Trocon v. Scott City Northern Railroad

Citations

• 91 Kan. 887
• 139 P. 357
• 1914 Kan. LEXIS 143

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Railroad Construction — Priority of Mens — Equitable Adjustment. Courts of equity in determining the priority of liens are governed largely by considerations of essential fairness and justice.</p> <p>2. Same — Bridge Company Awarded First Men on All Railroad Property. The promoters of a projected railroad who also organized a construction company to build the road arranged with a trust company to take a mortgage on the projected line to secure certain bonds to be issued by the road, when organized, to the construction company, which was to build the road out of the money to be advanced from time to time as the work should progress. The relations of the promoters and the three companies mentioned were such that all were in some degree interested and substantially understood the contemplated enterprise. Pursuant to the arrangements indicated the railroad company contracted with the construction company to build and complete the road and the trust company furnished or procured the money to be furnished, and before the work was completed took charge of the disbursements. Two or three months after the contract was made for the building of the road the railroad company contracted with the bridge company to furnish the bridges for the entire line, the two promoters signing as guarantors, and such bridges were furnished and partially paid for. To recover the balance an action was brought against the railroad company, the construction company, the two promoters and the trust company, in which action the receivers of the railroad company appeared and were made parties. The court below rendered judgment against the railroad company and adjudged such balance a perferential claim or lien upon its property superior and paramount to the claims of the other defendants. Held, that such lien was properly adjudged.</p> <p>3. Receivers — Entry of Appearance — Can Not Deny Jurisdiction. The receivers having, appeared and contested the matters at issue