In re T. R. Goodlatte & Sons, Inc.
In re T. R. Goodlatte & Sons, Inc.
Opinion of the Court
T. R. Goodlatte & Sons, Inc., a corporation
By November 16, 1938, the attempts to reorganize had failed, and an order for liquidation was entered. It referred the matter to the Hon. John Grimshaw, Jr., as Referee in Bankruptcy and the trustees were directed to proceed with the liquidation of the debtor’s assets. As such trustees they are the owners of certain real property located in the City of Clifton, Passaic County, New Jersey
Approximately five days prior to May 15, 1939, the trustees received from the attorney for Neocell and Hygienic Tube &
Hygienic appeared specially and objected to the jurisdiction of the Court to determine summarily that the trustees’ title is a good and marketable title, free, clear and discharged of any and all liens and encumbrances as required by said order of April 5, 1939, and without waiving its objection it answered the petition and order to show cause by setting forth its objections to the title proposed to be conveyed by the trustees. The said answer also sought an order granting respondent leave to join the trustees as party defendants in an action for the return of the deposit. A hearing was held and the court ordered
All the property in the possession of Goodlatte of which it claims the ownership passes, upon the filing of the order to liquidate the assets,
The bankruptcy court has summary jurisdiction to adjudicate the type of questions raised by the objections aforesaid
, The motion of the solicitors for Neocell Products Corporation and Hygienic Tube Container Corporation set forth in the notice filed on May 31, 1940, is denied.
Hereafter referred to as “Debtor” or “Goodlatte”.
October 8, 1937.
More particularly described in petition of trustees filed March 21, 1939. Order to show cause dated March 21, 1939, filed March 21, 1939.
Hereafter referred to as “Neocell”.
Attached to said offer of Neocell.
Order of April 5, 1939.
Hereafter referred to as “Hygienic”.
The objections raised to the title are:
(a) That the City of Clifton became the owner in fee of the premises in question by certificate of sale for unpaid municipal liens, No. 8257, dated December 28, 1933, acknowledged January 27, 1934, and that large amounts of taxes and water rents have accrued and are due to the City of Clifton as the holder of said tax sale certificate;
(b) That there are a large number of tenants in possession of the said premises;
(c) That said premises are subject to the burden of a covenant running with the land, in substance requiring that the owner of said premises shall conduct a business thereon which shall contribute to the freight income of the Morris & Essex Railroad Company, as more fully set forth in deed dated May 15, 1907, recorded July 31, 1907, in Book Y-18 of Deeds for Passaic County, at page 63;
(d) That there are survey objections to said premises, as more specifically set forth in the letter of May 16, 1939, being Exhibit “A” annexed to the petition of the trustees herein;
(e) That the State of New Jersey was not made a party to these proceedings and has a lien on the premises in question for the satisfaction of unpaid unemployment compensation taxes, pursuant to the provisions of the statute in such case made and provided;
(f) That time has been of the essence throughout the proceedings and respondent has suffered material injury as a result of the delay by the trustees in tendering a good and marketable title, free, clear and discharged of any and all liens and encumbrances, as required by the said order of April 5, 1939; and
(g) That respondent has at all times been ready, able and willing to perform its obligations pursuant to said order of April 5, 1939, and has extended more than a reasonable time to the trustees to perform their obligations under said order, as appears more fully by letters and memoranda of communications between the said trustees, their attorneys, and the attorney for respondent, bearing the following dates: May 4th, 8th, 12th, 15 th, 16th, 18th, 25 th and 26th; and
(h) That the City of Clifton has filed its petition for a certificate of review of the order of this court made in this matter on the 10th day of June, 1939, affecting the rights of the City under its tax sale certificate aforesaid, and that by reason of the pendency of said proceedings there is a cloud upon the title of the premises in question.
Order to show cause dated May 31, 1939.
Order dated April 2, 1940.
Order of November 16, 1938.
Ex parte Baldwin, 291 U.S. 610, 54 S.Ct. 551, 78 L.Ed. 1020.
Ex parte Baldwin, supra.
Thompson v. Magnolia Petroleum Co., 309 U.S. 478, 60 S.Ct. 628, 84 L. Ed. 876.
For reasons see the certificate of the Referee dated April 17, 1940, filed April 19, 1940.
Reference
- Full Case Name
- In re T. R. GOODLATTE & SONS, Inc.
- Status
- Published