Wagner v. Philadelphia, Bristol & Trenton Street Railway Co.

Citations

• 233 Pa. 114
• 81 A. 944
• 1911 Pa. LEXIS 474

Syllabus

<p>Equity — Bills for appointment of receiver — Mortgage—Bondholders— Street railway company — Corporation—Foreclosure suit — Receiver— Costs.</p> <p>1. An equity suit by a bondholder averring a right under his bonds and the mortgage securing them to ask for the appointment of a receiver, and for the sale of all of the corporate property, but showing no other right, is a foreclosure suit, whatever the plaintiff may claim to the contrary. Such a bill is demurrable where no copy of the mortgage is appended to or made part of the bill and no reference is given as to the place where the mortgage is recorded. Where an appeal is taken from a decree sustaining a demurrer to such a bill, the appellate court cannot consider the mortgage, although it is printed as an appendix to appellant’s paper-book.</p> <p>2. Where a bondholder has improperly instituted a suit in equity, and secured the appointment of receivers, such a suit having been forbidden by the mortgage securing the bonds until certain events had arisen and certain conditions had been complied with, none of which were shown to have happened, the complainant in the suit will be properly charged with its costs when it is dismissed, and also with the legal and other expenses of the receivers whose appointment he had improperly secured.</p>