84 Mo. App. 508 | Mo. Ct. App. | 1900
On the tenth of February, 1897, Charles Green as principal stockholder in two corporations owning different lines of street railways in St. Louis, each of which was heavily indebted to holders of their respective bonds (secured by mortgages), and also for floating indebtedness, entered into a contract with three parties, termed a syndicate, for the purpose of effecting a reorganization of said corporations by consolidating them into a new corporation to be formed for that purpose, which should be required to pay in full all of the indebtedness secured and unsecured of the two former corporations. The contract further specified that said Green should institute whatever proceedings he deemed expedient to accomplish its objects, but that if foreclosure was resorted to for this purpose, the expense to the parties constituting said syndicate should not exceed $6,000. In furtherance of the scheme and plan of this contract L. M. Rurnsey, a considerable holder of the three mortgage bonds of one of the corporations (Peoples Railway Company) on behalf of himself and similar creditors employed Seymour L). Thompson and Nathan Frank to begin an equitable action against said Peoples Railway as an insolvent corporation asking for the appointment of a receiver of all its assets, real and personal, mortgaged and unmortgaged, to be managed as a trust for the benefit of creditors, until a decree could be had for the foreclosure of the third mortgage given to secure the fund held by himself and other persons. Out of the proceeds of a sale thereunder and the income and earnings of the corporation while in the hands of the receiver payment was prayed of the demands of all creditors of said corporation according to their respective priorities. The petition in question concluded by asking for such relief as the holders of the third mortgage bonds and other creditors who might become parties should be entitled. Upon the appearance to this action of defendant and other parties
“1. To the payment of costs and expenses of this cause, and to all proper expenditures attendant upon said sale or sales, including compensation of the special commissioner, and also other proper allowances, compensation and disbursements as shall be fixed, allowed and taxed by this court.”
The present proceeding is on motion of Seymour D. Thompson and Nathan Frank for a reasonable allowance for their services as solicitors for plaintiff up to the time of their withdrawal. The court after hearing evidence tending to prove the foregoing facts, and also as to the value of such services, ordered $1,500 to be paid to such solicitors out of the fund in the hands of its clerk in this cause, from which ruling plaintiff appealed to this court.
The original action in this case was strictly equitable under the allegations and prayer for relief contained in the petition. Hannah v. Davis, 112 Mo. loc. cit. 607; Brim v.
Our conclusion is that the judgment in this case must be affirmed.