Johnson v. Lehigh Valley Traction Co.

Citations

• 130 F. 932
• 1904 U.S. App. LEXIS 4857

Syllabus

<p>L Railroads — Forfeiture of Lease — Effect of Appointment of Receivers for Lessee.</p> <p>Receivers appointed for a lessee of railroad property have a reasonable time after their appointment in which to determine whether or not they will assume the lease, and where, in such case, formal action was not taken by the lessor company until after their appointment to declare a forfeiture because of a default in the payment of rent which matured prior to the receivership,- and within a few days after the expiration of the time for making such payment as fixed in the lessor’s notice it was made by the receivers, and received and retained by tbe lessor, the court of which the receivers are officers will not enforce the forfeiture on petition of the lessor.</p> <p>2. Landlord and Tenant — Forfeiture of Lease — Equity Jurisdiction.</p> <p>Where a tenant is in possession, equity has no jurisdiction to enforce a forfeiture of a lease, the lessor having an adequate remedy by ejectment. •</p> <p>8. Same — Right to Enforce Forfeiture.</p> <p>Forfeitures not being favored by courts, either of law or equity, the requirements of a lease must be strictly followed by the lessor before a forfeiture will be enforced against the lessee.</p> <p>4. Same — Railroad Lease.</p> <p>A lease of railroad property provided that in part payment of the rental the lessee should pay semiannual dividends directly to the stockholders of the lessor company, which was required to declare such dividends in advance of each payment, and to furnish the lessee with a list of the stockholders. This requirement had not been observed, the payments having been made to the lessor company which distributed the same. Default was made in one of such payments and correspondence ensued in which the lessee endeavored to obtain further time, and certain stockholders stated their desire not to be insistent, and at this time receivers were appointed for the lessee. A resolution was then passed by the lessor’s stockholders