In re Directors of Murray Hill Bank

75 N.Y. St. Rep. 1290
Appellate Division of the Supreme Court of the State of New York·Decided November 6, 1896·No. No. 756·Published

Opinion

INGRAHAM, J.

—We do not concur in the opinion of Mr. [1291]*1291Justice Williams. We do not think, however, that it is necessary on this appeal to pass upon the questions discussed by him, as this order must be affirmed upon the ground that it appeared on the motion that, prior to the time the motion was argued, the superintendent of banks had turned over to certain receivers appointed in another action all the property, assets, and books of the bank then in his possession; and that he was no longer in possession of such property. The motion which resulted in the order appealed from was to compel him to turn over to the receivers appointed in this action all the books, papers, and assets of the bank, or to show cause why a permanent mandamus should not issue against him directing him to deliver possession thereof to the receivers. It appearing that he had not then in his possession any of the property in question, an order directing him to turn over such property would be ineffectual.

The order is therefore affirmed, with $10 costs and disbursements.

YAM BRIHSTT, P. J., and O’BRIEH and PATTERS OH, JJ., concur.

WILLIAMS, J.

—The vfacts are undisputed, and are as follows : August 11, 1896, the bank superintendent, having examined the affairs of the bank, arrived at the conclusion not only that there had been an impairment of the capital, and that the bank was in an unsafe and unsound condition to do banking business, but that it ivas insolvent, its liabilities exceeding its assets by more than $230,000, and it had closed its doors, and suspended its ordinary and lawful business. Thereupon the bank superintendent on that day took possession of the property and business of the bank, under the provision of section II, c. 689, of the banking act of 1892. Thereafter, and on the 28th of August, 1896, the directors instituted proceedings for the voluntary dissolution of the bank, under the provisions of section 2419 et. seq., Code Civ. Proc. A petition was made by a majority of the directors, and upon such petition and accompanying papers an order was made by a justice of the court on that day, directing the attorney general of the state to show cause, September 1, 1896, at a special term in Hew York City, Avky the usual order should not be granted, requiring all persons interested in the bank to shoAV cause Avhy the bank should not be dissolved, and why a temporary receiver should not be appointed, and directing the order to shoAV cause to be served upon the attorney general on or before August 29, 1896. August 31,1896, the attorney general prejiared a summons and complaint, and had the latter verified in an action in the name of the people, against the bank to procure its dissolution, and the appointment of a receiver. On the return of the order to shoAV cause, September 1, 1896, the matter Avas heard at special term, Hew York City, Mr. Justice [1292]*1292Pryor, presiding. The attorney general objected to the making of an order in the proceedings, and especially to the appointment of any receiver by reason of the bank superintendent having taken possession of the books, papers, and assets of the bank, under the provision of section 17 of the banking act. 'The court, however,made an order Septembers, 1896, containing the usual provisions, and appointing the appellants receivers of the bank, providing for security, and directing the receivers so appointed to take possession of the property of the bank, to collect the debts, demands, and other property of "the bank, etc. September 3, 1896, copies of this o,rder and of the receivers’ bonds, which had been executed and approved and filed, were served upon the attorney general, and the receivers made efforts soon thereafter to induce the bank superintendent to surrender and deliver to them the books, papers, and assets of the bank. The bank superintendent, however, ■declined to make such delivery. September 4, 1896, the attorney general caused the papers prepared August 31, 1896, to be served, thus commencing the action in the name of the people against the bank to procure its dissolution, and the appointment of a receiver. September 10, 1896, upon the summons and complaint and an affidavit of the bank superintendent an order was made by a justice of the court, requiring the bank to show cause at a special term in city of ¡Newburgh, September 12, 1896, why an order should not be made appointing a receiver of the property and the assets of the bank during the pendency of the action, and restraining defendant and its officers, agents, and servants from exercising any corporate rights during the pendency of the action, and from transferring, disposing of, or interfering with the property or assets of the bank, and enjoining or restraining suits or proceedings against the bank, and restraining the defendant and its trustees, agents, and servants until the hearing of the motion, and directing serxdce of the order to show cause on the defendant or its attorney on or before September 11, 1896. The service of this order xvas made as directed, and at the same time the attorney general and the bank superintendent appealed from Mr. Justice Pryor’s order to the appellate division, First department. In re Directors of Murray Hill Bank, 41 N. Y. Supp. 914. On September 12,1896, upon the return of the order to show cause, the matter came before the special term in the city of ¡New-burgh, Mr. Justice Dickey presiding. After hearing argument the court took the papers, and, thereafter, on September 17, 1896, made the order asked for by the attorney general; among other things appointing receivers, and directing them to take possession of the books, papers, and assets of the bank,, and directing the bank superintendent to turn the same over to the receivers. The receivers qualified by giving the bonds required of them the same day, September 17, 1896, and the bank superintendent thereupon forthwith turned over to the receivers so appointed the books, papers, and assets of the bank, [1293]*1293as directed by the order of Mr. Justice Dickey, and such receivers have since had the sole possession thereof. In the meantime, and on September, 14,1896, two days after the hearing before Mr. Justice Dickey, and before his order was made, the appellants procured from a justice of the court an order requiring the bank superintendent and the attorney general to show, cause at a special term in Mew York Oity, September 18,1896, why the bank superintendent should not be compelled forthwith to deliver to the appellants the books, papers, and assets of the bank, or' why a peremptory writ of mandamus should' not issue against him, directing him to so deliver the books, papers, and assets, and why he should not be restrained from turning them over to any other person, and requiring service of the order on or before September 16,1896. This prderwas duly served, and on the return day thereof the matter-came on at special term in Mew York City, Mr. Justice 'Truax presiding. September 25, 1896, the order was made denying this motion, and from such order this appeal is taken.

The ground upon which the learned justice denied the motion was that the court had no power to grant the motion, under the explicit language of section 1313, Code Civ. Proc. In a brief memorandum made by the learned justice he says: “The execution of the order made by Mr. Justice Pryor is stayed by the service of the notice of appeal therefrom, and therefore the motion to direct the superintendent of banks forthwith to deliver possession to the receivers named in such order must be denied.”

It seems to me there were several good reasons for denying the motion made by the appellants.

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In re Directors of Murray Hill Bank, 75 N.Y. St. Rep. 1290 (N.Y. Ct. App. 1896).

75 N.Y. St. Rep. 1290 (In re Directors of Murray Hill Bank) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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