McNulta v. Lockridge

27 N.E. 452, 137 Ill. 270
CourtIllinois Supreme Court
DecidedMarch 30, 1891
StatusPublished
Cited by76 cases

This text of 27 N.E. 452 (McNulta v. Lockridge) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McNulta v. Lockridge, 27 N.E. 452, 137 Ill. 270 (Ill. 1891).

Opinion

Mr. Justice Baker

delivered the opinion of the Court:

The two principal questions for determination are: First, •can an action at law be maintained against a receiver for the tort of the servants.of his predecessor in the same receivership ; and second, if such action can be maintained, did the .general issue put the plaintiff upon proof of the averments of his declarations, that at the time of the injuries complained •of Cooley was operating the railway as receiver, and that the ■defendant was subsequently appointed his successor in the receivership. In addition to these, several questions of minor •importance arise upon the rulings of the trial court on the instructions.

First—A receiver of a railroad company, who is exercising the franchises of such company and operating its road, is, in his official capacity, amenable to the same rules of liability that are applicable to the company when it is operating the xoad by virtue of the same franchises. For torts committed by his servants while operating the railroad under his management, he is responsible upon the principle of respondeat superior. The liability, however, is not a personal liability, but a liability in his official capacity, only; and the damages for such torts are not to be recovered in suits against him personally, and collected on executions against his individual property, but recovered in suits or proceedings in which he is named or designated as receiver, and to be paid only out of the fund or property which the court appointing him has placed in his possession and under his control. The corporation itself, having no control over either the receiver or his servants, is not, in the absence of an absolute liability imposed upon the company by statute, responsible for the negligence or torts of the employes of the receiver, and no suit against it for damages occasioned thereby can be maintained. These-rules of law are well settled, and have been held in many adjudicated cases, and are laid down in the text books.

In the case at bar, the judgment was not against McNulta. personally, but against him in his official capacity of receiver,, and no execution was awarded against him, either personally or otherwise. The judgment was, that the plaintiff “have and recover of and from said defendant, John McNulta, receiver of the Wabash, St. Louis and Pacific Railway Company, the said sum of $6000 as his damages aforesaid, to be paid in due course of administration of the trust, together with his. costs and charges herein expended.”

It seems to us that the expression found in the .judgment,, “to be paid in due course of administration of the trust,”' affords the key for the solution of the question whether or not an action at law can be maintained against a receiver for the-tort of the servants of his predecessor in office. The judgment, in substance and in fact, is not a judgment against' John McNulta, but a judgment against John McNulta, receiver, etc., and to be paid out of the funds and property in his 'hands as such receiver,-—in other words, a judgment against the matter of the receivership, which the court of chancery authoritatively organized in a certain cause in equity pending-therein, wherein the Central Trust Company of New York, and others, were complainants, and the Wabash, St. Louis and ¡Pacific Railway Company, and others, were defendants. The-judgment is, as it were, in the nature of a judgment in rem, and the res,—the thing against which it has validity and force,— is the matter of the receivership, the administration in the-chancery court of the trust, and the fund and property which-are the subjects of the trust'. The receiver is sued as such,, and merely because he is, for the time being, the tangible representative of the matter of the receivership. Although •Cooley may have been at one time receiver, and may have resigned, and McNulta may have been appointed bis successor in office, yet all the while the identity of the res,—the matter of the receivership constituted by the court in the chancery suit brought by the Central Trust Company and others,—was-preserved. The liability for the torts and negligences charged in the declarations was upon the administration undertaken by the chancery court, and was, through such court; enforceable against the fund and property which were the subjects-of the trust being administered, and followed such fund and. property into whosesoever’s hands they came as receiver.

The torts which are complained of in the declarations were-not the personal negligences of Cooley, but the negligences of his servants in his capacity of receiver,—in other words, the negligences of the receiver; and when McNulta succeeded him in the same receivership, they continued to be negligences of the receiver, and negligences for which such receivership was-liable, and, by relation, negligences of McNulta, receiver, since .he, and he only, was the legal representative of the' receivership. The ground of the liability of plaintiff in error, as receiver, grows out of the relation of Cooley, the former receiver, to the railroad which he operated, and the continuation and identity of that relation in plaintiff in error, as his successor in the same receivership.

In Davis v. Duncan, 19 Fed. Rep. 477, the court said “The proceedings against a receiver, as receiver, for the wrongs of his employes, is in the nature of a proceeding in rem,- and renders the property in his hands as such, liable for compensation for such injuries.” In Farmers’ Loan and Trust Co. v. Central Railroad Co. of Iowa, 7 Fed. Rep. 539, the court said r “It is therefore obvious that -suits against receivers are really and substantially suits against the fund or property of which they are custodians. They represent the property or fund. If judgment be obtained against them, the court orders it to-be satisfied out of the fund or property.”

The defendant in error alleges negligence on the part of the employes of Cooley, receiver, whereby his intestates were killed, and he claims that he is lawfully entitled to recover damages iherefor. No suit lies against the company whose railroad was being operated by Cooley. (High on Receivers, sec. 396; 2 Borer on Railroads, 896.) No suit can be maintained against Cooley personally, or as an individual. (High on Receivers, sec. 395; 2 Borer on Bailroads, 298.) Cooley having been •discharged from the receivership, no suit can be prosecuted against him, in an official or representative capacity, for torts ■committed by his employes while he was receiver. 2 Borer on Bailroads, 899; High on Receivers, (2d ed.) sec. 398 b, and authorities there cited.

In New York and Western Union Telegraph Co. v. Jewett, 115 N. Y. App. 166, the court says: "Obviously, after the receiver has been discharged, and the property, by the action of the court, has all been taken out of his hands, there can be no propriety whatever in any further proceedings against him, because thereafter he ceases to represent any one. He can no longer act for or represent the company or its creditors, or .any other person interested in the property; and manifestly the court could not thereafter make an order that he should pay a creditor, he no longer having any funds out of which payment could be made. (Farmers’ Loan and Trust Co. v. Central Railroad Co. of Iowa, 2 McCrary, 181.) It would be a very singular proceeding to permit a creditor to litigate his claim with a person who was formerly a receiver but who has ceased to be such, and who is no longer the officer or agent of the court, or subject to its control.”

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Bluebook (online)
27 N.E. 452, 137 Ill. 270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcnulta-v-lockridge-ill-1891.