Knickerbocker Trust Co. v. Oneonta, Cooperstown & Richfield Springs Railway Co.
Appellate Division of the Supreme Court of the State of New York
Appeal by the defendants, Henry W. Bean and others, as committee of reorganization, etc.,, from an order of the Supreme Court, made at the Broome. Special Term and entered in the office of the clerk of the county of Otsego on the 29th day of October, 1909, confirming a report of a referee determining that certain claims are entitled to priority over the bonds of the defendant railway company in payment thereof out of the proceeds of the sale of the railway property.
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Appeal by the defendants, Henry W. Bean and others, as committee of reorganization, etc.,, from an order of the Supreme Court, made at the Broome. Special Term and entered in the office of the clerk of the county of Otsego on the 29th day of October, 1909, confirming a report of a referee determining that certain claims are entitled to priority over the bonds of the defendant railway company in payment thereof out of the proceeds of the sale of the railway property. The Knickerbocker Trust Company foreclosed a mortgage covering the property of the Oneonta, Cooperstown and Bichfield Springs…
1Opinion of the Court
Cochrane, J.:
First. Notwithstanding the determination of this court in Townsend v. Oneonta, Cooperstown & Richfield Springs Railway Company (88 App. Div. 208) that the order authorizing the receiver to issue his certificates for $35,000 was erroneous and that such certificates were unlawfully issued, it is nevertheless urged by the holders thereof that on equitable principles they should be allowed payment thereof in preference to the bondholders on the theory that the latter have in fact received the avails of such certificates. When the claimants purchased those certificates they knew or by…
2Cases cited9 opinions
- Morgan's Louisiana & Texas Railroad & Steamship Co. v. Texas Central Railway Co.Supreme Court of the United States · 1890
- Wood v. Guarantee Trust and Safe Deposit Co.Supreme Court of the United States · 1888
- Ketchum v. DuncanSupreme Court of the United States · 1878
- Title Guarantee Trust Co. v. . HavenNew York Court of Appeals · 1909
- Union Trust Co. v. Monticello & Port Jervis Railway Co.New York Court of Appeals · 1875
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- In re the Estate of FletcherNew York Surrogate's Court · 1939
- North Side Bank v. Queens Home Realty & Construction Co.Appellate Division of the Supreme Court of the State of New York · 1914