Beneficial Corp. v. Reading & Southwestern Street Railway Co.

Third Circuit

Beneficial Corp. v. Reading & Southwestern Street Railway Co.

185 F.2d 238

CourtCourt of Appeals for the Third Circuit

DecidedNovember 29, 1950

DocketNo. 10279

StatusPublished

This text of 185 F.2d 238 (Beneficial Corp. v. Reading & Southwestern Street Railway Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Beneficial Corp. v. Reading & Southwestern Street Railway Co., 185 F.2d 238 (3d Cir. 1950).

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Opinion

PER CURIAM.

This appeal presents the question whether stockholders of a lessor street railway company are entitled, under the provisions of a long term lease of all the company’s assets and franchises, to have the rent stipulated for in the lease paid by the lessee directly to them as dividends, although the board of directors of the company has by resolution directed the lessee to pay the rent to the company in order to provide funds for the payment of the debts of the company. The district court held that the company was entitled to receive the rent rather than its shareholders and entered a summary judgment for the defendant. We find ourselves in complete accord with the reasoning and conclusions of the district court as stated in the opinion filed by Judge Bard, 91 F.Supp. 803, to which we need add nothing.

The judgment of the district court will be affirmed.

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PER CURIAM.

This appeal presents the question whether stockholders of a lessor street railway company are entitled, under the provisions of a long term lease of all the company’s assets and franchises, to have the rent stipulated for in the lease paid by the lessee directly to them as dividends, although the board of directors of the company has by resolution directed the lessee to pay the rent to the company in order to provide funds for the payment of the debts of the company. The district court held that the company was entitled to receive the rent rather than its shareholders and entered a summary judgment for the defendant. We find ourselves in complete accord with the reasoning and conclusions of the district court as stated in the opinion filed by Judge Bard, 91 F.Supp. 803, to which we need add nothing.

The judgment of the district court will be affirmed.

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185 F.2d 238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beneficial-corp-v-reading-southwestern-street-railway-co-ca3-1950.

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