Stockmen's National Bank of Casper v. Calloway Shops

285 P. 146, 41 Wyo. 232, 1930 Wyo. LEXIS 9
CourtWyoming Supreme Court
DecidedFebruary 18, 1930
Docket1571
StatusPublished
Cited by4 cases

This text of 285 P. 146 (Stockmen's National Bank of Casper v. Calloway Shops) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stockmen's National Bank of Casper v. Calloway Shops, 285 P. 146, 41 Wyo. 232, 1930 Wyo. LEXIS 9 (Wyo. 1930).

Opinion

*236 Rinee, Justice.

This cause is before the court upon direct appeal from an order of the District Court of Natrona County refusing to vacate both a judgment previously entered against appellant and receivership proceedings in the case antecedent to the judgment. The parties will be referred to hereinafter simply as plaintiff and defendant.

The action was, on August 24, 1927, instituted by the plaintiff, a national banking corporation, upon an alleged promissory note, past due and unpaid, executed and delivered by the defendant, a Wyoming corporation, to the plaintiff, in the sum of $475. The petition, after setting out the usual averments in stating a cause of action upon said note, in addition thereto contained allegations made for the purpose evidently of bringing the case within the provisions of Section 6184, Compiled Statutes of Wyoming 1920, which indicates when the District Court is authorized to appoint a receiver. The prayer of the pleading was, briefly, that a citation be issued calling upon the defendant to show cause why a receiver should not be appointed to take charge of its assets for the benefit of creditors, that plaintiff’s claim be adjudged, and for such other relief as might be lawful. This prayer was followed by a positive verification of the pleading on the part of plaintiff’s cashier.

The petition was, on the date last mentioned, presented to the court and an order, as prayed for, was issued, setting the hearing on the matter of an appointment of a *237 receiver for August 27, 1927. This .citation, together with the summons and petition in the action, was, on August 24, 1927, served on the defendant by a deputy sheriff of Natrona county, by, as stated in his several returns, delivering true copies thereof “to The Calloway Shop— Mrs. Wyman. ’ ’ On the day thus fixed, a hearing was had by the .court and by order one Mrs. George Wyman was appointed receiver of all of the defendant’s property, the order reciting, among other things, that it appeared to the court from the sheriff’s return that the defendant had been duly served with process, including service of the order to show .cause, and that the court found from plaintiff’s verified petition the evidence adduced by plaintiff and its witnesses on the hearing that a receiver should be appointed to administer, conserve and manage defendant’s business.

The person thus appointed as receiver shortly thereafter qualified, and as such officer took over and for sometime thereafter managed defendant’s affairs, it having been engaged in retailing ladies’ ready to wear clothing, and its place of business being located in the balcony of a drug store in the city .of Casper, Wyoming.

On the 9th day of September, 1927, the receiver filed a report advising the court that from August 15, 1927, t.o the date of her appointment as -such officer, by the necessity of the situation, she, previously employed as a sales lady by defendant, was obliged to act as its manager and general agent; that the assets of the defendant in her charge consisted of very seasonable merchandise, to-wit; summer dresses designed and suitable only for the summer season of 1927, together with a small number of women’s light weight and sport coats; that the stock had not been replenished since the 15th of August, 1927, and should be sold in .order t.o prevent loss; that eouipetitive bids for the property had been obtained and the highest bid was accordingly reported to the court for its acceptance. Several *238 of the largest creditors of defendant joined in a request that this bid be accepted, as did also Mrs. Wyman in her capacity as managing agent of the defendant, she at that time representing to the court that defendant’s officers and managing agents had abandoned and deserted its assets and affairs, leaving her in sole charge thereof. An order of sale was forthwith made, accepting the reported bid and directing the execution by the receiver of the necessary instrument of transfer.

Thereafter and on November 23, 1927, the court entered its “judgment and decree” in the cause, wherein if was recited in part that the court, having examined the files in the ease, found that “the defendant has been duly and regularly served with process herein,” that plaintiff’s petition stated a cause of action, and that the court had jurisdiction in the premises. The failure of the defendant to appear or plead to the plaintiff’s petition was also noted, and the default of the defendant entered. The judgment then recited the taking of evidence and testimony in support of plaintiff’s petition, upon which the court found that the matters set out in said petition were true. The decree further set out that the testimony established that the defendant was a Wyoming corporation; that it had obligations exceeding its assets; that it had been deserted and abandoned by its stockholders and directors; that the court found that the appointment of a receiver was proper, and that the receivership should continue until the defendant’s obligations had been paid, so far as its assets should permit, and its affairs closed, and that any overplus remaining after payment of the expenses of the receivership and creditors’ claims should go to defendant’s stockholders, and this was ordered. The receiver was also directed to publish a notice to creditors in a Casper newspaper for four weeks, calling upon'them to present their claims to the receiver. Finally plaintiff’s *239 claim was adjudged and allowed, as against the receiver and the defendant.

The receiver’s final report was filed January 7, 1928. Generally speaking, it furnished an accounting of expenses and disbursements, together with a recital of compliance with the order directing sale of the property, and publication of the notice to creditors, listed the creditors appearing and the claims presented, attached a copy of said notice with affidavit of publication, and prayed that authority be given the receiver to pay certain expenses and a first and final dividend to creditors of ninety-one and five-tenths per cent. An order was on the same day entered approving the report and directing the payment of expenses and dividend to be made as asked. On the 9th of January, 1928, another report was filed by the receiver, showing compliance with this order and requesting her discharge from further duty or obligation as such receiver, and an order was on that day entered so releasing her and the surety upon her official bond.

Subsequently and on February 17, 1928, the defendant filed its motion for an order vacating and annulling each and all of the orders and the judgment previously entered in the case, the principal grounds of the motion being that the court was without jurisdiction of the defendant, in that it was never served with summons, as provided by law, and that the appointment of a receiver was wrongful because no notice thereof was given defendant and no facts were set forth in plaintiff’s petition under which such appointment might properly be made.

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Bluebook (online)
285 P. 146, 41 Wyo. 232, 1930 Wyo. LEXIS 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stockmens-national-bank-of-casper-v-calloway-shops-wyo-1930.