Hankins v. Sallard

Decision Date04 May 1939
Docket Number1983
Citation188 So. 411
CourtCourt of Appeal of Louisiana — District of US
PartiesHANKINS v. SALLARD et al.

Appeal from District Court, Parish of East Baton Rouge; Charles A Holcombe, Judge.

Suit by W.N. Hankins, receiver of the Imperial Life Insurance Company, against Oscar Sallard, Jr., and others for an injunction restraining the defendant from taking further steps in garnishment proceedings, to set aside such proceedings and to recognize the right of the receiver to take possession of funds and securities belonging to the Imperial Life Insurance Company on deposit with the state treasurer. Judgment for plaintiff, and the named defendant appeals.

Affirmed.

The purpose of the statute conferring on receiver appointed for foreign insurance company power to demand possession of funds deposited with state officer by foreign company as prerequisite for doing business in state was to confer on receiver for foreign company same power in that respect as is conferred on receivers for domestic companies. LSA-R.S 22:733, 22:1303, 22:1308 to 22:1310; Act No. 227 of 1932, § 4.

Irion & Switzer, of Shreveport, an Albritton & Ware, of Baton Rouge, for appellant.

Fred G. Benton, of Baton Rouge, for appellee.

OTT Judge.

On November 2, 1938, Oscar Sallard, Jr., secured a judgment against the Imperial Life Insurance Company in the district court of Caddo Parish for $1,000 and interest thereon at six per cent per annum from June 2nd, 1937. A writ of fieri facias was issued on this judgment directed to the sheriff of East Baton Rouge Parish, and under this writ garnishment proceedings were served on A.P. Tugwell, State Treasurer, on November 18 1938, seizing the funds deposited by this insurance company with the State Treasurer in the sum of $24,873.27.

On November 17, 1938, the day before the garnishment proceedings were served on the State Treasurer, a judgment was signed in the district court of Caddo Parish, the domicile of the insurance company, enjoining the company from further engaging in the insurance business in this state, and appointing W.N. Hankins receiver, with full power to take possession of its property and settle its affairs.

This proceeding is by the Receiver against the seizing creditor, Sallard, the Sheriff of East Baton Rouge Parish and the State Treasurer to enjoin them from taking any further steps in the garnishment proceedings, to annul and set aside said proceedings, and to recognize the right of the Receiver to take possession of the funds and securities belonging to said insurance company on deposit with the State Treasurer, and ordering the latter to deliver said funds and securities to the Receiver. The judgment creditor contends that the Receiver has no right to secure possession of the securities deposited with the State Treasurer as these securities were deposited under the law for the specific purpose of paying the claim of Sallard, and other policy holders of the insurance company.

Judgment was rendered annulling the garnishment proceedings and recognizing the right of the Receiver to take possession of the securities in the hands of the State Treasurer to be administered for the benefit of all the policy holders of the insurance company. The seizing creditor, Sallard, has appealed.

It is claimed by the judgment creditor that he obtained a lien and preference on the funds of the insurance company deposited with the State Treasurer by reason of the judgment obtained before the receiver was appointed, and because of the fact that the deposit is a trust fund to secure his claim as the beneficiary of a policy issued by the company, citing Doane v. Millville Mutual & F. Insurance Company, 43 N.J.Eq., 522, 11 A. 739, and Ruling Case Law, Vol. 23, Page 50, section 53. The citation from Ruling Case Law reads as follows: " On the insolvency or dissolution of a corporation, the disposition of securities theretofore deposited by it with the state authorities must necessarily depend on the construction of the various statutes governing such matters. But the decisions seem to indicate a disposition, if not a settled rule, on the part of the courts, to hold that the...

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4 cases
  • State v. Preferred Acc. Ins. Co. of New York
    • United States
    • Court of Appeal of Louisiana — District of US
    • January 18, 1963
    ...well as those of other creditors. Martin v. General American Casualty Company, 226 La. 481, 76 So.2d 537, 46 A.L.R.2d 1178; Hankins v. Sallard, La.App., 188 So. 411. Where the statute does apply, however, such a preference is specifically proscribed. See LSA-R.S. In this connection we cite ......
  • Martin v. General Am. Cas. Co.
    • United States
    • Louisiana Supreme Court
    • November 8, 1954
    ...107 So. 471; Id., 160 La. 975, 107 So. 770. See also Owens v. Allied Underwriters, 207 La. 437, 21 So.2d 490. The case of Hankins v. Sallard, La.App., 188 So. 411, 413, 'If the seizure of the funds in the hands of the State Treasurer had been made before the receiver was appointed the seizi......
  • Conway v. Imperial Life Ins. Co.
    • United States
    • Louisiana Supreme Court
    • January 15, 1945
    ... ... perfected lien on or direct interest in the deposited ... securities, counsel for the United States cite Hankins v ... Sallard et al., La.App., First Circuit, 188 So. 411, 413 ... That case simply held that after the appointment of a ... receiver for a life ... ...
  • Reynolds v. National Soc. of Health
    • United States
    • Court of Appeal of Louisiana — District of US
    • February 26, 1992
    ...of other creditors. Martin v. General American Casualty Co., 226 La. 481, 76 So.2d 537, 46 A.L.R.2d 1178 [ (1954) ]; Hankins v. Sallard, La.App., 188 So. 411 [ (1939) ]. Where the statute does apply, however, such a preference is specifically proscribed. See LSA-R.S. State v. Preferred Acci......

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