Overview
Case summary
Frank Tracy, holding a judgment against Oregon Short Line & Utah Northern Railway Company for pre-receivership negligence, petitioned the Circuit Court for an order requiring the railroad's receivers to pay his judgment. He argued that funds from the subsidiary line's operation should pay his claim rather than mortgage liens. The court denied the petition, sustaining demurrers, because the petition failed to allege that any funds from the subsidiary line's operation actually came into the receivers' hands. Additionally, the court held it lacked jurisdiction to order payment since it did not appoint the receivers and could not adjust their final account, which must be done by the appointing court.
Abstract
A judgment creditor holding a claim against a railroad for pre-receivership negligence petitioned the court to compel the receivers to pay the judgment from subsidiary line operations rather than mortgage liens. The court denied the petition, sustaining demurrers for failure to allege that such funds reached the receivers and lacking jurisdiction since it did not appoint them, with final accounts adjustable only by the appointing court. The demurrer was sustained, denying payment.
Opinion of the court
opinionGILBERT, Circuit Judgejoined by GILBERT, Circuit Judge
- Petition fails to show funds from operation of Oregon Short Line & Utah Northern Railway Company came into receivers' hands
- Court lacks jurisdiction to order payment as it did not appoint the receivers
- Final account of receivers must be adjusted by appointing court
Jurisdiction
not challenged- Petition filed in Circuit Court, D. Oregon regarding receivership of Oregon Short Line & Utah Northern Railway Company
Procedural posture
- Petition for payment of judgment by receivers
- Claim that funds from operation of subsidiary line are in receivers' hands
Subsequent history
Legal categories
Case record
Issues & holdings
De novo review of legal sufficiency of petition (implied from demurrer context)
Petition fails to allege sufficient facts showing funds from operation of subsidiary line came into receivers' hands or that this court has jurisdiction to order payment
Issue preserved for review
Holdings of the court
Error analysis
- Petition insufficiently alleges funds from subsidiary line operation came into receivers' hands — procedural · error foundNot applicable as error led to dismissal of petition · not applicable
Standards of review
- Sufficiency of petition allegations regarding receivers' funds and court jurisdiction — de novo Court reviews legal sufficiency of petition on demurrer
Timeline
Hearing on Frank Tracy's petition for order requiring receivers to pay his judgment
Outcome: Demurrer sustained, petition denied
Court rules it lacks authority to order payment from receivers
Negligence of Oregon Short Line & Utah Northern Railway Company occurs, leading to Frank Tracy's claim
Basis for Tracy's judgment claim
Judgment rendered in favor of Frank Tracy against Oregon Short Line & Utah Northern Railway Company
Outcome: Judgment for Tracy
Creates the debt that Tracy seeks to collect from receivers
Receivers appointed for Union Pacific System, including Oregon Short Line & Utah Northern Railway Company
Places railroad assets under court control, affecting collection of pre-existing debts
Facts & evidence
Key facts
5 facts- Frank Tracy obtained a judgment against Oregon Short Line & Utah Northern Railway Company based on negligence occurring prior to receivership
- The railroad went into receivership as part of the Union Pacific System
- Petitioner claims funds from operation of the subsidiary line prior to receivership should pay his judgment rather than mortgage liens
- Receivers were appointed for the Union Pacific System, not specifically for the Oregon Short Line & Utah Northern Railway Company
- The Oregon Short Line & Utah Northern Railway was not operated as a separate line under the receivership
Disputed questions
- Whether funds from operation of Oregon Short Line & Utah Northern Railway Company came into hands of current receivers
Procedural history
4 steps- Judgment rendered in favor of Frank Tracy based on pre-receivership negligence
- Petition filed in Circuit Court, D. Oregon seeking order for receivers to pay judgment
- Demurrers interposed to the petition
- Court hearing on petition
Evidence in the record
- Judgment in favor of Frank Tracy
- Petition for payment
- Reports of receivers on file
- Evidence type: Allegation that funds from operation of subsidiary line are in receivers' hands · Challenge basis: Insufficient factual allegations · Trial court ruling: excluded · Reasoning: Petition does not sufficiently allege funds came into receivers' hands · Challenged on appeal: false · Appellate outcome: affirmed
Objects of relevance
Authorities
Cited authorities (1)
Related cases (1)
Standards & doctrines
- Jurisdictional authority over receivers' accounts
- Priority of claims in insolvency proceedings
Legal principles applied
- Court lacking appointment authority cannot order payment from receivers
- Final account of receivers must be adjusted by appointing court
Notable quotes
“Without attempting to pass upon the question whether or not such funds would be applicable to the payment of a claim of this nature, it is sufficient for the disposition of this petition upon the demurrers which are interposed to refer to the fact that it does not appear from the petition, nor does it appear from the papers or reports of receivers on file in this cause, that any funds have come into the hands of the receivers from the operation of the Oregon Short Line & Utah Northern Railway Company”majority — Court explaining why petition fails on factual groundsHighlights insufficiency of petition allegations regarding receivers' funds
“This is not the court in which said receivers were first appointed, and it is not the court which has jurisdiction of their final account”majority — Court explaining jurisdictional deficiencyEmphasizes lack of authority to order payment from receivers appointed by another court