Price v. Horrigan Contracting Co.

Citations

• 11 Del. Ch. 54
• 95 A. 345
• 1915 Del. Ch. LEXIS 20

Syllabus

<p>A rule to show cause should not be substituted for an action at law by receivers to collect a debt due the corporation at the time of their appointment.</p> <p>Act of General Assembly approved March 19, 1913 (27 Del. Laws, c. 194), vests in receivers of a company the title to all its assets by operation of law and without a transfer, except real estate outside of the State. After the appointment of receivers for a contracting company, the Levy Court of a County directed payment to a bank, the company’s assignee, of the retained percentages on several roads constructed by the company, whereupon the receivers obtained a rule requiring the bank to show cause why it should not pay over such money to them. Held, that the receivers were not remitted to their action at law, and that the proceeding was proper, as affording a prompt hearing to disclose the real facts and assist the court in fully administering all the assets without unnecessary delay.</p>