Pramuk's Appeal

Citations

• 250 Pa. 45
• 95 A. 326

Syllabus

<p>Corporations — Receiverships— Compensation of receiver — Improper payments — Wage claims — Act of May 12, 1891, P. L. 5k, Section 1 — Surcharge.</p> <p>1. A receiver is an officer of the court; and, by accepting such an appointment, he accepts the responsibility of his office, which involves the exercise of his best business experience and influence for the benefit of the company, in the same manner as if he were the sole owner of the business. For these services the law recognizes the justice of compensation measured by the circumstances of the ease. Beyond such compensation the receiver may not profit by his position to the detriment of the creditors or owners of the business.</p> <p>2. The Act of May 12, 1891, P. L. 54, Section 1, which provides that money due for labor and services for an amount not in excess of $200 and for a period not exceeding six months preceding the sale or transfer of the real or personal property of any person or company by execution or otherwise on account of the death or insolvency of such employer or employers, shall be first paid out of the proceeds of the sale of such real and personal property, does not authorize the payment of wages as a preferred claim unless a sale of the property has taken place.</p> <p>3. Where a receiver has been authorized to conduct the business of a corporation, but before the sale of the property the corporation has been adjudged a bankrupt and its property has passed into the hands of a trustee in bankruptcy, the receiver cannot properly pay wage claims incurred by the company before the receivership.</p> <p>4. The receiver of a brewing company had, prior to his appointment, been engaged in the wholesale liquor business and had handled a large part of the output of the brewing company. He had received a monthly salary of $600 from the brewing company in consideration of his having rejected an offer to sell out his wholesale liquor business and having continued to handle the output of the brewing compa