Brooks v. Town of Hartford

• Decision Date: 01 June 1891
• Court: Connecticut Supreme Court
• Parties: BROOKS et al. v. TOWN OF HARTFORD.

23 A. 697

61 Conn. 112

BROOKS et al.

v. TOWN OF HARTFORD.

Supreme Court of Errors of Connecticut.

June 1, 1891.

Case reserved from superior court, Hartford county.

Application of Isaac W. Brooks and others, as receivers of the Charter Oak Life Insurance Company, for relief from a certain tax assessed by the town of Hartford. The superior court certified the case to the supreme court for advice. Advised to render judgment for applicants.

H. C. Robinson and C. E. Gross, for plaintiffs.

W. F. Henney and A. L. Shipwan, for defendant.

ANDREWS, C. J. The plaintiffs are the receivers of the Charter Oak Life Insurance Company, a mutual life insurance corporation, chartered by this state, and located in the city of Hartford. They were appointed in September, 1886, pursuant to section 2869 of the General Statutes, which authorizes the superior court or a judge the supreme court of errors, under certain circumstances, to appoint a receiver of an insurance company, and then enacts that "said court or judge may provide the mode of proving claims against such company, and appoint a committee to hear and decide upon them, and may limit and extend the time for the presentation of such claims, and may make all necessary orders in reference to the delivery to and possession by such receiver of the assets and property of such company and the sale and conveyance of the same by him, and may direct the application of the avails of such assets and property equitably in satisfaction of the claims proved against such company, and the payment of the present value of its outstanding policies to policy-holders, either in whole or in part, or to the reinsurance of its outstanding policies in some solvent company; and said court or judge shall annul the charter and decree the dissolution of such company, and may make all other orders and decrees necessary and proper in reference to winding up the affairs of such company and the disposition of its property." Subsequently the charter of the company was annulled. At the time of its dissolution the company was the owner of property in this stale, of a fund in the hands of the state treasurer, and of real estate situated in various other states of the United States. The plaintiffs entered at once upon the discbarge of their duties, and, acting according to the orders made from time to time by the court, have converted most of this property into money, have collected debts due to the company so far as they were able, and have received from the state treasurer, by authority of the general assembly, the fund that was in his hands. They have also paid from time to time such expenses and claims as they have been directed to do. They had in their possession as such receivers, on the 1st day of October, 1890, the sum of $464,000 on deposit to their credit in various banks in Hartford. They had also in their hands bonds of the Quinnemont Coal & Iron Company to the amount of $31,000, secured by mortgage of real estate in the state of West Virginia The court also appointed a committee to hear and decide upon the claims against the company, directed notice to be sent to all the policy-holders and to all other known creditors, and limited a time within which the claims should be presented to the committee, which limit has been extended once or more by a suitable order. The report of the committee has been made to the superior court, and is now pending therein upon remonstrances thereto. It is alleged in the complaint, and found by the court, that of the moneys so in the hands of the plaintiffs more than $300,000 has been received by them from the sale of the property of the insurance company situated in other states and brought to this state to be marshaled and paid over to the persons found entitled thereto. More than $98,000 they received from the state treasurer, as above stated. From what source the balance was received is not stated. It is also alleged and found that they had this property in their hands on said 1st day of October, and have ever since held it, awaiting the decision of the superior court, for the purpose of paying it to the persons who should be found entitled to it by the committee or by the court upon such order as should be made by the court in the premises, and that the plaintiffs have no other title to or interest in the property than as above stated. On or about the 4th day of February, 1891, the board of relief of the town of Hartford made out a tax-list against the plaintiffs of taxable property to the amount of $495,000, and added thereto 10 per cent. for not making out a sworn list, and assessed the plaintiffs to pay taxes on the amount of $544,511. From that action of the board of relief ...