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Bankruptcy-Contempt--Presumptions-Finality Of Turnover Orders In Contempt Actions And The Presumption Of Continued Possession, T. L. Tolan, Jr. S.Ed.

Michigan Law Review

Problems of jurisprudence and bankruptcy are raised by Maggio v. Zeitz, a recent decision of the United States Supreme Court. The facts were these: In April, I942, the Luma Camera Service was adjudged a bankrupt. Defendant was its principal officer. The bankrupt's books showed a large and unusual merchandise shortage for November and December, 1941. Despite defendant's denial, the referee and district judge were satisfied that defendant had extracted the property from the estate before bankruptcy. But there was no evidence that defendant retained the goods or their proceeds. Relying on a presumption of continued possession, the referee ordered …