Thornton v. Highland Avenue & Belt Railroad

94 Ala. 353
CourtSupreme Court of Alabama
DecidedNovember 15, 1891
StatusPublished
Cited by23 cases

This text of 94 Ala. 353 (Thornton v. Highland Avenue & Belt Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thornton v. Highland Avenue & Belt Railroad, 94 Ala. 353 (Ala. 1891).

Opinion

COLEMAN, J.

— On the 26th day of July, 1890, the Highland Avenue & Belt Railroad Company filed its bill in the Chancery Court against M. Clifford, to enforce the collection of a debt due for the rent of the Lake Yiew Hotel. With other relief, the bill prayed for “a temporary injunction to restrain the said Clifford from removing any part of said personal property,” and “for a receiver to take charge of the [356]*356hotel property therein,” &c. The court granted the temporary injunction, and appointed the receiver as prayed for in the bill, and directed M. Clifford to surrender to the said receiver the Lake View Hotel, with the personal property. The decree proceeds as follows: “And it is further ordered, adjudged and decreed, that the said receiver, until the further order of this court, is authorized to conduct and run the hotel, and for that purpose the receiver is authorized to make such purchases as may be necessary.” The receiver took possession of the property under his appointment, and undertook “to conduct and run the hotel,” as authorized in the decree. Having no money or cash on hand, and no provision made by the court for raising money, the receiver purchased the necessary supplies for the hotel on a credit. The debt of petitioner, Thornton, was contracted by the receiver for groceries supplied to the hotel. The petition shows that, after the debt due him was contracted, by an order of the court made December, 1890, “by consent of the said parties to the cause, the jtossession of said hotel and other property was restored to the complainant, and “that since the restoration of the property to the complainant, said Merrill [who was the receiver] has remained in possession, and operated the hotel .as the agent of the complainant.”

The Highland Avenue & Belt Railroad Company interjtosed a demurrer to the petition. The court sustained> the demurrer, and petitioner declining to amend, his petition was dismissed out of court. From this decree dismissing the petition the present appeal is prosecuted. The cause was submitted to this court by appellant, upon the decree dismissing the petition, and if an appeal does not lie, in the alternative, for the writ of mandamus as a counter motion to the motion of appellee to dismiss the appeal. This practice has been recognized for a long time in this court.— Tabor v. Lawrence, 53 Ala. 543

It is not denied that the decree of the court dismissing the petition ordinarily is such a final decree as to the petition as will support an appeal; but it is contended that petitioner, Thornton, is not a party to the litigation between the original parties, has no right to make himself a party, and consequently can not appeal. The principles of law declared in the cases of Ex parte Printup, 87 Ala. 148, and Renfro Bros. v. Goetter, Weil & Co., 78 Ala. 313, cited in brief and argument and opinion of the chancellor, are not applicable to the question at bar. The petitioner in the present case does not seek to be let in to prosecute or defend as plaintiff or defendant in the original case. He is not interested, whether [357]*357plaintiff or defendant succeeds, in the matter litigated, and the determination of their respective rights in no way can affect his standing in court, or his right to relief.

Receivers are appointed to hold and preserve the property until it is finally determined by the court who is entitled to it, or its proceeds if sold. Until then it is in the custody cf the law, and the receiver holds it as an officer of the law. Expenses more or less necessarity result from its conservation. To preven1- irreparable damage and loss, sometimes it is necessary to make provision, in cases of a going business, that the business be continued. Such seems’ to have been the view taken by the court in the present case. Whether correct or not in this instance, we will not consider. The parties interested acquiesced in the order, and do not complain. Contracts made with a receiver in his official character, within the scope of his duties and the limits of his authority, are not binding on him personally. If such was the case, no one would accept the responsible office of a receiver. The party contracting with the receiver looks to the rem, the fund or property in gremio legis, backed by a pledge of the court that it shall be liable for all cost and expenses legitimately incurred in pursuance of its orders and decrees. — Kerr v. Little, 39 N. J. Eq. 83. Any one who attempis to interfere or sue a receiver without leave, in a matter pertaining to his official duties, will be regarded as in contempt of court, and may be punished accordingly. If there is an income from the property, the current expenses should be first paid out of this; taut, this failing, there is no doubt that the corpus may be applied to such necessary expenses.- — Beckwith v. Carroll, 56 Ala. 12; Meyer v. Johnston, 53 Ala. 397; Union Trust Co. v. Illinois Midland, 117 U. S. Rep. 437.

