Parker v. Sims

51 S.W.2d 517, 185 Ark. 1111, 1932 Ark. LEXIS 242
CourtSupreme Court of Arkansas
DecidedJune 20, 1932
Docket4-2587
StatusPublished
Cited by36 cases

This text of 51 S.W.2d 517 (Parker v. Sims) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parker v. Sims, 51 S.W.2d 517, 185 Ark. 1111, 1932 Ark. LEXIS 242 (Ark. 1932).

Opinion

Smith, J.

On December 29, 1931, appellants filed exceptions to the final report of Lee Gr. -Sims as liquidating agent of the insolvent Bank of Ratcliff, and caused notice of those exceptions to be served on Sims on January 1, 1932. A denfurrer to these exceptions was filed on January 14, 1932. This demurrer was not disposed of, as on the same day an amended pleading was filed which enlarged1 and made more specific the original exceptions to the liquidating agent’s report. A demurrer was also filed to this amended pleading, which alleged that it did not state facts sufficient to constitute a cause of action, and that the court was without jurisdiction of the action. The demurrer was sustained, and this appeal is from that decree.

Upon a suggestion of the diminution of the record in this case, there was issued a writ of certiorari, and the response of the clerk of the chancery court has brought before us the entire proceedings in the chancery court relating to the liquidation of the insolvent bank.

The. appellants seek by their pleadings in this cause to- question the fees allowed the liquidating agent and certain fees paid attorneys, and the allowance of certain credits claimed in the final report of the liquidating agent.

. The proceedings in the chancery court, stated chronologically, are to the following effect: After taking over the bank as an insolvent institution, the Bank Commissioner filed in the chancery court a petition for an order to sell certain assets of the bank at private sale, and to compound certain debts regarded as ba'd or doubtful. An order granting the prayer of this petition was made June 2; 1930. A complete inventory of. the assets of- the bank had been previously filed May '26, 1930. The bank had been taken over by the Bank Commissioner on May 20, 1930. ' ’,’''-

On April 23, 1931, a detailed report was filed showing all claims, both general and preferred, which had been filed and allowed and paid, together with a statement of all bills payable outstanding at tbe closing of the bank and of those paid since that date.

On May 15,1931, an order was asked to make a final payment of 15 per cent, to the depositors, which, it was recited, would pay the depositors in full. Attached to this petition was'the final report of the liquidating agent.

Upon obtaining the order to pay depositors, there was filed on May 25, 1931, a petition for an order directing the liquidating agent to call a meeting of the stockholders pursuant to the provisions of § 725, Crawford & Moses ’ Digest, to wind up the affairs of the bank in the manner provided by that section of the Digest. This section provides that, whenever the'Bank Commissioner has paid the depositors and creditors of a bank (excluding stockholders) whose claims have been approved and allowed, and all expenses of liquidation, he shall call a meeting, of the stockholders by giving notice for two weeks in some newspaper published in the county where the bank was located, at which meeting the stockholders shall determine whether the Bank Commissioner shall be continued as liquidator or whether the stockholders shall select an agent or agents for that purpose. At this meeting each stockholder is allowed one vote for each share of stock owned. If it is then so determined, the Bank Commissioner shall complete the liquidation of the bank’s assets. If, however, it is determined to appoint an' agent or agents for that purpose, such agent or agents are then elected by the stockholders, and such agent or agents are required to execute a bond, to be approved by the Commissioner, for the faithful performance of the trust, and thereupon the Commissioner “shall transfer and deliver to such agent or agents all the undivided or uncollected or other assets of such corporation then remaining in his hands; and upon such transfer and delivery the said Commissioner shall be discharged from any and all further liability to such bank and its creditors.”

On June 15, 1931, there was filed in the chancery court a petition by Taylor, as Bank Commissioner, and Sims, as liquidating agent, praying that they be discharged and that the liquidating agent’s final report be approved. This petition recited that notice had been given as required by § 725, Crawford & Moses’ Digest, and that the stockholders had held a meeting pursuant thereto. The petition sets out the minutes of this meeting, which contained the following recitals:

C. O. Parker was elected chairman of the meeting, and W. R. Chastain was elected secretary. The owners of a majority of the capital stock of the bank were present. The Deputy Bank Commissioner, as liquidating agent, made a report of the present status of the assets of the bank. A motion was unanimously adopted naming Parker, Chastain and John Baker, appellants herein, as agents of the stockholders “to determine the manner in which further liquidation shall be handled, ’ ’ and to employ such assistants as may be necessary for that purpose, and, pursuant to this purpose, they had employed Chas. X. Williams and Paul X. Williams.

This petition recited that the remaining assets so to be liquidated “are listed in a statement attached to this petition, and marked Exhibit A.” This statement, made Exhibit A, contains a list of all the creditors, to which objection is now made. On the same day Parker, Chastain and Baker, as agents of the stockholders, filed in the chancery court a certificate of their appointment of Chas. X. and Paul X. Williams as liquidating agents, pursuant to authority conferred at the stockholders’ meeting, to complete the liquidation of the affairs of the bank. Thereafter, and on the same day, the application of Taylor, as Bank Commissioner, and that of Sims, as his deputy, and the certificate of appointment of the stockholders’ agents came on for hearing, and were approved by the court. This order recites that there is attached to the petition of the Bank Commissioner and that of his deputy ‘ ‘ an inventory and list of the remaining assets of the bank” which remained after the credits were allowed, which are here questioned. The Commissioner and his deputy were discharged after being directed to “turn over and deliver to Chas. X. Williams and Paul X. Williams, as such special liquidating agents, all of the assets listed as Exhibit A to the petition filed in this cause.”

It is not questioned that this order was fully complied with by the Bank Commissioner and his deputy. This order was made and entered on June 15,1931, and thereafter no further action was taken until Parker, Chastain and Baker filed their exceptions to Exhibit A of the report above mentioned.

The act creating the Fourteenth Chancery District, of which Logan County is a part (act 18, Acts of' 1927, page 55), provides that three sessions of court shall be held each year in each district of that county, and that terms for the northern district, from which this appeal comes, shall be held the third Monday in February, June and October. The June term of the court, at which time the Commissioner’s report was approved, had expired, and the October term had intervened before the exceptions of appellants to that report were filed, and no appeal has been prosecuted from the order of court made at the prior term.

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Bluebook (online)
51 S.W.2d 517, 185 Ark. 1111, 1932 Ark. LEXIS 242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parker-v-sims-ark-1932.