Wheelwright v. National Copper Bank

133 P. 132, 42 Utah 579, 1913 Utah LEXIS 33
CourtUtah Supreme Court
DecidedMay 8, 1913
DocketNo. 2469
StatusPublished
Cited by1 cases

This text of 133 P. 132 (Wheelwright v. National Copper Bank) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wheelwright v. National Copper Bank, 133 P. 132, 42 Utah 579, 1913 Utah LEXIS 33 (Utah 1913).

Opinion

BRICK, J.

Tbe receiver of the MeGriff Orchard & Canning Company, hereinafter styled canning company, brought this action to recover the sum of $1011.66 from the National Copper Bank of Salt Lake City, which it is alleged said bank had in its custody as the depositary of said canning company. The complaint is in the usual form in such cases, with an allegation of a demand and refusal. The Ben Lomond Orchard Company, a corporation, and the appellant here, hereinafter called' appellant, pursuant to Comp. Laws 1907, section 2925, filed its complaint in mtervention in the afore-mentioned action in which it in substance alleged that it was a judgment creditor of said canning company for the sum of $1040, with accrued interest thereon at the rate of eight per cent, per annum from the 1st day of November, 1908; that on the 30th day of October, 1911, execution was duly issued upon a judgment theretofore obtained against said canning company by appellant’s assignor, and on said day was delivered to the sheriff of Salt Lake County; “that said execution was duly served by the said sheriff on the 30th day of October, 1911, and by virtue thereof the said sheriff attached and levied upon all money due from the said National Copper Bank of Salt Lake City, "Utah, to the said McG-riff Orchard & Canning Company,” stating the manner of service, which was as provided by our statute. It is further alleged that said bank rendered a statement to the sheriff, wherein it acknowledged that it was indebted to said canning company in the sum of $1011.66, but refused to pay the same to the sheriff, or to apply it in satisfaction of the judgment aforesaid, and that the sheriff has returned said execution as wholly unsatisfied. It is further alleged in the complaint that the said $1011.66 is the identical money or indebtedness that the receiver aforesaid seeks to recover in his action. General demurrers were interposed to the complaint in intervention, both by the receiver and the bank. The court sustained the demurrers, and, the appellant electing not to plead further, judgment was entered against it, from which this appeal is prosecuted.

[582]*582Appellant insists that the court erred in sustaining the demurrers and in entering judgment dismissing its complaint in intervention.

As we read the contentions of the attorneys for the receiver, the only grounds upon which they seek to sustain the rulings of the trial court, in substance, are:

(1) That the appellant cannot recover in this action because a receiver has been appointed to administer the assets of the canning company, and that he is entitled to the exclusive possession of said assets for the benefit of all the creditors of said company; (2) because the appellant in no event had the right to intervene in this action; and (3) that the appellant has 'mistaken its remedy if it has any under our statute.

1 The first ground is clearly untenable. While it may be conceded that ordinarily a receiver is entitled to the assets of an insolvent corporation to the exclusion of all others, yet such is not under all circumstances necessarily the case. But it does not appear upon the face of the complaint that a receiver has been appointed, or that he is entitled to the assets of the canning company.

2 A general demurrer reaches only defects of substance appearing upon the face of the pleading to whigh it is directed. It does not appear upon the face of the complaint in intervention that a receiver has been appointed for the canning company, nor that the appellant is not or may not be entitled to the deposit; hence the ruling of the court cannot be sustained upon the first ground.

3 Nor can the second reason urged by counsel be sustained. We think the facts alleged in the complaint in intervention bring the case squarely within our statute (Comp. Laws 1907, sec. 2925), which authorizes any person claiming an interest in the subject-matter of a pending action to intervene therein at any time before trial. This is precisely what the appellant did by filing its complaint in intervention.

[583]*5834 [582]*582The third ground urged by counsel for the receiver, in our judgment, should also be overruled. The appellant pred[583]*583icates its claim to the money involved in this action npon a lien which it insists it acquired by levying upon or attaching the money under the execution mentioned in its complaint, which was served' pursuant to Comp. Laws 1907, sec. 3240. That section, among other things, provides that “all other property not capable of manual delivery, may be attached on execution in like manner as on writs of attachment.” The money in question, it is alleged, was owing by the bank to the canning company. "What was sought to be reached by serving the execution, therefore, and the notice on the bank, was not the money in specie, but rather the indebtedhess due by the debtor, the bank in this instance, to its creditor, the canning company. This could have been done by serving a* writ of garnishment, but in this state an indebtedness may also be attached upon execution by proceeding “in like manner as on writs of attachment.” Comp. Laws 1907, see. 3074, provides how property or credits in the possession or under the control of third parties may be attached! on writs of attachment. The manner provided for there is by serving upon the person who has in his possession or under his control property belonging to the defendant in an action, or who is indebted to him, “a copy of the writ and a notice that such credits or other property or debts, as the case may be, are attached in pursuance of such writ.” Comp. Laws 1907, sec. 3075, reads:

“All persons having in their possession or under their control any credits or other personal property belonging, to the defendant, or owing any debts to the defendant at the time of service upon them of a copy of the writ and' notice, shall be, unless such property be delivered up or transferred, or such debts be paid to the officer, liable to the plaintiff for the amount of such credits, property or debts, until the attachment be discharged, or any judgment recovered by him be satisfied.” These provisions also apply to executions.

The appellant therefore pursued, or at least attempted to pursue, the remedy pointed out by the sections of the statute which do not relate to the issuance and service of a writ of garnishment. The bank, so it is alleged, recognized' the [584]*584service upon, it by rendering a statement in which it stated the amount of money it had in its possession belonging to the canning company, the judgment debtor of appellant, but refused to surrender the same to the sheriff. In view of this, what is appellant’s remedy? It seems to us that the only one open to it is an action against the bank to recover the money, if any, owing from it to the canning company when the copy of the execution and notice aforesaid was served upon it. It is true that under our statute, as we pointed out in Bristol v. Brent, 36 Utah, 108, 103 Pac. 1016, 140 Am. St. Rep. 804, 21 Ann. Cas. 1125, a creditor under the circumstances the appellant was in may pursue one of two remedies. If he desired to proceed directly against the person who is in possession of property belonging to the judgment debtor or who is indebted' to the latter, the creditor may obtain a writ of garnishment, and serve it upon such person and make him a: party to the action as garnishee.

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Bluebook (online)
133 P. 132, 42 Utah 579, 1913 Utah LEXIS 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wheelwright-v-national-copper-bank-utah-1913.