Thе question presented to this court is whether a stockholder in an insurance company which has been taken over by the Superintendent of Insurance pursuant to Chapter 3903 of the Eevised Code should be permitted to intervene in the conservatorship proceedings. However, before that is determined, we must consider whether the denial оf the attempted intervention is an appealable order.
On the threshold question of appealability, Section 2505.02 is controlling. It provides, in part, as follows: “ * # * an order affecting a substantial right made in a special proceeding * * * is a final order which may be reviewed, affirmed, modified, or reversed, with or without retrial.”
Conservatorship proceedings are “special proceedings.” E. g., Anderson v. Great Republic Life Ins. Co. (1940),
Furthermore, additional circumstances dеmonstrate the finality of the order in question. First, it should be noted that
Second, the appellee’s interests are presently being represented by the Superintendent of Insurance, who by statute (Section 3903.03, Revised Code) is entrusted with the interests of the policyholders, contract holders, creditors, members, stockholders, аnd the public. However, appellee challenges the adequacy of this representation of his interests and desires actual representation.
"We mention these two additional circumstanсes because even in jurisdictions less liberal than Ohio on the matter of what constitutes an appealable order, either of these two factors (no other remedy or inadequate representation) is such as to render the order ‘ ‘ final ’ ’ and appealable. Annotation, ‘ ‘ Appeal-ability of order granting or denying right of intervention,” 15 A. L. R. 2d 336, 360 tо 364.
The Superintendent argues that, since the trial court nevertheless allowed the would-be intervenors to participate in the limited capacity of supporting or оbjecting to plans of rehabilitation, the denial of the opportunity to intervene as a party was not appealable under Section 2505.02 of the Revised Code. Hоwever, this argument goes to the severity with which the order affected substantial rights and does not negate the fact that it was “an order affecting a substantial right.” Since the trial cоurt accorded appellee a status less than that of a party although the appellee’s property rights were being litigated, we find that order to be presently reviewable. The appellant’s argument confuses the appealability of an order with the prej
Should appellant have been permitted to intervene in the conservatorship proсeedings? This is a question of first impression in Ohio, and one that has rarely been litigated in our sister states.
There is no general statutory authority for intervention in Ohio. However, this court in Osborn v. McClelland (1885),
As a general rule, equity desires that all materially interested persons be made parties, Barnes v. Christy (1921), 102 Ohio St. 160. However, where such materially interested persons are so represented by others who are before the court that their interests receive actual and efficient representation, their actual joinder may be dispensed with, 30A Corpus Juris Secun-dum, Equity, Section 145(a).
In the present action, the stockholder Osbеrger — a person materially interested in the rehabilitation or liquidation of the corporation — is represented by the Superintendent of Insurance, Section 3903.03 of the Revised Code. The Superintendent argues that this representation was imposed by statute, that the Legislature has spoken, and that intervention by a stockholder is therefore bаrred.
However, Chapter 3903 makes no mention of whether intervention is permitted. The fact that the Superintendent has exclusive authority to initiate the conservatorship proceedings does not militate against the availability of the intervention remedy as it does in favor of its necessity. As a general rule, equitable remedies are not displaced by the enactment of statutory procedures unless the legislative intention to supplant them is manifestly clear, 50 American Jurisprudence, Statutes, Section 599. Thus the enаctment of an insurance conservatorship
Therefore, in an appropriatе case, the trial court may permit intervention by a materially interested party in a con-servatorship proceeding. In such a proceeding, the New York Court of Aрpeals held “that a court of equity, by virtue of its supervision over all phases of the liquidation of a financial corporation, possesses full discretion to permit or deny an application for intervention,” National Bondholders Corp. v. Joyce (1937),
Thus, after a thorough search, we have been unable to find a single case to support the Superintendent’s position that Chapter 3903 precludes, as a matter оf law, the remedy of intervention. Rather, the above cases indicate that intervention in conservatorship proceedings rests within the sound discretion of the trial court. This аccords with the general rule stated in 30A Corpus Juris Secundum, Equity, Section 145(a) (6): “The persons who are represented but not named may intervene and make themselves actual parties, when necessary for the protection of their interests, at the discretion of the court, during the trial, as long as the proceedings are in fieri and are not definitely closed by course and prаctice of the court.” (Emphasis added.)
Did the trial court abuse its discretion in granting only a “limited intervention” (see 30A Corpus Juris Secundum, Equity, Section 160) rather than a plenary one? In no manner has appellee Osberger demonstrated that the trial court abused
Thus since the appellee has not demonstrated prejudicial error by the trial court, the order .of the trial court must be affirmed. The judgment of the Court of Aрpeals is erroneous in overlooking the discretionary nature of permitting intervention in a conservatorship proceeding. Thus, the judgment of the Court of Appeals must be, and hereby is, reversed.
Judgment reversed.