Watson v. Scranton Trust Co.

Citations

• 240 Pa. 507
• 87 A. 845
• 1913 Pa. LEXIS 705

Syllabus

<p>Trusts and trustees — Trustee under corporation mortgage — Cestui que trust — Bondholder—Sale of trust property — Inadequacy of price — Supine negligence — Surcharge.</p> <p>In a proceeding by a bondholder to secure an accounting by the defendant as trustee under a corporation mortgage it appeared that the defendant had purchased the mortgaged property at a foreclosure sale for $26,000; that but little more than a year later the defendant offered the property at public sale, at which time it was sold to a bidder for $8,095; and that the plaintiff was not present at the sale, but at that time representatives of other stockholders were present and after giving notice that the sale would pass no title bid it in at the price named. It further appeared that' the sum realized for the property was only a fraction of its value, that no compelling reason appeared for the sale of the property at the time, under the peculiar circumstances, or for the price which was received. Held, that the plaintiff was not estopped by the action of other bondholders who were present at and participated in the sále, and that as to him the defendant was guilty of supine negligence in not adjourning the sale and attempting to realize more for the property and should be held responsible for his proportion of the fair and reasonable value of the property as of the date of the sale.</p>