Sanborn, McDuffee Co. v. Keefe

The receiver relies upon two grounds which, he claims, •defeat the authority of the court to order a marshaling of the securities. The first is that the resort to marshaling would defeat his statutory rights. The second (which the interveners join in urging) is that marshaling may not be invoked to the injury of third persons.(1) Upon the first point the receiver adduces as authority Haymond v. Murphy, 65 W. Va. 616, 619. “The principle of marshaling assets cannot be invoked or applied so as to defeat statutory rights.” Two statutes were involved in that case. One provided that no judgment of…