Pasquariello v. Arena Twine Cordage Co.

The question presented is one of priority of liens. The defendant company, insolvent and in the hands of a receiver, was located in the town of Boonton. The town had assessed the company for personal taxes before the receivership and after the receiver took possession it issued a distress warrant to recover the taxes, of which the receiver had notice. The personal assets came to the receiver subject to a chattel mortgage, antedating the assessment, and he sold them free of the mortgage and the taxes. The town claims priority of payment out of the proceeds, over the chattel mortgage. In…