Fidelity Trust Co. v. Hutchinson Chemical & Alkali Co.

Citations

• 221 F. 63
• 137 C.C.A. 85
• 1915 U.S. App. LEXIS 1293

Syllabus

<p>Corporations @=482—Mortgages—Expenses op Trustee—Payment.</p> <p>Under a corporate deed of trust, charging the expenses of the trustee in executing the trust upon'the proceeds arising ou a sale, where, notwithstanding a reorganization of the corporation participated in by all of the stockholders and all of iho other bondholders, the holders of the mortgage bonds had a legal right to have the deed of trust foreclosed, the1 expenses of the trustee and its counsel in the foreclosure suit should have been charged upon, the proceeds of the sale, and the court erred in ruling that they should be paid by tbe bondholders at whose Instance the suit was brought, since, if they were entitled to a foreclosure, they could not be penalized for exercising their legal right, nor could the trustee be compelled to look to the personal responsibility of the bondholders for the' payment of its expenses.</p> <p>[Ed. Note.—For other cases, see Corporations, Cent. Dig. §§ 1870, 1877-1888; Dec. Dig. @=482.]</p> <p><gc^For other cases see same topic & KEY-NUMBER, in ail Key-Numbered Digests & Indexes</p>