Cox v. Terre Haute & I. R.

Citations

• 123 F. 439
• 1903 U.S. App. LEXIS 4916

Syllabus

<p>1. Railroads—Lease in Violation op Public Policy—Recovery op Rental.</p> <p>There can be no recovery of rental for the use of a railroad delivered by the company owning the same to another company, and operated by the latter under a lease which was void, not only because ultra vires, but also because forbidden by public policy.</p> <p>2. Same—Rights op Mortgagee—Recovery op Rental prom Receiver op Lessee.</p> <p>A mortgagee of a railroad which had been leased to another company by a lease which was void, and which at the time a suit was instituted to foreclose the mortgage was being operated by a receiver of the lessee at a loss, the deficit being paid from other funds of the receivership, who with knowledge of such fact permitted such receiver to continue in possession and received the benefit of his expenditures in keeping the property in operation until a sale under the mortgage, instead of applying for a receiver therefor in the foreclosure suit, is not entitled to recover rental for the property during such time from the receiver.</p> <p>¶ 1. See Railroads, vol. 41, Cent Dig. § 432.</p>