41 F. 311 | U.S. Circuit Court for the District of Eastern Louisiana | 1890
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
“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 the 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:
“That this act shall not affect the jurisdiction over, or disposition of, any suit removed from the court of any state, or suit commenced in any court of the United States, before the passage hereof, except as otherwise expressly provided in this act. ”
The question then presented is whether the permission given by said third section to institute suit against receivers in the United States courts without previous leave obtained of the court appointing the receiver af
2. The evidence submitted in this case on the intervention is practically the same evidence that was submitted on the hearing of the cause in the state court. It is only supplemented by the testimony of the in
“The verdict is large, and the court below, in the exercise of a sound discretion, might properly have set it aside; but the damages are not so great as to manifest that the jury were actuated by passion or prejudice, and therefore we cannot disturb the verdict because it may seem to us too large.” Brown v. Sullivan, 10 S. W. Rep. 288.
This court, in determining the extent of intervenor’s lien, as has been shown above, is not concluded by the verdict and judgment in the Texas court: and under all the circumstances, as developed by the evidence, it appears that the sum of $5,000 will be ample pecuniary remuneration to the intervenor for all such damages and injuries as can be compensated in money.
The following order will be entered in the case: This cause came on to be further heard upon the intervention of Owen Sullivan, and the master’s report thereon, and exceptions thereto, and was argued, whereupon it' is ordered, adjudged, and decreed, that the exceptions to the master’s report be, and the same are hereby, sustained. It is further ordered that the intervenor do have and recover from the receiver, in this cause, the sum of $5,000, with 8 per cent, interest per annum thereon from the 4th day of May, 1887, and the costs of this intervention, and that the Texas & Pacific Railroad be condemned to pay the said judgment under the order of this court rendered on October 26, 1888, under which the said company retook possession of its railway property.