Merrill v. Commonwealth Mut. Fire Ins. Co.
| Citation | 44 N.E. 144,166 Mass. 238 |
| Parties | MERRILL STEVENS v. COMMONWEALTH MUT. FIRE INS. CO. STEVENS v. SHENANGO GLASS CO. |
| Decision Date | 23 May 1896 |
| Court | United States State Supreme Judicial Court of Massachusetts |
Robert
F. Herrick and Guy Cunningham, for Shenango Glass Co.
W.B Stevens, for petitioner.
The insurance commissioner of the commonwealth, acting under St.1894, c. 522,§ 7, on March 19, 1895, filed a bill in equity in this court against the Commonwealth Mutual Fire Insurance Company, a corporation organized under the laws of the commonwealth; and the corporation on the same day was enjoined from further proceeding with business, and on the 26th of the same month the injunction was modified so as to permit the corporation to collect and receive moneys owing to it, to cancel its policies without the payment of the return premiums, and to make and collect an assessment upon its members. While the corporation was under this injunction as thus modified, the Shenango Glass Company, a nonresident creditor of the corporation, on April 4, 1895, brought a suit against the corporation in the superior court of the commonwealth, and attached the property and credits of the corporation in the hands of certain alleged trustees. On May 28, 1895, a decree was entered in the suit in this court vacating the modifications made in the original injunction, and appointing, in pursuance of the statute, a receiver to "take possession of the property and effects of the company, and to settle its affairs, subject to such rules and orders as the court may from time to time prescribe, according to the course of proceedings in equity." St.1894, c. 522, § 7. The receiver, on October 4, 1895, brought the present petition against the Shenango Glass Company for the purpose of compelling that company to dissolve its attachment, or of restraining the company from further proceeding under the attachment.
The rule adopted in this commonwealth in somewhat similar cases is that attachments made before the commencement of the proceedings in equity are not dissolved by the appointment of a receiver to settle up the affairs of the corporation, but that attachments made after the commencement of such proceedings cannot be enforced. The rights of all parties to share in the property of the corporation are fixed as of the date of the filing of the bill in equity. In proceedings in insolvency there are statutory provisions for dissolving attachments made at any time within four months before the commencement of the proceedings in insolvency, but there are no similar provisions applicable to proceedings in equity under statutes for settling up the affairs of insolvent corporations. Atlas Bank v. Nahant Bank, 23 Pick 480; Hubbard v. Bank, 7 Metc. (Mass.) 340; Book Co. v. De Golyer, 115 Mass. 67; Fogg v. Supreme Lodge, 159 Mass. 12, 33 N.E....
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