[Download] "Milbank Et Al. v. J. C. Littlefield" by Supreme Judicial Court of Massachusetts ~ eBook PDF Kindle ePub Free

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eBook details

• Title: Milbank Et Al. v. J. C. Littlefield
• Author : Supreme Judicial Court of Massachusetts
• Release Date : January 30, 1941
• Genre: Law,Books,Professional & Technical,
• Pages : * pages
• Size : 71 KB

Description

RONAN, Justice. This is a bill in equity brought by a copartnership, as merchandise creditors of J. C. Littlefield, Inc., in their own behalf and in behalf of all other creditors who may desire to join, against J. C. Littlefield, Inc. (hereinafter called the corporation), one Solari, to whom the corporation made an assignment for the benefit of its creditors, and one John R. Littlefield, an officer and the principal stockholder of the corporation. The bill alleges that the corporation made this assignment to Solari (hereinafter referred to as the assignee) on December 5, 1932; that the plaintiffs assented to the assignment, relying upon an agreement of Littlefield that his claim for loans made by him to the corporation would be subordinated to the claims of the other general creditors; that notwithstanding this agreement the assignee intends to allow and pay this claim of Littlefield, which will result in decreasing the dividends payable to the other general creditors; that the assignee, contrary to a well recognized custom of the woolen trade that an assignee will not charge or accept compensation for his services, intends to pay himself $500 for such services; that the assignee contemplates turning over to Littlefield, without charge, all or substantially all of the stock of woolens in the possession of the assignee; and that the assets have been impaired by the neglect and mismanagement of the assignee. The bill prays for an injunction restraining the assignee from transferring assets; for an accounting by the assignee; for the appointment of a receiver; for an order denying compensation to the assignee for his services; for the establishment of the claim of Littlefield; for an order subordinating his claim to the claims of the other general creditors; and for general relief. The case was referred to a master. We summarize the facts appearing in his report. The corporation was engaged in the tailoring business in Boston. When the assignment was made on December 5, 1932, the assets of the corporation exceeded its liabilities, but collections were slow, business had been decreasing for some months, and current receipts were insufficient to pay its debts as they became due. The corporation had eighteen general creditors whose claims totaled $41,630.47. This amount included $23,531.48 that was owed to Littlefield for money advanced to the corporation. All the creditors assented to the assignment. The plaintiffs assented in accordance with an agreement between them and Littlefield that he would not participate in any dividends until the claims of all the other general creditors had been paid in full. The assignment, which included all the assets of the corporation and provided for the exemption from liability of the assignee except for his wilful neglect or gross negligence, was for the period of eighteen months but was extended from time to time to March 1, 1939. The plaintiffs assented to the last extension.

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