Richardson v. People's Life & Accident Ins. Co.

• Decision Date: 01 March 1906
• Citation: 92 S.W. 284
• Parties: RICHARDSON v. PEOPLE'S LIFE & ACCIDENT INS. CO.
• Court: Kentucky Court of Appeals

92 S.W. 284

RICHARDSON v. PEOPLE'S LIFE & ACCIDENT INS. CO.

Court of Appeals of Kentucky.

March, 1906

Thum &amp Clark, for plaintiff.

Hazelrigg Chenault & Hazelrigg and Caruth, Chaterson & Blitz, for defendant.

HOBSON C.J.

H. W Richardson, a policy holder in the People's Life &amp Accident Insurance Company, filed his petition, charging that the company was insolvent; that it had on hand only $2.87; that it was absolutely unable to go on with the business; that it had at present liabilities amounting to $7,000; that an attachment had been levied upon the furniture of the company; that there was a death loss unpaid; that it had ceased to do business, and was in a condition in which it would be unlawful for it to attempt to assess policy holders. He prayed the appointment of receivers to take charge of the assets and property of the company to realize the assets and make distribution. The petition was filed on December 9th. The court made an order appointing receivers; other policy holders having come in and joined in the action. After the petition was filed in the Jefferson circuit court, the Attorney General filed suit in the Franklin circuit court, under section 677, Ky. St. 1903, and obtained the appointment of a receiver in that court. Thereafter the Jefferson circuit court enjoined the receiver appointed by the Franklin circuit court from interfering with his receivers in the possession of the property, and a motion has been made before me to dissolve the injunction; Judge Paynter and Judge Nunn sitting with me on the argument of the case, and Judge Barker being present at the consultation, but not at the argument.

We all conclude that the injunction should not be disturbed. The rule is that, if a statute gives a new right and also prescribes an adequate remedy for its enforcement, the statutory remedy is exclusive and must be followed. Johnston v. Louisville, 11 Bush, 527. The rule is also that, if the matter is actionable at law or in equity before the statute, the statute giving a new remedy will be construed as not taking away the common-law remedy, but as merely cumulative. 20 Ency. of Pl. & Pr. 603. Independently of the statute, the creditors of a corporation may in equity upon a proper showing, have a receiver appointed to administer the assets of an insolvent corporation and protect their rights. Section 677, Ky. St. 1903, merely provides an additional remedy. There is nothing in the...