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Solomon v. Yudkin-Krell Inc.

Decided: January 24, 1949.

MORRIS SOLOMON, TRADING AS M. SOLOMON, PLAINTIFF,
v.
YUDKIN-KRELL, INC., A FOREIGN CORPORATION, BERNARD ADNEPOS, ASSIGNEE FOR THE BENEFIT OF CREDITORS OF YUDKIN-KRELL, INC., AND MERCHANTS REFRIGERATING CO., A CORPORATION, DEFENDANTS



Civil action. On motion to quash process.

Stein, J.s.c.

Stein

[2 NJSuper Page 316] The complaint in this matter alleges that plaintiff owned nine bales of raw Australian rabbit skins which were stored in the refrigerated warehouse of the defendant, Merchants Refrigerating Co., in Jersey City, New Jersey. That on September 28, 1948, plaintiff met with the officers of the defendant,

Yudkin-Krell, Inc., a foreign corporation, at the warehouse in Jersey City and there concluded negotiations for the sale of the rabbit skins to the defendant, Yudkin-Krell, Inc. The sale price was $6916.80. Plaintiff demanded payment in cash but was induced, it is alleged, to accept four promissory notes payable in January and February, 1949, upon the representation that defendant, Yudkin-Krell, Inc. was solvent and possessed ability to pay. Plaintiff gave to the defendant-purchaser a delivery order authorizing the warehouse company to deliver the bales of rabbit skins to the purchaser. The rabbit skins remained in the warehouse and were there when the complaint was filed.

On November 9, 1948, the complaint alleges, defendant, Yudkin-Krell, Inc., executed an assignment to the defendant, Bernard Adnepos, for the benefit of its creditors. This was done in accordance with the laws of the State of New York. Plaintiff upon learning of the assignment rescinded the sale, tendered return of the notes and made claim to ownership of the rabbit skins.

The complaint contains three counts, one of which is grounded in equitable fraud, one in legal fraud and the third seeks a vendor's lien.

Plaintiff seeks injunction to prevent the removal or other disposition of the skins pending final hearing.

Upon the filing of the complaint an order containing temporary restraint issued directing the defendants to show cause why the relief sought should not be granted.

The order was served pursuant to Rule 3:4-5 upon the defendants Yudkin-Krell, Inc. and Bernard Adnepos in New York and the matter is now before the court on motion of these defendants to set aside such service upon the grounds: (1) that the action is one in personam and that therefore the service of process outside of the State is void, and (2) that the plaintiff never had a vendor's lien and that if he had such a lien it was waived. The pertinent rule of civil practice 3:4-5 provides:

"Whenever in an action affecting specific property, or any interest therein, or any res within the jurisdiction of the court, it shall appear by affidavit of the attorney for the plaintiff or of any person

having knowledge of the facts, that a defendant cannot, after diligent inquiry, be served within the state, service may be made upon him

"(a) in a state of the United States or the District of Columbia in the same manner as if service were made within the state, except that service shall be made by a sheriff, constable, bailiff, or other officer having like authority in the jurisdiction wherein the service is made or by a person duly qualified to practice law in this state or the ...


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