90 N.Y.S. 731 | N.Y. App. Div. | 1904
The assignee for the benefit of creditors of the Charlotte Steel and Iron Company filed her accounts. The appellant filed a claim with the assignee based upon a judgment recovered against the assignor and claimed a preference. Objection was made to the amount and to the claim for preference and the court referred the matter to a referee to take and state the account of the assignee and to “ try the question of the amount and right to preference of the claim ” of the appellant. Upon the hearing before the referee the
The learned counsel for the respondent contends that the judgment, having been rendered after the general assignment, was not
The evidence introduced by the respondent falls far short of invalidating the judgment on the ground of fraud or collusion. It does show that the appellant was to be compensated by stock by one of the promoters of the corporation for his services anterior to the formation of the company, but this did not include the services rendered subsequent to the formation of the company. Although the period during which the appellant alleged in this complaint that the services were rendered embraced a period of several weeks prior to the incorporation of the company, yet he did not recover the amount demanded and it is not to be inferred that he was awarded compensation for that period. The treasurer of the company, who gave the testimony which the respondent claims impeaches the judgment, had full knowledge of the pendency of the suit, and the assignor company appeared and was defended by its attorneys. We are of opinion, however, that the judgment does not necessarily determine that the services were of a character which entitled the appellant’s claim to a preference. The evidence given upon the trial forms no part of the judgment roll. The nature of the services is not definitely stated in the complaint. It was competent to show a Hunde what the services were. We think we should not decide
The order should, therefore, be reversed and the matter should be brought on for a further hearing at Special Term or before a referee as the court may direct, with costs to the appellant ¡payable out of the funds in the hands of the assignee.
Van Brunt, P. J., Patterson, O’Brien and Hatch, JJ., concurred.
Order reversed and further hearing ordered as directed in opinion, with costs to appellant payable out of fund in the hands of the assignee.