Opinion ID: 1764507
Heading Depth: 1
Heading Rank: 12

Heading: the appeal of the first national bank and trust company of dickinson

Text: We reverse the order denying the Bank's motion for a judgment notwithstanding the verdict and enter a judgment dismissing the appellees' action against the Bank on the ground that the receiver Bank in the instant case is immune to liability because it acted in accordance with the orders of the court. The gist of the appellees' action against the Bank is that the Bank failed to follow the court's orders and that such failure resulted in a breach of contract, i.e., the appellees did not receive everything they had paid for. The general rule is that as long as a court-appointed receiver is acting under and in accordance with the court's directions, the receiver is immune from suit. See Kermit Const. v. Banco Credito Y Ahorro Ponceno, 547 F.2d 1, 3 (1st Cir. 1976); Bradford Audio Corporation v. Pious, 392 F.2d 67, 73 (2d Cir. 1968); 66 Am.Jur.2d, Receiver § 359 (1973); 75 C.J.S. Receiver § 189 (1952). This court stated in Baird v. Lefor, 52 N.D. 155, 201 N.W. 997, 999 (1924), that a court-appointed receiver is an officer of the court and the hand and arm of the court through whom the court acts. Our review of the orders served in connection with the receivership in the instant case and the actions of the Bank indicate that the Bank acted in accordance with those orders. The Bank was appointed receiver for the purpose of selling the Rummels' property in order to make a property division by distributing the proceeds. The sale took place in April of 1978. On May 23, 1978, a hearing was held on the Bank's motion for an order approving acts of receiver and discharge of receiver. At that time there was no evidence that the Bank or the appellees were aware of any missing items or damage to the house and there were no objections by any of the parties, including appellee Neal Hoff, who was present with the appellees' attorney. At this May 23, 1978, hearing the court ordered the Bank to distribute to the Rummels the amounts they were due under the receiver's account and possession of all of the buildings were ordered over to Neal Hoff with the exception of the house in which Stella was allowed to stay for two and a half days after the hearing. The court order further provided that Stella was to vacate the house and deliver it to Neal Hoff at noon, on May 26, 1978. The Bank was also ordered to distribute all funds in its possession and was discharged and released from any further liabilities or responsibilities. At the May 23, 1978, hearing Stella's attorney, who at that time was Floyd B. Sperry of Bismarck, discussed the court's order approving acts of the receiver and suggestedand the court orderedthat the buyers of the different tracts of land which were sold under contracts for deed were to pay one-half of each installment that they owed to each of the parties, Stella and Gilbert Rummel, together with the interest and whatever is owed and becomes due and, further, that both Stella and Gilbert Rummel should execute deeds to the property covered by those contracts prior to the making of the last payment so that title would be complete in the buyer. The trial court stated in regard to the above order: The thought being that the Receiver will be discharged so that it won't be necessary to keep this Receivership open until all of the payments are made. The court and the parties further indicated their intention to discharge the receiver by accepting Mr. Sperry's suggestion: ... that the Receiver is to be fully discharged and that he may sign these contracts over to Gilbert and Stella Rummel and then he will have no further part in it. This suggestion was stipulated to by the parties and incorporated into the court's order. In case either party refused to execute deeds prior to the last payments being made, the trial court's order provided that any party who refused to execute a deed would be in contempt of court if he didn't fulfill the agreement. It is clear from the transcript of the May 23, 1978, hearing and the resulting order that the court and the parties intended to fully discharge the receiver at that time and that the court would enforce its order through its contempt power with no need for a receiver. It is also clear that, at that time, the court was satisfied that the Bank had done its duty as receiver and had accomplished its purposes. It is also clear that Stella retained possession of the house after the discharge of the receiver, the court being satisfied that Stella would properly surrender possession of the house at the appointed time. As of May 23, 1978, therefore, the Bank had delivered title and possession to everything under the receivership except possession of the house and fixtures, etc., such to be delivered by Stella on May 26, 1978. For the reasons stated in the opinion we hold that the defendant First National Bank and Trust Company of Dickinson performed all of its acts as receiver herein in accordance with and under the direction of the trial court's orders and is immune to liability to the appellees. Therefore, the Bank was not a proper party to the appellees' lawsuit and for this reason we reverse the district court's denial of the Bank's motion for judgment notwithstanding the verdict. ERICKSTAD, C. J., and PEDERSON, VANDE WALLE and SAND, JJ., concur.