Kerin v. Mercantile Trust Co.

Citations

• 226 Pa. 557
• 75 A. 843
• 1910 Pa. LEXIS 819

Syllabus

<p>Equity — Contract—■Rescission.</p> <p>1. Where a person purchases from an assignee of an insolvent, the bonds of a railroad company in the hands of a receiver, the property of which is about to be judicially sold, and the purchaser has full knowledge of the condition of the railroad, and his purpose in acquiring the bonds is to secure control of the railroad, he cannot rescind his contract because he had relied upon the synopsis of a master’s report to be filed in the foreclosure proceedings, showing certain liens, and this report, filed after the purchase of the bonds, had, on exceptions, been modified by the court so as to increase the amount of the liens ahead of the bonds.</p> <p>Equity — Equity practice — Cross bill — Parties—Act of June 7, 1907, P. L. 440.</p> <p>2. New and distinct matters are not within the scope of a cross bill in an equity suit.</p> <p>3. In a bill in equity for the rescission of a contract, a cross bill for money due on such contract will be sustained though introducing parties other than the plaintiff in the original bill as defendants, where it appears that such other parties are sureties on the bond of the original plaintiff to bind the contract, that they are in fact principals with such plaintiff in the contract, that the parties have seen fit to go into the whole controversy on its merits; that no substantial defense was offered, and that defendants to such cross bill have waived their right to a trial by jury under the Act of June 7, 1907, P. L. 440, and that neither by demurrer or answer do they set up want of jurisdiction in equity.</p>