State ex rel. Sparks v. State Bank & Trust Co.

36 Nev. 526
Nevada Supreme Court·Decided October 15, 1913·No. No. 2083·Published·Cited by 18 cases

Opinion

By the Court,

McCarran, J.

(after stating the facts):

The right of appeal to this court is one based entirely on statute, and this court is prohibited from taking jurisdiction unless the party appealing has, in the first instance, the statutory right of appeal.

Section 5327, Revised Laws of .Nevada, prescribes: " Any party aggrieved may appeal in the cases prescribed in this title. The party appealing shall be known as the. appellant and the adverse party as the respondent.”

In the case of Kapp v. Kapp, 31 Nev. 70, this court cited approvingly its former decision rendered in the case [532]*532of State v. Langan, 29 Nev. 459, wherein it said: "An appeal to this tribunal is a matter purely of statutory right, and, unless authorized by statute, any attempted appeal taken from an order not appealable is void, and therefore could not confer any jurisdiction upon this court to act. ”

The right of receivers to appeal from orders of the court by which they were appointed has been variously dealt with by the several jurisdictions. The Supreme Court of California, in the light of a special provision of the code of civil procedure in that state (Sec. 963, Code of Civil Procedure), held that an order directing a payment of a preferred claim is appealable. (In re Smith, 117 Cal. 505.)

It was a rule under the old chancery practice, and this rule is adhered to in states where that practice is unchanged by statute, that a receiver may appeal from any order where such order might affect his proper duties. It is almost universally held that a receiver may appeal from any order which affects his personal rights, such as passing upon his accounts, or fixing his fees or compensation. In the case of People v. St. Nicholas Bank, 28 N. Y. Supp. 407, the court held that a receiver having a right to apply to the court for instruction was entitled to instruction by the entire court and therefore might appeal from a special to a general term. This decision, however, was rendered in the light of a system of procedure peculiar to the statutes of New York.

In an instance where the estate as a whole is interested, the receiver thereof may appeal from the judgment against him officially. In a case where an action is commenced by a party not interested in the estate, the receiver may appeal from an order establishing the party’s claim against the estate. In a contest between two sets of creditors as to the distribution of the funds, the receiver has no interest and is not entitled to the right of appeal. :(Alderson on Receivers, sec. 246; Battery Park Bank v. Western Carolina Bank, 127 N. C. 432.)

[533]*533Speaking upon this subject the Supreme Court of North Carolina in the Battery Bank case, supra, a case somewhat analogous to the one at bar, said: "The receiver is the agent of the court. Its judgment is full protection to him, and it is a rare case that he can be justified in appealing, and certainly he is not when, as in this instance, the question is merely between two sets of creditors as to the distribution of the fund.”

In the case at bar the petitioner county sought to have itself placed in that set of creditors who, by reason of the nature of their deposits with the defunct institution, were entitled to have their claims adjudged to be preferred and thereby segregated from that other set of creditors who, by reason of the nature of their deposits with the institution, were general creditors and only entitled in law to share pro rata the accumulation or residue of the estate.

As we have already stated, a receiver in an instance of this character has the right of appeal when the court, of which he is the representative, charges, or refuses to allow, items by which action the court does him wrong personally. His right of appeal, however, is limited to that peculiar class of orders or decisions in which, or by reason of which, he is the person interested, or may be personally affected, or by which the estate as a whole is affected.

A receiver appointed by a court to collect the assets of an insolvent institution and to administer its affairs cannot be said to be personally interested in the segregation, or distribution, of the funds that may, by reason of his activities, or the performance of his duties, come into his hands, unless he occupies the dual capacity of both creditor and receiver, in which instance his right of appeal as a creditor, from an order or decree of the lower court, might be sustained on the theory that, being personally interested in the prorating or distribution of the estate, he could invoke by appeal, or review, a mandate of the higher court to enforce a right of which he might have been deprived by the lower court, or to relieve him of [534]*534a wrong inflicted upon him. As receiver, acting in his official capacity and without personal interest, he is bound by the orders of the court of which he is the appointed representative when those orders affect only those parties who, by reason of their relationship as creditors, are interested in the equitable distribution of the estate and in nowise affect him personally.

If a receiver in a case of this kind may appeal from one order, the result of which would not affect him personally, may he not with equal propriety appeal from every order and thereby increase his expenses and multiply his attorney’s fees, to the injury of the legitimate creditors and the unnecessary depletion of the estate?

In the case of Chicago Title and Trust Company, Receiver of the Jas. H. Walker Co., v. Jos. Caldwell, 58 Ill. App. 219, the appellate court of Illinois, in passing upon this identical question, said: "Wé cannot sanction, even by silence, the idea that' a receiver may set up in opposition to the court his theories of how the assets shall be disposed of. Next we will have clerks appealing from directions of the courts to enter orders unwise in the opinion of the clerks. ”

Where, as in this instance, a receiver is appointed to take over- the affairs of an insolvent institution, he is not appointed for the purpose of representing any one individual or class of individuals as against the- others. It is his duty, under his appointment' as receiver, to carefully and faithfully collect, protect, and enhance the assets of the institution and to administer its affairs to the end that its creditors may receive what is justly due them and that its stockholders, if any there be, may receive the residue. He is entitled to proper compensation for his services, as he is also entitled to an equitable allowance for administrative expenses, and, where an order of court is entered with reference to either of these, they being matters in which he is personally interested, he has the right of appeal from such orders, if he believes himself aggrieved.

As is stated by Mr Alderson, in his work on Receivers, the receiver has the right of appeal with respect to any [535]*535claim asserted by or againt the estate from any decree which affects his personal rights, but not from any order or decree declaring the respective equities of the parties to the suit. (Alderson on Receivers, p. 315.)

In the case of First National Bank of Pocatello v. C. Bunting, et al., 59 Pac.

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State ex rel. Sparks v. State Bank & Trust Co., 36 Nev. 526 (Neb. 1913).

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