Pioche Mines Consol., Inc. v. Fidelity-Philadelphia Trust Co.

This is an appeal from a summary judgment granted on motioij of Fidelity-Phila delphia Trust Company, plaintiff below, and from the dismissal of a complaint in intervention of Baker and a counterclaim of Pioche Mines Consolidated and its president, Janney, who were defendants.

Pioche Mines Consolidated, a Nevada corporation, hereafter referred to as Consolidated, was formed in 1928 to hold the controlling interest in two other Nevada companies, Pioche Mines Company and Nevada Volcano Mines Company. Consolidated issued debenture bonds in the amount of several hundred thousand dollars in 1929 and 1930, mostly acquired by persons in the east. It was agreed that Fidelity-Philadelphia Trust Company, a Pennsylvania corporation, should act as trustee in these bond issues.

Thereafter Consolidated defaulted in payment of the obligations. In 1939 a group of the eastern debenture holders representing a majority of the outstanding debentures met and executed a Debenture Plolders’ Agreement. In this document these holders agreed, inter alia, to deposit their debentures with Fidelity as trustee to take such action relating thereto as the holders should direct, reserving to the holders the…