John H. McGowan Co. v. Ingalls

Citations

• 60 Fla. 116

Syllabus

<p>1. Where a court of equity having jurisdiction of the property of a corporation appoints a receiver of the property after the corporation is given due notice and an opportunity to be heard, the order appointing the receiver is not void even if erroneous.</p> <p>2. A decree of a court of equity appointing a receiver to take charge of and operate a business and property within the jurisdiction of the court is not void because the owner of the property is a foreign corporation, or because no suit is pending to which the appointment of a receiver is ancillary, or because a winding up of the business is prayed for, or because mismanagement or fraud is not charged as the basis of the receivership.</p> <p>3. A court of equity has power to authorize its receiver to purchase goods or to make contracts for the benefit of the property in the hands of the receiver, and in an action on a contract made by the receiver for machinery an allegation that the contract exceeded the authority given him to operate the property, a mining plant, in the usual course of business, is insufficient, where there is no allegation that the requisite authority to make the contract was not given.</p> <p>4. A receiver is the agent of the court, and those who deal with him do so with reference to his powers and duties as receiver of which those dealing with a receiver should take notice. Those who sell goods to a receiver as such do so upon the faith of the property or business of the receivership and with presumed knowledge of his powers and duties as receiver, and the receiver is not in general personally liable for bona fide purchases made by him as receiver within the scope of his authority when there is no express or reasonably implied personal assumption or promise and no deceit or fraud or undue advantage by the receiver.</p>