Appeal, No. 139, Jan. T., 1953, from judgment of Court of Common Pleas No. 3 of Philadelphia County, June T., 1951, No. 6096, in case of Meyer M. Weissman v. A. Weissman, Inc. Judgment reversed; reargument refused July 20, 1953.
Harry O. Weinberg, with him Henry Arronson, for appellant.
Wesley H. Caldwell, with him, Edward J. Hardiman and Roper & Caldwell, for appellee.
Before Stern, C.j., Stearne, Jones, Bell, Chidsey and Musmanno, JJ.
OPINION BY MR. JUSTICE JONES
In 1930 Abraham Weissman, who had conducted a real estate business in Philadelphia for a number of years (latterly in association with his son, Meyer, the plaintiff and present appellee), formed a corporation
under the name of A. Weissman, Inc., to which the assets of the real estate business were transferred. The stockholders of the corporation were Abraham Weissman, his son, Meyer, and his wife, Bertha. They also constituted the officers and directors of the corporation, Meyer being president and secretary, Abraham, treasurer, and Bertha, vice president. Abraham and Meyer, however, were the ones active in the management of the affairs of the corporation.
Among the assets transferred to the corporation was a property located at 922-924 North Third Street, Philadelphia, which was subject to a mortgage from one Meyer Goldstein to a Laura Allen securing the payment of an indebtedness of $4500 evidenced by Goldstein's bond. Laura Allen having died, the Girard Trust Company qualified and served as co-executor of her will. The corporation permitted the taxes and the interest on the mortgage to become delinquent and made no repairs to the property so that, by 1939, the mortgagee had entered into possession of the premises because of the existing defaults under the terms of the mortgage. On March 12, 1939, Meyer Weissman purchased the mortgage from the co-executor of Laura Allen's estate with his own money for the sum of $600 and took an assignment of it in his name which he forthwith recorded. In the succeeding years A. Weissman, Inc., reported the mortgage in its corporate loans tax reports to the Department of Revenue of the Commonwealth as an indebtedness due Meyer. Abraham, as treasurer of the company, swore to the verity of these reports. Abraham died in 1948 and disagreements in the family over the corporation's business soon arose. It is not entirely clear from the record but, apparently, Meyer gave up the management of the company in November 1948; and, since April 1949, his sister, Rose, who was not a stockholder of the corporation, has been managing its affairs, acting in behalf of
her mother. The mother testified at the trial below that, during a conversation in the Abraham Weissman home, Meyer was requested to obtain the mortgage for the corporation. He flatly denied any such conversation or that he had ever discussed with his mother his purchase of the mortgage. According to the verdict, the jury accepted Meyer's version; and the latter fact stands as so established.
In August 1951 Meyer instituted the present action to foreclose the Goldstein mortgage, summoning as defendant, A. Weissman, Inc., the record owner of the property. Bertha, the vice president of the corporation, filed an answer in the company's behalf. At the ensuing trial the jury returned a verdict for the plaintiff for the mortgage debt, interest and costs in the total sum of $7,702.50. The defendant filed motions for judgment n.o.v. and for a new trial, both ...