Slade Bros., Inc. v. Eagle's Meat & Poultry Mkt.

• Decision Date: 18 April 1939
• Citation: 125 N.J.Eq. 336,5 A.2d 692
• Parties: SLADE BROS., Inc. v. EAGLE'S MEAT & POULTRY MARKET.
• Court: New Jersey Court of Chancery

5 A.2d 692

125 N.J.Eq. 336

SLADE BROS., Inc.

v. EAGLE'S MEAT & POULTRY MARKET.

Court of Chancery of New Jersey.

April 18, 1939.

Syllabus by the Court.

Receiver for a corporation admittedly insolvent will not be appointed by the court in the exercise of its discretion where it appears that the ultimate result of such appointment will be a sacrifice of the assets of the corporation due to the cost and expense of such receivership.

Bill for appointment of a receiver for an insolvent corporation by Slade Bros., Inc., against Eagle's Meat & Poultry Market.

Appointment of receiver denied.

Morris M. Ravin, of Newark, for complainant.

David Castelbaum, of Newark, for defendant.

STEIN, Vice Chancellor.

Complainant alleges a debt due him of $266.24. The bill is before me with notice of an application for the appointment of a receiver and answer on the part of the defendant corporation admitting insolvency.

The bill alleges that the assets of the corporation (consisting of fixtures in a meat market) are of an approximate value of $1,000, and that there is due the landlord the sum of $300 for rent for which he threatens to distrain and taxes due the City of Newark in the sum of $120, without interest.

The purpose of the statute, R.S. 1937, 14:14-3, which is the preservation of the interest of the stockholders and creditors would not be accomplished by the appointment of a receiver herein. Such appointment would only add an additional burden upon the estate and tend to eat up the available assets. Glaser v. Achtel-Stetter's Restaurant, 106 N.J.Eq. 150, 149 A. 44.

Exercising the discretion residing in the court, the appointment of a receiver is denied.