972), cert. den., 409 U.S. 1009 , 93 S.Ct. 443 , 34 L.Ed.2d 302 (1972); In Re Midtown Produce Terminal, Inc., 599 F.2d 389, 392 (10th Cir.1979); Zimmerman v. Central Penn National Bank (In Re Ludwig Honold Mfg.
discussed Cited as authority (rule) In Re McFarlin's, Inc.
Bankr. W.D.N.Y. · 1985 · confidence medium
Comstock v. Group of Institutional Investors, 335 U.S. 211, 229 , 68 S.Ct. 1454, 1463 , 92 L.Ed. 1911 , 1923 (1948); Spach v. Bryant, 309 F.2d 886, 889 (5th Cir. 1962); Frasher v. Robinson, 458 F.2d 492, 493 (9th Cir.1972), cert. denied, 409 U.S. 1009 , 93 S.Ct. 443 , 34 L.Ed.2d 302 (1972). (ii) The misconduct must have resulted in injury to the creditors of the bankrupt or conferred an unfair advantage on the claimant.
discussed Cited as authority (rule) Zimmerman v. Central Penn National Bank (In Re Ludwig Honold Manufacturing Co.)
Bankr. E.D. Pa. · 1985 · confidence medium
See, e.g., Pepper v. Litton, 308 U.S. 295 , 60 S.Ct. 238 , 84 L.Ed. 281 (1939); Frasher v. Robinson, 458 F.2d 492, 493 (9th Cir.1972), ce rt. den., 409 U.S. 1009 , 93 S.Ct. 443 , 34 L.Ed.2d 302 (1972); In Re Mid-Town Produce Terminal, Inc., 599 F.2d 389, 392 (10th Cir.1979).
cited Cited as authority (rule) William Penn Savings & Loan Ass'n v. Chipin Cliveden Associates, Inc.
Bankr. E.D. Pa. · 1984 · confidence medium
Frasher v. Robinson, 458 F.2d 492, 493 (9th Cir.1972); In Re Mid-Town Produce Terminal, Inc., 599 F.2d 389, 392 (10th Cir.1979).
discussed Cited as authority (rule) In Re Bellucci
Bankr. D. Mass. · 1982 · confidence medium
Comstock v. Group of Institutional Investors, 335 U.S. 211, 229 , 68 S.Ct. 1454, 1463 , 92 L.Ed. 1911 , 1923 (1948); Spach v. Bryant, 309 F.2d 886, 889 (5th Cir.1962); Frasher v. Robinson, 458 F.2d 492, 493 (9th Cir.1972), cert. denied, 409 U.S. 1009 , 93 S.Ct. 443 , 34 L.Ed.2d 302 (1972). (ii) The misconduct must have resulted in injury to the creditors of the bankrupt or conferred an unfair advantage on the claimant.
cited Cited as authority (rule) In Re Breezewood Acres, Inc.
Bankr. M.D. Penn. · 1982 · confidence medium
Frasher v. Robinson, 458 F.2d 492, 493 (9th Cir.1972); In Re Mid-Town Produce Terminal, Inc., 599 F.2d 389, 392 (10th Cir.1979).
discussed Cited as authority (rule) In the Matter of Mobile Steel Company, Debtor. Elaine E. Benjamin v. Lester Y. Diamond, as Trustee in Bankruptcy for Mobile Steel, Inc.
5th Cir. · 1977 · confidence medium
Comstock v. Group of Institutional Investors, 335 U.S. 211, 229 , 68 S.Ct. 1454, 1463 , 92 L.Ed. 1911 , 1923 (1948); Spach v. Bryant, 309 F.2d 886, 889 (5th Cir. 1962); Frasher v. Robinson, 458 F.2d 492, 493 (9th Cir. 1972) , cert. denied, 409 U.S. 1009 , 93 S.Ct. 443 , 34 L.Ed.2d. 302 (1972). (ii) The misconduct must have resulted in injury to the creditors of the bankrupt or conferred an unfair advantage on the claimant.
discussed Cited "see, e.g." Rego Crescent Corp. v. Tymon (In Re Rego Crescent Corp.)
Bankr. E.D.N.Y. · 1982 · signal: see, e.g. · confidence medium
See, e.g., Frasher v. Robinson, (In the Matter of Frasher, Inc.) 458 F.2d 492, 493 (9th Cir.), cert. denied, 409 U.S. 1009 , 93 S.Ct. 443 , 34 L.Ed.2d 302 (1972) (absent inequitable conduct, bona fide claims based upon loans from majority shareholders will not be subordinated); Spach v. Bryant, 309 F.2d 886, 889 (5th Cir.1962) (where, in a bad year for their farming corporation, the two shareholders thereof had paid themselves salaries of $50,000 and immediately lent that sum to the corporation, subordination is unappropriate because there had been no fraud or bad faith on the part of the stoc…
discussed Cited "see, e.g." James Edward Wilks v. Thomas Israel, Warden, Wisconsin State Prison
7th Cir. · 1980 · signal: compare · confidence low
Compare Macon v. Lash, 458 F.2d 492 , in which we held that a pro se petitioner’s allegations concerning trial counsel’s inadequacies without referring to the constitutional basis for the arguments was a variation of a due process claim.
discussed Cited "see, e.g." In Re Mid-Town Produce Terminal, Inc., Bankrupt. G. J. Sinclair v. James R. Barr, Trustee
10th Cir. · 1979 · signal: see, e.g. · confidence low
See, e. g., Frasher v. Robinson, 458 F.2d 492 (9th Cir.), cert. denied, 409 U.S. 1009 , 93 S.Ct. 443 , 34 L.Ed.2d 302 (1972); Spach v. Bryant, 309 F.2d 886 (5th Cir. 1962); For bush v. Bartley, 78 F.2d 805 (10th Cir. 1935).
Retrieving the full opinion text from the archive…
Burton Frasher and Kay Frasher, Creditor Claimants-Appellants
v.
Gilbert Robinson, Trustee-Appellee. In the Matter of Frasher's Inc., a California Corporation, Bankrupt
26201.
Court of Appeals for the Ninth Circuit.
May 5, 1972.
458 F.2d 492
Cited by 3 opinions  |  Published

