Overview
Case summary
Security Trust Company appealed from an order in a receivership proceeding where it had filed an intervening petition claiming priority for certificates of membership held in the insolvent American Building, Loan & Investment Society. The trial court sustained the receiver's demurrer as to the preference claim but referred the validity of the claim to a master. The Circuit Court of Appeals dismissed the appeal, holding the order was not final and therefore not appealable, as the master's report on validity was pending. The court also held that the question of preference cannot be determined on demurrer, as the receiver cannot represent other creditors' interests, and those creditors were not parties.
Abstract
An intervening party in a receivership proceeding claimed priority for membership certificates held in an insolvent building and loan society. The trial court rejected the preference claim on demurrer but referred the claim's validity to a master, leading to an appeal that was dismissed as the order was not final. The appellate court further held that preference cannot be determined on demurrer since the receiver does not represent other creditors, who were not parties.
Opinion of the court
opinionWOODS, Circuit Judgejoined by JENKINS, SHOWALTER
- Order not final because master's report pending
- Question of priority cannot be determined on demurrer
- Receiver cannot represent one creditor against another
- Appeal dismissed for lack of appealable order
Jurisdiction
not challenged- Appeal from order in receivership proceeding
Procedural posture
- Finality of order for appealability
Legal categories
Case record
Issues & holdings
de novo
Order not final because master's report pending; question of priority cannot be determined until validity of claim established
Issue not preserved
Holdings of the court
Error analysis
- Trial court erred in sustaining demurrer to preference claim — procedural · no error foundCourt found order not final, so no error reviewable · not applicable
Standards of review
- Finality of order for appealability — de novo Court reviews jurisdictional question of whether order is final and appealable
Timeline
Circuit Court of Appeals dismisses appeal for lack of final, appealable order
Outcome: Appeal dismissed
Court determines order not final and therefore not appealable
Facts & evidence
Key facts
6 facts- Security Trust Company filed intervening petition in receivership case of American Building, Loan & Investment Society
- Petitioner claimed to hold certificates of membership issued by the society, allegedly negotiable promissory notes
- Petitioner sought allowance of claim and declaration of priority over ordinary shareholders
- Receiver demurred to petition on grounds petitioner not entitled to relief sought
- Court sustained demurrer as to preference claim but referred validity of claim to master
- Petitioner elected to stand by petition
Procedural history
5 steps- Intervening petition filed by Security Trust Company
- Receiver filed demurrer
- Court heard demurrer along with similar petitions
- Court entered order sustaining demurrer as to preference and referring claim to master
- Appeal taken from that order
Evidence in the record
- Certificates of membership issued by American Building, Loan & Investment Society
- Evidence type: Petition claiming preference · Challenge basis: Demurrer on grounds petitioner not entitled to relief · Trial court ruling: partially admitted · Reasoning: Court sustained demurrer as to preference but referred validity to master · Challenged on appeal: true · Appellate outcome: affirmed
Objects of relevance
Authorities
Standards & doctrines
- Finality doctrine for appealability
Legal principles applied
- Order not final if master's report pending
- Receiver cannot represent one creditor against another in preference dispute