Ajax Shoe & Leather Co. v. Selig Et Al‪.‬

RONAN, Justice. This is an action against the maker and indorser of a promissory note for $1,200 payable to the plaintiff. The plaintiff was owed $1,600 by the Plaistow Shoe Company (hereinafter called the shoe company) which, on September 20, 1938, made an assignment for the benefit of its creditors. The defendant Irving Selig was the treasurer of that company. When one Berkovich, the general manager of the plaintiff, learned of the assignment he complained to Selig that the plaintiff should have been taken care of before the assignment. The plaintiff immediately brought an action in this commonwealth and another in New Hampshire against the shoe company. Selig on the next day sent his note indorsed by the other defendant to the plaintiff and both actions were discontinued. The note was given for the purpose of having Berkovich continue his endeavors to bring about the formation of a partnership between Selig and one Rosenberg, to secure a discontinuance of the two actions by the plaintiff against the shoe company, and in part payment of the plaintiffs claim against the shoe company. It was expected that the shoe company would pay its creditors twenty-five per cent of their claims. The Judge found for the plaintiff. The Appellate Division ordered the report dismissed, and the defendants appealed from that order.