Alloyd General Corp. v. Building Leasing Corp.

WYZANSKI, Chief Judge.

The central issue here is whether a lessee’s conveyance, in the form of a mortgage, to trustees to secure creditors, of the demised estate, and of a claim of un-ascertained value, being all the lessee’s assets, constitutes that kind of “assignment * * * of the lessee’s property for the benefit of creditors” which, under the wording of the lease, gives the landlord a right to enter and terminate the lease.

Plaintiffs began this action May 25, 1965 in the Superior Court of The Commonwealth of Massachusetts. They prayed for a declaratory judgment and for injunctive relief.…