Case ID: misc2d_17/html/0037-01.html
Source: Caselaw Access Project
Author: {"author": "Aron Steuer, J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

New Haven Clock and Watch Co., Plaintiff, v. McLean Development Laboratories, Inc., Defendant.
    Supreme Court, Special Term, New York County,
    January 28, 1959.
    
      Alfred, Rice for defendant.
    
      S. David Leibowitt for plaintiff.
   Aron Steuer, J.

As against this plaintiff says that in the bankruptcy proceedings a plan of reorganization was adopted and approved by the court. In that plan unsecured creditors received stock of the plaintiff to the extent of 15% of their claims. The plan purported to bind all creditors, whether assenting or not. Defendant filed no claim and received no stock. It is argued that to allow defendant to assert his claim now prefers him over other creditors. Such sophistry cannot bolster a weak argument; it can even nullify a good one. It is true that the reorganization order might prove an impediment to the assertion of a positive claim but it could never operate to prevent a setoff.

The affidavit in support of the attachment gives no true picture of the situation and the attachment must be vacated.