State ex rel. Krisch v. Superior Court

Citations

• 36 Wash. 91
• 78 P. 461
• 1904 Wash. LEXIS 521

Syllabus

<p>Corporations — Insolvency—Assets a Trust Fund — Attachment — Preference. The assets of an insolvent corporation are a trust fund for the benefit of all its creditors, and a creditor can acquire no preference by the levy of a writ of attachment.</p> <p>Same- — Receivers—Possession of Attached Property. As between the receiver of an insolvent corporation, and a creditor having a prior attachment lien, the solvency of the corporation at the time the writ was levied determines the right to the possession of the attched property.</p> <p>Same — Determination of Insolvency — -Parties. Where a corporation is adjudged insolvent and a receiver appointed, without bringing in or concluding a creditor holding a prior attachment, but the creditor subsequently becomes a party to the suit by intervention, the question of the solvency of the corporation may be thereafter determined in the same action, upon the receiver’s petitions alleging insolvency and a citation to the creditor directing him to show cause why he should not surrender the property, at which time he may litigate the question.</p>