A. C. Lawrence Leather Co. v. Milgrom

Lewis, David C., J.

The Flora Hat Works, Inc., was a closed corporation. The individual defendants were its officers, and were in control of its affairs. During July, 1933, they undertook the liquidation of the company. No judicial or statutory or formal procedure was followed. No notice of liquidation was given to the creditors. Without any proceedings, these defendants distributed the entire assets of the- corporation, in payment of what they supposed constituted all the outstanding liabilities of the company.

At the time of said distribution this plaintiff held a due and valid claim against…