180 Pa. 529 | Pa. | 1897
Opinion bt
The learned master found the fact of fraud in favor of the appellant, and we are therefore not required to consider the complicated transactions out of which the cause of action arose, further than as they bear upon the only question really before us, the delay of appellant in bringing its bill.
The right of action accrued in February, 1882, and this bill was not filed till more than six years later. Are there sufficient circumstances to excuse the delay either at law or in equity ? The bill is a substitute for an action of deceit, the basis of which is that plaintiff was induced to discount two notes of the Siemens Anderson Steel Company, for thirty-three thousand dollars each, by the false and fraudulent representation that the capital stock of that company, of one and a half million dollars, was full paid. It is not claimed that such representation was made by any of defendants, but by one Cosgrove, charged as being an agent or coconspirator with defendants and the master has found that the latter so acted as to participate in or be responsible for kjs fraud. Whether we should have reached the same conclu
As already said the last note came due in February, 1882, and was not paid. The Siemens Anderson Steel Company had in the spring of 1881 bought out the Pittsburgh Steel Works, then conducted by Anderson & Co. That firm appear to have been in fact insolvent at that time, though their credit was fair, and their real condition is not shown to have been known to any one except probably to Cosgrove who was the financial clerk or manager. The Siemens Anderson Steel Company having thus involved itself at the outset with an insolvent company, came to speedy failure, and in November, 1881, confessed judgments on which its entire property was sold out in January, 1882. At this point the facts which the master held equivalent to notice, came in. On January 28, 1882, just after the sheriff’s sale under the confessed judgments, and before actual delivery of the company’s property to the purchasers, Dr. Siemens through his agent presented a petition to intervene and to open the confessed judgments, on the ground that the property was covered by a mortgage which was security for the bonds of the company, and he was the holder of $800,000 of said bonds which he had received in payment for his license to
Decree affirmed with costs.