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Corporations-Liquidation-Jurisdiction Of Court

Michigan Law Review

A recent New Jersey case, Naspo v. Summits Sweet Shoppe, Inc., suggests interesting questions of the jurisdiction of equity over insolvent corporations. In that case, a bill was brought under section 69 of the New Jersey code, by a simple contract creditor with a small claim of $75 praying for the appointment of a receiver and the distribution of the assets. After the court had heard the parties on a motion for the appointment of a receiver, new counsel for the defendant corporation came in at a later hearing, offered to pay plaintiff's claim and asked for a dismissal …