Baltimore Trust Co. v. Norton Coal Mining Co.

25 F. Supp. 968, 1939 U.S. Dist. LEXIS 3203
CourtDistrict Court, W.D. Kentucky
DecidedJanuary 14, 1939
DocketNo. 808
StatusPublished
Cited by5 cases

This text of 25 F. Supp. 968 (Baltimore Trust Co. v. Norton Coal Mining Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baltimore Trust Co. v. Norton Coal Mining Co., 25 F. Supp. 968, 1939 U.S. Dist. LEXIS 3203 (W.D. Ky. 1939).

Opinion

SWINFORD, District Judge.

The Baltimore Trust Company instituted this proceeding to liquidate the affairs of the Norton Coal Mining Company. The Nebo Coal Company is a subsidiary of the Norton Coal Mining Company. The Circle City Coal Company is asserting a claim against the Nebo Coal Company and it is to determine the validity of the claim that the record is now before the Court.

On May 21, 1927, the Circle City Coal Company leased to the Nebo Coal Company certain Coal Mining properties in Western Kentucky. By the terms of the lease the Nebo Coal Company was to, “open, develop and operate upon the leased premises a thoroughly modern underground mine, with a capacity of not less than one thousand (1000) tons per day, the opening and development of said mine to begin or on before January 1, 1929; and it shall continue the operation of said mine in good faith until the expiration of the term of this lease.”

The lease provided further that the lessee was to pay the lessor 5 cents per ton on all coal mined by the underground method and 10 cents per ton on all coal mined by the stripping of open pit method. The lease contained this additional provision: “The Lessee agrees and undertakes to produce from the leased premises at least Thirty Thousand (30,000) tons during the year, 1929; Sixty Thousand (60,000) tons during the year 1930, and One Hundred Thousand (100,000) tons of coal during the year 1931, and a like amount during each succeeding year following the year 1931, prior to the year 1947, and the Lessee shall on or before the 25th day of January in each year beginning in the year 1930 pay to the Lessor the royalty on said minimum tonnage of coal whether the same shall have been actually produced or not, subject, however, to the terms of paragraph 4.”

The Nebo Coal Company, either itself or through the Norton Coal Mining Company, operated a strip mine on the property until August 1929. The underground mine was never developed. The first year’s minimum royalty on the underground coal was due January 25, 1930. Ten days before this royalty was due the lessor, Circle City Coal Company, brought suit against the Nebo Coal Company, lessee, and the Norton Coal Mining Company, in the Hopkins County Circuit Court. This suit was to recover both the earned royalty on the strip mining and the alleged first year’s minimum royalty on the underground operation, which the lessee had never begun.

The defendants in the state court proceeding moved to strike from the petition the claim for the royalties on the underground mine on the ground that the royalties for this operation were not due and the action as to it was premature.

This motion was sustained and the plaintiff never amended. No suggestion of record that such royalty had fallen due pendente lite was ever made.

The claim for the strip mining royalties was prosecuted to'judgment for the plaintiff. From this judgment the defendants appealed. The judgment in so far as this claim was concerned was affirmed by the Kentucky Court of Appeals. See opinion in the case of Norton Coal Mining Company v. Circle City Coal Company, 249 Ky. 377, 60 S.W.2d 955. This case was decided and the opinion handed down on May 23, 1933.

On July 4, 1932, certain of the assets of the Nebo Coal Company located on the leased premises, including the leasehold itself, were sold under the judgment. At the sale a large quantity of the machinery was bought by Sterling S. Lanier, a representative of the Baltimore Trust Company, and the leasehold was purchased at the sale by Frank Hecht, one of the principal bond holders of the Circle City Coal Company. On October 1, 1933, Hecht assigned the lease back to the Circle City Coal Company, and thus formally merged and extinguished it.

The record in the instant case does not .show wherein the Circle City Coal Company made any further attempt to collect the minimum royalty claimed -to be due from the underground operation or rather failure on the part of the lessee to carry [971]*971out its agreement to develop the underground mining, until this claim was filed in this proceeding. The Circle City Coal Company offered to file its intervening petition on October 8, 1936, claiming approximately $17,000, the minimum royalty on the underground operation according to the terms of the lease of May 21, 1929.

To this claim the Trust Company and receiver for the Norton Coal Mining Company interpose five defenses.

First, that the filing of the claim was prohibited by an order of court in the receivership proceedings of the Norton Coal Mining Company. The record discloses that by proper orders of the court all claims were barred as of September 1, 1933; and by an extension order were further barred as of January 31, 1934; and by final order all claims not presented and adjudicated on or before July 7, 1936.

This case was before the regular district judge for the Western District of Kentucky, before his elevation to the Circuit Court of Appeals for the Sixth Circuit. On December 11, 1936, he ordered the intervening petition of the Circle City Coal Company, setting up this claim, filed. The order is direct and unequivocal. It makes no reservations. By that action I cannot reconsider the motion to file the intervening petition. It is a matter that has been finally determined. Judges of co-ordinate jurisdiction cannot sit in review of the orders of their contemporaries in the same court and in the same case. A recent leading case on this question is Commercial Union of America, Inc. v. Anglo-South American Bank, Ltd., 10 F.2d 937. The opinion reviews many cases consistently adhering to the rule. I quote the following [page 938]:

“In Appleton v. Smith, 1 Fed.Cas. p. 1075, no. 498, Justice Miller (of the Supreme Court) sitting as a Circuit Justice in the district of Arkansas, in 1870, had before him a motion to quash an attachment levied on goods. He denied the motion, and in doing so said:
“ ‘Upon looking into the record of the case, I find that the same motion, based upon the same legal proposition, was made at the last term of the court, and was overruled by the last district judge, who at that time held the court. I have repeatedly decided in this circuit, since I was first assigned to it, that I would not sit in review of the judgments and orders of the court, made by the District Judges in my absence. Where, as in the present case, the motion is made on the same grounds, and with no new state of pleadings or facts, it is nothing more than an appeal from one judge of the same court to another, and though it is my province in the Supreme Court to hear and determine such appeals, I have in this court no such prerogative. The district judge would have the same right to review my judgments and orders here as I would have in regard to his. It would be in the highest degree indelicate for one judge of the same court thus to review and set aside the action of his associate in his absence, and might lead to unseemly struggles to obtain a hearing before one judge in preference to the other. I have also held, and have prescribed it for myself as a rule of conduct, that the presence of the District Judge, and his consent to a review of his decision, will not vary the course to be pursued.’ ”

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Bluebook (online)
25 F. Supp. 968, 1939 U.S. Dist. LEXIS 3203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baltimore-trust-co-v-norton-coal-mining-co-kywd-1939.