St. Louis, B. & M. Ry. Co. v. Webber

202 S.W. 519, 1918 Tex. App. LEXIS 303
CourtCourt of Appeals of Texas
DecidedMarch 28, 1918
DocketNo. 334.
StatusPublished
Cited by1 cases

This text of 202 S.W. 519 (St. Louis, B. & M. Ry. Co. v. Webber) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Louis, B. & M. Ry. Co. v. Webber, 202 S.W. 519, 1918 Tex. App. LEXIS 303 (Tex. Ct. App. 1918).

Opinion

BROOKE, J..

Elbert Webber sued the St. Louis, Brownsville & Mexico Railway Company on May 31, 1916, praying for damages in the amount of $20,000, on account of personal injuries sustained while in the employ of Frank Andrews, receiver of the assets and properties of defendant; it being alleged that such injuries were proximately caused by the negligence of the receiver, his servants and agents, and that the railway company was liable therefor.

The cause came on for trial before a jury on the 24th day of November, 1916, and was on November 27, 1916, submitted on one special issue touching only the measure of damages in the case. The verdict of the jury fixed the amount of damages at $6,500. On motion of plaintiff the court, on December 5. 1916, before the expiration of the term, entered judgment in favor of plaintiff, and against defendant, in the amount of $6,500, with interest and costs of court, defendant excepting to the order. In due time defendant filed its niation for new trial, and thereafter, under leave of the court, on December 4,1916, amended same. The said motion was in all things overruled by the court, and notice of appeal to the Court of Civil Appeals for the First 'Supreme Judicial District, at Galveston, was given. The Supreme Court has certified the case to this court, and it is now before us for revision.

*520 The first assignment of error challenges the action of the court as being error in entering judgment in favor of the plaintiff: upon the jury’s verdict, for that, there being no evidence whatsoever’ to the effect that the receiver made any improvements or better-ments upon the defendant’s railroad, it also wholly fails to appear from the evidence that the railway company,' in reacquiring its properties after the discharge of the receive!, assumed any obligation to take care of the liabilities such as involved in this. suit.

The proposition under this assignment urges that the evidence is insufficient to indicate an assumption by the railway company in receiving its properties without sale from the hands of the receiyer of any obligation such as that sought to be asserted in this suit.

On the contrary, it is urged that the assignment is without any merit, for either of two good and sufficient reasons: (1) Because the statute in force now, and when the plaintiff’s cause of action arose, and prior to the receivership in question, affirms liability of the appellant on such cause of action; and (2) because the appellant, by itself, as well as by the decree directing the return of its property and assets, assumed the obligation evidenced by the plaintiff's cause of action.

It appears that the receivership was a friendly one, wherein the defendant appeared, waiving time, and consented to the appointment of Frank Andrews as receiver, to take over and operate its premises, and that it was pursuant to this consent action that such receiver was appointed, to wit, on July 5, 1913.

It further appears that by the defendant’s application for discharge of the receiver, filed April 14, 1916, under oath of its vice president, J. S. Pyeatt, it appeared that the defendant had financed and provided for the payment or taking care of the various demands against it so that the receivership had accomplished its purpose, and that it then, as a means of getting the property returned to it, stated to the court that it was “ready and willing to assume and able to pay all obligations incurred by said receiver of every kind whatsoever, and that, with this offer of payment, it requested and prayed that the property be delivered to it by order of the court,” subject to such terms and conditions as the court may impose, to secure the payment of the receiver’s obligations and the performance of the receiver’s contracts incurred by said receiver as such while administering the property of said railway company.

It appears further that by the order discharging the receiver it was directed that all of the defendant’s properties, rights, franchises, privileges, and immunities and all claims, demands, accounts, notes and bills of every kind and character whatsoever and wheresoever situated be delivered to it, and that the defendant so receiving back such property, its successors and assigns, should “take all of the benefits and assume all of the obligations” created by certain contracts entered into by the receiver under orders of the court, and should “especially assume all of the obligations of said receiver,” and should “pay off, satisfy, and discharge according to their terms, tenor, and effect all receiver’s certificates” and should “especially assume all of the obligations assumed by said Frank Andrews, receiver, under a certain specified contract with the Guaranty Trust Company of New York, trustee for the purchase1 of equipment.” •

It seems that by such order of discharge the court stripped itself of eyery item of property that could be made available for payment of the plaintiff’s claim, and retained jurisdiction only in the event the defendant failed to make payment of any amount which it “has assumed to pay, pursuant to the provision hereof, as and when the same shall hereafter become due and payable,” so that, if the plaintiff’s cause of action was not within the terms of the decree, there was no provision made for payment of such claim by reserved jurisdiction or otherwise.

After the defendant had given its receipt, on May 27, 1916, to the receiver for “all the properties, rights, franchises, privileges, and immunities of every kind and character whatsoever held, claimed, or possessed by him as receiver,” it passed at a regular meeting of its board of directors a resolution, to wit, June 6, 1916, whereby, in recognition of its obligation to pay such demands as the obligation in question, it formally acknowledged receipt from said receiver of all such property, and bound itself to him in the words, “and the said Frank Andrews, as receiver as aforesaid, is hereby released and relieved from all liability, claims, demands, and actions of every kind and character whatsoever, in so far as the St. Louis, Brownsville & Mexico Railway Company has the power to grant such release.” The plaintiff’s cause of action arose out of and during the aforesaid receivership of Frank Andrews of the properties of the defendant, for negligence chargeable to such receiver towards a servant, and is an unpaid liability of such receiver.

Nothing in the federal court’s order in this case granting a discharge of the receiver and the redelivery of the property held by the receiver hints at or suggests any immunity of the defendant from the recovery adjudged against it in ■ this case by the court below, but, on the contrary, provides for the liability here asserted. In our judgment, the recovery was proper against the defendant, under its assumed liability.

[1,2] If the claim was within the terms of the order for payment by the defendant, then the reserved jurisdiction of the federal court as to it was cumulative only; if otherwise, there was no reservation of jurisdiction by the federal court as to it. If the *521 word “obligation” can ever apply to a liability like that in favor of the plaintiff, resting as it did upon an implied term in the contract of service, it must be given that broader meaning here, because only by that means can a wrong be averted and justice be brought about.

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Related

Beaumont, S. L. & W. Ry. Co. v. Daniels
204 S.W. 481 (Court of Appeals of Texas, 1918)

Cite This Page — Counsel Stack

Bluebook (online)
202 S.W. 519, 1918 Tex. App. LEXIS 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-louis-b-m-ry-co-v-webber-texapp-1918.