Lamar v. Hall & Wimberly

Citations

• 129 F. 79
• 63 C.C.A. 521
• 1904 U.S. App. LEXIS 4016

Syllabus

<p>1. Trust Fund — Protection—Compensation.</p> <p>One jointly interested with others in trust funds, who in good faith maintains for himself and others interested like him necessary litigation to secure or protect them, is entitled to reimbursement out of the funds protected or secured. The principle on which such allowance is based is that the plaintiff represented the others for whom he sued. But a solicitor cannot máke another person his debtor by rendering services in his behalf without his express or implied assent</p> <p>2. Corporations — Dissolution—Receivers—Trust Funds — Attorney’s Fees —Allowance.</p> <p>Suits having been brought by lien creditors against a corporation, and a receiver having been appointed, petitioners, as attorneys for a minority stockholder, filed a bill on Ms behalf, and on behalf of all others similarly situated who should come in and become parties and share in the expense of the proceedings, alleging that the former suits had been brought in bad faith, etc. The bill contained a prayer for the appointment of a receiver to operate the property, pay the debts, and thereafter to turn over to the stockholders the property remaining. A co-receiver was appointed on such petition, the suits consolidated, and after trial, in which the allegations of fraud of the minority stockholder’s bill were not proved, the court ordered a sale of the property for the payment of debts. A sale was had, and, on petitioners’ application, was set aside for inadequacy of price, and another sale ordered, and an upset price fixed, which was $40,000 higher than the amount bid at the previous sale, and the property was subsequently sold to the lien creditors for such sum, which was insufficient to pay the liens. Held, that the petitioners were not entitled to attorney’s fees, payable out of the proceeds of such sale.</p>