245 Pa. 73 | Pa. | 1914
Opinion by
This appeal by W. Winfred Nuss, who was receiver of the Hawes-LaAnna Company, is from the decree of the court below, affirming the report of an auditor who was appointed to pass upon the accounts of appellant as re
In the first assignment it is alleged that there was error in surcharging the receiver with losses in the operation of the business amounting to $11,698.50. It appears that in the bill filed asking for the appointment of a receiver, appellant averred that a fair and reasonable valuation of the assets of the company as a going concern was $150,074.91 and it was stated in the bill that there were orders on hand for goods, to the amount of about $150,000.00, which if filled, would net a handsome profit to the corporation. It was averred in the affidavit that the business was conducted at a profit, and if undisturbed would soon realize sufficient funds to pay creditors in full and save the property intact for the stockholders. Shortly after his appointment the receiver had an appraisement of the property made, by three appraisers selected by himself. They figured the total value of all the property at $135,505.60. This inventory and appraisement was made August 16, 1907, but was not filed until July 28,1908. On November 10, 1908, the receiver filed his first account in which he charged himself with the amount of the inventory and appraisement and claimed to have made a gain of $1,680.01. After deducting all credits claimed, this account showed property in the hands of the receiver of the value of $128,353.19. On June 3,1909, certain creditors and stockholders of the company filed a petition asking for the revocation of the appointment of the receiver, to which he filed an answer, in which he denied that the assets of the corporation were growing less, or that its business had been conducted to the injury of the stockholders and creditors, and averred that the business had been conducted without loss. On July 6, 1909, the court made an order directing that the business be closed up by the receiver not later than January 1, 1910, and that the property of the corporation, both real and personal, should be sold under the instruction of the
In the second assignment, it is alleged that there was error in surcharging the receiver with the sum of $13,-000.00 for alleged shrinkage of assets. In the order of the court of July 6,1909, there was a direction that “the conduct of the business by the receiver is to be finally closed up not later than January 1, 1910, and immediately thereafter said receiver shall cause to be made a full inventory and appraisement of the assets on hand.” The business was not, however, finally closed up until after the date named, and the inventory and appraisement was not made until March 26, 1910. It included the stock, tools and other personal property at the factory at Towanda, which was appraised at $14,-531.47. This appraisement was made by ten men, who all made an affidavit that the inventory was true and correct. Yet within two wteeks the receiver sold this
In the third assignment, counsel for appellant alleges error in refusing to allow compensation to the receiver. This was a matter largely within the discretion of the court below. The negligence of the receiver was conceded. His counsel admitted the propriety of and did not contest, surcharges amounting to $18,689.86. In view of these facts it certainly cannot be said that there was any abuse of discretion upon the part of the court below, in refusing compensation to the accountant. An officer of a court, when found guilty of inefficiency and wilful neglect of duty, as this receiver was shown to have been, can have no just claim for compensation. The general rule upon the subject is summed up in 34 Cyc. L. & N. 468, where it is said: “Neglect, recklessness, or misconduct in the management of a trust estate in his hands may be sufficient to deprive the receiver of all right to compensation. So where a receiver shows want of capacity in the management of the property intrusted to him, and a lack of appreciation of his obligations as receiver, his claim for compensation may be rejected or reduced.” This statement of the law is supported by Pangburn v. American Vault, Safe & Lock Co., 205 Pa. 93; Schwartz v. Keystone Oil Co., 153 Pa. 283.
In the fourth assignment of error complaint is made of the disallowance of counsel fees. The auditor allowed what he considered a proper and reasonable fee for services rendered by counsel to the receiver, for the
The assignments of error are all dismissed, and the decree of the court below is affirmed.