Lewis v. American Naval Stores Co.

Citations

• 119 F. 391
• 1902 U.S. App. LEXIS 5278

Syllabus

<p>1. Receivers—Jurisdiction of Federal Court to Appoint—Foreign Corporations.</p> <p>A federal court has jurisdiction to appoint a receiver for a corporation of another state, where, by appearing and pleading to the merits, such corporation waives its exemption from being sued out of the district of its domicile, and its action in submitting to the jurisdiction of the court cannot be overruled at the instance of a stockholder or creditor who was not a party to the original suit, but who has been permitted to intervene.</p> <p>2. Same—Effect of Appointment—Title to Bill and Right of Possession of Property.</p> <p>The effect of the appointment of a receiver for a corporation is to vest in him, as an officer of the court, a qualified title to all of the property of the corporation within the court’s jurisdiction and the right of possession for purposes of administration and for the benefit of those ultimately shown to be entitled to it.</p> <p>8. Same—Property in Other Jurisdictions.</p> <p>While the appointment of a receiver does not confer upon him the right to sue in another jurisdiction to recover property or debts, the modern practice is to permit him to bring such suits as a matter of comity where such permission will not conflict with the rights of citizens or creditors in the state where the suit is brought; and the constant tendency of the courts is towards a more liberal policy, which recognizes the receiver’s right to the possession of the property embraced by the decree appointing him, although situated without the territorial jurisdiction of the court making the appointment.</p> <p>4. Same—Ancillary Suits.</p> <p>The practice of bringing ancillary suits and obtaining the appointment of a receiver therein in different jurisdictions may properly be followed where the defendant is a corporation engaged in business and owning property in different federal districts and in different states; and, while 'the courts in which such auxiliary suits are brought are e