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MORIMURA, ARAI & CO. V. TABACK, 279 U. S. 24 (1929)

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U.S. Supreme Court

Morimura, Arai & Co. v. Taback, 279 U.S. 24 (1929)

Morimura, Arai & Co. v. Taback

No. 18

Argued October 9, 1928

Decided February 18, 1929

279 U.S. 24


1. Under § 14b of the Bankruptcy Act, as amended by § 6 of the Act of June 25, 1910, bankrupts who have obtained goods on credit upon a written statement that was materially and grossly incorrect are not entitled to discharges if they made the statement to the vendor, or acquiesced in its making, for the purpose of obtaining the credit, with actual knowledge that it was incorrect, or with reckless indifference to the actual facts and with no reasonable ground to believe that it was correct. Pp. 279 U. S. 25, 279 U. S. 33.

2. In the absence of concurrent findings by the two lower courts upon any of the material issues relating to such a written statement, this Court examined the evidence at length for the purpose of determining the essential facts. P. 279 U. S. 27.

3. The rule attaching special weight to findings of a master is inapplicable to a finding which does not depend upon the weighing of conflicting testimony and credibility of witnesses. P. 279 U. S. 33.

21. F.2d 161 reversed.

Certiorari, 275 U.S. 520, to a judgment of the Circuit court of appeals reversing an order of the district court which sustained objections to a report of a special master, recommending that the present respondents be discharged in bankruptcy, and denied the discharge.

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