205 Pa. 299 | Pa. | 1903
Opinion by
The Imperial Council of the Order of United Friends was a corporation created by and under the laws of the state of New York, witli its principal place of business in the city of Albany in that state. It was a fraternal beneficial association without
Solis v. Blank, 199 Pa. 600, decided by this court two years ago, was a bill filed by Dr. Frowert to restrain the prosecution of certain writs of foreign attachment which had been issued
The appellant here is receiver of an insolvent corporation of New York, and was appointed by a court of that state. By virtue of that authority he claims the assets of the corporation within this jurisdiction regardless of, and against, the claims which resident creditors have against the corporation. But this position is not tenable. It ignores the well settled principle that a receiver of a corporation possesses no power or authority beyond the jurisdiction of the court appointing him. His powers are necessarily circumscribed by the territorial limits of the jurisdiction that created him. This rule, it is true, has been relaxed by modern decisions so as to permit a receiver on the principle of comity to exercise in- another state the functions vested in him by his appointment, but this is permitted only where it will not violate public policy or infringe or defeat the rights of domestic creditors. Such we believe to be the well settled doctrine in this country, recognized alike by state and federal courts. In 13 Am. & Eng. Ency. of Law (2d ed.), 912, it is said: “ Every state owes a duty to its citizens to protect them in the assertion of their claims against insolvent bodies by retaining within its own jurisdiction and control such of their property as may be there located until the just claims and rights of its own citizens have been satisfied, and therefore this comity or favor will not be indulged where to grant it would permit the receiver to take the property out of a state to the injury of domestic creditors.” Mr. Beach in his work on Receivers, section 268, says: “ The effect of the appointment of a receiver upon the property of the defendant in another state and the power and rights of the receiver there are founded solely on the principle of comity, which is a rule of courtesy and favor recognized and enforced between the courts of the several states, but which is never extended or enforced to embarrassment or loss to local creditors.” In Catlin v. Plate Co. (Ind.), 18 Am. St. Rep. 338, Chief Justice Mitchell speaking for the court says : “ In Hurd v. City of Elizabeth, 41 N. J. L. 1,
It is contended, however, by appellant that the facts of this ease take it out of the rule recognized in the foregoing authorities in that the domestic creditors “issued no process, acquired no lien, and made no demand for payment out of the funds in the hands of the ancillary receiver until after that fund had been demanded by the receiver.” Mr. Beach (Receivers, section 261), citing authorities to sustain the text, thus defines an ancillary or auxiliary receiver : “ In general an auxiliary receiver is merely a custodian of the property within the state where he is appointed, for the purpose of preserving the assets
The assignments of error are overruled and the decree is affirmed. ■ Mitchell, J., dissents.