168 Pa. Super. 554 | Pa. Super. Ct. | 1951
Opinion by
This appeal is .from .a. decree .of the court below making distribution among.creditors of funds.paid into court representing the purchase money of a sale under the Bulk Sales Act.
Appellant contends that he, as an execution. creditor, is ..entitled to payment in full of his claim with
The pertinent provisions of Section 3 of the Bulk Sales Act read: “Whenever any person shall . . . purchase . . . any stock of goods ... in bulk, for cash . . . and shall pay any part of the purchase price to such vendor, . . . without first having demanded and received from said vendor . . . the statement [of creditors] . . . and without paying or seeing to it that the purchase money of said property is applied to the payment of the bona fide claims of the creditors of the vendor pro rata according to the dignity of their several claims . . . and without first having sent the notices of said sale . . . such sale or transfer shall be fraudulent and void, . . .: Provided, however, That if the vendor and creditors do not agree in writing to a schedule of distribution of the proceeds ... or for any other reason the said purchaser ... is unable to make proper distribution as herein provided, — then the said purchaser . . . shall . . . pay the purchase money of said sale . . . into the court of common pleas of the county in which the place of business of the vendor is situate, and the said court shall, upon motion of any party interested, frame an issue in such form as said court may deem proper, and make distribution of said fund to and among the persons legally entitled thereto . . .”. (Italics supplied)
, At the time of the bulk sale in January, 1946, the appellant, was. a general creditor as were all of 'the other creditors here "involved. After that sale was consummated and .the., ninety, day limitation of the !Act expired, .during which .the..in validity of .the sale 'could
Section 3 contemplates a pro rata distribution of the purchase price among the creditors. An agreement between the vendor and its creditors was reached shortly after the sale in bulk held in January, 1946. Although appellant did not appear or agree at that time, he was notified of the meeting of the creditors and did not attend and participate therein in the schedule of distribution worked out among the creditors. The Bulk Sales Act is designed to prevent the defrauding of creditors by the secret sale or disposal in bulk of all or a substantial part of a merchant’s stock of goods, and looks to a pro rata distribution to all creditors in the fund available for distribution. That was accorded to appellant by a 50% payment on account of his claim against the vendor. Moreover, appellant is receiving an additional 14-%% more than other creditors, and it comes with little grace for him to insist upon 100% payment of his claim out of this fund. There is not a word in the Bulk Sales Act which- gives a preference to an execution creditor in the distribu
Order affirmed.
Act of May 23, 1919, P. L. 262, §1 et seq., 69 PS §521
The same percentage, i.e.,' 64-%"%, 'which wás paid oil" appellant's ■ - claim,- ■ was' ■ withheld from - the -amount of ‘Cesco''Supply Company’s claim of $900.00 against appellant.
There is no question here involved concerning the validity of tlie sale as complying with the Bulk Sales Act. Appellant specifically sets forth in his brief that no challenge is máde regarding the -validity of the sale. - ..... ■ ■ . . .....