Commonwealth v. Monongahela Valley Bank

Citations

• 239 Pa. 254
• 86 A. 719
• 1913 Pa. LEXIS 547

Syllabus

<p>Insolvency — Banicing corporation — Receiver — Indebted stockholder — Right to retain dividends — Res adjudicata — Allowance for fees — Burden of showing the unreasonableness of fees — Findings of fact — Surcharge.</p> <p>1. On an appeal from a decree of court confirming the report of an auditor upon the final account of a receiver, a question arising out of the alleged failure of the receiver to retain dividends, etc., accruing to a stockholder, to discharge his liabilities to the bank will not be considered where it appears that while the bank might have successfully asserted its right, nevertheless the court permitted the receiver to dispose of the obligations of the stockholder which it held, and in the order authorizing such disposition a clause was inserted directing tbe payment to the purchaser of any dividend which might be declared upon the stock, and that this disposition was afterwards confirmed and no exceptions were filed or appeal taken.</p> <p>2. Where in such a case an objection is made to the amount allowed to the receiver as fees and expenses, the burden is upon the receiver to show that the payments were reasonable, and it is his duty to make proof of the services rendered, and to show the fair value of the time and labor actually required in the discharge of these services; and the presentation of a bill containing a series of unitemized charges in lump sums of considerable amounts is not sufficient.</p> <p>3. In such a case it is not error to allow the receiver credit for a sum of money, the amount of a dividend from the estate of a bankrupt debtor, received and paid over to the purchasers of the assets of the insolvent company after the date of the latter’s bid where the auditor justifiably found, which finding was sustained by the court, that the sum represented the proceeds of a claim fairly to be considered as part of the assets purchased and that its conversion into money did not alter the case.</p> <p>4. In such a case the question of a