In re Morton Shoe Co.

40 B.R. 948 (1984)

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In re Morton Shoe Co.

United States Bankruptcy Court for the District of Massachusetts
40 B.R. 948 (1984)

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Facts

The Combined Jewish Philanthropies of Greater Boston (CJP) (plaintiff), a charity, solicited pledges from members of the community. CJP employees would make presentations to community members regarding the needs and purpose of the charity. Donors would fill out a pledge card stating that the subscription was in consideration of the pledges of others. CJP would then use the pledge cards to determine an operating budget, hire personnel, and establish the amount and recipients of distributions. The Morton Shoe Company, Inc. (Morton Shoe) (defendant) pledged $10,000 during campaign drives for 1976 through 1980. Morton Shoe paid the pledges in full for 1976 through 1978. However, Morton Shoe filed for bankruptcy and did not pay the pledges for 1979 and 1980. CJP filed a claim in bankruptcy court for the unpaid pledges of 1979 and 1980. Morton Shoe objected to the claim, alleging that the pledges were not enforceable.

Rule of Law

Issue

Holding and Reasoning (Gabriel, J.)

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