Jackson v. Lahee

Citations

• 114 Ill. 287
• 2 N.E. 172

Syllabus

<p>1. Judgment men—os to property in the hands of a receiver. The recovery of a judgment against partners after the appointment of a receiver to take charge of the firm assets for the benefit of the firm creditors generally, creates no lien against any property or funds of the firm in the hands of the receiver. Such property or funds can not be levied on by an execution, or reached by garnishment, for the reason of its being in the custody of the law.</p> <p>2. Receiver—how far assets in the hands of a receiver are beyond the control of the parties, or of creditors—and herein, of creditors obtaining priority over each other. The possession of a receiver, as an officer of the court, is the custody of the law, and he holds the property or funds for the benefit of the party or parties whom the court shall find entitled thereto; and the law will not permit the receiver’s possession to be disturbed, without the consent of the court that first obtained jurisdiction to appoint him.</p> <p>3. Where a receiver has been appointed on a bill filed by one partner against his co-partner, merely to hold the property or funds pending the litigation between the parties, creditors of the firm are not bound to wait till the equities between the parties may be adjusted, as that might never be done. In such case the assets are treated as still belonging to the firm, and creditors may proceed in any lawful way to acquire a lien entitling them to priority over less diligent creditors.</p> <p>4. A receiver was appointed on bill filed by one partner against the other for the settlement and adjustment of the partnership accounts and the payment of creditors of the firm, which was insolvent, and the court had ordered notice to he given to all creditors to come in and prove their debts before the master. It was held, that one of the creditors, by the recovery of a judgment against the firm during the pendency of said bill, and the filing of a creditor’s bill on the same day that notice to cred