Cohn v. Dowling

SIMONS, Circuit Judge.

The appellant challenges an order of the District Judge denying his motion to vacate the appointment of a receiver for the assets of a Michigan corporation, and denying his prayer to dismiss the action upon jurisdictional grounds.

The appellee, who was the plaintiff below, is a stockholder in the Park Sproat Corporation, organized by the bondholders of an unprofitable hotel enterprise but which itself had failed to conduct a successful operation of the hotel property. The corporation had been obliged to negotiate a substantial mortgage loan to liquidate existing tax liens…