The Texas & Pacific Railway Company v. Nancy J. Gay

Summary

The Texas Supreme Court answered certified questions concerning the jurisdiction of a United States Circuit Court in Louisiana to appoint a receiver over the Texas portion of the Texas & Pacific Railway and the resulting liability of the railway for the receiver's negligence. It held that the federal court lacked jurisdiction because the railway’s property was wholly situated in Texas, and that the railway is liable for the negligent acts of a receiver who functions as its agent. The Court also addressed ancillary issues such as limitation periods and collusive receiverships.