In re the General Assignment for the Benefit of Creditors of White Plains Oil Corp. to Goldstein

Appellate Division of the Supreme Court of New York

In re the General Assignment for the Benefit of Creditors of White Plains Oil Corp. to Goldstein

260 A.D. 1055, 24 N.Y.S.2d 723, 1940 N.Y. App. Div. LEXIS 6023

Appellate Division of the Supreme Court of the State of New York·Decided December 30, 1940·Published

Opinion

Order approving the assignee’s account, etc., and directing payment of ten per cent of appellant’s claim against the insolvent’s estate for 1937 social security taxes, under United States Code, title 42, section 1101 et seq., in so far as appealed from, affirmed, without costs, on the authority of Act of August 10, 1939, chapter 666, title IX, section 902, 53 Stat. 1399. Hagarty, Johnston, Adel and Taylor, JJ., concur; Lazansky, P. J., dissents and votes to reverse, with the following memorandum: The purpose of paragraph (3) of subdivision (a) of the Act of August 10, 1939 (Chap. 666, tit. IX, § 902, 53 Stat. 1399) seems to be to enable an insolvent whose assets during the fifty-nine-day period are in the custody of an appointee, or in any other way under the control of a court of competent jurisdiction, if his affairs were adjusted thereafter, or Ms receiver or trustee, if funds were available, to pay the required contribution under the State law, m which event the payment to the Federal government would be ten per cent of the normal tax. [1056]*1056But payment to the State is a condition precedent. The claim of the United States of America should be given priority.

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Order approving the assignee’s account, etc., and directing payment of ten per cent of appellant’s claim against the insolvent’s estate for 1937 social security taxes, under United States Code, title 42, section 1101 et seq., in so far as appealed from, affirmed, without costs, on the authority of Act of August 10, 1939, chapter 666, title IX, section 902, 53 Stat. 1399. Hagarty, Johnston, Adel and Taylor, JJ., concur; Lazansky, P. J., dissents and votes to reverse, with the following memorandum: The purpose of paragraph (3) of subdivision (a) of the Act of August 10, 1939 (Chap. 666, tit. IX, § 902, 53 Stat. 1399) seems to be to enable an insolvent whose assets during the fifty-nine-day period are in the custody of an appointee, or in any other way under the control of a court of competent jurisdiction, if his affairs were adjusted thereafter, or Ms receiver or trustee, if funds were available, to pay the required contribution under the State law, m which event the payment to the Federal government would be ten per cent of the normal tax. [1056]*1056But payment to the State is a condition precedent. The claim of the United States of America should be given priority.

In re the General Assignment for the Benefit of Creditors of White Plains Oil Corp. to Goldstein, 260 A.D. 1055, 24 N.Y.S.2d 723, 1940 N.Y. App. Div. LEXIS 6023 (N.Y. Ct. App. 1940).

Pincite

260 A.D. 1055 (In re the General Assignment for the Benefit of Creditors of White Plains Oil Corp. to Goldstein) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.