In re the Assignment of Schaller
New York Court of Common Pleas
Application to confirm the report of a referee .upon a disputed claim under a general assignment for the benefit of creditors. The claim was made by John S. Hulin, as the maker of certain promissory notes alleged to have been obtained from him by the assignor by false representations, and transferred to preferred creditors in consideration of their release of their claims.
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Application to confirm the report of a referee .upon a disputed claim under a general assignment for the benefit of creditors. The claim was made by John S. Hulin, as the maker of certain promissory notes alleged to have been obtained from him by the assignor by false representations, and transferred to preferred creditors in consideration of their release of their claims. Hulin having been compelled to pay the notes, and his claim therefor being disputed by the assignee, a reference was ordered, upon which the referee reported in favor of allowing the claim, and application was made to…
1Opinion of the CourtVan Hoesen, J.
I have not changed the views I expressed upon the argument, though I understand the great hardship of the case. Hulin got no more than Schaller had to convey, and that was nothing at all. Schaller’s transaction amounted simply to a payment of the preferred creditors, and he obtained from them a release. He merely paid them. He bought nothing, and acquired nothing by purchase from them. By the terms of the assignment, what is left after paying the preferred creditors, goes to the non-preferred creditors. The payment of the preferred creditors with the notes which Schaller obtained by fraud and…
2Cited by5 opinions
- In re the Accounting of GinsburgNew York Supreme Court · 1899
- Pierce v. NewlinAppellate Terms of the Supreme Court of New York · 1904
- In re the Assignment of CarrickNew York Court of Common Pleas · 1885
- Severance v. BizallionNew York Supreme Court · 1910
- Severance v. BizallionAppellate Terms of the Supreme Court of New York · 1910