458 F.2d 492

Burton FRASHER and Kay Frasher, Creditor Claimants-Appellants,
v.
Gilbert ROBINSON, Trustee-Appellee. In the Matter of
FRASHER'S INC., a California Corporation, Bankrupt.

No. 26201.

United States Court of Appeals,
Ninth Circuit.

March 24, 1972.
As Modified on Denial of Rehearing May 5, 1972.

Stanley O. Epstein (argued), Gardena, Cal., for creditor-claimants-appellants.

Richard R. Clements (argued), of Sprague & Clements, Los Angeles, Cal., for trustee-appellee.

Before ELY, HUFSTEDLER and WRIGHT, Circuit Judges.

PER CURIAM:

[*~492]1

Burton Frasher and his wife were majority shareholders in Frasher's Inc., a retail stationery and camera business. Frasher was president of the corporation and active in its management; Mrs. Frasher was vice-president and treasurer.

2

In 1967 the company filed a voluntary petition in bankruptcy. The Frashers were listed as creditors in the amount of $11,947.41 (balance due on an unsecured installment loan). Frasher was listed as a creditor in the amount of $522.84 (wages due).

3

The referee subordinated both of the Frasher claims to the claims of all of the general creditors, on the ground that the Frashers were majority shareholders. The district court affirmed.

4

Claims of majority shareholders will be subordinated when the majority shareholders have been involved in fraud, overreaching, or other inequitable conduct. Pepper v. Litton, 308 U.S. 295, 60 S.Ct. 238, 84 L.Ed. 281 (1939).

[*493]5

However, absent inequitable conduct, bona fide claims based upon loans from majority shareholders will not be subordinated to the claims of other creditors. Comstock v. Group of Investors, 335 U.S. 211, 68 S.Ct. 1454, 92 L.Ed. 1911 (1948); In Re Calpa Products Company, 249 F.Supp. 71 (E.D.Pa.1965), aff'd 354 F.2d 1002 (3rd Cir. 1965), cert. denied sub nom. Grasberger v. Calissi, 383 U.S. 947, 86 S.Ct. 1204, 16 L.Ed.2d 209 (1966), rehearing denied 384 U.S. 934, 86 S.Ct. 1444, 16 L.Ed.2d 535 (1966); Spach v. Bryant, 309 F.2d 886 (5th Cir. 1962); Gannett v. Larry, 221 F.2d 269 (2d Cir. 1955); Theriot v. Plane, 126 F.2d 1015 (9th Cir. 1942). In this case, there being no showing of inequitable conduct, it was error to subordinate the Frasher installment loan claim.

6

The referee determined that the Frasher wage claim was not entitled to priority status as wages due to "workmen, servants, clerks, or traveling, or city salesmen" under 11 U.S.C. Sec. 104(a) (2). This was correct, based on the referee's finding that Frasher's claim was for management services. Again, however, in the absence of inequitable conduct, the claim should have been accorded equal treatment with other general creditor claims.

7

The order is reversed, and the cause is remanded for further proceedings consistent with the views herein expressed; upon remand, the court may reopen the cause for the purpose of determining the existence of inequitable conduct justifying subordination of the claims in question to the claims of general creditors.