Patterson v. Lennig

Citations

• 118 Pa. 571
• 12 A. 679
• 1888 Pa. LEXIS 424

Syllabus

<p>1. As a well established rule to remain unimpaired, a trustee will not be allowed to purchase the trust property at his own sale unless by leave of the court first had, nor in any manner to make a profit out of the same.</p> <p>2. Yet, where the stock of an insolvent corporation, is placed by the owners in the hands of a stockholder, himself a creditor, “ to be used for the liquidation of the company’s indebtedness,” the surplus to be returned to the contributors, and, four years after paying the other creditors out of the stock, the trustee paid his own claim with that which remained, without fraud and at a fair valuation, and the transfer to himself appeared upon the company’s books; on a bill for an account filed by the contributing stockholders: Held, that the plaintiffs were without equity, were estopped by their acquiescence, and that the rule stated above was inapplicable.</p>