Whitney v. Hanover National Bank

71 Miss. 1009
CourtMississippi Supreme Court
DecidedMarch 15, 1894
StatusPublished
Cited by18 cases

This text of 71 Miss. 1009 (Whitney v. Hanover National Bank) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whitney v. Hanover National Bank, 71 Miss. 1009 (Mich. 1894).

Opinion

Campbell, C. J.,

delivered the opinion of the court.

These three cases were argued and submitted together, and will be so considered. Their history is this: The Bank of Greenville was found to be insolvent, and came to a stop on the twenty-second day of December, 1891, when the directors, headed by the president, applied, by petition, to the chancellor to take charge of the assets of the bank by appointing a receiver to collect and manage its affairs. The chancellor appointed the president of the bank receiver, and, on his application, enjoined all persons from proceeding-by suit against it. The receiver appointed entered upon his duties as designated, and continued until he resigned, on the sixth of July, 1892. On the eleventh of July, 1892, the Hanover National Bank and other creditors of the Bank of Green-ville. exhibited their bill in the chancery court in which the receiver had been appointed against the Bank of Greenville, and averred the foregoing facts, and that, since the twenty-second of December, 1891, the officers and directors of the bank had ceased to manage it, and that its affairs had been managed wholly by Pollock, as receiver, who had collected [1014]*1014a large sum of money clue said bank, and that the appointment of another receiver was necessary for the preservation of the assets of the bank and the protection of the rights of its creditors, with other specific allegations designed to show the necessity for the immediate appointment of a receiver. Upon due notice to the defendant, a receiver was appointed in this proceeding on the eighteenth of July, 1892, and the former receiver was directed to deliver to him all the assets of the bank in his hands.

On July 23, 1892, George Q. Whitney and other creditors of the Bank of Greenville united in a bill against' the hank and G. D. Thomas, who had qualified and was acting as receiver by virtue of his appointment on July 18, and agaiust other defendants in said chancery coui’t. This bill set forth the suspension of the bank on December 22, 1891, and the appointment by the chancellor of Pollock as receiver on the application .of the president and directors of the bank, and that Pollock took exclusive control of all the assets of the bank, and acted as receiver, but that defendant, Thomas, at the time of exhibiting said bill, claimed to be receiver of said bank by virtue of an appointment by the chancellor of said court; that the application to the chancellor on December 22, 1891, and all the proceedings had, including the procurement of the appointment of Thomas as receiver, were devices to hinder, delay and defraud creditors, and “invalid and void.” Discovery was sought by the bill as to all the assets of the bank of whatever kind, and a lien upon-them prayed to he established from the date of filing the bill, and their appropriation to the demands of the complainants. The Bank of Greenville interposed a plea to this bill of the proceeding by the Hanover National Bank et al. v. The Bank of Greenville, and the appointment, in that case, of Thomas as receiver, and that he had qualified as such, and was in possession of the assets of the bank under that appointment, and relied on this plea as a bar to the bill filed July 23, 1892. The plea was set down for hearing upon its sufficiency, and [1015]*1015was sustained and the bill dismissed. From that decree an appeal was taken, and case No. 7460 on the docket of this court is that appeal.

On October 4, 1892, George Q. Whitney petitioned the chancery court of Washington county, in which these cases were pending, and which had been consolidated, setting forth that he was a creditor to a lai’ge amount of the Bank of Greenville, and had recovered judgment for a large sum against it in the court of the United States, at Vicksburg, Miss., July 28, 1892, which had been duly enrolled, and, he claimed, was a paramount lien on all the assets of said bank, notwithstanding all the various proceedings in the said chancery court, which are set forth with detailed particularity, and denounced as void, and no obstacle in law to the application of the assets of the bank to the claim of the petitioner, who prayed to be allowed to be made a party defendant to said cause. At the same time he presented a petition and bond for removal of said cause, in which he prayed to be made a defendant, to the United States court at Vicksburg.

The complainants in the cause in which Whitney sought to intervene as a defendant opposed his application, and it was denied by the court, and from this he appealed, and that appeal is contained in No. 7459 on the docket of this court. Defeated in his effort to be made a defendant, as stated, Whitney made an abortive effort to have the United States court at Vicksburg to take charge of his suit, and enforce his claim to be paid out of the assets of the Bank of Green-ville, in preference to other creditors, but with that we have no concern, and state the fact historically only, being in the record before us.

On February 6, 1893, Whitney, who had been baffled in all his efforts to obtain payment as a creditor entitled to precedence out of the assets of the Bank of Greenville, exhibited an original bill in the chancery court of Washington county against the complainants in the bill of the Hanover [1016]*1016National Bank' and others against the Bank of Greenville, exhibited July 11, 1892, and the Bank of Greenville and W. A. Pollock, receiver, and G. D. Thomas, receiver. In this bill is narrated, with detail, the history of the dealing by and with the bank from the time of its suspension and taking-refuge from creditors in the chancery court to the filing of this bill, which also relates the persistent, but ineffectual, efforts of the complainant in state and federal courts to secure recognition of his right, as claimed, to be first paid out of the assets of the Bank of Greenville. It* assails the action of the chancery court of Washington county as void for want of jurisdiction over the subject-matter dealt with, and seeks to vacate all orders that stand in his way, and the payment of his as a preferred claim out of the effects of the bank. The bill seeks injunction, which was obtained.

This bill was answered, and most of its allegations admitted, but the claim made by it of the right of the complainant to priority of payment out of the assets of the bank was denied. A motion was made to dissolve the injunction, and some affidavits were taken and some facts were agreed on for the hearing of the motion to dissolve, and it was agreed that the case should be heard on the motion to dissolve and for final decree on such hearing. The respondents gave notice of a claim for damages to be allowed on dissolution of the injunction to amount of $2,500 for attorneys’ fees in defense of the suit.

The case was heard in accordance with the agreement, and a decree was made dissolving the injunction, dismissing the bill and awarding damages against the complainant in the sum of $2,000 as attorneys’ fees, the decree reciting that the court had heard testimony in open court as to the attorney’s fee, and taxed the costs against the complainant, who appealed, and this is No. 7749 on the docket of this court.

Prom this complete but succinct history of this litigation, as disclosed in voluminous form in the three cases before us, it is apparent that the only question presented for decision [1017]*1017by the appeal No. 7459 is as to the propriety of the action, of the court in refusing to permit Whitney to intervene as a defendant in the case of Hanover National Bank et al. v.

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Bluebook (online)
71 Miss. 1009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitney-v-hanover-national-bank-miss-1894.