Where, in the progress of a suit for the foreclosure of a
mortgage, a receiver was appointed against whom, after the
foreclosure and sale of the mortgaged premises, a decree was
rendered directing him to pay into court $15,776.25, the balance
found due from him on the settlement of his accounts,
held
that he had the right to appeal from that decree.
In the progress of a suit for the foreclosure of a mortgage
executed by the Gilman, Clinton, and Springfield Railroad Company,
Francis E. Hinckley was appointed receiver. On the 8th of April,
1876, a final decree was rendered under which, on the 10th of June,
the mortgaged property was sold, and subsequently conveyed to the
purchasers. Upon a settlement of the accounts of the receiver, a
balance was found due from him of $18,776.25, for which a decree
was entered Sept. 27, directing its payment into court on or before
Oct. 10. On the 9th of October, he prayed this appeal "from the
decree against him," which was granted. The complainants now move
to dismiss, for the reason that he was not a party to the suit.
Page 94 U. S. 468
MR. CHIEF JUSTICE WAITE delivered the opinion of the Court.
The motion to dismiss cannot be sustained.
In
Blossom v. Railroad
Company, 1 Wall. 655, a bidder at a foreclosure
sale was allowed to appeal, and in delivering the opinion of the
Court, MR. JUSTICE MILLER said:
"It is certainly true that he cannot appeal from the original
decree of foreclosure, nor from any other order or decree of the
court made prior to his bid. It however seems to be well settled
that, after a decree adjudicating certain rights between the
parties to a suit, other persons having no previous interest in the
litigation may become connected with the case in the course of the
subsequent proceedings in such a manner as to subject them to the
jurisdiction of the court and render them liable to its orders, and
that they may in like manner acquire rights in regard to the
subject matter of the litigation, which the court is bound to
protect. "
Page 94 U. S. 469
This seems to us to be decisive of this motion. The receiver
cannot and does not attempt to appeal from the decree of
foreclosure or from any order or decree of the court except such as
relates to the settlement of his accounts. To that extent, he has
been subjected to the jurisdiction of the court and made liable to
its orders and decrees. He has therefore the corresponding right to
contend against all claims made against him. For this purpose, he
occupies the position of a party to the suit, although an officer
of the court, and after the final decree below has the right to his
appeal here. In this case, the final decree has been given, and the
case is properly here upon the appeal as prayed and allowed. This
will not keep anything in litigation but the receiver's accounts.
The title to the property and the possession under the sale cannot
be in any manner affected. Everything can be closed up in the court
below in accordance with the decree which has been entered in the
cause except the distribution of the money claimed from the
receiver.
It will be time enough to consider whether more of the record
has been brought here than is necessary to the hearing of the
questions presented by the appeal when the cause is reached, or
when application is made to us in that behalf.
Motion to dismiss denied.
