Philadelphia Dairy Products Co., Inc. v. Summit Sweets Shoppe, Inc.

• Decision Date: 26 July 1933
• Citation: 167 A. 667
• Parties: PHILADELPHIA DAIRY PRODUCTS CO., Inc. v. SUMMIT SWEETS SHOPPE, Inc.
• Court: New Jersey Court of Chancery

167 A. 667

PHILADELPHIA DAIRY PRODUCTS CO., Inc.

v. SUMMIT SWEETS SHOPPE, Inc.

Court of Chancery of New Jersey.

July 26, 1933.

Syllabus by the Court.

1. Distribution of the estate in possession of the receiver, which is insufficient to pay expenses of receivership and allowed claims in full, are payable in the following order of priority and preference: (1) Expenses of administration of receivership; (2) claims of employees for wages due for work performed and services rendered within two months next preceding filing of bill of complaint herein; (3) franchise taxes; (4) municipal taxes; (5) claim of landlord against corporation for not exceeding one year's rent; (6) claims of other preferred creditors; (7) claims of general creditors.

2. Expenses of receivership administration comprehend allowances to receiver and his counsel, master's fees, appraisers' fees, auditors' fees, rent for use and occupation of store premises, claims for merchandise, electricity, and gas, and wage claims of persons employed by receiver, all of which incurred by receiver in conducting the business of the corporation under authority of court order.

Suit by the Philadelphia Dairy Products, Inc., against the Summit Sweets Shoppe, Inc.

Order in accordance with opinion.

Wright, VanderBurgh & McCarthy, of Hackensack, for complainant and receiver.

Dalrymple & Campbell, of Newark, for Public Service Electric & Gas Co.

Arthur E. Dienst, of Newark, for Eric Schultz and others.

John M. Enright, of McDermott, Enright & Carpenter, of Jersey City, for Journal Square Bank Bldg. Co.

I. Harold Meyerson, of Newark, for Albert Pick-Barth Co.

Alexander Raskin (of Raskin & Hornstein), of Jersey City, for Peckman Show Case & Fixture Co.

Hamilton Cross, of Jersey City, for Liquid Carbonic Co. and Dry Kold Refrigerating Co.

Samuel M. Coombs, Jr., of Jersey City, for General Motors Acceptance Corporation.

FALLON, Vice Chancellor.

The matter sub judice is the distribution of the estate of the defendant insolvent corporation in possession of the receiver herein and a determination of priority and preference of claimants.

The receivership estate is insufficient to pay expenses of the administration of the receivership and all allowed claims in full; therefore the expenses of the administration of the receivership must first be paid, next in order will be claims of employees of the defendant for wages due to them for work performed and services rendered within two months next preceding...