Compton v. Schwabacher Bros. & Co.

Citations

• 15 Wash. 306
• 46 P. 338
• 1896 Wash. LEXIS 185

Syllabus

<p>RECEIVERS — LEAVE OF COURT TO SUE — ESTOPPEL — INSOLVENT CORPORATION— FRAUDULENT PREFERENCE ATTACHMENT BY CREDITOR — COSTS.</p> <p>Leave of the court appointing a receiver to sue is not necessary before instituting suits in matters connected with his trust.</p> <p>A judgment by confession, made by an insolvent corporation in favor of one of its creditors, who has knowledge of its insolvent condition, and.which confession is given and accepted for the purpose of making a preference in favor of such creditor over others, is void as against the other creditors.</p> <p>A receiver for an insolvent corporation is not estopped from assailing a confession of judgment by the corporation as fraudulent by reason of the fact that in a former receivership the receiver had treated the judgment as valid, and had been discharged by the court upon a false representation that all the debts of the corporation, except abalance on such judgment, had been paid.</p> <p>The fact that an order of court is made refusing to dissolve an attachment under sec. 318, Code Proc., does not establish the validity of such attachment as against creditors, but it may be attacked by the receiver.</p> <p>An attachment levied upon the property of an insolvent corporation by a creditor having knowledge of its condition may be set aside, although insolvency proceedings had not been instituted, under the rule in this state constituting the assets of an insolvent corporation a trust fund for the benefit of all its creditors.</p> <p>An attachment creditor who withholds possession from a receiver of the property of an insolvent corporation, which had been obtained by attachment levy, is not entitled to recover costs paid to the sheriff for the care and custody of the property levied on, including rent of the premises where the property had been kept, in an action instituted by the receiver to dissolve the attachment.</p>