State ex rel. Healy v. Smither

This is a priority dispute between two claimants to the assets of defendant Smither which are under the control of-plaintiff as receiver of those assets.1 The trial court found respondent Lewelling’s claim to be superior to the claim of appellant American Insurance Company (American). American appeals, contending that the parties should share equally in the receivership assets. We reverse.

Defendant Smither was found by the circuit court to have engaged in fraud and mismanagement in connection with the sale and purchase of securities while he'was an employee of First California Company (First…