Hay v. McDaniel

60 N.E. 729, 26 Ind. App. 683, 1901 Ind. App. LEXIS 330
CourtIndiana Court of Appeals
DecidedMay 28, 1901
DocketNo. 3,805
StatusPublished
Cited by7 cases

This text of 60 N.E. 729 (Hay v. McDaniel) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hay v. McDaniel, 60 N.E. 729, 26 Ind. App. 683, 1901 Ind. App. LEXIS 330 (Ind. Ct. App. 1901).

Opinion

Roby, J.

Appellee’s complaint avers ownership of two certain tracts of real estate in Jeffersonville by appellee and appellant Chas. S. ITay in equal shares as tenants in common, subj ect to an estate in Lottie M. Hay for the life of one Eichard McDaniel. That said real estate is improved property, one tract having upon it a two-story brick business building and dwelling-house combined, and the other one a two-story frame dwelling-house. That the life tenant had leased and rented the property for a long time, and that the same was and had been for many months occupied by tenants at a good rental, aggregating $32 per month, which sum said appellant has been receiving as such rent for as much as two years last past; “that she has failed and neg[684]*684lected to keep up and maintain said property in good repair, and has suffered taxes and liens to accumulate and remain unpaid upon the same, although she has had and collected more than sufficient money from said property to pay the same, to wit: That there has accumulated State and county taxes to' the amount of $103.73, and city taxes to the amount of $103. That the same are delinquent, and costs and damages and the interest has and is accumulating upon the same. That upon the first described tract there have been certain street and sewer improvements to the amount of $100 which is a lien upon the property and is drawing interest at six per cent, from August 8, 1898, and attorney fees thereon. That said property and the fee thereof may be sold to pay said taxes and said improvement liens to the great damage and loss of plaintiff and to his said title and interest in the fee of said real estate. That she has also permitted said property to become out of repair in this: “That the said brick house is in great need of painting to preserve the building; that the joists in the lower floor thereof have rotted and the floor has fallen in and down and should be replaced with a new one or with new joists. The inner woodwork of the said house needs general fixing up and repair. The said frame house is out of repair throughout, the roof, floors, windows, and doors all needing general overhauling, and a portion of the fences about said place is fallen down, and many places about said house are rotted and need replacing. That by said neglect the said property is in danger of being materially injured, and that ample justice between tire parties hereto' and protection to the rights of the plaintiff as owner of the interest in the fee of said property require the appointment of a receiver to take charge of the said property, collect the rents, and apply the same to the payment of the said taxes and liens; and that the said property may be placed in repair and maintained. Plaintiff says that he is a minor, and under the age of twenty-one, years, and he hidings this action by his next friend, Winfield S. McDaniel, Sr. Wherefore plaintiff [685]*685prays an order of court that a receiver be appointed to take charge of the said property, collect the said rents, pay the said taxes and liens thereon, place the said property in repair, maintain the same in said condition, and for such other orders in the premises as may be just and equitable, and for all other proper relief.”

To this complaint a demurrer for want of facts was overruled, an exception taken, and the action of the couifi therein assigned as error. An answer in general denial was filed with an affirmative paragraph, which is not important to the questions presented to this court. The finding was for appellee as follows: “That the material allegations of the plaintiff’s petition herein are true, and a receiver should be appointed to take charge of the real estate and property described in the petition, collect the rents thereof, pay taxes and any and all liens thereon, and to place and maintain the said property in repair, and that plaintiff ought to recover of the defendant, Lottie M. ILay, his costs herein laid out and expended. It is therefore ordered, adjudged, and de>creed hy the court that a receiver be and the same is now appointed to take charge of the said property described in the complaint, to wit: The real estate in the county of Clark, in the State of Indiana, and being in the city of Jeffersonville, and described as follows, to wit, [Here follows description]; and of the improvements thereon; that such receiver collect the rents and income of said property, and apply the same as follows, to wit: . (1) To the payment of all taxes and liens thereon; that he place the same in proper and reasonable repair, and maintain the same in proper and reasonable repair’5.

Appellant’s motion for a new trial setting up that the finding and judghrent was not sustained by the evidence and was contrary to law was overruled, an exception reserved, and such action of tire court is assigned as error.

The primary question in the case is as to the appellee’s right to maintain an action for the sole purpose of securing the appointment of a receiver. If this may not be done the [686]*686complaint is bad, and tire demurrer to it should have been sustained. A receiver is an indifferent person, between the parties to a cause, appointed by a court to receive or preserve the property or fund in litigation pendente lite, when it does not seem reasonable to the court that either party should hold it. Booth v. Clark, 17 How. 322. A receiver is not the agent of either party. He is the “right hand of the court.” His possession is the possession of the court which through him takes the property and holds it until final decree, at which time the functions of the receiver end, except as in instances he may continue in possession until the terms of the decree are complied with, but only as in the decree provided.

The complaint seeks to deprive the life tenant of the possession of real estate to which it is admitted no one else has any right of possession. The decree not only does this but by its terms excludes her from her own forever. If such actions may be maintained and such a decree sustained, the state, through its judiciary, is parens patriae in a sense not before realized. “The power of the courts to appoint receivers is one of the highest and most unusual characters vested in courts of chancery, and is never exercised in doubtful or evenly balanced cases; but is exercised only where jirstice would in all probability be defeated by withholding it.” Corbin v. Thompson, 141 Ind. 128. The jurisdiction to’ appoint receivers is ancillary as distinguished from original. It is a provisional and incidental remedy and is not the ultimate object of a suit. Cooke v. Gwyne, 3 Atk. 689; Beach on Receivers, (Alderson’s ed.), §51; Edwards on Receivers, p. 13; Smith on Receivers, §2; Ilerr on Receivers, p. 11.

There has been a marked development of the law of receiverships since 1873. Beginning with the financial panic of that year the practice of appointing receivers in cases of insolvency and threatened insolvency has grown far beyond the boundaries formerly recognized. Central Trust Co. v. St. Louis, etc., R. Co., 29 Fed. 618, probably marks [687]*687tlie limit. A receiver was appointed in that case for an insolvent corporation in order that its property might be kept intact. There are strong reasons supporting the action thus taken, but they are not applicable to the case at bar nor are its facts analogous. The authority of the case is denied by courts of high standing. State, ex rel. v. Ross, 122 Mo. 435, 23 L. R. A. 534. See also Beach on Eeceivers, §51.

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Cite This Page — Counsel Stack

Bluebook (online)
60 N.E. 729, 26 Ind. App. 683, 1901 Ind. App. LEXIS 330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hay-v-mcdaniel-indctapp-1901.