Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Robinson v. Hallberg

October 21, 1969

DONALD A. ROBINSON, TRUSTEE OF MONDRICH SECURITIES CORP., DEBTOR, PLAINTIFF,
v.
HOWARD HALLBERG, DEFENDANT. DONALD A. ROBINSON, TRUSTEE OF MONDRICH SECURITIES CORP., DEBTOR, PLAINTIFF, V. ANN D. BARKER AND AUDREY HALLBERG, DEFENDANT. DONALD A. ROBINSON, TRUSTEE OF MONDRICH SECURITIES CORP., DEBTOR, PLAINTIFF, V. ANN D. BARKER, DEFENDANT. DONALD A. ROBINSON, TRUSTEE OF MONDRICH SECURITIES CORP., DEBTOR, PLAINTIFF, V. FELIX GAITA, DEFENDANT. DONALD A. ROBINSON, TRUSTEE OF MONDRICH SECURITIES CORP., DEBTOR, PLAINTIFF, V. DOROTHY CAMERON, DEFENDANT. DONALD A. ROBINSON, TRUSTEE OF MONDRICH SECURITIES CORP., DEBTOR, PLAINTIFF, V. ALBERT C. BARKER, DEFENDANT. DONALD A. ROBINSON, TRUSTEE OF MANUFACTURERS CREDIT CORP., DEBTOR, PLAINTIFF, V. REA M. SHAPIRO, DEFENDANT. DONALD A. ROBINSON, TRUSTEE OF MANUFACTURERS CREDIT CORP., DEBTOR, PLAINTIFF, V. FRANK PIZZANI, DEFENDANT. DONALD A. ROBINSON, TRUSTEE OF MANUFACTURERS CREDIT CORP., DEBTOR, PLAINTIFF, V. JOSEPH GOLDBERG, DEFENDANT



Mintz, J.s.c.

Mintz

These two groups of consolidated cases were submitted to the court for determination upon a stipulation of facts and briefs.

Mondrich Securities Corp. and Manufacturers Credit Corp., related corporations, filed petitions on August 1, 1967 seeking an arrangement under chapter XI of the Bankruptcy Act. On July 25, 1968 the actions were transferred to

proceedings for complete reorganization pursuant to chapter X of the Bankruptcy Act, and plaintiff Donald A. Robinson was appointed trustee for each of the corporations.

Each of the defendants had made loans to the respective debtor corporations. Defendants were complete strangers to these corporations except for their status as ordinary creditors. The loans were repaid in the ordinary course of business prior to August 1, 1967, and on or about the dates called for under the respective loan agreements. After each repayment the debtor corporations continued their businesses without interruption until the bankruptcy petitions were filed on August 1, 1967.

The two corporations were insolvent at the time the respective loans were repaid, but none of the defendants had any knowledge of such insolvency nor any reason to suspect insolvency.

Plaintiff contends that the payments of antecedent debts to each of the defendants are void preferences under N.J.S.A. 14:14-2. The basic issue is whether or not it is incumbent upon plaintiff, in order to void the repayments, to prove that defendants had knowledge of the insolvency of the corporations making the payments in the ordinary course of business.

N.J.S.A. 14:14-2 provides in part that:

When any corporation shall become insolvent or shall suspend its ordinary business for want of funds to carry on the same, neither the directors nor any officer or agent of the corporation shall sell, convey, assign or transfer any of its real or personal property, choses in action, rights or credits, nor shall they or any of them make any such sale, conveyance, assignment or transfer in contemplation of insolvency.

Any such sale, conveyance, assignment or transfer shall be null and void as against creditors, except that a bona fide purchase for a valuable consideration, before the corporation shall have actually suspended its ordinary business, by any person without notice of such insolvency or of the sale being made in contemplation of insolvency, shall not be invalidated or impeached. * * *"

This statutory provision was the former section 64 of the General Corporation Act. ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.