Kennedy v. Am. Tanning Co.

• Decision Date: 29 January 1913
• Citation: 85 A. 812,81 N.J.Eq. 109
• Parties: KENNEDY et al. v. AMERICAN TANNING CO.
• Court: New Jersey Court of Chancery

85 A. 812

81 N.J.Eq. 109

KENNEDY et al.

v. AMERICAN TANNING CO.

Court of Chancery of New Jersey.

Jan. 29, 1913.

Suit by John A. Kennedy and others against the American Tanning Company. Upon report of receiver, and motion to turn assets over to a trustee in bankruptcy. Decreed that receiver's account be settled, deducting expenditures, and the balance of the property turned over to the trustee in bankruptcy.

Elmer H. Geran, of Jersey City, receiver pro se.

Wilfred C. Roszel, of Newark, for trustee in bankruptcy. Pitney, Hardin & Skinner, of Newark, for Junius Beebe.

GARRISON, V. C. The facts necessary to be considered are as follows: The defendant corporation was incorporated under the laws of the state of New Jersey. An application under the Corporation Act was made for an injunction and a receiver, and Elmer H. Geran was appointed receiver on the 2d day of February, 1911. The company occupied premises owned by Junius Beebe, and the receiver and Mr. Beebe made some arrangement about compensation for the use of the premises during the time that the property of the defendant company occupied the same after the receivership. The receiver disposed of all of the assets of the company excepting a secret formula. With things in this situation a petition in bankruptcy was filed on the 23d day of April, 1911, and the American Tanning Company was adjudicated a bankrupt on the 13th day of November, 1911, and thereupon one Paul M. Fisher was appointed as trustee in bankruptcy. The trustee in bankruptcy has applied to the receiver of this court to turn over to him all of the assets in his hands, and the receiver of this court has presented his report and requested an allowance, and has requested that the obligations incurred by him for caring for and preserving the property during the time that it was in his possession as receiver shall be allowed. The trustee in bankruptcy opposes the receiver in these requests, and insists that this court shall turn over to such trustee in bankruptcy all of the property in the possession of the receiver, without passing upon his accounts and making any allowances for his services or for any expenses incurred by him in caring for and preserving the property.

A full consideration of all the possible questions arising out of this situation would entail much time and would result in an extended review of many decisions. In view of certain settled principles, and of a previous ruling in this court, I do not purpose at this time to make any such extended review or exposition. In the case of Singer v. National Bedstead Manfg. Co., 65 N. J. Eq. 290, 55 Atl. 868 (Stevenson, V. C, 1903), the court decided that, where there was no opposition insisting that this court should keep all of the assets in its possession under some claim of jurisdiction, the proper order would be to direct that the receiver of this court should forthwith present his account and report, and that proper allowances...