Ross v. South Delaware Gas Co.

Citations

• 10 Del. Ch. 236
• 89 A. 593
• 1914 Del. Ch. LEXIS 12

Syllabus

<p>A trust estate must, as a rule, bear the expense of its administration; and where one of a number of parties having a common interest in a trust fund takes proper proceedings, at his own expense, to secure it from destruction, he is entitled to reimbursement for his expense for legal advice, either from the fund itself, or by contributions from the beneficiaries of his efforts; and the same rule is applied to creditors’ suits, where a fund is realized by plaintiff’s diligence.</p> <p>Where a creditor of an insolvent company sues for the appointment of a receiver and to wind up the corporate affairs, compensation will be allowed his attorney for ’services rendered in the receivership suit, to be paid from the fund in the hands of the receiver, provided the attorney’s services are beneficial to the other creditors.</p> <p>Where the stockholder of a gas company instituted suit for the appointment of a receiver, and the assets of the company were converted into money by the receiver for distribution among bondholders, the expenses incurred by such stockholder for legal services in instituting the receivership proceeding should be paid out of the fund received for distribution among the bondholders.</p>