Joseph Dry Goods Co. v. Hecht

Citations

• 120 F. 760
• 57 C.C.A. 64
• 1903 U.S. App. LEXIS 4530

Syllabus

<p>1. Appeal — Interlocutory Order Appointing Receiver — Ex Parte Hearing.</p> <p>In Act March 3, 1891 (creating the circuit courts of appeals) § 7, as amended by Act June 6, 1900, c. 803 [U. S. Comp. St. 1901, p. 550], which provides for appeals from interlocutory orders or decrees granting or continuing an injunction or appointing a receiver “upon a hearing in equity,” such phrase is not used in a technical sense, and an appeal lies from an order appointing a receiver, although the hearing was ex parte and without notice to the defendant, the purpose of the statute being to give the right of appeal to a defendant whose property is taken from his possession by such order.</p> <p>2. Receivers — Authority to Appoint — Appointment Without Notice.</p> <p>Notice should be given, and the defendant afforded an opportunity to be heard, before the appointment of a receiver, except in cases of imperious necessity, requiring immediate action by the court, and where protection can be afforded the plaintiff in no other way, and it is error for the court to act without notice except in such cases.</p> <p>8. Same — Grounds Authorizing Appointment.</p> <p>The appointment of a receiver is an extraordinary remedy, and cannot properly be resorted to in a suit the sole purpose of which is to collect a debt, where it is not alleged that the debtor is insolvent, or that he has not property subject to execution sufficient to satisfy the decree prayed for.</p> <p>4. Jurisdiction of Federal Court — Diversity of Citizenship — Arrangement of Parties by the Court.</p> <p>A federal court is without jurisdiction of a suit for the specific performance of a contract in which the complainant owns only a part interest, when the owner of the remaining interest, who is joined as a defendant, is a citizen of the same state as his codefendants, the other parties to the contract. In such case he must he arranged by the court on the side of the complainant in the controversy.</p> <p>¶ 4. Diverse citizens