Howard v. Railway Co.

101 U.S. 837, 25 L. Ed. 1081, 1879 U.S. LEXIS 1994
CourtSupreme Court of the United States
DecidedMay 10, 1880
Docket288
StatusPublished
Cited by32 cases

This text of 101 U.S. 837 (Howard v. Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howard v. Railway Co., 101 U.S. 837, 25 L. Ed. 1081, 1879 U.S. LEXIS 1994 (1880).

Opinion

Mr. Justice Clifford

delivered the opinion of the court.

Possession of the lands in controversy was held by the defendants at the time laid in the declaration, as the road-bed, depot site,-and other structures of their railroad, at the described locality, and the plaintiff brought ejectment to recover the premises, claiming title to the same by purchase at a sheriff’s sale by virtue of a seizure to satisfy a judgment recovered in the name of Sebre Howard against the original company owning and • operating the railroad and under which both parties claim title.

Sufficient appears to show that the company became indebted to the judgment creditor in the sum of $25,000, and gave him its promissory' note for that amount. Payment being refused, he sued the same, and on May 1, 1858, recovered judgment for the amount. Execution in due form issued on the judgment, and the' sheriff, by virtue thereof, seized and sold the property to the plaintiff, Jan. 15, 1859, as appears by the deed given in evidence.

Such a deed, it is claimed by the plaintiff, is by the law of the State made prima facie evidence that the title of the person against whom the judgment was rendered and by’virtue of which the sale and deed purport to have been made in the lands and real ■ estate described in the deed, passed to and vested in the grantee in such deed, and this without making other proof, either of the judgment or sale, than that furnished by the deed. Laws Wis. (1869), 89; Ehle v. Brown, 31 Wis. 405, 412.

Title to the lands in controversy is also claimed by the defendants through a purchase pursuant to a prior lien made by a creditor of the company, under whom they claim, at a sheriff’s sale of a subsequent date, by virtue of an execution issued on a judgment docketed Oct. 7, 1857, and the lawful deed of the sheriff executed to the creditor in pursuance of such sale. Without entering into details, suffice it to say that the judgment was rendered against the company in that ease for- $111,727.71, together with the costs of suit, and the evi *841 dence exhibited in the transcript shows that the title of the judgment in due form of law passed to the defendants by certain operative mesne assignments.

Suppose the law of the State to be such as is contended by the plaintiff, it is plain that' it is as applicable to the purchase, by the creditor under whom the defendants claim as to that under which plaintiff claims title.

Service was made, and the defendants appeared and .filed an answer denying each and every allegation in the complaint or declaration. Preliminary matters being settled, the' parties went to trial, and the verdict and judgment were in favor of the defendants. Exceptions were filed by the plaintiff, and he sued out the present writ of error and removed the ■ cause into this court for re-examinátion.

Since the cause was entered here, the plaintiff has assigned - errors pursuant to the rule making that requirement: 1. Five of the assignments call, in question the-rulings of the Circuit Court in admitting evidence offered by the defendants. 2. Then follows the sixth assignment of error, which calls in question the ruling of the court that the.title-of the lands in controversy is in the defendants, and that the verdict of the jury should be in their favor. 3. Thirty-three requests ‘for instruction were presented by the plaintiff, .and he calls in-question the ruling, of the court in refusing each one of those requests.

When the plaintiff made the purchase under which he claims title, there were subsisting liens upon the property prior iñ date to the judgment for the satisfaction of which the sale was made, to wit, a mortgage dated Aug. 17, 1857, executed by the original company to- Bronson and Soutter to secure the payment of one million dollars, and a judgment in favor of Newcomb Cleveland, dated Oct. 7, 1857, for' the amount before described, and which was docketed on the day it was rendered.

Bonds to the amount of two millions of dollars were issued by the company, and June 21st of the next year they executed a mortgage upon its railroad and property to William Barnes as trustee, to secure the payment of those securities, and on the 11th of the next month they executed a - supplemental mort *842 gage to the same party for the same purpose. Interest having fallen due, which was not paid, the mortgage was foreclosed by advertisement, and on the 21st of May of the next year all the property, franchises, and rights of the mortgagor were sold under the mortgage, and were bid off by the mortgagee in trust for the bondholders. By virtue of that sale the bondholders and the mortgagee became the owners of the property, franchises, and rights of the mortgagor, and they united'two days later in organizing a corporation under the statutes of the State, which received the name of the Milwaukee and Minnesota Railroad Company, to which they transferred all the rights and interests they acquired by that purchase.

Enough appears to show that the Bronson and Soutter mortgage covered the line of the road from Milwaukee to Portage City, and it appears that the mortgagees, Dec. 9, 1859, filed a bill in the District Court for the district to foreclose that mortgage, in which they made both the old corporation and the new company, together with Sebre Howard and the plaintiff in the present action, parties defendants in the suit. Somewhat protracted litigation followed, but it will be sufficient 'to say that it culminated in a decree of sale, with an order that if the successor company should, before sale, pay into court certain sums of money they should be let into possession of the road, rolling-stock, and other property of the old company from Milwaukee to Portage City, subject to prior liens. Pursuant to that order the new company paid the specified sums into court, and on the same day took possession of the property, and managed and Operated it from that time until the same was sold to the defendants.

Other judgment creditors of the old company, including Frederick P. James, on the 22d Of April, 1863, filed a bill in the Circuit Court against the successor company, joining the old company and, Selah Chamberlain as parties respondent in the suit. "What the bill prayed was that the sale to the new company might be decreed fraudulent, and that the company should be enjoined from exercising any control over the property and franchises mentioned in the mortgage. Hearing was had, and the bill was dismissed: in the Circuit Court; but, on appeal to the Supreme Court, the decree of the Circuit. Court *843 was reversed, and the cause remanded for a decree in favor of the complainants.

It appears from the mandate that it was decreed that the foreclosure and sale of the mortgage be set aside and annulled as fraudulent, and that the new company was perpetually enjoined from setting up any right or title under it to the railroad and other property sold under the mortgage, and that the mortgage remain only as security for bonds issued .under it in the hands of bona fide holders without notice. Besides that, an order of sale was contained in the decree, but no sale of the railroad or property was ever made under that decree.

James became the assignee of the judgment rendered Oct.

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Bluebook (online)
101 U.S. 837, 25 L. Ed. 1081, 1879 U.S. LEXIS 1994, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howard-v-railway-co-scotus-1880.