Gunnison v. Chicago, M. & St. P. Ry. Co.

Citations

• 130 F. 259
• 64 C.C.A. 505
• 1904 U.S. App. LEXIS 4152

Syllabus

<p>1. Limitation — Suit to Enforce Railroad Mortgage — Adverse Possession.</p> <p>Defendant railroad company purchased a line of road in Wisconsin in 1867, under a decree ordering it sold to satisfy a judgment rendered in 1857. The decree directed the sale of, and the marshal’s deed purported to convey, all the right, title, and interest of the company against which the judgment was rendered, and which was at the time of its rendition the owner of the property, together with its franchise, subject to certain stated prior liens. Defendant took possession and thereafter retained and operated the road, incorporating it with its system, making large improvements, and paying off the stated incumbrances prior to the judgment, amounting to $3,000,000. In 1859 the road had been sold under a mortgage subsequent to the judgment, and the purchasing company in 1864 issued bonds secured by mortgage. Defendant never recognized the validity of such mortgage as against its own title, and no part of either principal or interest of the bonds was ever paid. In 1898 complainants, claiming to be owners of most of such bonds, brought suit to enforce the mortgage. The Wisconsin 10-year statute of limitations (Rev. St. 1898, § 4211), in force since 1858, provides that “where the occupant, or those under whom he claims, entered into the possession of any premises under claim of title, exclusive of any other right founding such claim upon some written instrument as being a conveyance of the premises in question or upon the judgment of some competent court, and there has been a continual occupation. and possession of the premises included in such instrument or judgment under such claim for ten years the premises shall be deemed to have been held adversely.” Held, that under such statute defendant held adversely to the mortgage from the time it went into possession in 1867, and the right of action to enforce such mortgage became barred in 10 years thereafter.</p>