Clay v. Selah Valley Irrigation Co.

Citations

• 14 Wash. 543
• 45 P. 141
• 1896 Wash. LEXIS 403

Syllabus

<p>RECORD ON APPEAL — INCLUSION OP AFFIDAVITS — TRUST DEED — INSOLVENCY AND FRAUD OF TRUSTEE — ACTION BY BONDHOLDERS — RECEIVER,</p> <p>In order to entitle affidavits purporting to have been used on the hearing of a motion for the appointment of a receiver, to be considered on appeal, the fact that they were so presented must be certified by the court in some manner.</p> <p>The written notice contemplated by a provision of a trust deed, that upon default in payment of interest the bonds secured shall, at the election of the trustee, become immediately due upon the giving of such written notice, may be dispensed with and the election made by the bondholders, where the corporation deceived them as to the amount due on a mortgage to the trustee and conspired with the trustee to dispose of the property contrary to the provisions of the deed.</p> <p>The appointment of a receiver on the application of bondholders, upon the foreclosure of a trust deed, is warranted when it is shown that the trustee is insolvent, occupies an adverse position to the bondholders, and has been guilty of fraud.</p> <p>A part of the bondholders may maintain an action to foreclose a trust deed securing the bonds, where there are numerous bondholders residing at a distance who are unknown to plaintiffs, under Code Proc., § 144, which provides that when the question is one of common or general interest to many persons, or the parties are numerous, and it-is impracticable to bring them all before the court, one or more may sue for the benefit of the whole.</p>