Pacific Railroad of Missouri v. Missouri Pacific Ry. Co. And Others. 1

Citations

• 111 U.S. 505
• 4 S. Ct. 583
• 28 L. Ed. 498
• 1884 U.S. LEXIS 1810

Syllabus

<p>Equity — Fraud—Laches—Pleading.</p> <p>In 1876, K brought a suit, in a Circuit Court oí the United. States in Missouri, to foreclose a mortgage on a railroad, making the railroad corporation (a citizeij: of Missouri) and others defendants. There was a decree of sale, and a sale, and it was confirmed in October, 1876. In February, 1877,' the corporation appealed to this court. The case was affirmed here in April, 1880. In June, 18S0, the corporation filed a bill in the same court against another Missouri corporation (a citizen of. Missouri) and other citizens of Missouri, alleging fraud in fact in the foreclosure suit, in the conduct of the solicitor and directors of the corporation defendant in that suit, and praying that •' the decree in the K suit be set aside. On demurrer to the bill, Feld :</p> <p>(1.) The record in the K suit, not being made a part of the bill or the record in this suit, could not be referred to :</p> <p>(2.) The charges of fraud, in the bill, were sufficient to warrant the discovery and relief based on those charges ;.</p> <p>(8.) The case set forth in the bill, being one showing that no real defence was •• made in the K suit, because of the unfaithful conduct of the solicitor and directors of the defendant in that suit, was one of which a court of equity . would take cognizance : '</p> <p>(4.) There was no laches in filing the bill, as the time during which the appeal to this court was pending could not be counted against the plaintiff; (S.) As the bill showed hostile control of the corporate affairs of the plaintiff by its* directors during the- period covered by the K suit, mere knowledge by, or notice to, the plaintiff, or its directors, or officers,-or stockholders, of the facts allegted in the bill during that period, was unimportant, a case of acquiescence, assent, or ratification, or of the intervention of the rights of innocent purchasers, not being shown by the bill, and the corporation having acted promptly when freed from the co