Baltimore Bargain House v. St. Clair

52 S.E. 660, 58 W. Va. 565, 1906 W. Va. LEXIS 1
CourtWest Virginia Supreme Court
DecidedJanuary 16, 1906
StatusPublished
Cited by11 cases

This text of 52 S.E. 660 (Baltimore Bargain House v. St. Clair) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baltimore Bargain House v. St. Clair, 52 S.E. 660, 58 W. Va. 565, 1906 W. Va. LEXIS 1 (W. Va. 1906).

Opinion

Cox, Judge:

Mary L. Bell and Fanny E. Bell, partners in the mercantile business in the city of Grafton, under the firm name of “Bell’s Racket Store,” by deed dated and recorded on the 25th of July, 1904, made an assignment of all their stock of store goods to John G. St. Clair, trustee, for the benefit of their creditors. Two days previous to this assignment, Fanny E. Bell, by deed of record, assigned her one half interest in this stock of store goods to Hugh Warder, trustee, to secure and save harmless certain individual endorsers. On the 29th day of July, 1904, process was issued in this suit in chancery, brought in the circuit court of Taylor county by the Baltimore Bargain House, a corporation, against St. Clair, trustee, Mary L. Bell, Fanny E. Bell, Hugh Warder, trustee, and the creditors and endorsers secured by the two deeds of assignment. The suit is for the purpose of removing St. Clair, trustee, and appointing receivers to sell and dispose of the stock of store goods and collect the accounts, and for the ascertainment and payment of the partnership debts. Before process was served, and without notice, in vacation, on the 29th of July, 1904, the Judge of the circuit court of Taylor county, upon presentation of the bill and exhibits, entered an order appointing John G. St. Clair and Hugh Warder [567]*567special receivers of said stock of store goods, and directing them to take possession thereof and sell the t same, after executing bond, and enjoining St. Clair, trustee, from selling or disposing of the trust property and from collecting the accounts. On the 23rd of August, 1904, St. Glair, trustee, and Mary L. Bell, before the judge in vacation, after notice, moved the dissolution of the injunction, which motion was overruled; and St. Clair, trustee, and Mary L. Bell appeal.

Our first duty is to determine the extent of the appeal granted. The petition for the appeal expressly prays for an appeal from the order refusing to dissolve the injunction. It also refers, by date, to the order appointing receivers and enjoining the trustee, and assigns errors therein. We think the petition, fairly construed, asks an appeal from both orders, and that the appeal granted was intended as an appeal from both.

So treating the appeal, are both orders appealable? The 7th paragraph of section 1, chapter 185, Code, expressly gives an appeal from an order or decree in chancery refusing to dissolve an injunction, and from an order or decree requiring the possession or title of the property to be changed. The language used in the opinion in Wagner v. Coen, 41 W. Va. 351, may be said to indicate that the provision in relation to change of possession applies only to real estate, and not to personal property. A doubt as to whether or not that provision applies to personal property is expressed in the cases of Harris v. Hauser, 26 W. Va. 595, and Hutton v. Rockbridge, 27 W. Va. 435. However, the cases of Robrecht v. Robrecht, 46 W. Va. 738, and Ruffner Bros. v. Mairs, 33 W. Va. 655, hold that a decretal order appointing a receiver for personal property, and thereby changing the possession thereof, is appealable. See, also, Shannon v. Hanks, 88 Va. 338; Barry v. Briggs, 22 Mich. 205; Lewis v. Campau, 14 Mich. 458. It seems clear that the provision permitting an appeal from an order or decree in chancery, where the possession of the property is changed, applies to personal property, as well as to real estate.

Both orders being appealable, the question to be decided is: Were the appointment of receivers, and the awarding of an injunction against the trustee, proper?

The receivers were appointed without notice, before ser[568]*568vice of process in this suit, by the judge in vacation. The statute, section 28, chapter 133, Code, permits the appointment of a special’ receiver in any proper pending case, where there is danger of loss or misappropriation of the property involved, and expressly requires notice of the application for a receiver of real estate, or the rents, issues and profits thereof. Therefore, what we shall hereafter say in this opinion will relate to the appointment of receivers of personal property. The statute is silent as to notice of the application for a receiver of personal property. In Ruffner Bros. v. Mairs, supra, it is said that, in the light of the authorities, the better practice is to require notice to be given to the defendant, before passing upon the application for a receiver, unless it be in cases of the greatest emergency and imperative necessity. In the case of Oil Co. v. Gale, 6 W. Va. 527, Judge Haymond, in delivering the opinion of the Court, said: “It is true as a general rule, though not universal, that notice is, or should be, required of the time and place of making the application for the appointment of a special receiver. The authorities cited in support of this general rule show that there are recognized exceptions. These exceptions are such cases as that immediate action is or may be necessary to prevent great injury.” Universally, so far as we have been able to examine, the authorities recognize that there are certain well established exceptions to the general rule requiring notice of the application. Fredenheim v. Rohr, 87 Va. 764; Page on Receivers, 148-150; Moritz v. Miller, 87 Ala. 33; Hogg’s Eq. Prin., sec. 141; Smith on Receiverships, sec. 5; High on Receivers, sec. 117; note to Cameron v. Imp. Co., 72 Am. St. Rep. 36, and cases cited; 17 Enc. Pl. & Pr. 7l7; Anderson on Receivers, secs. 121, 122 and 123. Classifications of exceptions to the general rule are given in 17 Enc. PI. & Pr. 719, and in Hogg’s Eq. Prin. sec. 141, and in Smith on Receiverships, sec. 5. It is clear from the authorities that in cases, where to require notice would be unreasonable, or would likely defeat the very object for which a receiver is necessary, or where a great emergency exists, a receiver may be appointed without notice. It may be argued that our case of Batson v. Findley, 52 W. Va. 342, requires notice in all cases of ex parte or vacation applications. We do hot so interpret that decision. The first point of the syllabus would [569]*569seem to go that far; but when read in the light of the opinion, it does not do so. In the opinion, on page 354, it is said: “In every instance before process served, and the application is thus ex pa/rte, such notice must be given except in cases of emergency where it is impracticable, else the appointment will be reversible.” This explains point 1 of the syllabus, and reconciles 'the case on this point with our other decisions and the universal law of the land.

Where notice is not given, the bill should, in addition to showing the necessity for the appointment, set out the grounds which excuse failure to give notice; or they must at least appear by the affidavits filed in support of the application. 17 Enc. Pl. & Pr. 735; Florence Bank v. U. S Savings, etc. Co., 104 Ala. 297; Wabash R. Co. v. Dykeman, 133 Ind. 56; French v. Gilford, 30 Ia. 148; Anderson v. Cecil, 86 Md. 490; Verplanck v. Mer. Ins. Co., 2 Paige (N. Y.) 438; Virginia etc. Steel Co. v. Wilder, 88 Va. 942.

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Cite This Page — Counsel Stack

Bluebook (online)
52 S.E. 660, 58 W. Va. 565, 1906 W. Va. LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baltimore-bargain-house-v-st-clair-wva-1906.