Brown v. Winterbottom

Citations

• 98 Ohio St. (N.S.) 127

Syllabus

<p>Receivership — Damages for negligence — Distribution of assets — Foreclosure — Person injured may intervene, when — Priority of claims — Damage claim and mortgage lien.</p> <p>1. Expenses of a receiver, such as damages resulting from the</p> <p>negligence of himself or his employes, are part of the operative expenses of the court, and in proper cases are chargeable to the corpus.</p> <p>2. Where such receiver has 'been appointed in foreclosure proceed-</p> <p>ings and such operative expenses incurred, the person injured may intervene in the foreclosure suit before final distribution of the proceeds and apply for an order postponing distribution pending the determination of his claim.</p> <p>3. Where the mortgagee, in applying for the receiver, asks also for power to manage and operate the property, he thereby not only invokes the authorization with its incidental risks, but impliedly agrees that damages resulting from the receiver’s negligence in operation shall take priority over the mortgage lien and be paid from the corpus of the property, if current earnings or other assets are insufficient.</p>