Abeloff v. Ohio Finance Co.

On March 15, 1943, David Gflanzrock and Abe Abeloff, copartners, doing business as the Empire Fur Company and Atlas Furs, entered into an agreement with defendant, the Ohio Finance Company, an Ohio corporation, “to sell certain accounts receivable, commonly known as ‘layaways,’ and certain accounts receivable arising from the storage and repair of furs and fur garments.”

The agreement provided among other things for the creation of a “dealer’s reserve” fund, the collection by the partnership of accounts at no cost to Ohio, and that all moneys collected would be held in trust and not commingled…