American Vulcanized Fibre Co. v. Taylor

Citations

• 10 Del. Ch. 202
• 87 A. 1025
• 1913 Del. Ch. LEXIS 21

Syllabus

<p>Since the purpose of a preliminary injunction is the maintenance of the status quo of the subject-matter of the litigation, it will not be granted where there is not sufficient evidence that the status quo will be so changed prior to the final decree that the rights claimed by complainant will be injuriously affected. . .</p> <p>. A cestui que trust, whose claim against his - deceased trustee is disputed, cannot enjoin -the disposition by the legatees of the deceased trustee of property derived from the estate of the trustee.</p> <p>Where a suit is pending against legatees of a testator, brought by a corporation, seeking cancellation of shares of stock because testator obtained the stock from complainant corporation under such circumstances as to constitute him a trustee of same for the corporation, any one purchasing or taking the shares of stock from the legatees would take with notice of the rights of the complainant; hence there is no necessity for a' temporary injunction restraining the disposition of the stock' by the legatees.</p> <p>Neither is there necessity for an injunction restraining a disposition of shares by a purchaser from the legatees who has not paid the consideration in full, since, if they were impressed with a trust in the hands of the legatees, they will likewise be impressed with a trust in his hands, except as to the amount paid therefor prior to notice.</p> <p>To constitute one a purchaser for value without notice, the whole, consideration must be actually paid before notice, and it is not enough that the consideration was secured to be paid.</p>