Bullock Electric Manufacturing Co. v. Lehigh Valley Traction Co.

Citations

• 231 Pa. 129
• 80 A. 568
• 1911 Pa. LEXIS 803

Syllabus

<p>Mortgage — Real Estate — Fixtures—Electrical generators — Lien of mortgage — After acquired property — Vendor and vendee.</p> <p>A manufacturing company made a conditional sale of four generators to a traction company, which, were installed in the power plant of the latter, replacing other generators removed, being built into the building as an essential part of the construction for which the plant was erected. Previous to the sale, the traction company had made a general mortgage, duly recorded, to a trustee for the security of its bondholders, covering among other property “All its power plant, equipment .... and other property, real, personal and mixed, now owned .... or which may hereafter be acquired, either by purchase, lease, or otherwise,” and also “All electric machines, generators, and all other apparatus” then owned or thereafter to be acquired, and containing a description of the ground upon which the power plant was erected. Subsequently a bill in equity was filed in the circuit court, asking for a receiver for the traction company; and the next day the vendors issued a writ of replevin for the generators. A receiver was later appointed, and finally the trustee acting under order of the circuit court foreclosed the mortgage and all the property described therein was sold, and purchased in the interest of the bondholders. In an action of replevin by the vendor against the vendee, in which the receiver and a bondholder intervened, the court below found as a fact that the generators were permanently installed as a necessary part of the power plant. Held, (1) that as between the vendors and the bondholders, the generators became part of the realty, and were bound by the lien of the mortgage; and (2) that the receiver and bondholder had a right to intervene in the suit.</p>