In re American National Trust and Republic National Trust

CASTLE, Senior Circuit Judge. This is an appeal by C. E. Loveless and Joan E. Loveless, the owners of a shopping center in the State of Oregon, from an order entered by the District Court in a proceeding for a Chapter X1 reorganization of American National Trust and Republic National Trust, debtors. The order, based upon findings of fact and conclusions of law, was entered following a hearing at which the Lovelesses appeared specially, in response to an order to show cause, to contest the summary jurisdiction of the court and to move for dissolution of two restraining orders. The restraining orders had been entered on the verified petitions of the Trustee, appellee herein, and enjoined the Lovelesses from transferring, selling, mortgaging, or in any way affecting the right, title or interest in the shopping center, known as Willamette Plaza, and certain Indianapolis, Indiana, real estate referred to as the 33rd and Meridian Street property. The restraining orders further directed the Lovelesses to show cause why they should not be continued in force and effect until further order of the court. Prior to a hearing on the orders to show cause the Trustee filed a petition asking authority to reject, as executory, an October 31, 1967 contract between the debtors and the Lovelesses relating to the sale and purchase of the Willamette Plaza shopping center. The petition further requested that the Lovelesses be ordered to turn over certain moneys and realty and to indemnify the debtors as to certain of their outstanding liabilities.