Commonwealth v. Doubleday-Hill Electric Co.

Citations

• 243 Pa. 235
• 90 A. 67
• 1914 Pa. LEXIS 606

Syllabus

<p>Corporations — Receivers — Receiver’s sale — Resale — Bonds — Breach of condition — Recovery.</p> <p>In an action of assumpsit on a bond conditioned that defendants would bid $11,000 for the property of an amusement company in the hands of a receiver and pay the same if the property should be knocked down to them, it appeared that the receiver had sold the property for $8,000 at a public sale previously held; on exception by one of the defendants to the return the sale was set aside under order of court requiring the exceptant to file a bond in pursuance of which the defendants filed the bond in suit; that thereafter the receiver held a second sale on terms requiring that 15 per cent, of the purchase money be paid at the time of sale, and the balance upon the confirmation thereof. The property was sold for $11,250 to a third person, who gave the receiver a cheek for 15 per cent', of the purchase money, which was subsequently dishonored; and at a resale ordered by the court the property was sold for $4,000. The receiver claimed $7,000, being the loss sustained on the resale. Defendants offered evidence that the receiver and his counsel were notified before the second sale to secure from the purchaser 15 per cent, of the purchase price but that the receiver replied that he would take a chance of getting the money; and that the creditors were then present and willing to pay $11,000 for the property. It appeared that defendants had bid $11,000 at the resale but there was evidence that they had induced a third person, who was financially irresponsible, to bid $11,250 so as to evade responsibility for their bid and that defendants had agreed to pay such third person the difference between $11,000 and the amount of his bid. The court charged the jury that the burden of proof was upon the receiver to show that he had conducted the sale in good faith under the order of the court and that he had exercised the proper care in carrying out this order and that the sale was con