Eureka Specialty Co. v. Settelmeyer

153 N.E. 226, 22 Ohio App. 197, 4 Ohio Law. Abs. 660, 1926 Ohio App. LEXIS 444

• Court: Ohio Court of Appeals
• Decided: June 7, 1926
• Docket: 2919
• Status: Published

Opinion

HAMILTON, J.

The Eureka Specialty Co. and other creditors made a motion in the Hamilton Common Pleas to remove a receiver who- had been appointed upon the petition of some of the members of the board of directors, the board alleging that the misconduct in management of the corporation warranted a dissolution and appointment of a receiver.

The motion was asked on the ground that the court had no jurisdiction t opapoint the receiver; and that power granted to such receiver was beyond the jurisdiction of the court The motion was overruled and the creditors prosecuted error claiming that the court’s action in the appointment of the receiver was void.

The Court of Appeals held:

1. The power of a court to appoint a receiver cannot be challenged by a motion to dismiss the receiver some five months after the appointment and after the term in which it was made.

2. The common pleas court has jurisdiction to appoint receivers in proper cases.

S. The propriety of the appointment should have been determined at the term in which the appointment was made and in case of an adverse decision, error prosecuted from the ap ■ p ointment.

4. Although the appointment was not proper, the judgment cannot be attacked in the manner followed by the creditors here.

5. The record does not disclose a situation calling for the court, in its discretion, to discharge the receiver, and return the property to the corporation.

Judgment overruling the motion affirmed.