Heidrick v. Pittsburgh, Summerville & Clarion Railroad

Citations

• 239 Pa. 29
• 86 A. 527
• 1913 Pa. LEXIS 518

Syllabus

<p>Judgments — Opening judgment — Corporations—President—Advances by president — Confession of judgment in favor of officer.</p> <p>Where the president of a corporation advances money to lift certain promissory notes of the company on which he was endorser, and the directors of the company in good faith authorize a confession of judgment in his favor for the amount of the advances, and it appears that the president is the only creditor of the company apart from its mortgage bondholders, the judgment will not be opened at the instance of persons who are neither creditors nor bona fide stockholders of the company; it further appearing that there was no money invested in the stock, and that the company’s line of railroad had been leased for a term of years under a lease which required the lessee to pay the interest on the bonds and all other charges and expenses, and out of net income, if any, to pay the indebtedness held by the plaintiff in the judgments.</p>