Denison & N. Ry. Co. v. Ranney-Alton Mercantile Co.

Citations

• 104 F. 595
• 44 C.C.A. 65
• 1900 U.S. App. LEXIS 3954

Syllabus

<p>1. Contract op Corporation — Defaulting Contractors — Liabilities.</p> <p>A corporation is not leg-ally or equitably bound to pay the creditors of its defaulting contractors for work, materials, or supplies which creditors furnished to such contractors, and the latter used to improve the property of the corporation, when the contractors have so utterly failed to perform their agreement with the corporation that it owes them nothing.</p> <p>2. Same — Equitable Limn.</p> <p>In the absence of a statute creating them, such creditors of defaulting contractors have no equitable liens upon the property of such a corpora-iion.</p> <p>8. Samis — Liability to Creditors op Defaulting Contractors.</p> <p>A corporation is not legally or equitably bound to pay the creditors of defaulting contractors with a receiver of its property for work, materials, or supplies which such creditors furnished to such contractors, and which the latter used to improve the property of the corporation, when the contractors have so utterly failed to perform their agreement (hat the receiver owes them nothing. '</p> <p>4. Same — Equitable Lien on Property in Hands of Receiver.</p> <p>In the absence of a statute, or an order of court, made before such work, materials, or supplies were furnished, establishing them, such creditors have no equitable liens for the amounts dme them from the defaulting contractors upon the property of the corporation in the hands of the receiver.</p> <p>C. Railroads — Receivers—Contracts por Construction — Liens.</p> <p>Orders of court authorising the receiver of the properly of a railroad corporation to make an agreement with specified contractors for the construction, completion, and equipment of a railroad in consideration of receiver’s certificates to the amount of Sit,000 for every mile of completed and equipped railroad, and making such certificates liens upon the property of the railroad company, give no liens upon such property to the creditors of such contractors