Missouri Pac. Ry. Co. v. Texas Pac. Ry. Co.

41 F. 311, 1890 U.S. App. LEXIS 1992
CourtU.S. Circuit Court for the District of Eastern Louisiana
DecidedFebruary 4, 1890
StatusPublished
Cited by7 cases

This text of 41 F. 311 (Missouri Pac. Ry. Co. v. Texas Pac. Ry. Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Missouri Pac. Ry. Co. v. Texas Pac. Ry. Co., 41 F. 311, 1890 U.S. App. LEXIS 1992 (circtedla 1890).

Opinion

Pardee, J.

In this case, on October 26, 1888, the court made an order discharging the receiver, and directing the delivery to the defendant company of all property, funds, and assets in his hands as receiver. It is further provided in said order that the said company should take the said property subject to any and all judgments which have heretofore been rendered in favor of intervenors in the case, which have not been paid, as well as subject to such judgments as might be thereafter rendered by the court in favor of intervenors on interventions then pending and undetermined, or which might be filed prior to February, 1889. It further provides that all claims against the receiver, as such, up to the 31st day of October, 1888, be presented and prosecuted by intervention [312]*312prior to February 1, 1889, and, if not so presented by that date, the same be barred, and not to be a charge on the property of said company. Under this said order, the’intervenor presented to this court his petition of intervention on the 3d day of January, 1889; and in his petition he alleges that on the 25th day of February, 1888, he recovered a judgment against John C. Brown, receiver of the Texas & Pacific Railway Company, in a suit entitled “Owen Sullivan against J. C. Brown, Receiver,” on the docket of the district court of Harrison county, Tex., a court of competent jurisdiction, in the sum of $10,000, for injuries done to the wife of intervenor by a railroad engine operated by, and under the control of, said receiver, his agents and employes, all of which will more fully appear by the transcript and abstract of judgment attached. Further, that this judgment was appealed from by the said John C. Brown, receiver, to the supreme court of the state of Texas, in which court the said judgment was affirmed. He avers, also, that said judgment has never been paid, in whole or in part, and the said judgment was obtained when all the property of the defendant railway company was in the hands of," and under the control of, said John C. Brown, receiver. Intervenor prayed that his said petition of intervention be filed, and referred to one of the masters of the court for examination and report as to the binding effect of the same upon the said J. C. Brown, receiver, and that the said J. C. Brown, receiver, be ordered to pay intervenor the sum of $10,000, with interest, according to the terms of said judgment, and for equitable relief. Service of said petition being accepted by the attorneys of said Texas & Pacific Railway Company, an order was made referring the same to a special master for report. The special master has reported in favor of intervenor, on the ground that the suit in Harrison county was rightfully instituted, under authority of the act of congress, approved March 3, 1887, and the judgment therein rendered is conclusive against the receiver. The special master recommends that the receiver be ordered to pay the intervenor' the amount of the judgment, interest, and costs, and the costs of this intervention. To this report the Texas and Pacific Railway Company have filed exceptions as follows:

“First. The master erred in holding that, under the judiciary act of congress of 1887, the intervenor had a right to sue the receiver in the state court without permission of this court. Second. The master erred in holding that the judgment of the state court was conclusive in the respect, and to the extent, stated by him in his said report. Third. The master,erred in holding that there was anyneglectin the premiseson the part of the receiver. Fourth. The findings and report of the master are contrary to law and the evidence, and the evidence does not furnish any legal basis for the recovery and the report. Fifth. The judgment and claim of intervenor, and amount reported, are, in any event, excessive and inequitable; and, under said act of congress, this court has the right and power to, and should, reject the same, or reduce the amount of the report and recovery. ”

Subsequently supplemental exceptions were filed, as follows:

“(I) That the master erred in receiving or considering the judgment rendered in the state court, because the same was not admissible, and could not have any effect, for the following reasons: (a) Said suit was brought against [313]*313the receiver without the permission of this honorable court. (6) Because tho said receiver, in the suit in the state court, by demurrer, excepted to the jurisdiction of the state court to proceed against them; and, if the foregoing should be overruled, the defendant further excepts that, even if said judgment of the state court against the receivers was in law conclusive, or had the effect given to it in the master’s report, which is denied, yet claimants and intervenors herein, on the trial of tire interventions before the master, after introducing the judgment of the slate court, offered Mrs. Sullivan as a witness before tho master, and voluntarily took testimony in regard to the claim, which amounted to a waiver of all rights under tho judgment, and opened the whole case, so that it could be passed upon and decided by the master and by this honorable court in the same manner as though there had been no judgment rendered. (2) Said defendants further except to the said report on the ground that, even if the said receiver were guilty of negligence in the premises, which is expressly denied, yet, even in such case, that intervenors cannot recover, because said Mrs. Sullivan was also negligent, and by her fault and negligence contributed to the accident complained of.”

1. In the case of Barton v. Barbour, 104 U. S. 126, the supreme court of the United States held—

“That when the court of one state has a railroad or other property in its possession for administration as trust assets, and has appointed a receiver to aid it in the performance of its duty by carrying on the business to which the property is adapted until such time as it can be sold with due regard to the rights of all persons interested therein, the court of another state has not jurisdiction, without leave of the court by which the receiver was appointed, to entertain a suit against him for a cause of action arising in.the state in which he was appointed) and in which the property in his possession is situated, based on his negligence, or that of his servants, in the performance of their duty in respect of such property.”

That this was the law prior to the judiciary act of 1887 is not disputed. Fn this case, however, jurisdiction is claimed for the district court of Harrison county, slate of Texas, over the receiver appointed in this court in the main suit, which was instituted in this court on the 15th daj- of December, 1885, by virtue of the third section of the judiciary act. approved March 3, 1887, correctly enrolled by act approved August 18, 1888, (25 St. at Large, 436,) which provides—

“That every receiver or manager of any property appointed by any court of the United States may be sued m respect of any act or transaction of his in carrying on the business connected with such property, without the previous leave of the court in which such receiver or manager was appointed; bnt such suit shall be subject to the general equity jurisdiction of the court in which such receiver or manager was appointed, so far as the same shall be necessary to the ends of justice. ”

The repealing clause of the said judiciary act contains this proviso:

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Bluebook (online)
41 F. 311, 1890 U.S. App. LEXIS 1992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/missouri-pac-ry-co-v-texas-pac-ry-co-circtedla-1890.