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Keywords

contractappealtrustwillcorporationappellantlevy

contractwillcorporationrespondentappellantlevy

Related Cases

Mieyr v. Federal Surety Co. of Davenport, Iowa, 97 Mont. 503, 34 P.2d 982

Facts

John Mieyr, a simple contract creditor, sought the appointment of an ancillary receiver for the Federal Surety Company after it was dissolved by Iowa courts. The district court initially granted permission for Williard and others to levy execution on the company's property in Montana, but this was contested by Clark, the appointed receiver. The case had previously been appealed, and the Supreme Court of the United States directed the Montana court to clarify local policy regarding the treatment of assets belonging to an insolvent foreign corporation.

Mieyr, a simple contract creditor, sought in the district court of Cascade county the appointment of an ancillary receiver of the assets of the surety company in Montana. The application was resisted by Clark.

Issue

Whether there is a local policy in Montana that requires an insolvent foreign corporation in the hands of a liquidator to submit to the unequal distribution of its assets by writs of execution.

The Supreme Court of the United States has directed us to determine whether there is any local policy in this state whereby an insolvent foreign corporation in the hands of a liquidator with title must submit to the sacrifice of its assets or to their unequal distribution by writs of execution.

Rule

The courts of Montana will not appoint a receiver to supplant the statutory trustees of a dissolved insolvent corporation solely to prevent the unequal distribution of its assets.

This court, in the case of State v. Gateway Mortuaries, Inc., 87 Mont. 225, 287 P. 156, 157, 68 A. L. R. 1512, said: 'What is the public policy of a state, and what is contrary to it, is not to be measured by the private convictions or notions of the persons who happen to be exercising judicial functions, but by reference to the enactments of the lawmaking power, and, in the absence of them, to the decisions of the courts.'

Analysis

The court analyzed the statutory framework governing dissolved corporations in Montana and concluded that the legislature intended for the directors of a dissolved corporation to act as trustees for creditors. The court emphasized that there was no local policy favoring the unequal distribution of assets among creditors and that the rights of local creditors should not be prioritized over those of creditors from other states.

The Supreme Court agrees with the statement in the original opinion of this court promulgated April 1, 1933, that the judgment of the respondents against the Federal Surety Company is valid, but does not agree that the levy of execution was valid.

Conclusion

The court remanded the case to the district court of Cascade County, affirming that the lien acquired by the appellants through the levy of execution was valid and took precedence over Clark's claim as receiver.

We therefore conclude that the liquidator from Iowa is entitled to receive no more consideration at the hands of our courts than would our citizens under like circumstances in theirs.

Who won?

Harry O. Williard and others prevailed in the case because the court determined that their execution lien was valid and superior to the claims of the receiver.

The appellants will recover their costs in this court.

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Related Cases

Brown v. Fletcher, 235 U.S. 589, 35 S.Ct. 154, 59 L.Ed. 374

Stifel v. Hopkins, 477 F.2d 1116, 23 A.L.R. Fed. 595

Clark v. Williard, 292 U.S. 112, 54 S.Ct. 615, 78 L.Ed. 1160

Bendix Autolite Corp. v. Midwesco Enterprises, Inc., 486 U.S. 888, 108 S.Ct. 2218, 100 L.Ed.2d 896, 56 USLW 4648

Complexions, Inc. v. Industry Outfitters, Inc., Not Reported in Fed. Supp., 2011 WL 13070424