Spader v. Mural Decoration Manufacturing Co.
New Jersey Court of Chancery
On appeal from, receiver. Henry K. Nevers, James E. Hadley, David Snediker and Timothy Cleary were severally employed by the Mural Decoration Manufacturing Company under contracts for service, respectively as salesmen and foreman, for terms of years commencing in 1887 and unexpired when the company, in September, 1888, was adjudged to be insolvent.
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On appeal from, receiver. Henry K. Nevers, James E. Hadley, David Snediker and Timothy Cleary were severally employed by the Mural Decoration Manufacturing Company under contracts for service, respectively as salesmen and foreman, for terms of years commencing in 1887 and unexpired when the company, in September, 1888, was adjudged to be insolvent. With the exception of small sums expended by them for traveling expenses, they were fully paid to September 1st, 1888. They now claim that they should receive the amounts of their respective salaries to the termination of their respective…
1Opinion of the Court
The Chancellor.
The appellants’ claims are substantially for damages caused by the breach of their several contracts for service. The breach -was occasioned by the insolvency of the defendant corporation. Upon such insolvency being ascertained by adjudication, a receiver was appointed, whose duty, under the statute, is to collect the assets of the corporation and distribute them as that law directs. His proceedings are regulated entirely by the statutory law. He is not at liberty to recognize any liability or to make any payment which is not approved by the statute. Such is the view taken of…
2Cited by2 opinions
- Silk Co. v. . Spinning Co.Supreme Court of North Carolina · 1911
- Usher v. the Sarco Co. of N.J.New Jersey Court of Chancery · 1927