assignments and subleases

Harry Tompkins, a citizen of Pennsylvania, was injured on a dark night by a passing freight train of the Erie Railroad Company while walking along its right of way at Hughestown in that State. He claimed that the accident occurred through negligence in the operation or maintenance of the train. He also claimed that he was rightfully on the premises as a licensee because he was on a commonly used beaten footpath which ran for a short distance alongside the tracks. To enforce that claim he brought an action in the federal court for southern New York, which had jurisdiction because the company is a corporation of that State. The Erie Railroad Company denied liability, and the case was tried by a jury. The railroad insisted that its duty to Tompkins was no greater than that owed to a trespasser. It contended that under the law of Pennsylvania, as declared by its highest court, persons who use pathways along the railroad right of way are to be deemed trespassers. The railroad further contended that it is not liable for injuries to undiscovered trespassers resulting from its negligence unless the conduct is wanton or wilful. Tompkins denied that any such rule had been established by the decisions of the Pennsylvania courts. He contended that since there was no statute of the State on the subject, the railroad's duty and liability is to be determined in federal courts as a matter of general law. The trial judge refused to rule that Pennsylvania law precluded recovery. The jury brought in a verdict of $30,000, and the judgment entered thereon was affirmed by the Circuit Court of Appeals. The Erie had contended that application of the Pennsylvania rule was required by section 34 of the Federal Judiciary Act of September 24, 1789. Because of the importance of the question whether the federal court was free to disregard the alleged rule of the Pennsylvania common law, the Supreme Court granted certiorari.

The Blaisdells executed a mortgage on their property in Minneapolis to the Home Building & Loan Association on August 1, 1928. The mortgage contained a valid power of sale by advertisement. After default, the mortgage was foreclosed and the property sold to the Association on May 2, 1932, for $3700.98. The period of redemption under the law then in effect was set to expire on May 2, 1933. On April 18, 1933, Minnesota enacted Chapter 339 of the Laws of 1933, known as the Mortgage Moratorium Law. The statute authorized district courts to extend the period of redemption from foreclosure sales for such additional time as the court deemed just and equitable, not beyond May 1, 1935, upon condition that the mortgagor pay a reasonable part of the income or rental value toward taxes, insurance, interest, and principal. The Blaisdells applied to the District Court of Hennepin County for an extension of the redemption period. The district court found that the reasonable rental value of the property was $40 per month and the present market value was $6000. It extended the redemption period to May 1, 1935, requiring the Blaisdells to pay $40 per month to the Association. The Supreme Court of Minnesota affirmed the order. The Home Building & Loan Association appealed to the United States Supreme Court, which reviewed the judgment sustaining the statute as applied to the preexisting mortgage.

The City of Chicago, acting under an 1872 Illinois statute that became part of its charter in 1875, passed an ordinance on October 9, 1880, to open and widen Rockwell Street from West 18th Street to West 19th Street by condemning parcels of land owned by individuals and parts of the right of way of the Chicago, Burlington and Quincy Railroad Company within the city limits. On November 12, 1890, the city filed a petition in the Circuit Court of Cook County seeking condemnation of the property and asking that just compensation be ascertained by a jury, with the railroad company admitted as a defendant along with other interested parties. The jury awarded one dollar as just compensation to the railroad company for the parts of its right of way to be used for the street, while awarding compensation to individual owners for their parcels. The railroad moved for a new trial, which was overruled, and final judgment was entered in execution of the award. The judgment was affirmed by the Supreme Court of Illinois in 149 Illinois 457. After affirmance the railroad company sued out a writ of error to the United States Supreme Court. The railroad had raised claims under the Fourteenth Amendment in its motion for new trial and in its assignment of errors filed in the state supreme court. The Illinois statute provided no provision for an answer by defendants in condemnation proceedings, but the railroad asserted its federal claims in the written motion to set aside the verdict and grant a new trial.