The Superior Court of New York City, 1892

Hoerle v. McIlhargy

Hoerle v. McIlhargy
The Superior Court of New York City · Decided May 2, 1892
29 Jones & S. 184; 46 N.Y. St. Rep. 249; 61 N.Y. Sup. Ct. 184

Counsel

William King Hall, for appellant, argued :—, Michael Jacobs, for respondent, argued :—

Hoerle v. McIlhargy

Opinion of the Court

Per Curiam.

The action is for a dissolution of a partnership and for an accounting. In it a receiver had been duly appointed and had taken possession of the partnership property. After this the appellant began an action against the partners for a partnership indebtedness, and recovered judgment in the sum of ninety dollars. Qn these facts the appellant made petition to the court below, that the receiver pay out of the funds *188in his hands the amount of the judgment. The court denied the application, and this appeal is taken from that denial. The decision was correct. There was no legal lien on the property through the judgment and execution. The property was in custody of the law and was inaccessible to an execution or its usual consequences. The sheriff, to levy, would be obliged to ask the leave of the court to that end. As the receiver had not taken possession, after the execution had issued, the court would not be pressed by the consideration that there was a legal lien. In a case like this the court should look into the whole case and find whether, substantially, the applicant had a right to a preference. If the estate were certainly solvent, leave might be given. But if insolvent, and there was nothing in the nature of the claim that should give priority, the court should deny the application. In this case there was no reason why the applicant should not share equally with other creditors.

Order affirmed, with ten dollars costs.

Case-law data current through December 31, 2025. Source: CourtListener bulk data.