Bailey & Collins v. Ryan Cotton Oil Mill Co.

1926 OK 138, 248 P. 321, 119 Okla. 57, 1926 Okla. LEXIS 266
CourtSupreme Court of Oklahoma
DecidedFebruary 16, 1926
Docket16192
StatusPublished
Cited by4 cases

This text of 1926 OK 138 (Bailey & Collins v. Ryan Cotton Oil Mill Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bailey & Collins v. Ryan Cotton Oil Mill Co., 1926 OK 138, 248 P. 321, 119 Okla. 57, 1926 Okla. LEXIS 266 (Okla. 1926).

Opinion

Opinion by

PINKHAM, C.

The parties to this controversy will be designated plaintiff and defendant, as they appeared 2n the trial court.

The record is voluminous, but the material facts necessary to be stated in order to determine the questions raised for consideration are as follows: During the year 1921 a number of suits were filed by different persons and companies against the Ryan Cotton Oil Company. One of these suits was filed by the Oklahoma National Bank of Chickasha et al., No. 3725, in the district court of Jefferson county. In said cause an application was made for the appointment of receivers, and on the 12th day of February, 1921, Sidney Webb and R. J. Brown were appointed receivers. Thereafter the Mideke Supply Company filed suit to foreclose a lien on part of the properties of the Ryan Cotton Oil Company. This cause was No. 3824 in the district court of Jefferson county. Three other cases: J. R. Saufley v. Bowie Cotton Oil Company et al.; Conrad Bros. v. Sidney Webb et al.; and Antrim Lumber Company v. Sidney Webb et al., were consolidated under No. 3824, and the four cases were tried and judgment rendered foreclosing liens and mortgages and establishing the priorities of the various lien claimants. After judgment had been rendered the court made an order directing the receivers, who had already been appointed *58 in case No. 3725, to sell the property covered by the liens, which had been foreclosed, the proceeds to be applied to the payment of the debts protected by said liens. In pursuance of the order of sale the receivers advertised the property involved for sale under said order and so|ld the same and on the 28th day of August, 1922, the court heard the report of the receivers showing sale as ordered by the court, and the court on that day confirmed said sale.

It appears "that J. R. Saufley became the purchaser of a certain part of the property involved, and R. K. Wooten became the purchaser of a certain part of the said property. It further appears that R, K. Wooten deeded the property purchased by him to the Ryan Ootton Oil Mill Company on September 11, 1922, and that J. R. Saufley deeded the property purchased by him to the Ryan Ootton Oil Mill Company on May 14, 1923.

The record further discloses the receiver’s bill of sale to the Continental Gin Company and to the French Oil Machine Company and to the Briggs Weaver Machine Company, of certain personal property described in the several bills of sale, and that this personal property was afterward purchased by the Ryan Cotton Oill Mill Company. It further appears that at the time of the sale above referred to, the Ryan Cotton Oil Mill Company was not in existence, it having been organized in the fall of 1922. It further appears that the Ryan Cotton Oil Company and the Ryan Cotton Oil Mill Company are two distinct corporations, and have no connection with each other. None of the stockholders of the Ryan Cotton Oil Company are, or have ever been, stockholders in the Ryan Cotton Oil Mill Company, which is the company now claiming the properties involved in this controversy. The Ryan Cotton Oil Mill Company became the owner of the property involved in this suit in the autumn of 1922, and the suit of the plaintiff, Bailey & Collins, was not filed until long thereafter, and no judgment was procured against the defunct Ryan Cotton Oil Company until May 21, 1924. It further appears that the judgment of Bailey & Collins represents certain assigned claims of unsecured creditors.

The plaintiff, Bailey & Collins, caused an execution to issue and to be levied upon certain property of the present owner, the Ryan Cotton Oil Mill Company, who claims title through a judicial sale. Thereafter the Ryan Cotton Oil Mill Company filed a motion to quash the levy of the execution caused to be issued by the plaintiff, which motion was, by the court, sustained, and it was adjudged and decreed by the court that the property of the Ryan Cotton Oil Mill Company levied upon herein, should be released from said levy, and the sheriff forbid to sell said property, and that he release the same: to which order of the court the pHaintiff excepted.

Plaintiff’s motion for a new trial was overruled, and from this ruling and the judgment, plaintiff has appealed to this court. Plaintiff submits its ground for reversal under its fifth assignment of error: That the court erred in sustaining motion of Ryan Cotton Oil Mill Company to quash the levy of execution. Plaintiff’s argument in support of this assignment may be fairly stated as follows: First, that a district court cannot order receivers to sell property unless such receivers have been appointed in the case in which the order of salle is issued; second, that in case of foreclosure of liens, except where a receiver has been appointed, the execution of the judgment must be directed to the sheriff of the county in which the property is located.

It is argued under the first proposition that the order of sale issued out of the Mideke case and the sale made pursuant thereto and the order of confirmation of the sale by the court were void because no receiver was, by formal order, appointed in the Mideke case. We gather from the argument that if the cases had been consolidated by formal order this objection would be of no force and effect.

The record discloses that in the order appointing Sidney Webb and R. J. Brown receivers of the Ryan Ootton Oil Company in the case of the Oklahoma National Bank of Chickasha, Okla., v. Ryan Cotton Oil Co. et al., No. 3725, the court used the following-language :

“It is therefore considered, ordered, adjudged and decreed by the court that Sidney Webb * * * and R. J. Brown * * * he and they_are hereby appointed as receivers of said defendant Ryan Cotton Oil Company, and they are hereby ordered to immediately take .into their possession and under their control all of the property, both real and personal and mixed, and all of the assets, debts, credits, and effects of said defendant Ryan. Cotton Oil Company, a corporation, and to collect, hold, and manage the assets of said corporation and to protect the property thereof under the orders of this court, and to institute any suit or suits that maybe necessary to collect and preserve the property and assets of said defendant corporation and to make a report of their proceedings hereunder within 60 daj's from the date_ hereof : and from time to time as oi-deréd by this court. ® * *”

*59 It will be observed that all of the properties of the Ryan Cotton Oil Company were placed in the hands of said receivers, and that by reason of the control! of the court over the receivers the property was in custodia legis, and when the Midke Supply Com.pany filed its case, which became the consolidated action out of which the order of sale issued, the receivers, having been appointed and qualified, were made parties defendant, without whom a judgment could not have been rendered affecting the property of said company.

In the case of Fernald v. Spokane & B. C. Telephone & Telegraph Co. et al., 31 Wash. 219, 71 Pac. 731, where a question similar in many respects to the question here involved was considered, the court, after citing numerous cases, said:

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Bluebook (online)
1926 OK 138, 248 P. 321, 119 Okla. 57, 1926 Okla. LEXIS 266, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bailey-collins-v-ryan-cotton-oil-mill-co-okla-1926.