Mart, Inc. v. National Automobile & Casualty Co.

National Automobile and Casualty Company (hereinafter sometimes referred to as National) appeals from a judgment rendered by the trial court in favor of Mart, Inc. (hereinafter sometimes referred to as Mart) in an action for damages on an attachment bond.

Mart is a closely held corporation which operates a discount appliance store under the supervision of its principal officer and stockholder, Murray Mellman (hereinafter referred to as Mellman). Bernard Elowitz, who worked in the Mart store, initially sued Mart and Mellman for an accounting of his share of the profits realized by the business pursuant to an alleged oral agreement for compensation. Elowitz filed his action in February 1962, and on March 23, 1962, was granted a motion for a writ of attachment but postponed levy until December 21st in order to capture the proceeds of Mart’s holiday business. Elowitz was then successful in attaching a $27,500 bank account. Mart obtained the release of $22,500 by posting a collateralized bond, but left $5,000 under attachment pending final adjudication on the merits some two years later. Ultimately Elowitz lost the lawsuit, and Mart sued National to recover on its attachment…