State, by & Through Healy v. Smither

In this receivership proceeding, the assets of the receivership are inadequate to pay the creditors in full, and one creditor claims priority over another creditor of the same class. The trial court ruled in favor of the creditor asserting a priority (Lewelling). The other creditor, American Insurance Company (American), appealed and the Court of Appeals reversed, holding that the parties "are entitled to share equally in the assets now held by the Corporation Commission.” 46 Or App at 633. We reverse.

THE FACTS

First California Company (First California) was engaged in the securities business…