Alfred J. Silberstein v. Nash

LUMMUS, Justice. The defendant Nash as chairman, together with one Thompson, one Benkert and one Diefenbach, constituted a so called committee which in 1933 solicited the deposit with a named depositary of debenture bonds of Associated Gas & Electric Company, in order that united action might be taken by the committee on behalf of debenture holders against a plan for the rearrangement of the capital of that company advanced by it. Service was made on the defendant Nash only, and the plaintiff discontinued its action as against the other members of the committee, who were residents of New York. The plaintiff is a New York corporation which operates an advertising agency. The claim of the plaintiff is for $3,835.61, of which $1,000 had been paid, leaving a balance of $2,835.61 with interest from September 1, 1933, for the preparation and publication of an advertisement in various newspapers between July 5 and July 22, 1933, soliciting the deposit of debenture bonds so as to bring them within the control of the committee, and refuting attacks upon the committee made by the company. The members of the committee expected to profit from a fee paid by each depositing debenture holder. The committee, if not a partnership, was a joint enterprise or adventure.