Gulf, M. & N. R. Co. v. Hill Mfg. Co.

Citations

• 127 Miss. 644
• 90 So. 358

Syllabus

<p>1. Rajxroads. Mortgage statute favoring damage claimants creates no lien.</p> <p>Under section 4067, Code 1906 (section 6696, Hemingway’s Code), a railroad company cannot mortgage its rolling stock, income of future earnings, to the prejudice of persons having ¿laims for carriage of freight or passengers, or for personal injuries; but such section does not impress a lien upon such property nor impress it with a trust. The right of a claimant for such injuries to resort to such property does not attach to such property until he has secured a lien by judgment or by contract.</p> <p>2. Courts. Judgment. One may not sue in state court to establish rights against property sold by federal court; state court cannot vacate or modify judgment of federal court having jurisdiction.</p> <p>Where a holder of a mortgage on railroad property files a suit to foreclosure in a federal court having jurisdiction of the person and subject-matter, and such court takes jurisdiction and reserves to itself the right to settle all questions of priority of right between creditors and persons having claims against the property, and causes notice, to be published to such person to appear and propound claims, and forbids the seizure of such property under execution, and orders and confirms the sale, and settles questions of priority by its decrees, a person may not bring suit in a state court to establish rights against the property so sold by the federal court. A state court has no power or jurisdiction to vacate or modify a judgment of a federal court, where it has acquired jurisdiction.’</p>