59 Iowa 379 | Iowa | 1882
The statute provides for the appointment of a receiver upon the petition of either party to a civil action wherein he shows a probable right to or interest in any property which is the subject of the controversy, and that such property or its rents and profits are in danger of being lost or materially injured or impaired. Code, § 2903. If the defendants who are applicants for a receiver in this case have shown themselves to be within the provisions of the statute, they are entitled to a receiver.
The first question naturally presented is as to whether they have an interest in the property, or whether as the plaintifis contend their interest was extinguished by the sale on the O. A. Pray & Co. judgment. But we do not propose to go into this inquiry. The question raised is not free from difficulty. For the purposes of the opinion it may be conceded that the defendant’s interest in the property has not been extinguished. We come, then, to inquire whether the property or its rents and profits were in danger of being lost or materially injured or impaired.
The plaintiffs, through their trustees, had taken possession of the mill and leased it, and were receiving the rents and profits under a claim of right to the same. This would not be their right as mere creditors secured by a deed of trust upon the mill; but they claim that by another instrument they acquired a lien upon the rents as security for the same indebtedness. It appears that after the execution of the deed of trust the defendants, Iselin & Co., for the purpose of further securing the same indebtedness, executed a mortgage covering a large amount of personal property, among which' is specified “all accounts now due, or to become due, from any building owned by' them or any of them, and all accounts now due or to become due in the milling business.”
Reversed.