Good v. Sherman

Citations

• 37 Tex. 660

Syllabus

<p>1. When the franchises, track, etc., of a railroad company are sold under execution, as allowed by Article 4914, Paschal’s Digest, the directors become trustees by virtue of the subsequent Article 4916; and all unsold property of the company passes to such trustees, for the benefit of any creditors of the company. Stockholders of the company can have no priority over the creditors.</p> <p>2. In 1866, B. recovered judgment against a railroad company. In 1868, by virtue of other judgments against the company, its franchises, track, etc., were sold under execution ; but certain town lots of the company remained unsold. In 1872, execution from B.'s judgment was levied on these town lots; and the present is a suit to enjoin the sale, brought by the trustees (formerly directors) of the company, whose petition acknowledges the judgment debt to B., hut fails to show that there is any other creditor of the company, and fails to account for the delay of petitioners in applying the property to B.’s demand. Held, that the injunction was erroneously granted. Under such a state of facts, B. should not have been restrained from enforcing his judgment by sale of the property.</p>