Yager v. Superior Court

CRAIG, Acting P. J. On petition for writ of prohibition.

In this proceeding an alternative writ of prohibition was issued; a return was made by demurrer and also by answer.

The petitioner alleges that he is a shareholder of the Western Loan and Building Company, a Utah corporation; that the banking commissioner of the state of Utah, prior to August 17, 1933, placed a custodian in chargte of the affairs of the association in that state; that prior to said [86]date, the association was licensed to carry on the general business of a building and loan association in the state of California; and that at that time it had assets located in this state amounting to $19,500,060 and liabilities owing, to residents of California in the sum of $3,450,000; that the banking commissioner of Utah and the building and loan commissioner of California on the date above mentioned determined that the association was insolvent and that the future conduct of its business would be hazardous to the investing public and thereupon said building and loan commissioner of California took charge of the assets of the association in this state and on the twenty-sixth day of September, 1933, filed a formal notice in the superior court of his determination to liquidate its assets and has since been engaged in so liquidating the same in California; also that the California commissioner has mailed out notices and written communications indicating that he intends to submit a plan of reorganization of the association and that the said plan of reorganization contemplates ignoring the provisions of the laws of the state of California in certain particulars and especially in the disposition of the assets of the association and its deposit of $350,000 with the state treasurer, placed there as a condition precedent to its carrying on business in California. Other allegations contained in the petition which were regarded as sufficient in addition to the foregoing to warrant issuing an alternative writ need not be stated here.

Petitioner seeks a peremptory writ prohibiting respondent court from exercising jurisdiction in the matter of taking any steps or making any order affecting a reorganization of the Western Loan and Building Company, it being represented that said court has heretofore made an order setting the date for hearing an application which it has directed the building and loan commissioner to file praying for the approval of said reorganization plan of the association.