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distribution, of an insolvent carrier sought leave to intervene in a proceeding
involving payment of fees for the receiver's attorney. The Missouri Court of
Appeals granted the motion on the grounds that the petitioner had an
immediate and direct economic interest in the matter, whereas the receiver
was only a stakeholder. The Court found that: "[T]he receiver has a variety of
interests to serve, and really has no economic interest in the outcome of the
case. He may do his duty in defending against [the claim], and yet come short
of the kind of single‐purposed defense that may be expected from [the sole
stockholder]." 694 S.W.2d at 841.
Alexander v. Relfe, 9 Mo. App. 133 (1880). The receiver appointed of an
insolvent insurer sued the receiver of the reinsurer which had reinsured and
assumed all of its business. In rejecting the receiver's action, the court noted
that an equity receiver was a mere custodian of property and cannot sue for
damages for corporate waste in its own name. Only the stockholders and
policyholders of the insolvent insurer were in a position to pursue such a claim.
Claber v. O'Malley, 90 S.W.2d 396 (Mo. 1936). An insured of the insolvent
insurer brought an action to recover on an accident policy. In affirming the
recovery to the insured, the Missouri Supreme Court noted that the Missouri
insurance commissioner, as liquidator, was a state officer, but that it did not
necessarily follow that jurisdiction resided in the Supreme Court because such
officer must be a real party in interest in an official capacity in order to be
within the jurisdictional meaning of the Missouri constitution. In finding
jurisdiction, the court upheld the award on the policy.
Jump v. Pioneer Bank and Trust Company, 433 F. Supp. 38 (E.D. Mo. 1977). The
receiver of an insolvent insurance company, which owned 87% of the
outstanding stock of a bank, brought an action against the bank, seeking a
declaration that the receiver was entitled to vote and exercise all the
ownership rights of the bank stock held by the insurance company, and
seeking to enjoin the bank from denying the receiver any rights incident to the
insurance company's ownership of the bank stock. As against the bank's
contention that the receiver's failure to procure registration of a stock transfer
in the bank's transfer books prior to the attempted exercise of the voting
rights, the court enjoined the bank from denying the receiver the rights of a
shareholder of the bank stock, as the same court appointing the receiver of
the company by appropriate order also authorized the receiver to vote the
shares of the corporate stock under the receiver's control, pursuant to the
Ohio laws granting a receiver such authority. However, receiver's prayer for
costs and attorneys fees was denied absent statutory authorization.
Lucas v. Manufacturing Lumberman's Underwriters, 349 Mo. 835, 163 S.W.2d
750 (1942). The new Missouri insurance commissioner filed charges against the
prior insurance commissioner and secured a judgment of $85,264.44. In
reversing this award, the Missouri Supreme Court noted that the Missouri
commissioner had the authority during rehabilitation to preserve the status
quo while awaiting the decision of various questions of jurisdiction pending
before the state and federal courts concerning the reciprocal exchange, and
this included the expending of funds for the purpose of reinsuring and
maintaining as much as possible the status quo of the exchange. The
insurance commissioner is vested with much discretion in conducting and
managing the affairs of insurance companies under the commissioner's
control.