Howard v. Charles J. Cassidy Co.
Howard v. Charles J. Cassidy Co.
Opinion of the Court
delivered the opinion of the Court.
The brief of the appellant makes the following statement: “The sole question in this cause is, Did the court below have power to enter a decree final and absolute in its effect, upon a rule to show cause when the subject-matter of the cause was pending for a hearing upon the merits ?”
We fail to perceive a foundation for this alleged error. There was no reason why Howard should be made a party to the original bill for the appointment of a receiver. The corporation was the only necessary party. It is true that the inquiry into the assets of the corporation had been referred to the auditor before the supplemental bill against Howard had been filed, but it is not true that the auditor’s report had then been made. It also appears that Howard entered his appearance before the auditor on December 24, 1912, and participated in the several hearings had thereafter, namely, December 31, 1912, February
On May 6, 1913, he was cited to show cause why a decree should not be entered against him in accordance with said con* firmed report. It is true that the proceeding referring the whole matter to hearing by the auditor was irregular in that the court' should have heard the evidence and laid down the principles for the guidance of the auditor in making his report and account. Easter v. Ralston, 32 App. D. C. 12, 19. But the respondent, Howard, made no objection to the reference that had been made and appeared before the auditor at each hearing. He took no exception to the report when presented to the court. In his return to the first rule to show cause he raised again the question of the validity of the receiver’s appointment, as we have seen, and as to the determination of his liability for moneys received from the corporation expressly submitted himself to the judgment of the court. There is no irregularity in the proceeding of which he. can now complain.
The decree is right, and will be affirmed, with costs.
Affirmed.
Reference
- Full Case Name
- HOWARD v. CHARLES J. CASSIDY COMPANY
- Status
- Published
- Syllabus
- Equity; Parties to Actions; Auditor; Waiver; Receivers. 1. An officer of a corporation is not a necessary party to its petition for the appointment of a receiver, the corporation being the only necessary party. 2. It is irregular for the equity court to refer a cause to the auditor until the court lias heard the evidence and laid down the principles for the guidance of the auditor in making his report and account (following Blaster v. Ralston, 32 App. D. C. 12), but this irregularity will be waived by failing to object to the reference; by appearing before the auditor without objection, and by failing to except to the auditor’s report. 3. A corporate officer who, in answer to the petition of a receiver appointed for the corporation, for a rule to show cause why he should not deliver to the receiver corporate property which he had misappropriated, stated that he appeared for the special purpose of answering the rule, attacked the validity of the appointment of the receiver, denied the allegations of the petition, and -asked for a reference to the auditor, and who, in response to a supplemental bill for an accounting filed against him by the corporation after the auditor’s appointment, but before his report, raised the same issues, but stated that he would, if the court should uphold the receiver’s appointment, submit to a judgment against himself for all moneys advanced to him, and who entered his appearance before the auditor, participated in the hearing, and suffered the auditor’s report to be confirmed without exception,—cannot be heard to object to a decree against himself upon an order to show cause why a decree should not be entered against him for the amount shown to be due from him by the auditor’s report, although he was not a party to the original bill for the appointment of the receiver, and the reference to the auditor was irregular, and at the time of the decree the issues raised by his answers to the rule to show cause and the supplementary petition were pending.