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ARROYO v. CHESAPEAKE INSURANCE COMPANY (ET AL. (11/17/66)

decided: November 17, 1966.

ARROYO
v.
CHESAPEAKE INSURANCE COMPANY (ET AL., APPELLANT)



Appeal from order of County Court of Philadelphia, March T., 1966, No. 2454-D, in case of Juan Arroyo v. Chesapeake Insurance Company et al.

COUNSEL

Thomas F. Wilson, with him William G. Giltinan and Edward P. Clayman, for appellant.

Sol Henry Kitei, for appellee.

Ervin, P. J., Wright, Watkins, Montgomery, Jacobs, Hoffman, and Spaulding, JJ. Opinion by Hoffman, J.

Author: Hoffman

[ 209 Pa. Super. Page 175]

The Chesapeake Insurance Company, a Maryland corporation, was declared insolvent on November 12, 1965. The Circuit Court of the City of Baltimore named Francis Burch, Maryland Insurance Commissioner, as statutory receiver. Commissioner Burch was directed to liquidate the corporation and to take possession of its assets in his own name.

[ 209 Pa. Super. Page 176]

The company's business had been suspended in this Commonwealth by the Pennsylvania Insurance Commissioner on May 27, 1965. However, no ancillary receiver was appointed here.

On March 16, 1966, plaintiff, Juan Arroyo, brought this action in foreign attachment against the Chesapeake Company in the County Court of Philadelphia, naming the Philadelphia General Adjustment Bureau as garnishee. Plaintiff alleged that he performed repair work on certain automobiles for Chesapeake and that checks which it issued in payment for this work were later dishonored.

On March 25, 1966, the Maryland Insurance Commissioner filed a petition to dissolve the attachment. He asserted that he held title to all of Chesapeake's assets by virtue of the laws of Maryland, and that, consequently, the garnished funds were immune from attachment. He also filed preliminary objections attacking the court's jurisdiction. The petition was dismissed and the preliminary objections overruled. The Insurance Commissioner now appeals.

Appellant argues that the full faith and credit clause of the federal Constitution compels our recognition of his standing as statutory receiver and an acknowledgment of his title to the assets of the Chesapeake Company. U. S. Const., Art. 4, ยง 1. We agree.

[ 209 Pa. Super. Page 177]

Appellant is more than a mere officer of the Maryland Court.*fn1 He is the person designated by the law of that state to take the property of a dissolved insurance corporation and to hold and dispose of it for the benefit of creditors and other interested parties. Relfe Page 177} v. Rundle, 103 U.S. 222 (1880), Commonwealth ex rel. v. Union Casualty Insurance Co., 287 Pa. 6, 10-11, 134 A. 435 (1926). In these circumstances, our courts are obliged by the ...


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