Lehman v. Trust Co. of America

Citations

• 57 Fla. 473

Syllabus

<p>Receivers — Rules Governing Appointment of- — Should Be Disinterested Party — Rf.ceivers Certificates — Lien of.</p> <p>1. While the appointment of a receiver in litigation is to a large extent within the sound judicial discretion of the chancellor, tc be exercised or not according to the circumstances and exigencies of each particular case, yet there are certain well established rules that should be observed in exercising such discretion :</p> <p>“ist. That the power of appointment is a delicate one, and to be exercised with great circumspection.</p> <p>2nd. That it must appear the claimant has a title to or lien upon the property, and the court must be satisfied by affidavit that'a receiver is necessary to preserve the property.</p> <p>3rd. That there is no case in which the court appoints a-receiver merely because the measure can do no harm.</p> <p>4th. That fraud or imminent danger, if the immediate pos session should not be taken by the court, must be clearly proved.</p> <p>5th. That unless the necessity be of the most stringent character, the court will not appoint until the defendant is firsl heard in response to the application.”</p> <p>2. It is well settled that except in rare cases the receiver must be a person who is indifferent between the parties litigant, and must remain so, giving to neither party favor or advantage. In executing the orders of the court he acts as and for the court and should be as unbiased as the court itself.</p> <p>3. The chancellor has no power, in authorizing a receiver of the properties of a corporation to borrow money, to order that the receivers’ certificates issued for such loan shall be a prior and superior lien over the lien of a prior existing judgment against a third party upon property which had been conveyed by such judgment debtor to such corporation subsequent to the rendition of such judgment.</p>