105 N.J. Eq. 462 | N.J. Ct. of Ch. | 1930
This is a suit to enforce a municipal mechanics' lien claim. The complainant furnished materials to A.C. Galm, Incorporated, a subcontractor which was declared insolvent by this court and for which a receiver was appointed on April 16th, 1929. The notice of lien was filed by the complainant pursuant to the statute three days later. The receiver of the subcontractor is a party defendant to this proceeding and invokes the familiar rule ofMack Manufacturing Co. v. Citizens Construction Co.,
"It is clear that the funds in the hands of the municipalities could not in any aspect have become a part of the assets of the bankrupt company until it or its trustees had impressed upon such fund a statutory lien in the bankrupt's favor, and even then such statutory lien would be subservient to the statutory liens, upon the fund, of the party who furnished the materials and did the work for the bankrupt subcontracting company."
This language is very forceful and peculiarly applicable to the case at bar.
I will advise a decree for the complainant. *465