Corey v. Long

12 Abb. Pr. 427, 43 How. Pr. 492
CourtThe Superior Court of New York City
DecidedJune 15, 1872
StatusPublished
Cited by3 cases

This text of 12 Abb. Pr. 427 (Corey v. Long) is published on Counsel Stack Legal Research, covering The Superior Court of New York City primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Corey v. Long, 12 Abb. Pr. 427, 43 How. Pr. 492 (N.Y. Super. Ct. 1872).

Opinion

Freedman, J.

This cause was brought on and submitted upon the pleadings and all proceedings and orders heretofore had and made therein, for the final determination of such questions as remain undecided. From the papers thus submitted, it appears that, prior to December 7, 1869, Albert B. Corey and Walter P. Long were partners, under the firm name of Walter P. Long & Co. On December 7, 1869, Corey sold to Long his (Corey’s) interest in the partnership property and effects, and Long agreed to pay the existing debts of the partnership. On January 13, 1870, Corey commenced his action in this court for the purpose of restraining Long from interfering with the property of the firm of Walter P. Long & Co., and for the appointment of a receiver to take possession of the property and assets, convert them into money and pay the debts of the partnership. At the commencement of the suit, an order was granted by a justice of this court enjoining Long, in accordance with the demand of Corey’s complaint, and a further order was made by the same justice, and entitled and entered as an order made by the court at special term, appointing James M. Cano as receiver of all the property and assets of [429]*429the late firm of Walter P. Long & Co. On January 17, 1870, and upon motion papers presented by Long, an order was made staying proceedings under the first named two orders, and requiring Corey to show cause why they should not be vacated. This last order was, on the same day, so far modified by the justice who had made the appointment of a receiver, as to allow the receiver and an officer of this court, Mr. Cosgrove, to take and hold possession of the property until the final order of the court. Upon the hearing of the motion at the special term, the order appointing the receiver was vacated, but the motion to dissolve the injunction denied. On January 31,1870, the court, at special term, upon a new motion founded upon notice, duly granted an order appointing the said James M. Gano receiver, “ of all the stock, fixtures, assets and property of whatever nature and kind soever belonging to the firm of Walter P. Long & Co., with all the usual power and authority granted to receivers in such cases made and provided.” Upon such appointment, the receiver filed a bond in the sum of five thousand dollars.

On February 4, 1870, an order was made by the justice who had originally granted the injunction and appointed the receiver, without notice to any of the parties in the cause, and wholly upon the ex-parte application of the receiver, bearing date of that day, which, after the recitals contained therein, provides as follows:

It is ordered, that the said James M. Gano, receiver of the firm of Walter P. Long & Co., be, and he is hereby authorized, empowered and directed to sell at public or private sale, all the personal property belonging to said firm of Walter P. Long & Co., now in his possession and charge of him, said Gano.
“And it is further ordered, that the said James M. Gano be authorized, empowered and directed to pay out of the proceeds of said sale or sales, all the neces[430]*430sary charges and disbursements incurred by him in the keeping and preserving said property, and also the necessary disbursements and charges that may be incurred in carrying out this order.
“ And it is further ordered, that the said James M. Gano safely invest the proceeds arising out of the sale of said property, after deducting the necessary charges and expenses, and hold the same until the further order of this court.”

On February 23, 1870, the defendant, Long, appealed to the general term from the orders of the special term refusing to vacate the injunction and appointing a receiver. The general term reversed the said orders on the ground that the plaintiff, Corey, not having reserved a lien upon the partnership property so as to require its application to the payment of the partnership debts, the defendant, Long, had acquired an absolute title ; that Long’s mere personal covenant to pay such partnership debts, and to indemnify Corey against them, did not give Corey such a lien upon or interest in or equity against the property in dispute, as is necessary to exist for the maintenance of the action.

On April 22, 1870, William McFarlane, a creditor of Corey and Long, commenced proceedings in the district court of the United States for the southern district of Flew York, against Corey and Long, to obtain an adjudication of bankruptcy against them; and on April 30, 1870, such an adjudication was made, and William P. Buckmaster having been appointed assignee in bankruptcy, the court in bankruptcy duly assigned to him all the property of the bankrupts, and each of them, by assignment dated May 25, 1870.

Thereupon the court, at the May special term of 1870, granted and duly made an order, pursuant to a motion made on notice for that purpose, declaring the action abated except for the purpose of passing the accounts of the receiver and of determining the amount [431]*431of Ms fees, adjudging the said William P. Buck-master as such assignee entitled to the property in controversy subject to such accounting, referring it to a referee to pass the accounts of the receiver and to ascertain and report to the court the result of such accounting, and substituting the said William P-. Buckmaster as the sole party to the action in the place and stead of the said Albert B. Corey and Walter P. Long, for the sole purpose of such accounting, and of prosecuting the said order and procuring a delivery of the said property to him.

Before the referee, the receiver filed an account showing that between February 5, 1870, and March 28, 1870, he had received in all, from the property of which he took possession, eight thousand one hundred and twenty-three dollars and four cents; that he had paid to the assignee two thousand five hundred dollars, and that he claimed credit for other payments made on account of expenses incurred, three thousand eight hundred and eighty-eight dollars and forty-nine cents. The referee found some of the amounts charged to be excessive, but allowed a large portion of the payments for which the receiver claimed credit, and adjusted the balance due by the receiver at two thousand three hundred and seventeen dollars and forty cents, and directed that sum to be paid to the assignee in bankruptcy.

The assignee in bankruptcy and the receiver severally excepted to the referee’s report. Upon these exceptions being brought to a hearing on March 1, 1872, the court made an order directing the referee to take and reduce to writing and certify to the court such further evidence touching the amounts actually paid by the receiver to keepers or other persons employed by him in taking care of, or selling or disposing of said property, and as to the necessity of employing such keepers and assistants, and as to the reasonableness and propriety of the sums paid or allowed to such per[432]*432sons respectively, by such receiver, and also directing that the further hearing of this cause upon the referee’s report already made, and the exceptions thereto, be laid over until the coming in of such further.testimony, and that upon such coming in, either party might bring on the-hearing on notice, and that upon such hearing, any order made in this cause might be produced and referred to in the same manner and with the like effect, as if such order had been produced in evidence before such referee.

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Cite This Page — Counsel Stack

Bluebook (online)
12 Abb. Pr. 427, 43 How. Pr. 492, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corey-v-long-nysuperctnyc-1872.