United States Courts of Appeals Reports: Cases Adjudged in the United States ...

PUNITIVE DAMAGES.

See EVIDENCE, 17, 19.

RAILROAD.

Under the law of Michigan the extension of a railroad is not a public
improvement. City of Cadillac v. Woonsocket Institution for Savings,

1. If a mortgage has been recorded, the failure to index it does not destroy
the priority acquired under the law by recording it; the indexing is
for the benefit of subsequent purchasers, and a failure to index prop-
erly is a violation of the duty of the recording officer, owing, not to
the person tendering the instrument for record, but to subsequent
purchasers, who are interested in discovering what the instrument
contains. The W. B. Cole, 334.

2. A person taking title is chargeable with notice of his chain of title,
whether the grantees therein are bona fide purchasers or not, and also
of all conveyances or mortgages made by any one in the chain of title
while he holds title, whether the recording of such instruments occurs
then or not, and if upon the record a prior conveyance seems to be
defeated by a subsequent one through delay in recording, then the
person taking title must inquire as to the facts which might defeat
the statutory effect of such prior record. 1b.

3. While under the commercial law as administered in the Federal courts
a mortgage given to secure a negotiable instrument passes to a bona
fide purchaser as free from original equities as the instrument the pay-
ment of which it secures, the negotiability of such instrument does
not do away with the effect of the recording act, the original equities
which are barred by the transfer of the securing mortgage being those
equities only of which the assignee has neither actual nor constructive
notice. Ib.

REGULATIONS.

See ORDINANCE.

REGULATIONS OF COMMERCE.

See COMMERCE, REGULATIONS OF;
LANDS UNDER WATER, 3, 4.

REHEARING.

In the Circuit Court of Appeals for the Sixth Circuit a rehearing will be
denied as of course, unless a judge who concurred in the judgment
desires it and the majority of the court so determines, as provided by
Rule 29 of the rules of this court, and when such reargument is de-
sired by the court it will be ordered without waiting for the applica-
tion of counsel. Hanna's Executor v. Raynolds (2), 713.

RELEASE.

A release includes all demands embraced by its terms, whether particularly
contemplated or not, and direct parol evidence that a certain claim was
not in the minds of the parties is not admissible. The Cayuga, 577.

1. Where a bill in equity which is filed in a Circuit Court of the United
States by a trust company against a railroad company to foreclose a
mortgage prays that the court take possession of and sell the property
of the railroad company in which certain persons claim to have an
interest by reason of liens as subcontractors in the construction of the
railroad, such lien claimants are prevented by such suit from pursuing
their usual remedy against the property in the state courts, and have
the right to appeal to the Federal court to save their rights, and to
protect their interests, either by enjoining the trust company from

proceeding under its bill, or by adjusting priorities between them and
the trust company; and, even if the lien claimants, as between them-
selves and the railroad company, might not have had the requisite
citizenship to entitle the court to take jurisdiction of a bill filed by
them against the railroad company, to enforce such rights as an
original bill in equity, the court has jurisdiction to determine their
rights upon a consolidation of their suit with the foreclosure suit,
whereby the lien claimants are put into the position of interveners.
Central Trust Company of New York v. Bridges, 115.

2. Where one of two contracting parties gives notice of his intention not
to comply with the obligation of his contract, the other contracting
party may accept this as an anticipatory breach of the contract, and
sue for damages without waiting until the time mentioned for the
completion and fulfilment of the contract by its terms, but, in order
to enable the latter to sue on such an anticipatory breach, he must
accept it as such, and consider the contract at an end, and if he elects
to consider the contract still in force he cannot recover thereafter
without performing all the conditions precedent of the contract by
him to be performed. Foss-Schneider Brewing Company v. Bullock, 311.
3. The vendors under a contract for the purchase and sale of broken rice
did not elect to treat an attempted cancelation of the contract by the
vendee as a repudiation of it, and took steps to deliver certain carloads
of rice which had not been delivered under the contract to the vendee,
and, claiming that the vendee had accepted the delivery, brought an
action to recover the alleged contract price of the rice. Held, (1)
That, as the action was for goods actually sold and delivered, the
right of action accrued upon the delivery of the goods, and not before;
and (2) that, as the action was brought within six years after the
delivery of the rice, the statute of limitations had not begun to run
when the suit was brought. lb.

4. The passing of the assets of an insolvent national bank into the hands
of a receiver removes all the property of the bank from liability to
process to secure satisfaction of judgments, so that the right which a
creditor of the bank had before its suspension to levy an execution to
satisfy his judgment is gone, and for it is substituted as a security for
the payment of his debt a fixed and definite interest in the assets
which it is the purpose of the banking act to reduce to money and
apply on his debt with all convenient speed. Chemical National Bank
v. Armstrong, 465.

5. The holding of collateral security does not ordinarily prevent a creditor
from enforcing his claim by judgment and execution against a debtor
without any deduction for his collateral. Ib.

6. It is a rule of equity that where a creditor holds two securities, one of
which he has in common with others, and the other of which he holds
for his sole use, he may be required to collect his debt first out of the
security which he holds for his sole benefit, so that those who hold in

common with him may have more to apply to their debts; but this
rule can never be invoked where he who has the two securities cannot
pay himself in full out of both; he was given the two securities to pay
his debt, and he cannot be deprived of this primary equity for the
benefit of some one else who is less fortunate in his security. Ib.
7. The great weight of authority in England and in the United States is
strongly opposed to the view that a creditor with collateral shall be
thereby deprived of the right to prove for his full claim against an
insolvent estate. lb.

8. A creditor who has proved his claim against an insolvent estate under
administration can collect his dividends without any deduction from
his claim as proven for collections made from collateral after his proof
of claim is filed. Ib.

A. RULES ANNOUNCED June 16, 1891, as Amended JanUARY 16, 1892,
JUNE 22 AND OCTOBER 3, 1893, JANUARY 2, FEBRUARY 23 AND
OCTOBER 2, 8 AND 22, 1894, AND FEBRUARY 25, 1895.