Appellate Court Overturns Adverse Ruling
Attorney Howard N. Sobel has successfully appealed a ruling in a case involving the discharge of a receiver by a lower court. On October 31, 2024, the Superior Court of New Jersey, Appellate Division, issued an opinion in the matter of Parke Bank v. Voorhees Diner Corporation, et al, reversing the Law Division’s discharge of a court-appointed statutory receiver. The appellate court remanded the case to the Law Division for further proceedings.
The appeal arose out of a Judgment that was entered in favor of Parke Bank against Voorhees Diner where a statutory receiver was appointed by the Court. Attorney Sobel’s client, Mori Restaurant LLC, was the landlord for the property where the restaurant was located. Pursuant to the Court’s Order appointing the receiver, the statutory receiver was to take control over the business, liquor license and personal assets of Voorhees Diner Corporation.
At issue in the appeal was whether a court-appointed receiver had fulfilled his statutory obligations and could therefore be discharged. The lower court held that the receiver’s duties had been completed and permitted the discharge. Attorney Sobel successfully argued that the receiver had failed to comply with certain fundamental requirements as a court-appointed receiver, including, but not limited to:
- The requirement of notice to all creditors within 30 days
- The obligation to provide an inventory for the benefit of creditors
- The requirement to complete an accounting for the benefit of creditors
The appellate court therefore concluded that the Law Division had abused its discretion in permitting the discharge of the court-appointed statutory receiver and sent the matter back to the Law Division for proceedings consistent with its opinion.
Successfully appealing a lower court ruling is a rarity. According to data collected by the U.S. Courts, less than one in every ten appeals lead to the successful reversal of a lower court ruling. We are proud to have successfully argued on behalf of our client, Mori Restaurants, LLC.
Contact the Law Offices of Howard N. Sobel
At the Law Offices of Howard N. Sobel, we bring more than 40 years of experience to every case we take. For effective, results-oriented legal counsel with a personal approach, contact our office by e-mail or call us at 856-424-6400 to see if you qualify for a free initial consultation. We are available evenings and weekends upon request. We take all major credit cards.
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