Ferrara Et Ux v. Genduso Et Al‪.‬

SHAKE, C.J. The appellee Genduso obtained a judgment against the appellants on a promissory note and for the foreclosure of a real estate mortgage given to secure the same. Pursuant to the decree, the mortgaged property was sold by the sheriff and brought less than the amount of the judgment. Subsequently, and while the year for redemption was running, the court appointed a receiver for a part of the real estate upon a showing that the appellants were insolvent. The receiver was directed to collect the rents and profits and apply the proceeds upon the delinquent and current taxes. During the receivership $501.50 was collected, $215.99 of which was paid out for taxes, insurance, repairs, and utility service, leaving $285.51 on hand when the receiver filed his final report. The court allowed the receiver and his attorney $175.00 for their services and directed the remainder to be applied, first, to the payment of the costs, and, secondly, to the deficiency judgment. The appellants resisted the appointment of a receiver but did not appeal from the order. While the receivership was pending they filed in succession, a petition to require the receiver to account to them for the rents and profits collected by him; a petition for the removal of the receiver; and objections to his final report. These various pleadings were all predicated upon the theory that the order appointing the receiver was improper because the appellants were in possession of the real estate at the time the receiver was appointed and because the property was worth more than the amount of the judgment. There was also a specific objection to the allowance made in favor of the receiver, based on his alleged negligence in failing to collect rentals.