Pacific Bank v. Madera Fruit & Land Co.

COOPER, C. On January 31, 1894, the plaintiff filed its complaint and, among other things, asked for the appointment of a receiver to take charge of a large amount of real and personal property. One S. Ephraim was thereupon and at the request of the plaintiff appointed receiver of all the .property described in the complaint. He gave the proper bond, took the oath and thereupon took charge of said property as such receiver. Thereafter, on March 6, 1895, before the issuance of any summons or the appearance of any defendant, the plaintiff filed with the clerk a written dismissal of the ease, and judgment of dismissal was accordingly entered by the clerk. Thereafter the said receiver filed his account and petition and asked the court [526]to settle the same, fix his compensation, et cetera. The plaintiff thereupon made a special appearance and filed a written motion to dismiss the account and petition of the receiver on the ground that by the judgment of dismissal oE the said action the court had lost jurisdiction to settle the said account. The court overruled the said motion and proceeded to hear the account of the receiver, and after hearing evidence made an order settling the said account. From this order the plaintiff has appealed. The only question argued or presented on this appeal is as to whether or not, after the plaintiff had dismissed the action, the court had jurisdiction to hear and settle the account of the receiver. The court below held that it had such jurisdiction, and we think its conclusion correct. In Beach on Receivers, section 796, the author lays down the rule as follows: “The end of the suit, its final adjudication, gives cause for the discharge of the receiver, but does not, ipso facto, effect his discharge, which results only from an order or decree of court so directing. After the settlement of the suit the receiver must have time and opportunity to prepare and present his accounts, and for the adjustment of the details of the receivership.....The dismissal of the action does not discharge the receiver from accountability to the court which appointed him. He is an officer of the court and subject to its orders in relation to the property placed in his hands as receiver until discharged by the court.” The same rule is given by High on Receivers, section 833, and is thus stated:

“It is to be observed, however, that the abatement of the action, or the entry of final judgment therein, does not have the effect of discharging the receiver ipso fado. And although as between the parties to the litigation his functions have terminated with the determination of the suit, he is. still amenable to the court as its officer until he has complied with its directions as to the disposal of the funds which he has received during the course of his receivership.”