Cossack v. United States

63 F.2d 511, 1933 U.S. App. LEXIS 3475
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 13, 1933
DocketNo. 6947
StatusPublished
Cited by12 cases

This text of 63 F.2d 511 (Cossack v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cossack v. United States, 63 F.2d 511, 1933 U.S. App. LEXIS 3475 (9th Cir. 1933).

Opinion

SAWTELLE, Circuit Judge.

Alexander Faerstein conducted a retail clothing store and haberdashery in San Bernardino, Cal. On December 26, 1930, he consulted with the defendant-appellant, an attorney, as to Faerstein’s financial difficulties. As a result of that conference, it was decided to execute an assignment for the benefit of Faerstein’s creditors, which was done ,on that same day. Faerstein brought his books with him to the appellant’s office, where they remained from December 26,1930, to January 2, 1931.

The defendant-appellant, as member of the firm of Cossack & Krumm,, mailed out a form letter to all creditors of Faerstein, stating that the assignment had been made and requesting the consent of the creditors thereto. Later, the appellant met about a dozen of the creditors, and was notified that they would not accept the appellant’s father, R. IL Cossack, as the assignee, and that they would file an involuntary petition in bankruptcy on the afternoon of that day; namely, December 31, 1930. The creditors’ petition was filed on the date announced, in the United States District Court for the Southern District of California.- On the same afternoon, one of the same creditors filed a petition for the appointment of a receiver.

On the same day, the District Judge signed an order appointing William H. Moore, Jr., receiver. The next court day, January 2, 1933, the receiver furnished his agent, James E. Price, with a certified copy of the order appointing the receiver, together with a certificate designating Price as the representative of the receiver. Accompanied by the witnesses, E. O. Demming and J. A. Poole, Price arrived at San Bernardino some time between 1 and 2 p. m., on January 2d.

They found the bankrupt’s store in the charge of the appellant’s father, R. IT. Cossack, as assignee, who turned over to Price all the bankrupt’s assets in the store. Price also-made a demand for the books, and R. II. Cossack replied that they were in his son’s office. The elder Cossack then went to Ms son’s office, at about 4 :40 p. m., and, according to Ms testimony, demanded of Theodore Gr. Krumm, at that time the appellant’s law partner, that Faerstein’s books be turned over, in obedience to the court order. Krumm prepared a receipt for Price to sign, and went to the store with R. H. Cossack, between, 3 and 5 o’clock that afternoon. At the store, Price asked Krmnm where the books were, and Krumm, according to Krumm’s testimony, replied that he did not know. Price refused to sign the receipt that Krmnm had prepared.

According to Ms testimony, Krumm went over to the courthouse to see the appellant that same afternoon, though Krumm stated [512]*512on the stand that he was “not quite positive” that he did so. Cossack was “busily engaged ip the trial” of a case, and Krumm spoke only a few words to him, according to the latter’s testimony. Continuing, Krumm testified: “[I] informed him of the fact that a receiver was there, and that I went over. I believe all he said [was that] he would be over and take care of the matter. I did not relay the message to any one. I did not see Mr. Cossack any more that day. I think I saw him a day or two later.”

In that connection, it may be observed that Krumm testified he went to the courthouse “some time approximately in the latter part of the afternoon, before 5 o’clock.” Fred W. Watkins, the reporter in the court where the appellant had been trying a criminal ease on the afternoon in question, testified that the jury was ordered to retire for its deliberations at 3:35 p. m. on that day.. The appellant denied- on the stand that he saw “Krumm that day at all.”

Attempting to summarize the testimony on this point, the lower court, in its- instructions to the jury, said in part:

“Mr. Krumm says that he went over after awhile. * '* * Mr. Krumm, however, while he said he thought he did, but rather gave it in such a detailed way that I take it he meant to testify that he did go over and tell Mr. Cossack that the receiver was there for the books. Mr. Cossack said to him, ‘I will attend to it.’ Now, gentlemen, was that information communicated to Mr. Cossack? He denied it. He says it was not. * * *

“In other words, is it likely that the young man Krumm was not telling a straight story, because if he is, so far as I can see, there is not.very much left to the ease. He says in [a] kind of a halting way that he is not sure, but then, you will remember the testimony, after that, quite definite] to the effect of what he did over there. If he is not sure that he went there, I fail to see what he could relate, that took place after he got there.”

As will be seen, the question of whether or not Krumm communicated with his law partner, the appellant, is important as bearing upon the question of the appellant’s knowledge that a receiver desired the books which the appellant that evening, according to his own statement, turned over to the bankrupt, so that the latter might prepare a summary of the assets for the appellant.

The appellant testified that after the case went to the jury he waited in the courtroom until 6 o’clock that evening, and then went to. his office, and thence to his home; that shortly after 7 o’clock Faerstein called him on the telephone and said that he wanted to get the books in order to make the summary already referred to herein; that he went to his office with Faerstein; that Faerstein then suggested “he had better get something in which to get the actual books in”; that they accordingly drove to Faerstein’s apartments, where the bankrupt procured a suitcase; that, in company with Edward J. Seaman, a brother-in-law- of Faerstein, he and Faerstein drove to the appellant’s office; that Faerstein took all of his books, and gave the appellant a receipt therefor; and that Faerstein then drove the appellant back to the latter’s home, “some time after eight.”

The appellant further testified that upon his arrival, he was informed by his father that Faerstein “had been thrown into bankruptcy,” and that the elder Cossack had promised to get the bankrupt’s books from the appellant, and deliver them to the receiver. The appellant also stated on the stand that he “didn’t know about the petition having actually been filed,” until he reached home “at about eight.”

On direct examination, the appellant stated that about a half hour after Faerstein left him “at the office,” on the same night of January 2, 1931, Faerstein returned to the appellant’s house, and the following occurred:

“So Mr. Faerstein came back there and told me and related the story to me that after he left me at the house he drove downtown with Mr. Seaman. He parked his car at Third Street, went to the Goodfellows’ Café, and left Seaman off at that point.

“He went into the Goodfellows’ Cafó to get something to eat, and that when he-returned to his car, the suitcase, scarf, and gloves was stolen out of the car. I asked him, ‘Did you report that to the police?’ He said that he had. I says, ‘Well, do you know that you were put into-bankruptcy?’ ‘No, I don’t know.’ ‘Well,’ I says, ‘when I arrived home, Dad told me that the receiver was appointed.’ ”

Before the referee in bankruptcy, the appellant testified as follows: “I don’t think I ever informed the Receiver about the theft of the books. * * * If the receiver or his agent had gotten in touch with me I would have informed them about it, but they did not do it.”

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10 F.3d 1374 (Ninth Circuit, 1993)
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280 S.W.2d 838 (Supreme Court of Missouri, 1955)
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94 F.2d 499 (Tenth Circuit, 1938)
Williams v. United States
93 F.2d 685 (Ninth Circuit, 1937)
Touhy v. United States
88 F.2d 930 (Eighth Circuit, 1937)
Cossack v. United States
82 F.2d 214 (Ninth Circuit, 1936)
Baldwin v. United States
72 F.2d 810 (Ninth Circuit, 1934)
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72 F.2d 569 (Eighth Circuit, 1934)
Metzler v. United States
64 F.2d 203 (Ninth Circuit, 1933)

Cite This Page — Counsel Stack

Bluebook (online)
63 F.2d 511, 1933 U.S. App. LEXIS 3475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cossack-v-united-states-ca9-1933.