Acres v. Moyne

59 Tex. 623, 1883 Tex. LEXIS 239
CourtTexas Supreme Court
DecidedJune 12, 1883
DocketCase No. 4878
StatusPublished
Cited by7 cases

This text of 59 Tex. 623 (Acres v. Moyne) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acres v. Moyne, 59 Tex. 623, 1883 Tex. LEXIS 239 (Tex. 1883).

Opinion

West, Associate Justice.—

In Stephenson v. Texas & Pacific E. W. Go., 42 Tex., 163, it was held that the defendant in error in that case, which was by purchase and otherwise the successor of the Southern Pacific E. E. Go., whose existence was merged in that of the Texas & Pacific E. E. Co., was a proper sole party defendant in a' [625]*625proceeding by writ of error to bring in review before this court the ■correctness of a judgment rendered in favor of the Southern Pacific R. R. Co.,, whose purchaser and successor it had become. This court in that case, with a view to determine its own jurisdiction (Const., art. V, sec. 3), inquired into the facts of the succession and merger of the two companies, and held that the writ of error would lie against the Texas & Pacific R. R. Co. as the successor of the Southern Pacific R. R. Co. In support of that view, the court in that •case cited the following authorities: Paine v. Lake Erie & Louisville R. R. Co., 31 Ind., 283; The Indianapolis, Cincinnati & La Fayette R. R. Co. v. Jones, 29 Ind., 405; Racine & Miss. R. R. Co. v. The Farmers’ Loan & Trust Co., 49 Ill., 331; Ohio & Miss. R. R. Co. v. Wheeler, 1 Black, 286; Commonwealth v. Atlantic & Gt. West. R. R. Co., 53 Pa. St., 9; 21 Ill., 451; 25 Ill., 353; Philadelphia, etc., R. R. Co. v. Howard, 13 How., 309; Mosier v. Hilton, 15 Barb., 657. See, also, Redfield on Railways, vol. 2, oh. 38, “ On the consolidation of railroad companies.”

In that case (42 Tex., 163), this court held that while the facts before it do not disclose the exact terms and conditions under which the merger or consolidation of the two corporations was effected, yet from the provisions of the general railroad law of the state on the subject, as well as to the special acts of the legislature as to these corporations that were introduced in evidence before them, they are authorized to draw the conclusion that the Texas & Pacific Railroad Co. had as a matter of fact succeeded to the charter, privileges and rights of the Southern Pacific Railroad Co., and hence a citation in error served on them was sufficient to give the court jurisdiction to revise a judgment rendered in favor of its predecessor.

In the present case, we are of opinion that the district court erred in finally excluding from the consideration of the jury the appellant’s chain of title to the land in suit, derived through the B. B., B. & C. R. R. Co., and the Gal., Har. & S. A. R. R. Co., as its successor.

The general laws of the state provide, "when a railroad corporation is sold out, that the purchasers succeed to all the rights, powers, etc., etc., of the sold-out corporation, and such purchasers can still continue to exist and do business as a corporate body under the name of the sold-out company. Pasch. Dig., vol. 1, art. 4912; R. S., art. 4260. They can proceed, after such purchase, to transact business, as fully as the sold-out corporation could do before that event. Ho change of name is required by the general law on the subject. Ho notice or publication of the purchase or merger is necessary; [626]*626nor is there any more reason for such notice than there is that the public at large should know the various changes annually made in the personnel of a corporation by the transfer in the course of business of its stock to strangers, or the changes made by death or affected by the withdrawal of an old, or the issue of a new, series of stock certificates, or any like official action of the corporation.

The new company, by operation of the general laws of the state, becomes the successor of the sold-out corporation, and occupies to the public, in the future, the same relation the sold-out company did in the past. As to the creditors and the general liabilities of the old company, for that the general law makes special provision, Pasch. Dig., vol. 1, art. 4916; R. S., art. 4264.

In its future dealings with strangers, the new organization is not compelled, on every occasion, to show by what special action or authority it has succeeded to the rights of the old company. The court, by virtue of the general laws of the state on the subject, takes judicial cognizance of the legal effect in general of such sale and purchase upon the status_ of the sold-out company and of its purchasers, without inquiring into the character or nature of the purchase or’ transfer. Hence, in the present case, had not the purchasers of the-sold-out company deemed it best to change the name of the corporation, there would have been no necessity for the purchaser of the land to have proceeded further, in developing his right of action, than to have exhibited a legal title to the land in suit in the corporation by name, and a conveyance from such corporation, or from the lawful and recognized successor of such sold-out corporation by its original name to himself. All the particulars of that purchase' and succession, the minute details df it, and the legal consequences flowing from it, and the facts as to whether such purchase was made under execution or at a trustee’s sale, or by order of court, or all the-particulars as to what exact property was acquired by the purchase^, are- matters not in issue in this case.

It would be sufficient, in order to enable a purchaser from such corporation to maintain an action of trespass to try title, to show title to the locus in quo in the original corporation, and to prove-that he held by deed from that corporation, or its lawful successor or assigns, and produce a grant to them from the government, and a deed from such corporation to himself vesting in him the fee.

From this exhibition of title the court would presume' that theJand certificate on which the patent in question is based passed by the purchase to the new company, who retained and had the right, in their dealings to use the name of the sold-out company. The [627]*627fact that there had been, ten years before the date of the suit, a sale of the entire road-bed, rolling-stock, franchises and charter rights of the company, coupled with the production by the purchaser of the patent, and a conveyance to him. from the new company of the land granted and described in it, _ would be strong proof that the land certificate in question had long before passed into the possession of the new company, and had become their property. If it is sought to resist a recovery by one in possession against such a title, then it becomes the duty of the person so resisting, by. way of defense, to show the secret vice or defect in the title which is not apparent on its face.

Let it be shown, for instance, that the corporation had previously parted with its title to some one else, or that in some other legal mode the title of the purchaser from the corporation was defective. There was no effort made to establish any such defense. And as the patent issued to the original corporation as late as 1877, many years after the change of ownership, and is found in the possession of the new company, the presumption of ownership in the new company becomes very strong. The patent inures to their benefit, and a purchaser from them obtains a legal title to the land so purchased, that would be good against any one who could not by evidence disclose a right superior to that acquired by the purchase.

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Bluebook (online)
59 Tex. 623, 1883 Tex. LEXIS 239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acres-v-moyne-tex-1883.