272 N.Y. 221, Kupshire Coats, Inc. v. United States

Citation:272 N.Y. 221, 5 N.E.2d 715
Opinion Judge:CRANE, Chief Judge.
Party Name:KUPSHIRE COATS, Inc., v. UNITED STATES.
Attorney:Lamar Hardy, U. S. Atty., of New York City (Malcolm A. Crusius, of New York City, of counsel), for appellant. Emil Schlesinger and Abraham Schlesinger, both of New York City, for wage claimants, respondents.
Judge Panel:LEHMAN, O'BRIEN, HUBBS, CROUCH, LOUGHRAN, and FINCH, JJ., concur.
Case Date:December 31, 1936
Court:New York Court of Appeals
 
FREE EXCERPT

Page 221

272 N.Y. 221

5 N.E.2d 715

KUPSHIRE COATS, Inc.,

v.

UNITED STATES.

Court of Appeals of New York.

December 31, 1936

Proceeding in the matter of the general assignment for the benefit of creditors of Kupshire Coats, Inc., to Charles Goldberg. From an order of the Appellate Division ( 248 A.D. 574, 288 N.Y.S. 1090), affirming an order of the Special Term which directed the assignee for the benefit of creditors to pay the claims of wage earners prior to the claim of the United States Government for taxes, the United States appeals by permission of the Appellate Division.

Orders reversed in so far as they relate to question presented, and claim of the United States given preference over the wage claims.

Page 222

Appeal from Supreme Court, Appellate Division, First department.

Lamar Hardy, U. S. Atty., of New York City (Malcolm A. Crusius, of New York City, of counsel), for appellant.

Page 223

Emil Schlesinger and Abraham Schlesinger, both of New York City, for wage claimants, respondents.

CRANE, Chief Judge.

This is an appeal by permission of the Appellate Division, First Department, from an order unanimously affirming an order of the Special Term, which confirmed the report of a referee and directed the assignee for the benefit of creditors to pay the claims of wage earners prior to the claim of the United States government for taxes.

On or about November 23, 1934, Kupshire Coats, Inc., a manufacturer of ladies' coats and suits, made a general assignment for the benefit of creditors to Charles Goldberg, which assignment was recorded in the County Clerk's office on the 10th day of December, 1934. On the said date there was due and owing to employees of the assignor the sum of $420.34, representing wages for work, labor, and services performed by them within three months prior to the date of the execution of the assignment. Claims for these wages were duly filed.

The collector of internal revenue, on behalf of the United States government, filed a claim with the assignee for unpaid taxes due from the assignor for some time

Page 224

prior to the date of the assignment in the sum of $760.78. The assignee applied for an order settling and allowing his accounts, and the matter was referred to a referee to determine, among other things, the manner of the distribution of the assets. He filed his report giving a preference to the wage earners over the claim of the United...

To continue reading

FREE SIGN UP