Sonken v. Gemmill, Admr.

151 N.E. 355, 94 Ind. App. 114, 1926 Ind. App. LEXIS 263
CourtIndiana Court of Appeals
DecidedApril 9, 1926
DocketNo. 12,085.
StatusPublished
Cited by5 cases

This text of 151 N.E. 355 (Sonken v. Gemmill, Admr.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sonken v. Gemmill, Admr., 151 N.E. 355, 94 Ind. App. 114, 1926 Ind. App. LEXIS 263 (Ind. Ct. App. 1926).

Opinion

McMahan, J.

Complaint to foreclose an equitable lien on a strip of land 66 feet wide across the land of Grier F. Gemmill, deceased, and also on the rails and ties attached thereto, and being a part of the right of way of the defunct Cincinnati, Bluffton and Chicago Railroad Company, hereafter referred to as “the railroad company,” in Jay County, Indiana. A demurrer to the complaint was overruled. The facts were found specially and, in substance, are as follows: In November, 1903, the railroad company filed an instrument of appropriation in the Jay Circuit Court against Grier F. Gemmill to condemn and appropriate said strip of land; appraisers were appointed and the damages appraised at $600; Gemmill filed exceptions to the appraisement, the venue was changed to Randolph County, and in June, 1906, a judgment was rendered in his favor for $3,248, and appropriating the strip of land upon payment of the judgment; a transcript of this judgment was filed and recorded in the clerk’s office in Jay County, *117 July 9, 1906. Immediately after the filing of the appraisers’ report, the railroad company paid the $600 to the clerk of the Jay Circuit Court, took possession of the land, constructed its railroad thereon, and remained in possession thereof until September 24, 1917, using it for right-of-way purposes. The judgment of the Randolph Circuit Court in favor of Gemmill has never been paid; the amount due thereon at the commencement of this action was $5,246.40, in addition to the $600 paid to the clerk. Gemmill died intestate in 1913, the owner in fee of the real estate over which the railroad was so constructed and of said judgment rendered in the Randolph Circuit Court, leaving as his only heirs Elizabeth Gemmill and William R. Gemmill. Prior to the commencement of this action, Elizabeth, by warranty deed, conveyed her interest in said real estate, including all her right and interest in and to said right of way to William R. Gemmill, since which time the latter has been the sole owner of said real estate and judgment, subject to the right of the administrator of the estate of Grier F. Gemmill.

In March, 1908, the Huntington Circuit Court appointed a receiver for the railroad company, who immediately took possession of all of its property, and its line of railroad was thereafter operated by said receiver, from March, 1908, to September 24, 1917, when the railroad company ceased to operate its line of railroad either by receiver 'or otherwise, and ceased to use the easement and right of way across the said Gemmill land; in June, 1908, the receiver, by order of the court, issued and sold $95,000 of receiver’s certificates for the purpose of paying certain claims against the railroad; the court directed the receiver to pay said judgment and interest thereon out of the proceeds derived from the sale of such certificates; the receiver sold the certificates, received the money therefor, but failed to pay said judg *118 ment or any part thereof. In 1910, the Huntington Circuit Court made an order directing all persons holding claims against the railroad company to file the same with the clerk on or before June 10, 1910; a commissioner was appointed to investigate and report to the clerk on all claims filed; among the claims filed was the claim of Grier F. Gemmill for $4,3@8. On final hearing, the court found and adjudged that the judgment theretofore rendered in favor of Grier F. Gemmill for $3,248 was a valid and subsisting lien against the railroad company; that the latter had taken possession of his land for railroad purposes, had never paid such judgment or any part thereof, and that said judgment was a first and superior lien over all other liens and claims against said company. After allowing credit for the $600 paid to the clerk, there was a balance of $3,612.65 due on said judgment, and said amount was declared to be a preferred claim and it was ordered that it should be placed in “Class D” and paid by the receiver in the relative priority as indicated by the letters A to F, inclusive. The court, notwithstanding it had found the Gemmill judgment was prior and superior to all other claims, allowed certain other claims aggregating $140,158.71, which were placed in classes A, B and C, and given preference over the Gemmill judgment, and ordered the property of the railroad company, including its right of way, sold as an entirety at an upset price of not less than $800,000. The property was ordered sold free of all liens, claims and demands which had been adjudicated and placed in classes A, B, C, D, E and F. No appeal was taken from this judgment. The items in class A aggregated $18,086.68. The claims placed in class B were for labor performed under the receivership and claims for materials, etc., furnished during the receivership, including balance due the receiver and his attorney, and all legal obligations and costs under the *119 receivership, aggregating $18,604.83. As a part of said judgment, the court found and adjudged that the Union Trust Company, trustee, should recover from the receiver and railroad company $103,467.20, and that said claim should be placed in class C. The claims placed in class D, including the Gemmill judgment, were 34 in number, and aggregated $102,475.58. The claims allowed and placed in classes E and F were in excess of $140,-000.

The receiver continued to operate said railroad under direction of the court until September 24, 1917, when, pursuant to an order of the court, he sold said railroad property, right of way, and equipment to appellant for $310,000, the order of the court fixing the upset price at $800,000, having theretofore been eliminated. Such sale was approved by the court, and appellant immediately took possession of and claimed to be the owner of all the property and rights referred to and contained in the decree ordering the property sold. Upon taking possession of said property, appellant ceased to operate it as a railroad, -and proceeded to dismantle and to tear up the rails for the purpose of converting them into salable material, and to remove them from said right of way. Neither the plaintiff William R. Gemmill, administrator, nor William R. Gemmill nor Elizabeth Gem-mill ever received any part of the $310,000 for which said property was sold to appellant, for the reason that said sum was consumed in paying taxes, expenses, and indebtedness of said receivership as was subsequently determined by the Huntington Circuit Court to come within classes A, B and C, as designated by the court in its prior decree.

The court found that appellant had no right, title or interest in the 66-foot strip of land described in the complaint, or to the ties, rails, switches and the like, annexed and fixed thereto, other than such, if any, as *120 may have been given him by law under the proceedings in the Huntington Circuit Court, hereinbefore mentioned.

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Bluebook (online)
151 N.E. 355, 94 Ind. App. 114, 1926 Ind. App. LEXIS 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sonken-v-gemmill-admr-indctapp-1926.