Overholt v. Old Dominion Manufacturing Co.

37 S.E. 307, 98 Va. 654, 1900 Va. LEXIS 91
CourtSupreme Court of Virginia
DecidedNovember 22, 1900
StatusPublished
Cited by1 cases

This text of 37 S.E. 307 (Overholt v. Old Dominion Manufacturing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Overholt v. Old Dominion Manufacturing Co., 37 S.E. 307, 98 Va. 654, 1900 Va. LEXIS 91 (Va. 1900).

Opinion

Keith, P.,

delivered the opinion of the court.

Overholt levied an attachment upon the property of the Old Dominion Manufacturing Company to secure a claim against it, amounting to some thousands of dollars. The property so levied upon was taken into possession by the sheriff of Rockingham county. The receivers of the Grottoes Company, claiming to be stockholders and unsecured creditors of the Old Dominion Manufacturing Company, filed their bill in chancery against the Old Dominion Company, alleging its insolvency and praying the appointment of a receiver. The president of the defendant company filed an answer on its behalf, admitting all the allegations of the bill, joining in the prayer for a receiver, and praying also that Overholt be enjoined from any further proceeding’s with his attachment in equity. Overholt was not a party to the suit, and yet an order was entered in vacation granting the injunction in accordance with the prayer in the answer of the Old Dominion Manufacturing Company, and Rumple, one of the receivers of 'the Grottoes Company and one of the plaintiffs in its bill, was appointed receiver of the Old Dominion Manufacturing Company. This was done 'by a decree entered in vacation on the 23d day of November, 1893. Some time between that date and the 4th day of August, 1893, Rumple, the receiver, died, as appears from the decree entered in vacation on the 4th day of August, which recites the fact and appoints John "W. Blackburn receiver in his place and stead.

As far as this record shows, no personal representative of Rumple has ever been appointed; none, at least, has been made á party to this suit. The Circuit Court, nevertheless, went on [656]*656to settle the accounts of Rumple, and entered a decree, finally passing upon his liability and that of his sureties.

Blackburn took possession of the assets of the Old Dominion Manufacturing Company, which had not been disposed of by his predecessor, and his accounts as receiver are settled.

Pirky Brothers & Shaver filed their bill in the Circuit Court of Rockingham county, claiming to be the assignees of accounts due by the Old Dominion Manufacturing Company to certain laborers and mechanics for services and labor rendered by them, and to secure which liens are claimed by virtue of sections 2485 and 2486 of the Code.

The Circuit Court, by its decrees, passed upon the accounts of Rumple and Blackburn, as receivers, overruling the exceptions filed to the report of the commissioner, who had been directed to settle their accounts as receivers, and held thᣠthe liens' claimed by Pirky Brothers & Shaver as assignees were valid and binding. Brom -this decree Overholt obtained an appeal and supersedeas. ■

It was improper in the Circuit Court to pass upon the accounts of Rumple, receiver, after his death, and in the absence of his personal representative, and we cannot, for a like reason, pass Upon the assignments of error with respect to the decree of the Circuit Court in its adjudication of questions arising upon exceptions to the report of the commissioner stating the account of Rumple, receiver. Rumple’s estate is unrepresented in this court, as it was in the Circuit Court. Overholt, the appellant, could have had Rumple’s estate committed to the sheriff, and then have made the sheriff, administrator, a party to the record, when all questions touching the liability of Rumple and the ■sureties upon his bond as receiver could have been presented and adjudicated. This he may still do we apprehend, though we decide nothing with respect to the matter, as Rumple’s estate -is unrepresented.

Coming, then, to the exceptions to the commissioner’s report [657]*657of the transactions of Blackburn, receiver, we are of opinion that the compensation given the receiver is excessive. The assets of the Old Dominion Company had been in a great measure administered by Rumple during his lifetime. The amount which came into the hands of his successor, Blackburn, was small, his duties few and simple, the discharge of which would have been amply compensated by an allowance of five per cent, upon his disbursements, in addition to any actual expenses which he might have incurred. Ve can discover no sufficient reason for the allowance of'a monthly compensation to the receiver, nor does the necessity appear for its continuance during the period sanctioned by the report of the commissioner and the decree of the Circuit Court.

The affairs of corporations and of individuals which come under the control of courts and their receivers are sometimes so large and so complicated as to justify and demand the renting of offices, the employment of clerks, and the retention of counsel, but what would be proper in such exceptional cases would be wasteful and extravagant as applied to the transactions of receivers in ordinary cases, and we think that all courts should be diligent to see that property, placed in the possession and under the control of their receivers, is economically administered. The accounts in this case, we are constrained to say, show a wasteful and extravagant dealing with the assets of the Old Dominion Manufacturing Company, by which the rights of creditors have been greatly impaired. The accounts are not in such condition as would enable us to pass finally upon them, and this branch of the case will therefore be remanded to the Circuit Court to have the administrator of Rumple made a party, and to restate the accounts of Rumple and Blackburn, receivers, in accordance with the principles announced in this opinion.

The assignment of error with respect to the liens of Pirky [658]*658Brothers & Shaver presents for our decision a question of much interest.

There -are three accounts presented by Pirky Brothers & Shaver, but as all the objections relied upon to--defeat the lien appear with respect to the first of them, it will be unnecessary to deal with the other two.

The account filed as the basis of lien Ho. 1 is as follows:

“ Pirky Bros. & Shaver’s Lien Ho. 1.
Old Dominion Manufacturing Company,
In account with
Pirky Bros. & Shaver, of Shendun, Ya. Drs.
To amounts due Pirky Bros. & Shaver from Old Dominion Manufacturing Oo., on orders, or assignment, from the following named laborers, mechanics, &c., for services and labor rendered by them for said company, which said orders, or assignment, have been -accepted by said company. 1893, July '31, S. P. Mace, $15.34.”

Then follow a number of entries identical in form, in the names of different assignees, for amounts ranging from one dollar up to fifty-five dollars, aggregating $1,492.12. To this account Pirky Brothers & Shaver made affidavit before a notary on September 1, 1893, and on the 19th day of the same month they signed the following paper:

“ Pirky Bros. & Shaver do hereby declare their purpose and intention to claim, and do hereby claim, a lien on the franchises, gross earnings, -and -all the real and personal property of the said Old Dominion Manufacturing Oo., which is used in operating the same, to the extent of the money due them by said company, as appears from the foregoing account and affidavit, said company being a manufacturing company. Said lien is claimed [659]

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112 F. 759 (E.D. Virginia, 1902)

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Bluebook (online)
37 S.E. 307, 98 Va. 654, 1900 Va. LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/overholt-v-old-dominion-manufacturing-co-va-1900.