Opinion ID: 1480915
Heading Depth: 1
Heading Rank: 6

Heading: As to the Appointment of a Receiver for Pennsylvania Acceptance Corporation.

Text: Counsel for Pennsylvania Acceptance Corporation filed a consent to the appointment of receivers for it. This corporation was not described in the amended complaint and no allegations justifying the appointment of receivers were made in respect to it. However, the defendant's answer to the amended complaint admits that Pennsylvania Acceptance Corporation is a wholly owned subsidiary of Transit Investment Corporation. Under the doctrine of Metropolitan Railway Receivership (Matter of Reisenberg), 208 U.S. 90, 111, 28 S.Ct. 219, 52 L.Ed. 403, if Pennsylvania Acceptance Corporation had not been named a party defendant it could have intervened and might have been made a party to the suit. A receiver could have been appointed for it since its affairs are bound up with those of Transit Investment Corporation. The fact that Pennsylvania Acceptance Corporation comes into the suit at bar because named as a defendant by the plaintiff instead of by way of its own intervention is of itself a matter of small importance. It is a totally owned subsidiary of Transit Investment Corporation and it might be a formal matter to have its stockholders consent to the appointment of a receiver for it. Such consent, however, would turn upon the consent of the stockholders of Transit Investment Corporation. The appointment of a receiver for Pennsylvania Acceptance Corporation under the circumstances of the case at bar must stand on the propriety of the appointment of receivers for Transit Investment Corporation. Since the appointment of receivers for reorganization of that corporation was unjustified, as we have demonstrated, the appointment of receivers for the reorganization of Pennsylvania Acceptance Corporation must also fall.