People Ex Rel. Stephenson v. Cole Check Service, Inc.

FOX, P. J.

This appeal is taken by defendants from an order of the superior court dated August 7, 1958, and entitled “Supplemental Order Appointing Receiver of All Assets and Trust Funds.” Two questions are presented: (1) Did the superior court have the jurisdiction to appoint a receiver of all the assets of the defendant corporation, and (2) did the supplemental order describe the assets subject to the receivership with sufficient particularity?

There is no dispute as to the facts. On February 24, 1956, the Commissioner of Corporations filed a complaint against defendants “To Impress and Enforce a Trust, for an Accounting, a Receiver, and for an Injunction,” pursuant to sections 12307.1 and 12307.2 of the Financial Code. (His right to maintain such an action is not challenged.) On April 4, 1956, Cole Cheek Service was adjudicated a bankrupt and all of its assets passed to the receiver in bankruptcy. On May 18, 1956, plaintiff filed a supplemental complaint requesting appointment of a receiver to protect the rights of the trustors and obligors who claimed an interest in the trust funds held by the receiver and trustee in bankruptcy. On May 21, 1956, a receiver was appointed for the limited purpose of representing those interested in the trust funds. Proceedings before the bankruptcy court followed and on April 9, 1958, an order approving the report of the trustee in bankruptcy was made. The order transferred certain assets found by the bankruptcy court to be trust assets to the state court receiver and there is no dispute here as to them. On July 25, 1958, the bankruptcy court entered an “Order Approving Account, Discharging

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Trustee, and Closing Estate.” On August 7, 1958, the “Supplemental Order Appointing Receiver of all Assets and Trust Funds” was made by the superior court. It is from this order that defendants have appealed.

The order continues in force the receivership of May 21, 1956, and supplements that prior order by instructing the receiver to take possession of all the assets of the defendant Cole Check Service, to marshal said assets and to apply to the court for further orders regarding disposition of the estate.

Defendants urge that the superior court had no power or jurisdiction to appoint a receiver of