Girard Life Insurance v. Bedford Coal & Iron Co.

Citations

• 20 Pa. Super. 304
• 1902 Pa. Super. LEXIS 229

Syllabus

<p>Mortgage — Foreclosure—Costs—Counsel fees — Compensation of trustee— Compensation of receiver.</p> <p>Where prior to foreclosure proceedings on a corporation mortgage, the trustee of the mortgage requires the bondholders to deposit with it a sum of money for costs, the trustee’s compensation and counsel fees, and this amount is deposited on the understanding, that it is to cover not only the expenses of foreclosure, but also the expenses of the sale of the mortgaged property, and in the subsequent foreclosure proceedings the court does not direct that the sale shall be made by the trustee, but orders it to be made by a receiver previously appointed, the allowance to the trustee for compensation and counsel fees will not be determined by the amount deposited, but a reasonable deduction will be made on account of the redueed work to be done. On the other hand, the right of the receiver and his counsel to compensation out of the fund raised by the sale i’s.restrieted to service rendered after the date of the decree of foreclosure.</p> <p>In such a case where only one of the bondholders object to the amounts claimed by the trustee and receiver and allowed by the lower court, the appellate court will not disturb the decree further than is necessary to secure to the objecting bondholder the pro rata share of the fund for distribution which he would have received if the total allowances to the trustee arid the receiver and their respective counsel had been fixed at the reduced sums.</p>