Whitehouse v. Point Defiance, Tacoma & Edison Railway Co.

Citations

• 9 Wash. 558
• 38 P. 152
• 1894 Wash. LEXIS 362

Syllabus

<p>RECEIVERS — APPOINTMENT—PLEADING—RIGHTS OE DEPENDANT.</p> <p>A complaint in an action by a judgment creditor asking for the appointment of a receiver for an insolvent corporation is not open to the objection that it fails to allege that the judgment debtor has no other property out of which the plaintiff could satisfy his judgment, when it states that the defendant is in failing circumstances, and that it has more judgments already rendered against it than it can pay.</p> <p>Where, subsequent to the purchase by one corporation of a line of railway from another, judgments are rendered against the vendor without notice to the purchaser, the purchaser has the right to litigate their validity on the ground of fraud; and, under such circumstances, the appointment of a receiver for the purchasing corporation, at the instance of a judgment creditor of the vendor, is unwarranted.</p> <p>Where the application for the appointment of a receiver is made by a plaintiff before the defendant has filed his answer, the defendant has a right to be heard upon his affidavit by way of defense to the application.</p>