Any one contracting with a receiver is charged with notice of the duties required of him, and the extent of his authority. It becomes necessary, therefore, to ascertain whether petitioner’s debt was contracted within the scope of the duties and authority of the receiver. The court made no order by which the receiver was entitled to raise money to “conduct and run the hotel.” By the decree appointing him, he was authorized to run the hotel, “ and for this purpose the receiver is authorized to make such purchases as may be necessary.” The petition avers that the receiver as such had no money with which to make cash purchases, and the purchase of the groceries was necessary in order to conduct and run the hotel. When the order was made, the court knew its own officer had no money, and it. made no provision for rais[358]*358ing any. How was the receiver to perform his duty, unless he purchased on a credit ? W e are of opinion that the order gave the power and the discretion to the receiver to make purchases, if necessary, upon a credit. If the averments of the petition that the purchases of the groceries were necessary under the order of the court to “conduct and run the hotel ” as directed, and the sale of the goods was made to the receiver in his official character, it is a proper charge upon the income first; and if there was no income, then upon the corpus of the property. Under such conditions, the court should never surrender its custody of the property, or discharge the receiver, until all obligations incurred by him in the proper discharge of his duties have been adjusted and provided for. .When the petition was filed and heard, and dismissed by the decree of the court, the original cause was still pending, and the receiver had not been discharged. The order of the court, made in pursuance of an agreement between the original parties, as averred in the petition, by which the property was placed in the hands of the complainant, did not deprive the court of authority to resume possession and control of it, for the purpose of enforcing all claims to, or leins upon it, the result of its own orders or decrees. That court at that time was the proper and only forum to give petitioner such relief as he may have been entitled to receive.

Whether the charges for the groceries were reasonable, and whether necessary as averred, was a matter for proof, to be taken under the direction of the court.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

City of Mobile v. Gulf Development Co.
171 So. 2d 247 (Supreme Court of Alabama, 1965)
City of Birmingham v. Hallmark
98 So. 2d 15 (Supreme Court of Alabama, 1957)
Franklin v. Dorsey-Jackson Chevrolet Co.
20 So. 2d 220 (Supreme Court of Alabama, 1944)
Byrum v. Pharo
200 So. 622 (Supreme Court of Alabama, 1941)
Hartford Accident & Indemnity Co. v. Green
134 So. 487 (Supreme Court of Alabama, 1931)
State Ex Rel. Garrow v. Grayson
123 So. 573 (Supreme Court of Alabama, 1929)
Hendrix v. Francis
83 So. 66 (Supreme Court of Alabama, 1919)
Clifford v. Montgomery
81 So. 551 (Supreme Court of Alabama, 1919)
Morse v. Buskirk
181 S.W. 173 (Court of Appeals of Kentucky, 1916)
Cobbs v. Vizard Inv. Co.
62 So. 730 (Supreme Court of Alabama, 1913)
Weller & Sons v. Rensford
51 So. 344 (Supreme Court of Alabama, 1910)
Walker v. National Guaranty Loan & Trust Co.
133 Ala. 240 (Supreme Court of Alabama, 1901)
Makeel v. Hotchkiss
60 N.E. 524 (Illinois Supreme Court, 1901)
International Trust Co. v. United Coal Co.
27 Colo. 246 (Supreme Court of Colorado, 1900)
American Pig Iron Storage Warrant Co. v. German
126 Ala. 194 (Supreme Court of Alabama, 1899)
Etowah Mining Co. v. Wills Valley Mining & Mfg. Co.
121 Ala. 672 (Supreme Court of Alabama, 1898)
Knickerbocker v. McKindley Coal & Mining Co.
50 N.E. 330 (Illinois Supreme Court, 1898)
Highland Avenue & Belt Railroad v. Thornton
105 Ala. 225 (Supreme Court of Alabama, 1894)
Louisville Manufacturing Co. v. Brown
101 Ala. 273 (Supreme Court of Alabama, 1893)
Bridgeport Electric & Ice Co. v. Bridgeport Land & Improvement Co.
104 Ala. 276 (Supreme Court of Alabama, 1893)

Cite This Page — Counsel Stack

Bluebook (online)
94 Ala. 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thornton-v-highland-avenue-belt-railroad-ala-1891.