Pressley v. Harrison

1 N.E. 188, 102 Ind. 14, 1885 Ind. LEXIS 2
CourtIndiana Supreme Court
DecidedMay 16, 1885
DocketNo. 12,097
StatusPublished
Cited by29 cases

This text of 1 N.E. 188 (Pressley v. Harrison) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pressley v. Harrison, 1 N.E. 188, 102 Ind. 14, 1885 Ind. LEXIS 2 (Ind. 1885).

Opinion

Mitchell, J.

From the complaint in this case the following facts appear: Alfred and John C. S. Harrison were partners doing business as bankers in the city of Indi.anapolis, and were the owners of real and personal property,, some of which was partnership,property, and some the individual property of the several partners. On the 18th day of July, 1884, Alfred Harrison filed, in the office of the clerk of the Marion Superior Court, a petition in which John C. S. Harrison was described as defendant. It was averred in the petition that the plaintiff and defendant were partners; that on account of insolvency they were unable to continue 'their partnership business. It was also averred that as a firm they were possessed of real and personal property, and that they were owing debts; that the partnership ought to be dissolved, and its affairs wound up. The prayer was, that a receiver should be appointed to take charge of the assets of the firm, etc.

With the petition Alfred Harrison also filed the following paper: “Alfred Harrison v. John C. S. Harrison. The defendant, John C. S. Harrison, admits the allegations of the [16]*16complaint herein to be true. John C. S. Harrison.” It is averred that no process was issued or served upon John C. S. Harrison, and that he did not appear to said petition either in person or by attorney.

Immediately upon the filing of the foregoing papers, Alfred Harrison presented them to the Honorable Lewis C. Walker, one of the judges of the Marion Superior Court, at chambers, in vacation, without any other proceedings having been taken thereon, and asked for the appointment of a receiver. Thereupon the judge made an order placing the assets of the firm in charge of the sheriff of Marion county, and held the matter of the appointment of a receiver under advisement.

It is further averred that on the 19th day of July, 1884, being still in vacation, Alfred Harrison filed, in the clerk’s office, and presented to the judge at chambers, a supplemental petition, wherein he showed that both he and his partner were the owners of certain individual property, real and personal, which they were each willing to surrender for the benefit of their creditors, and praying that an order should be made turning their individual property over to a receiver to be appointed.

It is also alleged that no process was issued upon this supplemental complaint, and that John C. S. Harrison did not appear thereto, either in person or by attorney, but that at the time it was filed and presented Alfred Harrison filed and presented with the supplemental petition the following paper, purporting to be executed by John C. S. Harrison :

“ The State of Indiana', Marion County, ss :
“Alfred Harrison v. John C. S. Harrison. No. 32,604. Answer to supplemental complaint.
“John C. S. Harrison, defendant in the above entitled cause, says that he admits the allegations of the supplemental complaint of the plaintiff herein, and consents to the surrender of .il of his individual property in the manner and for the purpose mentioned in said complaint.
“John C. S. Harrison,'Defendant.”

[17]*17Without any further proceedings Robert N. Lamb was thereupon appointed receiver. He qualified, took and continued in possession of all the partnership and individual property of the Harrisons.

At the time the proceedings above recited took place, the appellant, Pressley, was a creditor of the firm, and on the 25th day of August, 1884, fecovered a judgment against its members for $9,929.02 in the Marion Circuit Court. On this judgment execution was issued, which, at the commencement of this suit, on the 30th day of August, 1884, remained in the hands of the sheriff.

After reciting in detail facts of which the foregoing is the substance, the complaint charges that the appointment of the receiver in the manner stated was without the jurisdiction of the judge, and therefore void.

The relief prayed is that the lien of the appellant’s judgment and execution should be declared to be prior to the claim and right of the receiver, and that he be directed to pay the claim of the appellaiit as a preferred lien.

A demurrer was sustained to the complaint, and the correctness of this ruling is the only question in the record. The case has been ably and elaborately argued on both sides.

On behalf of the appellant, it is contended that no receiver could be appointed until an action was pending, and that because no process was issued, and no appearance was entered for the defendant, before the receiver was appointed, no action was pending, and that, therefore, the appointment was void.

The contention of the appellees is, substantially, that a party against whom the appointment of a receiver is asked, may appear before the judge at any time and plead to the application, resist or consent to the appointment, and that, therefore, the papers filed by Alfred Harrison, who was the plaintiff in the petition, for John C. S. Harrison, the defendant, was such an appearance and answer as gave the judge jurisdiction to make the appointment.

[18]*18It is conceded that an action is not commenced until process-has issued, or an appearance has been entered by the defendant.. The power which a judge may exercise in vacation is such special statutory power as is prescribed. Whatever it is asserted may be done by him, except in term, authority therefor must be found in the statute. If not found there, it may be assumed that it does not exist. Taylor v. Moffatt, 2 Blackf. 305.

Under the code of 1852, in which it was provided that “a receiver may be appointed by the court” in certain cases, it was held that an appointment made by a judge in vacation was void. Newman v. Hammond, 46 Ind. 119.

The act of 1875, 2 R. S. 1876, p. 115, provided, substantially, as the chancery practice did, That receivers shall not be appointed by any court, in any case, until the adverse pai’ty shall'have appeared and answered in the action pending, or shall have had reasonable notice of the pendency of the action and the application for such appointment.” May v. Greenhill, 80 Ind. 124.

By the code of 1881, section 1222, it is provided: “A receiver may be appointed by thq court, or the judge thereof in vacation, in the following cases; * * * * Second. In actions between partners, or persons jointly interested in any property or fund.”

It will be seen from the statute above quoted that a receiver may now be appointed by the court or judge in vacation, in actions between partners. As to the time when the appointment may be made the statute is silent. A receiver may be appointed “ in actions,” etc., is the provision of the statute. By the ancient practice of the court of chancery in England, a receiver was not appointed until after the coming in of the defendant’s answer, but it is now settled, both in this country and in England, that the appointment may be made before answer, provided a special necessity therefor is shown to exist. High Beceivers, secs. 105, 106.

Unless under extraordinary circumstances, as where the defendant had left the State to avoid process or the like, the [19]

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Bluebook (online)
1 N.E. 188, 102 Ind. 14, 1885 Ind. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pressley-v-harrison-ind-1885.