Covington v. Hawes-LaAnna Co.

Citations

• 245 Pa. 73
• 91 A. 514
• 1914 Pa. LEXIS 834

Syllabus

<p>Equity — Equity practice — Receiverships — Findings of fact— Appeals.</p> <p>1. Where upon the audit of a receiver’s account, the receiver is surcharged with various sums in consequence of certain findings of fact, and such findings are affirmed by the court below, they will not be disturbed on appeal unless it is clearly shown that they are erroneous.</p> <p>Receivership — Surcharge—Operation of business — Loss—Sale of property — Receiver’s compensation — Counsel fees — Discretion of court.</p> <p>2. Neglect, recklessness, or misconduct in the management of a trust estate in his hands may be sufficient to deprive a receiver of all right to compensation.</p> <p>3. Appellant was appointed receiver of a manufacturing corporation, upon a bill in which he was plaintiff and to which he made affidavit averring that the assets of the company as a going concern amounted to $150,074.91, and that there were orders on hand fox' goods which if filled, would net a handsome profit. It was set forth in affidavits filed with the bill that if the business were continued sufficient funds could be realized to pay the creditors in full. Upon these averments the receiver was ordered to continue the business. Appraisements made soon after the receiver’s appointment showed the total value of the property to be $135,505.60, and the receiver charged himself with that amount in his accounts subsequently filed. After some intervening accounts and petitions, the court made an order directing that the business be closed up by the receiver not later than a day named, and that the property of the corporation should be sold under the instructions of the court. The property was sold subsequent to the time fixed for very small prices, and the final account of the receiver showed a net balance of $2,963.54. At the audit it appeared from the testimony of an expert accountant that there was an apparent loss in the operation of the business of $11,698.50. The auditor surcharged the receiver with this