Mercantile Trust Co. v. St. Louis & S. F. Ry. Co.

69 F. 193, 1895 U.S. App. LEXIS 3089
CourtU.S. Circuit Court for the District of Western Arkansas
DecidedAugust 5, 1895
StatusPublished
Cited by2 cases

This text of 69 F. 193 (Mercantile Trust Co. v. St. Louis & S. F. Ry. Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Western Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mercantile Trust Co. v. St. Louis & S. F. Ry. Co., 69 F. 193, 1895 U.S. App. LEXIS 3089 (circtwdar 1895).

Opinion

CALDWELL, Circuit Judge,

after stating the case as above, delivered the opinion of the court.

The interveners recovered their judgments against the railroad company, and they were liens on the company’s property, before the mortgage to the complainant was executed. But it is said the lien of all of the judgments except two had expired before the complainant took its mortgage. This contention is grounded on an erroneous view of the law applicable to the facts of the case. In Arkansas, judgments are liens on the real property of the defendant situated in the county in which the judgment is rendered for the period of three years, and when there has been no interruption to the right of the judgment plaintiff to enforce his judgment lien during the period allowed by the law for that purpose, and the judgment has not been revived, the lien expires at the expiration of the three years; but where, as in these cases, a stay of execution on the judgment for a specified time, or until the happening, of a certain event, is made part of the record entry of the judgment, the time during which execution is thus stayed is not to be computed as any part of the three-years limitation of the judgment lien. This is the rule, whether the time of the stay of execution is less or more than the period fixed by statute for the expiration of the lien of judgments. The law gives to the judgment plaintiff three years in which to enforce the lien of his judgment by execution. If the plaintiff does not avail himself of his right to enforce the lien during the time allowed for that purpose, he loses his lien. But the lien of a judgment is not lost if, during the period allowed by law for its enforcement, the plaintiff has been restrained from enforcing it by a stay of execution, duly entered of record, in pursuance of the agreement of the parties to the judgment. The stay of execution, when made part of the judgment entry, stays the running of the statute that limits the duration of the lien. The lien consists in the preferred right it gives the judgment plaintiff to seize and appropriate the property of the defendant to the payment of the judgment. The lien, without the right to enforce it, would be of no utility. The railroad contended, and the supreme court of the state decided, that the proper construction of that paragraph of the record entry of these judgments which provided that execution thereon should be stayed until the Stevenson Case had been “finally decided” meant that execution should be stayed until that case had been decided by the supreme court of the United States. It was perfectly well known that the decision of the supreme court [196]*196of the United States in the case mentioned could not he had short of four or five years; and the record shows that it took longer. It is now contended that that part of the record entry of the judgment staying execution thereon until the happening- of the event therein mentioned had the effect to extinguish the lien of the judgment before the light to have execution thereon ever accrued. If this contention is well founded, it would make the law say to the judgment plaintiffs: “Your judgments shall be liens on the property of the railroad company for three years, but you shall not enforce the lien until it has expired; and if, in the meantime, the railroad company sells or mortgages its property, the opportunity to collect your judgment i's forever lost, and your judgments are worthless.” The law is neither so unreasonable nor dishonest. The question of the legal effect on the duration of the judgment lien of the stay of execution in pursuance of a private agreement between a judgment plaintiff and judgment defendant, not entered of record, does not arise in these cases, and need not be considered. In these case§ the agreement for the stay of execution is incorporated into the judgment entry, and is in legal effect a part of the judgment itself, and the three-years limitation of the lien begins to run from the time when the stay of execution specified in the judgment expired, which was on the 5th day of March, 1895, the day the supreme court of the United States decided the Stevenson Case. The grantees and mortgagees of the judgment defendant are as much bound by this rule as the judgment defendant itself. The record of these judgments was notice to all persons óf the judgments, and their legal effect in respect of the commencement and duration of their liens. The complainant, therefore, took its mortgage with record notice of the rights of these judgment creditors, and, as against them, is as completely estopped to claim that the lien of the judgments had expired as the defendant itself. As sustaining the views here expressed with more or less directness, the following authorities may be consulted: Pennock v. Hart, 8 Serg. & R. 869; Bombay v. Boyer, 14 Serg. & R. 254: 1 Black, Judgm. §§ 470, 471; Work v. Harper, 31 Miss. 107; Linday v. Norrill, 36 Ark. 546; Pindall v. Trevor, 30 Ark. 271; Brewster v. Clamfit, 33 Ark. 72; Cohn v. Hoffman, 50 Ark. 108, 6 S. W. 511; Marshall v. Minter, 43 Miss. 678; 2 Freem. Judgm. (4th Ed.) §§ 382, 394; Batesville Institute v. Kaufman, 18 Wall. 151; Hanger v. Abbott, 6 Wall. 532, 541; Montgomery v. Hernandez, 12 Wheat. 129.

In Bombay v. Boyer, supra, the supreme court of Pennsylvania, speaking by Chief Justice Tililman, said:

“It was decided by tbis court in Pennock v. Hart, 8 Serg. & it. 3G9, that, where the judgment was entered with a stay of execution on record, the live years should run only from the time when the stay of execution expired. But it was not our opinion that any regard should be paid to a stay of execution, agreed on by :he parties but not appearing on. the record.”

And in Marshall v. Minter, supra, it was said that enjoining- a judgment until a bar of the statute of limitations attaches is an unconscientious advantage which the debtor should not be permitted to take. • The lien of the intervener's judgments is prior in time and [197]*197superior to that of tlie complainant, and the receivers must either pay the judgments or submit to have the property sold to satisfy them.

The conclusion readied on this branch of the cases renders it unnecessary to decide whether these judgments do not fall within the class of'debts and liabilities of the railroad company which were required to be paid as a, condition of appointing the receivers, though it would probably not be difficult to show that they fall within the letter, as they certainly do within the spirit, of that order.

It is suggested that these are judgments for penalties, and it is intimated that a court of equity will look upon them with disfavor for that reason, and will struggle to find some ground of avoiding their payment. These suggestions are unfortunate for the complainant and the defendant. When the origin of these judgments is looked into, it will be found that they are highly meritorious; no judgments could be more so. The defendant company set at defiance the law of the state, and charged its citizens for transporting them over its road two-fifths more than the law of the state allowed for the service. The suits that resulted in these judgments were brought to put an end to these illegal exactions. Although, the interveners recovered judgments in the court of original jurisdiction, the defendant eoinpaiiy continued to demand and exact five instead of three cents per mile for the transportation of passengers; and, so far as these interveners a,re concerned, continued to assert its right to do this until the decision of the titeveuson Case fey the supreme court of the United States on the 5th day of March, 1895.

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Bluebook (online)
69 F. 193, 1895 U.S. App. LEXIS 3089, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mercantile-trust-co-v-st-louis-s-f-ry-co-circtwdar-1895.