Lilley v. Leggett

PETERS, P. J. Upon petition of plaintiff, the trial court appointed a receiver to carry out the terms of a final judgment that had been rendered in favor of plaintiff. Prom this order defendants appeal.

The original action was one to quiet title to a certain receipt issued by the United States Mint for gold coins deposited with it. The complaint alleged that prior to 1934 the plaintiff was the owner and entitled to possession of certain gold coins which were then, and until 1940, in the possession of certain unknown persons; that under the terms of the Gold Reserve Act of 1934 (31 U.S.C.A., § 311, et seq.) plaintiff, as owner, was required to turn such gold over to the government, and was entitled to receive back the value therefor; that these coins came into the possession of defendants in 1940; that defendants turned the coins over to the mint and obtained a receipt therefor in their names; that plaintiff is the equitable owner of the receipt; that prior to filing the action, demand was made upon defendants for delivery of the receipt, which demand was in writing and offered to compensate defendants for all expenses incurred and for all services necessarily performed by them in connection with the property; that defendants refused to deliver the receipt to plaintiff. The prayer was to quiet title to the receipt, and for an order directing the assignment of the receipt to plaintiff.

The answer denied most of the allegations of the complaint, and particularly alleged that the gold found by defendants did not belong to plaintiff. It was also alleged that the state courts had no jurisdiction to try the question, and [27]that plaintiff was without legal capacity to sue because the Gold Reserve Act made the United States government the owner of all gold. The prayer asked that title to the receipt be quieted in defendants.

The trial court found, in substance, that all the allegations of the complaint were true; that the plaintiff was entitled to the receipt and had offered to reimburse the defendants for expenses incurred and services rendered; that the complaint did state a cause of action; that the court did have jurisdiction; and, that the plaintiff did have the legal capacity to bring this action. Judgment was rendered for the plaintiff, quieting plaintiff’s title to the receipt, and ordering the defendants to endorse the receipt over to the plaintiff, and ordering the plaintiff to pay to the defendants any expenses incurred by them. This judgment was rendered on February 16, 1942.