Brown v. Schleier

Citations

• 194 U.S. 18
• 24 S. Ct. 558
• 48 L. Ed. 857
• 1904 U.S. LEXIS 914

Syllabus

<p>A.national bank erected a building on leased property, the lease securing the landlord by a lien^on the building and the personal obligation of bank. While a large amount of rent and taxes were unpaid the bank became insolvent, the property was not paying fixed charges; after notice to, and no objections by, the stockholders, and no creditors intervening, the bank conveyed the property with the building back to the landlord in consideration of his releasingthe bank and the stockholders from all liabilities accrued and to accrue under the lease.</p> <p>Held that the proceeding was not ultra vires, and that as the judgment of the stockholders and officers had been prudently exercised in good faith the landlord acquired title to the land and building and was not liable to account for the value of the building in an action brought by a creditor who had knowledge of, and had not protested against, the conveyance when made.</p> <p>It is exceedingly disputable whether it is an abuse of discretion justifying reversal by this court, for the Circuit Court to deny a motion to file an amended bill after judgment entered.</p>