State ex rel. House Wrecking, Salvage & Lumber Co. v. Goodrich
State ex rel. House Wrecking, Salvage & Lumber Co. v. Goodrich
Opinion of the Court
— This is an original proceeding for a writ of prohibition against the Honorable James E. Goodrich, Judge of division number five of the Jackson county circuit court. Relator, a creditor of the Interstate Fair and Exposition Company (a domestic corpo
It is alleged in the petition for a writ of prohibition “that notwithstanding said motions are pending the said judge of Division No. 5 of said circuit court is proceeding to make orders in and administer the estate of said Interstate Fair and Exposition Company by and through its said receiver.”
The receivership suit was instituted by V. W. Straub, a judgment creditor of the corporation. Straub brought suit on his demand after relator had filed its suit, but recovered judgment by agreement some time before relator obtained its judgment. He then brought suit in equity against the corporation alleging in his petition that he was a judgment creditor, that he had made diligent search for assets of the corporation whereon to levy an execution, but that none could be found; that the capital stock of the corporation, $50,000, had
The main question for our solution is whether the circuit court sitting as a court of equity had jurisdiction over the class of causes to which that stated in the petition for a receiver belongs. Some of the points argued by relator are to the effect that the cause is defectively pleaded in that petition. Such points are not before us in an original proceeding such as this, and may only be raised in a direct proceeding. “If the case stated or attempted to be stated in the petition is of a subject over which the circuit court has no jurisdiction, yet the court give indication of a purpose to entertain it, an application for a writ of prohibition will be received, but if it be that a petition merely states defectively a cause of the nature of which the court has jurisdiction, a writ of prohibition will not issue merely because it is feared that the court might erron
In substance, it is contended by relator, that the statutory remedy (section 985, Rev. Stat. 1899) afforded creditors of an insolvent corporation against delinquent stockholders is exclusive and that a court of equity has no jurisdiction over the subject of collecting unpaid subscriptions and administering them as a trust fund for the benefit of all the creditors. The rule in this State is that unpaid subscriptions on capital stock constitutes a trust fund for the benefit of creditors. [Meyer v. Mining Co., 192 Mo. l. c. 189.] The right of equity to administer funds of this character has been generally recognized; indeed, it is fundamental, and since the statute contains no language indicative of a legislative intention to make exclusive the remedy therein provided, it must be deemed merely cumulative.[Lionberger v. Bank, 10 Mo. App: 499; Lamont v. Lamont Co., 109 Mo. App. 46; Bank v. Bank, 107 Mo. l. c. 143.]
We find the circuit court had jurisdiction over the parties and subject-matter and as the receivership suit was begun before relator obtained his judgment, the court acquired complete jurisdiction over the debts due the corporation on account of unpaid subscriptions.
Relator is right in saying a receiver may be appointed only in aid of a cause of action, but is wrong in its conclusion that the appointment in this instance was the only relief sought in the petition. The action is in the nature of a creditor’s bill brought by a judgment creditor,' and its main objects are the conservation and administration of a trust fund. The appointment of the receiver was merely auxiliary and by no means should be regarded as the chief end and aim of the proceeding.
The peremptory writ is denied.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.