Froment v. Lessig

Citations

• 174 Pa. 487
• 34 A. 125
• 1896 Pa. LEXIS 911

Syllabus

<p>Trusts and trustees — Corporations—Committee of creditors to reorganize corporation.</p> <p>On a bill in equity to declare void a sale of real estate, it appeared that the real estate in question had been the property of an insolvent corporation, and that it had been bought in at a sheriff’s sale by a committee of creditor’s of the corporation, appointed to purchase the property, levy an assessment on the creditors, and organize a new corporation. Plaintiff was a large stockholder of the corporation, and also a creditor, who had entered into the agreement. The committee purchased the plant at public sale for $4,000 and assumed other liens thereon for'about $5,000 more, and proposed to raise $20,000, by issuing mortgage bonds and distributing them among the creditors at the rate of 50 per cent of their claims, to pay off certain liens on the property, reimburse themselves and provide a fund for working the plant. This proposal was defeated through the objection of plaintiff and other creditors, and instead the committee was ordered by a majority of the creditors, against the objection of plaintiff, to sell the property and reimburse themselves. Plaintiff was not present at the meeting which authorized the committee to sell the property, but he had notice of the meeting, and was represented by his brother. Held, that the plaintiff was not entitled to have the sale set aside and specific performance of the agreement.</p>