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FLAGG ESTATE

365 Pa. 82 (1950)

Flagg Estate.

Supreme Court of Pennsylvania.

May 22, 1950.

Attorney(s) appearing for the Case

Robert T. McCracken and Maurice Bower Saul, with them J.H. Ward Hinkson and J. Rech Guckes, for appellants.

Clarence E. Hall and Charles P. Grimes, with them Edwin E. Lippincott, 2nd, William Alexander Hamilton, James Conwell Welsh and Hall, Hamilton, Wainwright & Welsh, for appellees.

Before MAXEY, C.J., DREW, LINN, STERN, STEARNE and JONES, JJ.

OPINION BY MR. JUSTICE LINN, May 22, 1950:

The decree set aside redemptions of preferred stock, part of the trust estate, on the ground that the accounting trustees were also in control of the redeeming corporation and that the existence of this conflict of interest of the trustees, on the one hand, and of themselves, in charge of the corporation, violated the absolute phase of the self-dealing rule and destroyed the effect...

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