Lafean v. American Caramel Co.

Citations

• 271 Pa. 276
• 114 A. 622
• 1921 Pa. LEXIS 495

Syllabus

<p>Corporations — Purchase of stoclc of another compamy — Contract to employ manager — Resolution, when binding — Consideration.</p> <p>1. Where a corporation purchases and receives the stock and plant of another company under an agreement which provided for the employment of the manager of the latter company and certain other persons for a period of years, it is bound by the contract of employment.</p> <p>2. Where a corporation has by its board of directors resolved to employ its president for a period of years at a stated salary, under circumstances stated above, it is bound by the resolution, although a formal contract was not thereafter executed.</p> <p>Equity — Jurisdiction—Averments of bill — Existing conditions— Most convenient remedy — Fraud—Cross-bill—Curing defect of bill —Multifariousness—Discretion of court.</p> <p>3. The question whether a court of equity has jurisdiction must be determined by the face of the bill, and on conditions existing when it was filed.</p> <p>4. Where the rights of complainants in a bill in equity spring from the same common cause and can be determined in a single suit in equity much more conveniently than on the law side of the court, equity may assume jurisdiction because it is the most convenient remedy.</p> <p>5. The filing of a cross-bill seeking affirmative relief founded on matters clearly of equitable cognizance, growing out of the subject-matter of the original bill, will cure a defect of jurisdiction under the original bill, and authorize the granting of relief to any party entitled thereto.</p> <p>6. Where matters complained of in a bill in equity are of the same nature and all grow out of the same transaction, between the same parties, the bill should not be dismissed as multifarious.</p> <p>7. The question of multifariousness is one of convenience, and very much within the discretion of the court.</p> <p>8. To prevent a multitude of actions, equity, having assumed jurisdiction, will retain it and grant relief, altho