Glenn v. J. C. Trees Oil Co.

Citations

• 266 Pa. 74
• 109 A. 793
• 1920 Pa. LEXIS 503

Syllabus

<p>Equity — Accounting—Sale of oil leases — Corporations — Evidence — Offer—Objection—Irrelevant or incompetent — Rebuttal— Fraud or deceit.</p> <p>1. On a bill in equity by a stockholder of a corporation against the company and three persons named as all its officers and directors and against the three persons individually, for an accounting of money received from the sale of a large number of oil leases alleged to be owned either by the company or held for its use by the individual defendants, the plaintiff claimed that the leases had been sold for $6,000,000 covering all the properties, but that the individual defendants had improperly and fraudulently retained for their own use $1,850,000. It was admitted that the purchase price of $6,000,000 was entire, but the individúal defendants claimed that the $1,850,000 represented leases owned by them personally, and that plaintiff knew of this and consented to the sale as made. They offered no direct proof that plaintiff had agreed to any particular apportionment, but claimed that he knew all the circumstances and had acquiesced in the apportionment as made. The written contract of sale made no mention of any apportionment, but provided that all payments should be made to the company or its representatives. The evidence on the issue thus made was conflicting. Held:</p> <p>(a) That any evidence was admissible, which, if true, would tend to prove an effort to deceive plaintiff in material matters relating to the sale, or which would reasonably go to show him entitled to an accounting, as to any part of the moneys claimed.</p> <p>(b) That any evidence offered by the individual defendants tending to prove that any part of the proceeds of the sale belonged to them rather than to the corporation, might be rebutted by plaintiff.</p> <p>(c) That, since the evidence on controlling points at issue was conflicting and the credibility of certain of defendants’ witnesses on these points important, it was reversible error to refuse