State v. Pink

124 S.W.2d 981, 133 Tex. 82, 1939 Tex. LEXIS 274
CourtTexas Supreme Court
DecidedFebruary 22, 1939
DocketNo. 7305.
StatusPublished
Cited by12 cases

This text of 124 S.W.2d 981 (State v. Pink) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Pink, 124 S.W.2d 981, 133 Tex. 82, 1939 Tex. LEXIS 274 (Tex. 1939).

Opinion

Mr. Justice Critz

delivered the opinion of the Court.

As sufficient for the purpose of this opinion we make the following statement of this case:

1. On April 29, 1933, National Surety Company, a New York corporation, with a permit to do business in Texas, was placed in the hands of George S. Van Schaick, New York Insurance Commissioner, by a court of competent jurisdiction in that State.

2. The order of the court above mentioned directed the New York Insurance Commissioner to take possession of the Surety Company and its property as statutory receiver or liquidator.

3. In making the above order the New York court adjudicated that the Surety Company was insolvent and that a receivership was necessary to wind up and liquidate its affairs.

4. Immediately upon being appointed receiver, as above indicated, the New York receiver requested the proper officers of the State of Texas to bring immediate proceedings in a proper court for the appointment of a receiver in this State in order to preserve the assets of such company in this State, and, generally speaking, to wind up and liquidate its affairs herein.

5. The Attorney General of Texas, acting in his official capacity, and also acting on behalf of the Board of Insurance Commissioners of this State, and in compliance with the request of the New York receiver, on April 29, 1933, filed suit in the District Court of Travis County, Texas, against National Surety Company. By his petition in the above cause the Attorney General sought the immediate appointment of a receiver for the purpose, generally speaking, of preserving and ad *86 ministering the assets of the company located in this State and liquidating and winding up its affairs.

6. On the date just mentioned the Travis County District Court, by order duly entered, appointed Orville S. Carpenter, one of the plaintiffs in error here, as receiver for the above company and its assets located in this State. This order fixed the bond of the receiver and defined his duties. Also, by this order the District Court of Travis County appointed John W. Miller, also plaintiff in error here, as attorney to represent the above receiver in such proceeding, and, in a general way, defined the duties of such attorney. In this regard Miller was charged with the responsibility of acting as attorney for the receiver in the various matters arising out of the receivership.

7. On the day he was appointed Carpenter duly qualified, by giving the bond required by the order appointing him, and by taking oath as required by law. Also, we take'it for granted that at such time Miller entered upon and began discharging his duties as attorney for such receiver.

8. After the happening of the above events, the Attorney General filed an amended petition, and the District Court entered- a further order reaffirming the appointment of Carpenter as receiver, and redefining and further defining and enlarging his duties. Also, the court later entered another order appointing Miller as attorney for such receiver.

9. After qualifying as such receiver, Carpenter discharged the duties of his position until this receivership proceeding was finally determined and closed by final judgment of the district court, duly entered on December 24, 1934. Also, Miller acted as attorney for such receiver in all matters pertaining to such receivership from the time he was appointed until such final judgment. From the record before us, we have a right to conclude that both Miller and Carpenter discharged their duties competently and to the entire satisfaction of the appointing court and all other parties interested in any way in the receivership proceedings.

10. On July 27, 1933, while Carpenter was acting as receiver for the insurance company he made application to the district court for authority to enter into a contract with the New York receiver. The contract which Carpenter proposed to make, and which he did make, was attached to his motion. Omitting formal parts, it reads as follows:

*87 “1. The Texas Receiver acting under suitable order of the Texas Court in conformity with the laws of the State of Texas shall take into his possession any property owned within the State of Texas belonging to the National Surety" Company to which that company is entitled, including the securities constituting the special qualifying deposit and shall retain (except as to payment of expenses of the Texas Receiver, as hereinafter provided) and use all such assets to aid and assist the Rehabilitator in the carrying out of a plan or plans of conservation, reorganization or rehabilitation for the benefit of all creditors, should such plan or plans be feasible and be approved by the appropriate court in the States of New York and Texas. Notwithstanding the foregoing provisions all recoveries based on contracts or Reinsurance shall be made by Rehabilitator.

“2. All expenses incurred by the Texas Receiver, including expenses incurred in defending litigation, shall be paid from the assets coming into the possession of the Texas Receiver, upon proper order of the court in charge of the Texas proceeding.

“3. The balance of the assets in the possession of the Texas Receiver shall be held, after the deduction of expenses as set forth above, for the benefit of creditors of the National Surety Company upon the understanding and agreement that the Rehabilitator will recognize and give full effect to the right of Texas creditors to share in the assets of the National Surety Company wheresoever located ratably and on an equal basis with all other creditors of the National Surety Company of like class and standing wheresoever resident.

“4. Whenever the Rehabilitator or Liquidator as the case may be, shall certify to the Texas Receiver that he intends to make a final distribution to creditors, the Texas Receiver shall with the approval of the Texas court, transmit all of the assets in his possession after the deduction of the expenses of the Texas Receiver, to the Rehabilitator or Liquidator.

“5. For the purpose of protecting the interests of creditors domiciled in the State of Texas, the Texas Receiver shall promptly proceed to ascertain the proper liabilities of the National Surety Company to such creditors, and for that purpose he may in such manner and form as to him shall seem most appropriate receive written statements (in triplicate) of claims of such creditors. For the purposes of facilitating the investigation into the propriety and amount of liabilities of the National Surety Company so alleged to exist in the State of Texas, the Texas Receiver will promptly transmit a copy *88 of each statement of claim to the Rehabilitator, and the Rehabilitator shall, as soon as possible, furnish information that he may have available concerning such alleged claims. The Texas Receiver will in due course and upon the completion of his investigation certify to the Rehabilitator his findings and determination as to the propriety and amount of each of the alleged liabilities.

“6.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Campbell v. Wood
811 S.W.2d 753 (Court of Appeals of Texas, 1991)
Meyers v. Moody
693 F.2d 1196 (Fifth Circuit, 1982)
Bergeron v. Sessions
561 S.W.2d 551 (Court of Appeals of Texas, 1977)
State Board of Insurance v. Betts
308 S.W.2d 846 (Texas Supreme Court, 1958)
Knox v. Taylor
277 S.W.2d 174 (Court of Appeals of Texas, 1954)
Security Trust Co. v. Lipscomb County
180 S.W.2d 151 (Texas Supreme Court, 1944)
Pink v. . Hanby
18 S.E.2d 127 (Supreme Court of North Carolina, 1942)
Wilson v. Alliance Life Ins.
108 F.2d 150 (Fifth Circuit, 1939)

Cite This Page — Counsel Stack

Bluebook (online)
124 S.W.2d 981, 133 Tex. 82, 1939 Tex. LEXIS 274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-pink-tex-1939.