Lochsley Hall Inc. v. Filmvideo Releasing Corp.

CourtNew York Supreme Court Appellate Division
Citation36 A.D.2d 694,318 N.Y.S.2d 864
PartiesLOCHSLEY HALL INC., Plaintiff-Appellant, v. FILMVIDEO RELEASING CORP., Defendant-Respondent.
Decision Date01 March 1971

Page 864

318 N.Y.S.2d 864
36 A.D.2d 694
LOCHSLEY HALL INC., Plaintiff-Appellant,
FILMVIDEO RELEASING CORP., Defendant-Respondent.
Supreme Court, Appellate Division, First Department.
March 1, 1971.

Page 865

I. R. Gilbert, for plaintiff-appellant.

H. Gotbetter, New York City, for defendant-respondent.



Judgment, Supreme Court, New York County entered August 11, 1970, upon an order which granted motion for summary judgment in

Page 866

favor of Filmvideo Releasing Corp. (Filmvideo) against Lochsley Hall, Inc. (Lochsley) and University-at-Large Programs, Inc. (University), modified, on the law, to deny summary judgment as to Lochsley only. As so modified, the judgment appealed from is otherwise affirmed, without costs and without disbursements.

Lochsley executed a series of three promissory notes aggregating $41,400 payable to Filmvideo as part of a transaction involving the purchase of a film library. University, a 96% Owned subsidiary of Lochsley, guaranteed payment of the notes.

On or about July 1, 1970, Filmvideo moved for summary judgment against Lochsley and University, which motion was returnable July 14, 1970. On July 1, 1970 Lochsley filed a voluntary petition under Chapter XI of the Federal Bankruptcy Act. Simultaneously it filed a petition for an Order of Continuance in the Federal District Court which was signed July 2, 1970. The Order contained a stay against instituting or continuing actions or special proceedings against Lochsley upon causes of action which accrued prior to the institution of the arrangement proceeding, with an exception not relevant here. On or about July 9, 1970 Lochsley served answering papers in opposition to Filmvideo's motion, which papers included a copy [36 A.D.2d 695] of the Referee's Order of Continuance. This opposition, with the included copy of the Order of Continuance, gave notice to the court of the bankruptcy proceeding (cf. Boynton v. Ball, 121 U.S. 457, 7 S.Ct. 981, 30 L.Ed. 985) and operated to stay Filmvideo's action against Lochsley (see, Hill v. Harding, 107 U.S. 631, 2 S.Ct. 404, 27 L.Ed.2d 493; In Re Engram, D.C., 156 F.Supp. 342, aff'd Taylor v. Engram, 5 Cir., 249 F.2d 441, cert. den. 356 U.S. 901, 78 S.Ct. 561, 2 L.Ed.2d 580). In the last cited case it was noted that the filing of a petition in bankruptcy is a caveat to all the world and in effect an attachment and an injunction. The...

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2 cases
  • Grand Central Bldg., Inc. v. New York & Harlem R. Co.
    • United States
    • New York Supreme Court Appellate Division
    • 25 Octubre 1977
    ...that the court is merely reciting the areas in which it has reserved jurisdiction. In Lochsley Hall, Inc. v. Filmvideo Releasing Corp., 36 A.D.2d 694, 318 N.Y.S.2d 864 which defendant cites, Lochsley filed a petition for an order of continuance and "(T)he order contained a stay against inst......
  • Raymond Babtkis Associates v. Tarazi Realty Corp.
    • United States
    • New York Supreme Court Appellate Division
    • 1 Marzo 1971
    ...798 318 N.Y.S.2d 798 36 A.D.2d 694 RAYMOND BABTKIS ASSOCIATES, Inc., TARAZI REALTY CORPORATION, Defendant-Appellant. Supreme Court, Appellate Division, First Department. March 1, 1971. C. S. Barasch, New York City, for plaintiff-respondent. W. J. Allingham, New York City, for defendant-appe......

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