Hardman v. Whitney

54 P.2d 1065, 176 Okla. 142
CourtSupreme Court of Oklahoma
DecidedFebruary 25, 1936
DocketNo. 26091.
StatusPublished

This text of 54 P.2d 1065 (Hardman v. Whitney) 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
Hardman v. Whitney, 54 P.2d 1065, 176 Okla. 142 (Okla. 1936).

Opinion

PER CURIAM.

On January 10, 1934, the plaintiffs filed a petition in the district court of Seminole' counts', alleging in substance that the defendant C. E. Aldridge, as sheriff of Seminole county, was threatening to execute a writ of assistance dispossessing them of certain property; that said writ has been issued in a foreclosure proceeding in the superior court of Seminole county, wherein the defendant E. W. Whitney was plaintiff, and the plaintiffs were defendants; that after the judgment of foreclosure the district court of Oklahoma county had appointed one V. Y. Harris receiver of all the assets of E. W. Whitney located within the state of Oklahoma; that without the authorization of the district court of Oklahoma county, E. W. Whitney had the court clerk of the superior court of Seminole county issue a special execution and order of sale in the foreclosure proceeding, and that he thereafter became the purchaser of the mortgaged property; that by reason of the foregoing, the order of sale, sheriff’s deed, and writ of assistance were void, and the defendants should be restrained from divesting the plaintiffs of possession of the property. Attached to the petition as exhibits were copies of the writ of assistance, the order of the district court of Oklahoma county appointing the receiver, and the sheriff’s deed. The defendants demurred to this petition, and demurrer was sustained. It is our opinion that this ruling was correct.

A general receiver appointed by a court of equity, often referred to as a chancery receiver, does not by virtue of his appointment alone take legal title to the assets coming into his possession, but takes possession of the property of the individual, firm, or corporation for whom the receiver is appointed, for the purpose of administering it under the guidance of the court of his appointment, and only by judicial sale is the title divested from the owner and lodged in the purchaser. A statute providing ^ for the appointment of a receiver in certain designated circumstances may also provide that the receiver be vested with title to the property. In such instances, statutory receivers are clothed with rights not common to those of a chancery receiver. This distinction has been recognized by the Supreme Court of the United States in such eases as Union National Bank of Chicago v. Bank of Kansas City, 136 U. S. 223, 34 L. Ed. 341, 10 S. Ct. 1013, in which the court said:

“A receiver derives his authority from the act of the court appointing him, and not from .the act of the parties at whose suggestion or by whose consent he is appointed r and the utmost effect of his appointment is to put the property from that time into his custody as an officer of the court, for the benefit of the party ultimately proved to be entitled, hut not to change the title, or even the right of possession, in the property.”

To the same effect are the cases of Zacher v. Fidelity Trust & Safety-Vault Co., 106 Fed. 593, certiorari denied, 181 U. S. 621, 45 L. Ed. 1032, 21 S. Ct. 924; Grant v. A. B. Leach & Co., 280 U. S. 351, 74 L. Ed. 470, 50 S. Ct. 109.

Fletcher, Cyclopedia Corporations, 7781:

“The appointment of an ordinary chancery receiver does not operate as a transfer of title to or interest in the assets of the corporation, nor as an assignment of them, the-effect of the appointment being merely to» give him the right to the possession of the property, without changing the title or creating any lien upon it. He has authority to take custody of the property as an* officer of the court during the pendency of the action, but it does not effect a change; of title or create a lien thereon.”

Oscar Heineman Corp. v. Nat. Levy &. Co., 6 F. (2d) 970:

“A chancery receiver gets no title, but only a right to the possession of the property as the officer of the court. The title continues in those in whom it was vested! when the appointment was made. The receiver takes charge of the property for the court, and while he is in charge the property is in custodia legis, and his duty is to administer it subject to the court’s direction-. His possession is in reality the possession! of the court. He is appointed in the interests of justice and for the benefit of alB the parties in interest.”

A. R. Young Const. Co. v. Dunne et al., 123 Kan. 176, 254 P. 323:

“The appointment of an ordinary chancery *144 receiver such as was designated in this ease did not operate as a transfer of title to or interest in the assets of the corporation or as an assignment of them. líe had authority to take custody of the property as an officer of the court during the pendency of the action, and it did not effect a change of title or create a lien thereon.”

Board of Drainage Com’rs v. Lafayette Southside Bank of St. Louis, 27 F. (2d) 286:

“A receiver has no title or right to property of any of the parties to the litigation vested in him. He is merely an indifferent person appointed as custodian to hold the property in litigation subject to the further order of the court. Booth v. Clark, 17 How. 322, 331, 332, 338, 15 L. Ed. 164; Quincy, etc., Ry. v. Humphreys, 145 U. S. 82, 98, 12 S. Ct. 787, 36 L. Ed. 632; Great Western Mining Co. v. Harris, 198 U. S. 561, 576, 25 S. Ct. 770 ( 49 L. Ed. 1163). He does not represent the justiciable rights of the parties through the litigation of which he is receiver, but only the protection of property in his hands as such receiver, or the collection of assets, to the possession of which he is entitled as receiver.”

That the rights and remedies of a plaintiff which had accrued at the time of the commencement of the action do not abate upon the appointment of a receiver, is recognized in the case relied upon by the plaintiffs in error, Tootle v. Kent, 12 Okla. 674, 73 P. 310. Such is the recognized rule as illustrated by the following authorities:

1 C. J. 144:

‘‘Unless there is a statutory provision to the contrary, a pending action will not abate by reason of bankruptcy or insolvency proceedings against plaintiff or defendant, an adjudication of bankruptcy or insolvency, and the appointment of an assignee or trustee therein particularly where a statute provides, as is the case in most jurisdictions, that no action shall abate by the transfer of any interest during its pendency; but in such case the action may be continued by or against the original party, or the assignee or trustee may be substituted, according tp the statutes and practice in the particular jurisdiction.”

53 0. 3. 349:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Booth v. Clark
58 U.S. 322 (Supreme Court, 1855)
Union Bank of Chicago v. Kansas City Bank
136 U.S. 223 (Supreme Court, 1890)
Quincy, Missouri & Pacific Railroad v. Humphreys
145 U.S. 82 (Supreme Court, 1892)
Great Western Mining & Manufacturing Co. v. Harris
198 U.S. 561 (Supreme Court, 1905)
Grant v. A. B. Leach & Co.
280 U.S. 351 (Supreme Court, 1930)
Tracy v. . First National Bank of Selma
37 N.Y. 523 (New York Court of Appeals, 1868)
Tootle v. Kent
1903 OK 44 (Supreme Court of Oklahoma, 1903)
A. R. Young Construction Co. v. Dunne
254 P. 323 (Supreme Court of Kansas, 1927)
Mercantile Trust Co. v. Pittsburgh & W. R.
29 F. 732 (U.S. Circuit Court for the District of Western Pennsylvania, 1887)
Zacher v. Fidelity Trust & Safety-Vault Co.
106 F. 593 (Sixth Circuit, 1901)
Boston Elevated Ry. Co. v. Paul Boyton Co.
211 F. 812 (First Circuit, 1913)
Denton v. Baker
79 F. 189 (Ninth Circuit, 1897)
Continental Trust Co. v. Toledo, St. L. & K. C. R.
82 F. 642 (U.S. Circuit Court for the District of Northern Ohio, 1897)

Cite This Page — Counsel Stack

Bluebook (online)
54 P.2d 1065, 176 Okla. 142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hardman-v-whitney-okla-1936.