The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-05-17
RECEIVER LAMB DEPOSED.
me Supreme Court Decides that His
appointment Was Illegal and Void.
In Unforeseen Decision Which Renders the
Affairs of the Harrison Bank Still More
HOpelessly Complicated.

In the case Of John T. Pressly against Alfre
Harrison ct al, the Supreme Court yesterday
rendered decision reversing the judgment Of
The Marion County Superior Court, the effect of
which is to annul the appointment of Judge r.
u. Lamb as receiver of the defunct Harrison
Bank. The decision is of vital importance to the
interested creditors, but to what extent it will
affect the affairs of the bank is not fully known.
The whole case hinges on the course which was
pursued by the Harrisons in procuring the ap-
sentiment of a receiver. On the 18th of last
I1ly Alfred Harrison fled petition in
Me Superior Court asking dissolution
ST the partnership between himself and
John c. s. Harrison, for the reason that
their business was insolvent aid also requesting
the appointment Of a receiver. With this petit
sion he filed an answer in behalf Of John G. 5.
Harrison, the defendant, admitting the truth
fitness of tho allegations in the complaint, and
conserving to surrender his individual property
10 receiver The receiver was appointed by
Judge Walker in vacation. Subsequently, after
having obtained judgment for SO, 929 IL, John L.
Pressly, depositor, filed complaint asking
that the appointment of the receiver should be
annulled, as illegal, and that he should be given
execution on the property for the payment of his
:laim as preferred lien. The Superior Court
decided the case adversely, and Mr.. Pressly ap-
pealed to the Supreme Court. The opinion re-
vorsing the Superior Courts decision was
rendered by Judge Mitchell, the other
members of the bench concurring, with the ex-
seption of Judge Elliott, who was indirectly
interested in the case, and therefore had moth
ing to do with its consideration. In reversing
the lower courts decision the Supreme Judges
state in their opinion, 'as the statute does not
authorize, and public policy forbids, one party to
sppear for the Others it must be held that where
Il appears. as here, that the only jurisdiction
which the court or judge has over the defendant
was such as was acquired through the agency Of
The plaintiff in: appearing for him, its proceed
jng was without jurisdiction, and void. 1t IS
said by counsel for the appellee that the papers
signed by John c. s. Harrison, and presented by
Alfred Harrison, were in effect requests to the
Judge to appoint receiver. 1t is in that charac-
Ter we regard them, and it is that fact which
parte. 1t was nothing more than two partners
IN Vacation for ''t the appointment 'D'e Of
receiver, without suit pending
IN an action pending may consent to the appoint
ment Of receiver. We know Of no authority
however, for the partners to 60 before a court
in term or judge in vacation without a suit
pending. and by mutual consent effect volun-
tary assignment in the manner here proposed.
The statute enacted for that purpose points out
the appropriate means to that end, and it de-
clares further, that all other assignments shall
be desa-ed fraudulent and void. The argument
is made that as this is collateral attack
ind ant fbo Of ho
judge will be conclusively presumed. This con-
Gention cannot prevail. The complaint in this
ease AYERS and the demurrer admits, that at the
time the receiver was appointed no action was
pending; that no process had been issued or
served on John c. S. Harrison, and that he did
not appear to the action or motion in person or
by attorney. From this admission it results
that the judge acquired no jurisdiction over the
subject matter of the receivership or of the per-
son of the defendent. and the appointment was
consequently not only irregular, but absolutely
poid."
AN INTERVIEW WITH JUDGE LAMB.
Judge Lamb, the receiver Of the bank, when
interviewed regarding the probable effect of the
decision said that he had not anticipated such
result, and therefore had not given the case
close attention. IF MY appointment was illegal"
ne said, II have been the receiver in fact, and
suppose that under the circumstances my Off
eial acts in that capacity will not be overthrown."
He was Of the opinion that, as the case had been
appealed to the Supreme Court on the ruling on
demurrer, that the issue for final settlement of
Che matter would now have to be in a trial on
she original complaint. He further expressed
che opinion that, under the ruling, there might
be an execution taken on the bank property
although the right Of such proceeding might
be questionable. If these executions could be
taken, however, the judgments would consume
Judgments in pending litigation, he might real
sze between $40, 600 and $50, DOC.
The decision sustains the claim of Mr..
Esessly as a preferred lien, and, at least to the
extent of its payment in full, will affect the de-
positors who have expected to realize equally
from the assets. The effect of the annuliment
Of Receiver Lambs appointment is a matter Of
some doubt.
RECEIVER WALLACE NOT AFFECTED
The effect OF this decision is undoubtedly to
still further complicate the banks af
Iairs. Under it the judgments against
the bank fall, those depositors who Sc
ured Judgment take precedence over the
claims of depositors who are not similarly pro-
tected, and for these there will be absolutely
nothing, as there is not even remote proba-
bility of the assets yielding more than $50, 600;
and the judgments aggregate several times
Ebat amount. There was some anxiety
expressed by some of the Fletcher & Sharpe
depositors lest the appointment of William
Wallace was also rendered invalid by the
decision, as he too, was first appointed during
the courts vacation. However, Mr. Wallace's
appointment is entirely valid, as he, upon the
eonvening CT court at its next regular session
after his appointment, went before the court,
had his accounts approved, and was reappointed
IN open court, thus rendering his tenure Of the
position beyond any question of legality.
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Juvenile Highwaymen.
Yesterday afternoon, about o'clock, Mrs.