Hays' Estate

Citations

• 159 Pa. 381
• 28 A. 158
• 1893 Pa. LEXIS 1523

Syllabus

<p>Equity — Maxims—Clean hands — Fraud.</p> <p>The maxim that “ he who comes into a court of equity must come with clean hands,” considered as a general rule controlling the administration of equitable relief in particular controversies, is confined to misconduct in regard to, or at all events connected with, the matter in litigation, so that it has in some measure affected the equitable relations subsisting between the two parties and arising out of the transaction.</p> <p>Judicial sale — Combination to prevent bidding — Public policy — Subrogation — Equity.</p> <p>A contract between two or more lien creditors, by which one of them is not to bid at a judicial sale, made without the knowledge and consent of the defendant, is contrary to public policy and void.</p> <p>A lien creditor who has entered into such a contract is not entitled to be subrogated to the rights of the defendant as against third parties whose interests have been affected by the lessened competition in the .bidding.</p>