Bailey v. Lightwell Steel Sash Co.

Citations

• 12 Del. Ch. 60
• 105 A. 376
• 1918 Del. Ch. LEXIS 8

Syllabus

<p>Preference is given to the payment of rent in administering the estate of an insolvent corporation. •</p> <p>“Rent,” entitled to preference in the administration of the estate of an insolvent corporation, is profit issuing out of land, and cannot reasonably include the cost of repairs which the tenant should have made, and which the landlord made, even if called rent.</p> <p>Where an insolvent corporation had, as a tenant, agreed to pay forty per cent, of cost of a building to be erected, and six per cent, interest on the balance, and to buy the premises, theforty per cent, to be allowed as a credit on the price and if the purchase was not made the new building to remain the property of the landlord, the interest required to be paid was not rent, entitled to preferential' payment, but can be allowed only as a general claim without priority.</p> <p>Where an insolvent corporation, as tenant, had agreed to pay forty per cent, of cost of new building, and to pay six per cent, interest on balance of cost, and to purchase the building, and if the purchase was not made the new building to remain the property of landlord, a claim for the sixty per cent, will be disallowed in a receivership proceeding.</p>