Railway Company — Receivers — Return of Property Without Sale — Agreed Decree — Betterments — Right to Sue in State Court — Excessive Verdict. — Appellant being in the hands of receivers appointed by the United States Circuit Court, appellee, desiring to send his wife and two little girls, aged about 4 and 11 years respectively, to visit relatives near Newton Creek, a way station on appellant's line of railway between Dallas and Lancaster, bought tickets for them from the agent of the receivers, from Dallas to Lancaster, and upon such tickets the conductor in charge of the train agreed to put them off at Newton Creek crossing, a few hundred yards from where their relatives lived. Mrs. Chilton and the children boarded the train, expecting, under the agreement with the conductor, to be put off at Newton Creek crossing. When the train reached Five-mile Bottom, a point about two miles from Newton Creek, the train was stopped in a muddy swamp, in the night-time, several miles from any habitation, and they were put off, against their protest. When this suit for damages was brought, and at the time of the injury, the railroad was in the hands of the receivers, but before trial the property had been returned to appellant, and the receivers discharged by an agreed decree, to which appellant was a party. Held:
1. The decree of the Federal court being an agreed decree, appellant, being a party to such agreement, and having accepted the property under it, is bound by all of its terms.
2. Appellant having agreed thereby to accept the property "subject to all claims, damages, and liabilities now existing, or which may hereafter be made against the receivers," and having been made a party to this suit, became liable herein for any damages sustained by appellee while the property was in the hands of the receivers.
3. That part of the decree of the United States Circuit Court which orders the receivers to return the property to the railway company on a certain date, is a valid order, and when the receivers did, in obedience to such order, deliver the property into the hands of the company, it was no longer in the custody of the Federal court, and it had no power or authority to require parties having claims against the receivers or against the company to intervene in the United States Circuit Court within a limited time, or forfeit their rights.
4. Independent of the decree of the Federal court, appellee had the right to pursue his remedy against the receivers in the State court, not only by State statute, but by the Act of Congress of March 3, 1887.
5. After the discharge of the receivers and the return of the property to the railway company, which was then released and placed wholly beyond the custody of the Federal court, appellee was authorized, by the agreed decree, as well as by the Act of the Legislature of March 19, 1889, to proceed against the railway company to enforce his claim.
6. Under general principles of equity, and without reference to any statute, it has been frequently held that the receiver was the representative of the income of the railway during the receivership, and when this income was invested in betterments upon the road, a creditor could follow the same into the hands of the company, and to that extent, at least, enforce the collection of his claim.
7. The statute of 1889 has gone further than this, and enacted that where the property has been returned to the company without sale, it is responsible for a debt or liability incurred during the receivership, without reference to the question of betterments; and the act in this respect is not only constitutional, but pre-eminently just and equitable.
8. It was not error to charge the jury, that when the appellant received back the property from the receivers it took the same subject to appellee's claim, and that appellee was entitled to recover against appellant, if without such discharge he would have been entitled to recover against the receivers. The charge is good under both the statute and the agreed decree.
9. See opinion for facts under which it is held that a verdict for $1160 damages is exceedingly moderate.
ON MOTION FOR REHEARING.
1. Betterments — Presumption. — It appearing that while the road was in the hands of the receivers they placed betterments thereon of value exceeding the recovery in this case, the presumption is that this was done out of current receipts.
2. Burden of Proof. — The betterments being shown, the burden of proof was on the appellant to show that it was not from the current receipts.