118 F. 403 | 8th Cir. | 1902
after stating the case as above, delivered the opinion of the court.
In view of the facts above recited, it will be observed that on November 22, 1897, the circuit court of the United States for the district of Kansas disallowed the intervener’s demand after a full hearing upon the merits, and that on the same day a jury rendered a verdict in her favor upon the same claim in the law action pending in the district court for Osage county, Kan., upon which verdict a judgment was duly entered. Both courts seem to have had full jurisdiction of the claim, but arrived at different conclusions respecting its merits on the same day. The federal circuit court had jurisdiction of the intervention as one of the incidents of the equity case which was pending before it, while the action on the same claim, notwithstanding the appointment of receivers for the Atchison, Topeka &
Neither the order appointing receivers for the Atchison, Topeka & Santa Fé Railroad Company nor the decree of foreclosure determined that the claim in controversy was preferential and must be paid in any event. The order appointing receivers placed the claim in the class of preferential demands provided the intervener succeeded in showing that she had a valid demand against the railroad company. The question of the validity of the claim was left open for adjudication by the order appointing receivers, and, as the intervener failed to show that the claim presented'was a legal and lawful demand, her application for relief is not strengthened by anything contained in the order appointing receivers, or in the decree of foreclosure and sale, or in the order approving the sale. The result is that the decree below must be affirmed; and it is so ordered.