Lignacraft, Inc. v. Automation Services, Inc.

Appeal from an order of the Supreme Court at Special Term, entered December 8, 1970 in Broome County, which denied plaintiff’s motion for summary judgment, allowed defendant to set off its counterclaim to the amount of plaintiff’s claim, and dismissed the complaint on the merits. Plaintiff filed a chapter XI petition under the Bankruptcy Act for a creditor’s arrangement on October 8, 1968, whereupon plaintiff was appointed debtor in possession to continue its business. At that time plaintiff owed the defendant $10,918.65. Later, while pursuing the continuation of its business, plaintiff…