Swann v. Wright's Executor - 110 U.S. 590 (1884)
U.S. Supreme Court
Swann v. Wright's Executor, 110 U.S. 590 (1884)
Swann v. Wright's Executor
Argued December 18-19, 1883
Decided March 3, 1884
110 U.S. 590
A purchaser of a railroad at a sale under decree of foreclosure of a first mortgage, and of sale of the mortgaged property, which recites that the sale shall be made subject to liens established or to be established (on references before had or then pending, to a master, with right to bondholders to appear and oppose) as prior and superior liens to the lien of the bonds issued under the mortgage, cannot dispute the validity of the liens thus established, even on the ground of fraud alleged to have been discovered after confirmation of the master's report fixing the amount of the liens.
Whether holders of the mortgage bonds may not contest such liens, and, if successful, be substituted to so much thereof as was established for the benefit of the fraudulent claims is not decided.
The facts making the case are fully stated in the opinion of the Court.