Phillips Construction Co. v. Muscarello

Plaintiff corporation, by its State-appointed receivers, filed a complaint to rescind a contract purported to have been entered into by its president and sole stockholder, Philip D. Rose, and the defendant. The Federal trustee in bankruptcy succeeded the receivers in the prosecution of the cause of action.

Under the agreement, property which had been acquired by Rose under an executory contract in 1971 (referred to as the Burnidge Farm), was conveyed to the defendant who was the attorney for the corporation. The complaint proceeded on the theory that the property was initially acquired by Rose…