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PENNSYLVANIA TURNPIKE COMMISSION v. EVANS (03/17/58)

March 17, 1958

PENNSYLVANIA TURNPIKE COMMISSION
v.
EVANS, APPELLANT.



Appeal, No. 19, May T., 1958, from decree of Court of Common Pleas of Dauphin County, at No. 91, Commonwealth Docket, 1957, No. 2238 Equity Docket, in case of Pennsylvania Turnpike Commission v. Thomas J. Evans et al. Decree affirmed.

COUNSEL

Frederick G. McGavin, with him Earl V. Compton and Compton, Handler & Berman, for appellant.

Harold E. Kohn, with him Aaron M. Fine and Dilworth, Paxson, Kalish, Kohn & Dilks, for appellee.

Before Jones, C.j., Bell, Chidsey, Musmanno and Jones, JJ.

Author: Jones

[ 392 Pa. Page 111]

OPINION BY MR. JUSTICE BENJAMIN R. JONES

Manu-Mine Research and Development Company has appealed from the grant of a preliminary injunction by the Court of Common Pleas of Dauphin County, at the instance of the Pennsylvania Turnpike Commission,

[ 392 Pa. Page 112]

    restraining the transfer by it of its bank account, or any part thereof, and the disposition of any assets and funds coming into its possession.

On March 6, 1957 the Pennsylvania Turnpike Commission (herein called Commission) instituted an equity action against Thomas J. Evans, former Commission Chairman, Manu-Mine Research and Development Company (herein called Manu-Mine) and its officers, directors and stockholders. In this action the Commission sought: (1) to enjoin Manu-Mine, its directors, officers and stockholders, from disposing of Manu-Mine's assets and funds - to either themselves or others - until final determination of the Commission's claim; (2) to require certain of the individual defendants (the Sticklers, Landsidle and Dalpra) to repay to Manu-Mine all bonuses, salaries and other payments received by them from Manu-Mine since 1951 and to have them declared trustees ex maleficio of all such sums; (3) to have a receiver appointed; (4) to enjoin all the defendants from destroying or disposing of their records and (5) a judgment in the Commission's favor and against Manu-Mine, Evans, the Sticklers and Landsidle in the amount of $11,329,141.59.

The complaint itself - charging a fraudulent conspiracy between Evans as Commission Chairman and the other defendants, - alleges that the Commission was defrauded of large sums of money in connection with a so-called "Tunnel Contract" and a mine flushing contract in connection with the northeast extension of the Pennsylvania Turnpike.

The Commission alleges that, even though Manu-Mine and its personnel were totally inexperienced, Manu-Mine proposed to the Commission that it perform certain experimental and maintenance work for the prevention of water leakage in certain ...


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