Dairymens' Co-Operative Sales Co. v. Frederick Dairy Co.

16 Ohio Law. Abs. 17, 1933 Ohio Misc. LEXIS 1268
CourtOhio Court of Appeals
DecidedOctober 27, 1933
StatusPublished
Cited by2 cases

This text of 16 Ohio Law. Abs. 17 (Dairymens' Co-Operative Sales Co. v. Frederick Dairy Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dairymens' Co-Operative Sales Co. v. Frederick Dairy Co., 16 Ohio Law. Abs. 17, 1933 Ohio Misc. LEXIS 1268 (Ohio Ct. App. 1933).

Opinion

[18]*18OPINION

By ROBERTS, J.

It is the contention, generally speaking, of counsel for the motion that the ordering of a sale or the confirming of a sale of property by the receiver is not a final order upon which error can be prosecuted. Attention will be called first to §12258 GC:

“What is a final order. An order affecting a substantial right in an action when in effect it determines the action and prevents a judgment, and an order affecting a substantial right made in a special proceeding or upon a summary application in an action after judgment, is a final order which may be vacated, modified or reversed, as provided in this title.”

Difference of opinion has arisen in numerous actions as to the proper construction of this section of the Code. Calling attention now to the case of Thompson et v denton, 95 Oh St, 333, the syllabus reads as follows:

“Under the provisions of §6, Article IV of the Constitution of Ohio, an appeal will lie to the Court of Appeals from an order of the Court of Common Pleas fixing fully and finally the compensation for the services of a receiver in a chancery case.”

That is read now principally for the purpose of tracing decisions of the Supreme Court upon this subject, and now calling attention to the fact that so far as the syllabus is concerned that proposition has been in effect reversed by the Supreme Court itself in a. later case. This was a case in which an action was brought for equitable relief, asking that a receiver be appointed to take charge of and manage the property and assets of the corporation, and second, that the court administer as a trust fund the property and assets of the corporation. It is said in the opinion, on page 334:

“Thereafter the court to which application was thus made appointed Elroy C. Denton as such receiver, who proceeded to administer the trust, and, after conducting the business as a going concern for nearly a year, sold the assets then remaining, consisting largely of merchandise, to B. W. Jones, which sale was confirmed by the court on May 10, 1915.”

It is sufficient to say that this case finally reached the Supreme Court upon the proposition as to whether error or appeal could be prosecuted from the judgment of the Court of Common Pleas ordering a sale of property in the receiver’s hands. The Supreme Court several times had held that the appointment and the discharge of the receiver were final orders upon which error might be prosecuted, but whether an order made by a court, interlocutory in its nature, directing the receiver to do certain things in the administration of his trust, for instance to sell property, is a final order or not, had not previously been determined by the Supreme Court.

This case, however, more particularly came up upon the proposition of whether a final order was involved in- the order of the court to the receiver to pay certain compensation for services. In the opinion it is said, on page 335:

“From this order Jones, together with certain other parties, appealed to the Court of Appeals. Motion was made by appellee Denton to dismiss the appeal on the ground that the Court of Appeals was without jurisdiction to entertain an appeal from such an order in such a case. The Court of Appeals sustained the motion and dismissed the appeal. From this judgment error is [19]*19prosecuted to the Supreme Court of Ohio, appellants coming as a matter of right, since the case involves a question arising under the constitution of the state of Ohio.

There is but a single question in this case, important as it is: Under favor of that part of §6, Article IV, of our Constitution, which provides that Courts of Appeals shall have ‘appellate jurisdiction in the trial of chancery cases’, does an appeal lie from an order of the kind entered May 22, 1915, fixing the compensation of the receiver.’’

Omitting a part of the opinion and then quoting from Page 336:

“The case in hand is not fraught with the difficulty encountered in Wagner v Armstrong et, supra, for here the case is undoubtedly one of chancery origin.”

And what the court then says so far as this being a chancery case should be recollected and considered in with what the Supreme Court has said in the other case.,

“The' relief sought, the manner of the administration of the trust, the entire proceedings had in the Court of Common Pleas, were all of an equitable nature.”

Reading from page 339:

“It would certainly require no argument to support the position of plaintiffs in error that some right of, review should be vouchsafed them in a matter of this importance. If it were to be held that the order in question is not a final order from which appeal will lie — and if it be hereafter held that error could not be prosecuted from the same order for the same reason — then we are making this very final order, conclusive and forever binding by the very act of holding that it is not final.
In this connection attention should be directed to the fact that counsel for defendant in error in their brief inferentiaily contend just as earnestly that error does not lie from the allowance of compensation to a receiver, as they do that there can be no appeal. It is their contention that the order in question is neither a judgment nor a final order.”

What the court there said is peculiarly pertinent to the present issue. The Common Pleas Court ordered a sale of the entire assets of this dairy company. If that was not an order from which appeal or error could be prosecuted, nothing could be done, and the administration of the estate would thereafter follow to whatever final determination might be reached, and if, as a matter of fact, the sale should not have been made and this remained by subsequent developments, it would then be absolutely too late to remedy the error or the damage which might be done. That is to say, if there is any right to determine the legality or propriety of the sale to this purchaser, it necessarily must come through the exercise of such right following such action and before the further progress of the case.

On page 343 the opinion terminates as follows:

“If the receiver was not, in the larger sense, a party to the action, then’the creditors had no representative in court. It is the more rational view, we think, that ho was very much in court, the very arm of the court, and the representative of creditors, the alter ego of the company itself.
The judgment of the Court of Appeals is reversed and the cause is remanded to that court with instruction to overrule the motion to dismiss the appeal.”

Turning now to the ease of Packing Company v State ex, 100 Oh St, 285, it is not necessary to make any particular statement concerning the nature of this case. It is sufficient to say that it was an action under the Valentine Anti-Trust Law, and so far as what might be involved in the real issue itself is not important. However, commencing with paragraph 3 of the syllabus, the following appears:

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Cite This Page — Counsel Stack

Bluebook (online)
16 Ohio Law. Abs. 17, 1933 Ohio Misc. LEXIS 1268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dairymens-co-operative-sales-co-v-frederick-dairy-co-ohioctapp-1933.