Adkins v. Carol Mining Co.

136 S.W.2d 32, 281 Ky. 328, 1940 Ky. LEXIS 40
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedJanuary 16, 1940
StatusPublished
Cited by11 cases

This text of 136 S.W.2d 32 (Adkins v. Carol Mining Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adkins v. Carol Mining Co., 136 S.W.2d 32, 281 Ky. 328, 1940 Ky. LEXIS 40 (Ky. 1940).

Opinion

Opinion op the Court by

Judge Perry

— Reversing in part and affirming in part.

This appeal presents two questions for our decision. The first or preliminary question is as to whether the judgment here sought to be reversed by appellant was a final order and therefore appealable, while the second or major question raised on the issues and presented is as to the priority or preference of lien as between appellants, compensation and labor claimants, and the lessor, American Rolling Mill Co. (appellee), against the property and effects of the insolvent lessee, Carol Mining Co., which have now come to, be distributed among its .creditors.

*330 The facts as pleaded are that on October 30, 1926, the American Rolling Mill Co. executed a coal mining lease on certain land in Boyd county to J. H. Rhodemyre, trustee, who on April 11, 1927, assigned it to the Carol Mining Co. Under the heading of “Default and Forfeiture,” it is provided in the lease as follows:

“All terms, covenants, provisions and agreements herein contained shall be deemed conditions, and it is hereby agreed that in the event of default by lessee to keep or perform any of same the lessor may, at its option, give written notice to lessee, or to lessee’s agent in charge of the premises, that at the expiration of thirty (30) days, if the default be not removed or corrected within.said period, the lessor will declare this lease, and all rights and privileges thereunder, forfeited and same shall thereby become null and void, lessor having the right thereupon to re-enter and take possession of said leased premises. * * *”

On May 31, 1927, the parties adopted an amendment to the lease, providing that if lessee or assignee were not in default for rent or royalties upon the expiration or termination of the lease, the lessee would have the right to remove from the premises all houses, buildings and other improvements placed thereon by it.

On November 18, 1935,- they adopted a further amendment, providing that:

“1. The minimum rental of Two" Thousand Five Hundred Dollars * * * per year shall be payable monthly, for each calendar month, in twelve equal installments.
“2. The royalty for all coal mined and shipped within each calendar month shall be accounted and paid for on or befqre the twentieth day following the end of such month.
“3. Default in payment of royalty for more than thirty days after same becomes due shall entitle lessor, at its option, to declare this lease forfeited and to re-enter and take possession of the leased premises.”

The Carol Mining Co., as assignee of the lease, took possession of the property and proceeded with the operation of a coal mine thereon under the terms of said *331 lease. However, it having defaulted in the payment of dhe stipulated monthly rentals and royalties for some eleven consecutive months, its lessor, the American Rolling Mill Co., brought this action in December, 1938, seeking recovery of the rentals and royalties in default, amounting to $2,324.98. The petition alleged lessee’s insolvency and breach of the terms of the lease, and joined, as defendants, the appellant and two other employees of the insolvent mining company holding unpaid compensation awards and numerous other employees having labor claims, and concluded with the prayer for judgment against its lessee in the sum stated, with interest ; that the lease be declared forfeited; that an order of injunction be issued restraining defendant lessee and its agent from mining and removing coal from the premises or trespassing thereon; that a general order of attachment be issued against the property of defendant; and that the named compensation and labor claimants be required to answer and assert their interests against ihe lessee’s property located on or used in the mining operation. Further, the petition prayed that plaintiff "be adjudged a lien upon all the property and equipment of its lessee, the mining company, prior and superior to any and all other liens whatsoever.

Thereupon the appellant, "Wiser Adkins, together with two other compensation claimants and several labor claimants, made defense to the action by filing answer, counter-claim and cross petition, setting up their respective compensation and labor claims and asserting their statutory liens therefor against the assets of their insolvent employer, the Carol Mining Co., which had come into the hands of the court for distribution, as contemplated under the provisions of Section 2487, Kentucky Statutes.

The answering defendant, Adkins, prayed for a judgment against his insolvent employer for the whole amount of the compensation award ($4,992) made him by the Compensation Board for injuries received in the course and arising out of his emplovment by the said mining company, and further asked that he be adjudged to have a prior and superior lien, over all other claimants, on the property and effects of his insolvent employer, except those for labor and compensation, to secure him in the collection of the whole of his award.

Further, he prayed, as sought in lessor’s petition, that a receiver be appointed to take charge df the prop *332 érty, to hola and preserve it until further orders of the court, and that same be sold and the proceeds thereof applied to the payment of the claims against the defendant mining company and for all proper relief.

A brief summary of these pleadings is that the appellee, American Rolling Mill Co., as lessor of the insolvent Carol Mining Co., is claiming and asserting a prior and superior lien upon its mine effects and assets, based upon the terms of its lease contract, while the appellant, Adkins, is asserting a lien, prior and superior to all others, except as to his co-defendants, against the assets ana mine effects of his insolvent employer, the Carol Mining Co., for the whole of his compensation award made him for injuries received while in said mining company’s employ, when operating under the Workmen’s Compensation Act, Kentucky Statutes, Section 4880 et seq.

It thus appears that the only issue made by the pleadings is as -to who, the lessor or the compensation and labor claimants, has priority of lien and its extent against the assets of the insolvent mining company for the payment of their respective claims.

Demurrers were filed by the plaintiff lessor to the ’ claims of priority of lien asserted by the compensation and labor claimants in their answers, when, the cause being submitted, the trial court adjudged plaintiff practically all the relief sought by its petition, except as to the question of priority and extent of its lien, as to which it adjudged that to secure the payment of its rent debt, the American Rolling Mill Co., “the plaintiff, has a lien upon all of the property of the defendant Carol Mining Company situated on the said lease premises, which lien is prior to all other liens or claims of creditors except the claims asserted herein for wages coming due to employees within six months next prior to December 22, 1938, (when the mining company (lessee) closed down) and that part of the workmen’s compensation claimants’ awards accruing within said six months period.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Vorherr v. Coldiron
525 S.W.3d 532 (Court of Appeals of Kentucky, 2017)
Midland-Guardian Co. v. McElroy
563 S.W.2d 752 (Court of Appeals of Kentucky, 1978)
Cerwin v. Taub
552 S.W.2d 675 (Court of Appeals of Kentucky, 1977)
Elam v. Acme Well Drilling Co.
411 S.W.2d 468 (Court of Appeals of Kentucky, 1967)
Krumpelman v. Louisville & Jefferson County Metropolitan Sewer District
314 S.W.2d 557 (Court of Appeals of Kentucky (pre-1976), 1958)
Payton v. Payton
293 S.W.2d 883 (Court of Appeals of Kentucky, 1956)
Jacoby v. Carrollton Federal Savings & Loan Ass'n
246 S.W.2d 1000 (Court of Appeals of Kentucky, 1952)
City of Hazard v. Duff
175 S.W.2d 357 (Court of Appeals of Kentucky (pre-1976), 1943)
Commonwealth v. Durham
161 S.W.2d 610 (Court of Appeals of Kentucky (pre-1976), 1942)
Long v. Reiss
160 S.W.2d 668 (Court of Appeals of Kentucky (pre-1976), 1942)
American Rolling Mill Co. v. Carol Mining Co.
137 S.W.2d 725 (Court of Appeals of Kentucky (pre-1976), 1940)

Cite This Page — Counsel Stack

Bluebook (online)
136 S.W.2d 32, 281 Ky. 328, 1940 Ky. LEXIS 40, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adkins-v-carol-mining-co-kyctapphigh-1940.