Lock v. Turnpike Co.
Lock v. Turnpike Co.
Opinion of the Court
The plaintiff in error commenced this suit, in the Circuit Court of Williamson County,
The facts necessary to be noticed are that in August, 1886, the plaintiff, then about twelve years of age, was riding along the turnpike of defendant company, and in attempting to cross what is known in the record as the Benton culvert, one of its timbers gave way beneath his mule, throwing the plaintiff violently to the ground and causing permanent injuries to his foot and ankle. The present action to recover damages was commenced on December 30, 1895, shortly after the plaintiff attained his majority. The principal defense interposed by the company is that at the time the injuries were sustained by the plaintiff the turnpike was in charge of a receiver appointed by the Chancery Court; that defendant company was in no default, and that no negligence is charged against the receiver.
It is unnecessary to set out or review the pleadings in which these defenses are presented. Suffice it to say, that on the trial before the Court and jury the defendant company offered in evidence the record of certain proceedings in the Chancery Court at Franklin. It appears from this record that in 1883 the Nashville & Duck River Ridge Turnpike Co. filed a bill against the defendant, the Franklin & Hillsboro Turnpike Co., claiming the possession, control, and ownership of that portion of defendant’s
The Chancellor on June 26, 1885, upon the application of complainant, appointed a receiver to take charge of that portion of defendant’s turnpike which was in dispute. The receiver was directed to take possession at once of the tollgate erected and operated by defendants on said turnpike and collect the tolls. It was further decreed he should have authority to employ a gatekeeper at reasonable compensation, and he was directed to pay over to the Clerk and Master the tolls collected, at the end of each month. It was during the incumbency of this receiver that the accident happened to the plaintiff. The original receiver afterwards resigned, and other receivers were successively appointed, who collected and paid over to the Clerk and Master tolls amounting to $1,200. The litigation was ultimately decided by this Court in favor of this defendant, and the tolls collected were directed to be paid over to it, which was accordingly done after paying costs of repairs and other expenses. It is clearly shown in proof that the defective culvert, which occasioned the injury to plaintiff, was on that part of the road which was under the exclusive management of the receiver.
The defendant company in its fourth plea sets out the appointment of the receiver by the Chancery Court, averring that it thus took from the company its only tollgate and only source of income. It also avers that after the receiver was appointed, until the final decree in the case, the company was not operating or controlling the road jointly with the receiver; that it had no power or authority to collect toll, and no funds with which to make repairs, and that if any defect existed in the road defendant company was not responsible therefor.
Says Mr. Beach in his work on Receivers, Sec. 721: “It is well established that a railway corporation which is in the hands of a receiver who is operating the road as a common carrier under statutory provisions or by virtue of an order of Court, is not accountable for injuries occasioned by the negligence of the employes of the receiver. If a corporation be sued for such injuries it has a perfect defense in the plea that at the time the injuries complained of were ■ inflicted, it was in the hands of a receiver duly appointed and operating the road. This rule is well founded upon principle, since the
Says Mr. Wood, viz.: “Upon the appointment of a receiver, the functions, powers, and liabilities of a corporation are suspended, and from that time it ceases to be liable for any contract made or acts done in the operation of the road by the receiver, unless the statute otherwise provides, or the possession of the receiver and the corporation or its lessees is joint.” Wood’s Railway Law, Yol. III., Sec. 478.
It is insisted, however, on behalf of plaintiff that the charge given by the Circuit Judge was erroneous, for s the reason the proof shows that defendant company and the receiver were jointly operating this road, and that each was responsible for the negligence of the other. , Counsel cite Railroad v. Brown, 17 Wall., 445, in which. it appeared that a railroad corporation was run on joint account of a receiver of a part of it and the remaining part by - lessees. It was held that an action would properly lie against the corporation itself for injuries sustained by a
It is true the decree of the Chancery Court does not, in express terms, order the receiver to keep the road in repair; but, as is well said by counsel for appellee, in his brief, viz.: ‘ ‘ The decree expressly places the portion of the road in dispute in the hands of a receiver, and directs him to collect the tolls. This order, ex m termini, carries with it the authority to make repairs, for the receiver could not collect tolls with his road out of repair, and the Chancellor so construed his decree when he after-wards allowed the receiver credit for the repairs.” Since the defendant company had no right to manage or improve or repair the section of the road upon which the accident happened, and as there was no joint operation of the road, the charge of the Circuit Judge under review was entirely correct.
The fourth assignment is that the Circuit Judge erred in refusing the following instruction submitted
It will be observed that this instruction proceeds upon the idea that even if the injury was caused by the negligent acts of the receiver, the defendant company would still be liable to the extent of the funds received by it from the receiver after the termination of the receivership. As already stated, when the litigation between the turnpike companies was settled by this Court in favor of defendant company, the tolls collected by the receiver, amounting to about $1,200, were turned over to defendant, and it is now insisted that defendant company is liable for the negligent acts of the receiver causing
The Court continues, viz.: “If such earnings be invested in betterments, which, without sale, are returned to the company, with its other property, at the close of the receivership, then the company must be held to have received the property charged with the satisfaction of any claim which the receiver ought to have paid out of the earnings. Ryan v. Hays, 62 Texas, 42; Fosdick v. Schall, 99 U. S., 253; Barton v. Barbour, 104 U. S., 130; Hale v. Frost, 99 U. S., 389; Miltenberger v. Railway, 106 U. S., 287; Addison v. Lewis, 75 Va., 701; Railroad v. Davis, 62 Miss., 271.”
The facts of that case (Texas Pac. Ry. v. Johnson, 76 Texas, 421) are as follows: The plaintiff, Johnson, while in the employ of Brown, a receiver of the Texas & Pacific Railway, appointed by the Circuit Court of the United States sitting at New Orleans, was injured by the negligence of such receiver, and instituted suit against the receiver alone, in a District Court in Texas, to recover damages.
“The company was held liable upon the distinct ground that the earnings of the road were subject to the payment of claims for damages, and that, as in this instance, such earnings, to an extent far greater than sufficient to pay the plaintiff, had been diverted into betterments, it must respond directly for the claim. This was so by reason of the statute (Texas Laws, 1887, Ch. 131, page 120); and,
“ Damages for injuries to persons or property during the receivership, caused by the torts of the receiver’s agents and employes, are classed as operating expenses, and are accorded the same priority of payment as belongs to other necessary expenses of the receivership. Such claims will be paid out of the net income if that is sufficient, but in the event of a deficiency they will be paid out of the corpus.” 20 Am. & Eng. Ene. L.,' 385. So, also, if during the receivership net income is applied to the permanent improvement of the railroad property, and the receivership is afterwards discharged and the road again turned over to the company, then the company is liable for torts during the receivership to the extent of such net income so applied.” Am. & Eng. Enc. L., pp. 389, 390; Texas & Pacific Ry. v. White, 18 S. W. R., 481; Beach on Receivers, Secs. 718, 722.
It being conceded that the correct rule on this subject is laid down in the authorities cited, we next inquire as to its application. It is an indisputable condition of the right to recover against the company, even upon the theory that it has received a net income from the receiver, that the declaration
The judgment of the Circuit Court is therefore affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.