Hervey v. Illinois Midland Ry. Co.’s Empirical Analysis

Citation profile

6 federal appellate ·

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 15 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““In regard to the fact that neither the Paris & Decatur bondholders nor their trastee were parlies to the suit when the order of October 9, 187(5, was made, the commissioner tools the view, which the circuit court confirmed, that, while they ought to be heard before the order was made conclusive against them, yet, as the objections to the merit of the order would not have been availing if marte before it was entered, and the money had been actually and faithfully applied, under the order of the court, to the improvement of the mortgaged property, no equitable reason appeared why the bondholders should keep ilie benefits and escape the burden. * ⅜ * Under these circumstances, the Paris & Decatur trustee and its bondholders in. court, through it, can be heard to make no other objections to the orders made, except such as arise ;is to the merits of the expenditures made under them. The view of the commissioner and the circuit court was that the bondholders should have such rights and equities as they could have properly claimed as parties ab initio, and that this view should apply against them as well as for them. In this we concur. The principies properly applicable to this branch of the case were well expressed by Mr. Justice Harlan in his opinion of February 2!), 188-1, as follows: ’Those who take receiver’s certificates must be deemed to have taken them subject to the rights of parties who have prior liens upon the property, and who have not, but should have been, brought be”

   1 later decision quote this exact passage
   e.g. Farmers' Loan & Trust Co. v. Centralia & C. R.

2. ““The objection under consideration can have no application to any one of the sectional mortgages, except that executed by the Paris & Terre Haute Railroad Company, which was organized after the passage of the act of 1872; but it cannot avail the parties making it for several reasons, one of which is that, as the Paris & Terre Haute Railroad Company admits the execution and delivery of the mortgage, it must, as between the company and its creditors, be deemed a valid instrument. The provision of the act of 1872, making the assent of a given number of stockholders essential to the validity of a mortgage, is primarily, if rot exclusively, for the benefit of stockholders. If it be conceded that stockholders of a railroad corporation, formed under the act of 1872, could, as against bona fide holders of bonds secured by a mortgage executed by such corporation, defeat a mortgage not executed with the express assent of the requisite number of stockholders, it does not follow that creditors of the corporation could raise any such question.””

   1 later decision quote this exact passage
   e.g. Campbell v. Argenta Gold & Silver Min. Co.