Tapscott v. Lyon

37 P. 225, 103 Cal. 297, 1894 Cal. LEXIS 770
CourtCalifornia Supreme Court
DecidedJune 27, 1894
DocketNo. 18239
StatusPublished
Cited by24 cases

This text of 37 P. 225 (Tapscott v. Lyon) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tapscott v. Lyon, 37 P. 225, 103 Cal. 297, 1894 Cal. LEXIS 770 (Cal. 1894).

Opinion

Temple, C.

Action for the wrongful taking and conversion of personal property. The complaint contains two counts charging distinct trespasses. The answer, besides general denials, sets up affirmative matter in defense of each cause of action.

It shows that on the tenth day of December, 1889, J. T. Wight & Co., a firm composed of J. T. Wight and J. A. Wight, was engaged in trade at Kirkwood, Tehama county, as retail dealers in general merchandise. That they owed divers persons fifteen thousand dollars in the aggregate, and were insolvent. That to prevent their property from coming into the hands of an assignee in insolvency, and to prevent the proceeds of the same from being ratably distributed to their cred[302]*302itors in accordance with the provisions of the insolvent act, and to delay and hinder the operation of that act, they secretly and fraudulently, in the night-time, transferred to plaintiff their whole stock of goods, which was reasonably worth five thousand dollars, and, except their book accounts and notes taken in their business, was. their entire assets, all of which together were not worth more than eight thousand dollars.

That the goods were sold in bulk, and not in due course of business, to plaintiff for two thousand dollars, plaintiff at the time well knowing of the insolvency of the vendors, and that their purpose was to defraud their creditors and prevent their assets from being distributed ratably to their creditors, as required by the insolvent act.

The answer then shows by proper averment the institution of proceedings in insolvency by the creditors of J. T. Wight & Co. to force them into insolvency, and that in such proceedings a receiver was appointed to take charge of the assets of said insolvents under the sixty-third section of the Insolvent Act of 1880.

The receiver was authorized to bring, prosecute, maintain, and defend all actions and legal proceedings necessary to take and hold possession of such property,money, and effects, and “ especially relating to that certain stock of goods, wares, and merchandise alleged to be the property of the said J. T. Wight & Co., and heretofore forming and constituting the stock in trade of the said J. T. Wight & Co. at Kirkwood, Tehama county, state of California, and the proceeds thereof.” .

The answer avers the due appointment and qualification of defendant as receiver, and that as such receiver he proceeded to demand from plaintiff—who was in possession, claiming as vendee of J. T. Wight & Co.— said goods, exhibiting to him the order showing his appointment, and proof that he had qualified. That thereupon said plaintiff voluntarily surrendered and' delivered to defendant the goods, wares, and merchandise described in the first count of plaintiff’s complaint. That defendant took said goods in his capacity of [303]*303receiver as and for the property of the insolvents, and held the same by virtue of his said office as receiver.

That plaintiff thereafter served upon defendant, as receiver, a written notice, as follows:

To L. V. Hitchcock, and C. A. Garter, attorneys for petitioning creditors:
You are hereby notified that Ernest Tapscott will, on the twenty-seventh day of December, 1889, at 10 o’clock, a. m., move the superior court of Tehama county for an order directing D. B. Lyon, receiver, to deliver to him all the stock of goods, wares, and merchandise sitúate at the town of Kirkwood, in this county, and by the said receiver taken into possession on the nineteenth day of December, 1889.
“ Said motion will be made on the following grounds:
“ 1. That said affiant was, prior to the commencement of these proceedings, the owner of and in possession of all of said property.
2. That at the time said receiver took possession of the same this affiant was the owner of and in possession of all of said property, claiming the same adversely to said firm of J. T. Wight & Co., and to all the world.
“ 3. That said receiver was never authorized by this court to take possession of said property.
“4. That this court had no power to authorize or order said receiver to take possession of said property.
“ 5. That said receiver is not entitled to the possession of said property, and this affiant is entitled to such possession. Said motion will be made upon all the papers on file in this proceeding, upon affidavit, copy of which is herewith served, and upon oral testimony to be adduced at said hearing.
Yours, etc.,
“ N. P. Chipman and “ John F. Ellison,
Attorneys for Ernest Tapscott.”

That on the twenty-seventh day of December, 1889, the application of plaintiff, according to said notice, came [304]*304on to be heard in the superior court, when evidence was taken on the part of plaintiff, and also for the receiver representing the creditors of the insolvents, and after a full hearing the court made an order denying the application, which order is still in force, unreversed, and is a final adjudication of the rights of said plaintiff in the matter.

That afterwards, to wit, January 20, 1890, said J. T. Wight & Co. and the individuals composing the firm were adjudged insolvent, and, on March 7th, an assignee was appointed who duly qualified. In the mean time the goods had been sold by defendant as receiver under the express order of the court.

After the appointment and qualification of the assignee all the property and money in the hands of the defendant as receiver were turned over to the assignee under the direction of the court, and all of such funds had been distributed to the creditors of such insolvents under the orders of the court except fees, costs, and commissions duly allowed, prior to the commencement of this suit, and, except such fees and commissions, the defendant had in his hands no part of the goods sued for nor the proceeds thereof. That plaintiff delayed bringing his action for more than one year after his said demand for a redelivery, and until the property had been sold and the proceeds distributed to the creditors.

The second count is to recover for goods which were not in the store when the receiver took possession, and which, therefore, were not then delivered to the defendant as receiver. In answer to this count, defendant avers that finding that a portion of the merchandise received by plaintiff from J. T. Wight & Co. had been removed, he demanded possession of them, and, upon a refusal, instituted against plaintiff in his, defendant’s, character as receiver, an action of replevin, in which he caused a provisional writ to be issued as authorized by law, by virtue of which such goods were taken by the sheriff and eventually delivered to defendant as receiver. That the plaintiff—defendant [305]*305in the action of replevin—filed an answer in that action, in which he denied the receiver’s right to the property, but did not claim a return of the property or its value, but simply asked to recover his costs, and thereupon this defendant as receiver—plaintiff in that action—dismissed the action and paid the costs. That the judgment of dismissal is still in force unreversed, and is a bar to this action.

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Cite This Page — Counsel Stack

Bluebook (online)
37 P. 225, 103 Cal. 297, 1894 Cal. LEXIS 770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tapscott-v-lyon-cal-1894.