Charles A. Riley Co. v. W. T. Sears & Co.

70 S.E. 997, 154 N.C. 509, 1911 N.C. LEXIS 303
CourtSupreme Court of North Carolina
DecidedApril 5, 1911
StatusPublished
Cited by18 cases

This text of 70 S.E. 997 (Charles A. Riley Co. v. W. T. Sears & Co.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charles A. Riley Co. v. W. T. Sears & Co., 70 S.E. 997, 154 N.C. 509, 1911 N.C. LEXIS 303 (N.C. 1911).

Opinions

Action, heard on exceptions to report of referee. The action was instituted by plaintiff against defendant corporation in behalf of himself and all other creditors, on the ground of insolvency, alleging that plaintiff's debt was about $27,000 and a valid lien upon a portion of the assets of defendant company. A receiver was duly appointed, and the bulk of defendant's assets or a large amount of same have been collected by said receiver and are held subject to the orders of the court made in the cause.

Pending the suit, John A. Arringdale intervened and, by petition, alleged that he was a creditor of defendant corporation to the amount of $6,242.33, with some interest, being a balance due and owing on a claim of defendant to the original amount of $7,442.33 and on which some payments had been made, and that such claim, to the extent of $6,000, evidenced by notes, was a valid lien on a portion of the assets, sufficient to pay the same, and $242.33 was evidenced by open account and entitled to share pro rata in the distribution of the assets.

This claim was resisted by plaintiff, Riley Company, and on the grounds (1) that it was for usurious interest, and void; (2) that in fact and in truth the claimant, John A. Arringdale, was a partner of defendant corporation and, as such, liable for the debts; (3) that, in any event, the lien alleged in favor of the petitioner had been displaced by reason of a subsequent agreement and transaction between the claimant and defendant company, providing for a substituted and later lien. That this last had not been registered, and that plaintiff's lien had thereby become a prior claim on the assets.

The receiver also answered, resisting the claim of the petitioner, Arringdale, on the grounds (1) that same was usurious and (512) void; (2) that, if not, the claimant was a partner, etc.

The cause was referred to E. S. Martin, Esq., who after hearing the testimony and arguments of counsel, made a report, in which it was held, among other things, that the claim of the petitioner, Arringdale, was a valid claim and a prior lien on a portion of the assets to the amount of $6,000, to wit, the notes, with some interest, and that the open account was a debt to be paid pro rata with other unsecured and general creditors of the corporation. Plaintiff and the receiver filed various exceptions to the report and, on the hearing, certain additional findings of facts having been agreed upon by the parties, the court overruled the exceptions and gave judgment in favor of the petitioner, according to the report of the referee. The plaintiff and the receiver, having duly excepted, appealed to this Court. *Page 405 It appears, from the very full and careful report of the referee, that on 4 February, 1904, the claimant, John A. Arringdale, a party of the first part, entered into an agreement with S. P. Taylor Co., a firm composed of S. M. Lloyd, S. P. Taylor, and W. T. Sears, as party of the second part, by which Arringdale loaned the said firm the sum of $12,000 to be used by them in the purchase of certain timber lands in the county of Columbus, N.C. to wit, 4,000 acres, known as the Flippo lands, and other timber and timbered land in that section, the amount purchased to be not less than 20,000,000 feet, and the said Arringdale was to have a lien on the lands and timber purchased and other property, a mill, machinery, appliances, etc., engaged in the work, to secure the said $12,000 and the other sums agreed to be paid and obligations assumed under the contract by the parties of the second part. That the parties of the second part, pursuant to the agreement, soon after bought the Flippo lands, estimated to contain between 15,000,000 and 16,000,000 feet of timber, but did (513) not buy any other standing timber in said neighborhood, though it or its successors "may have bought other logs."

In reference to the repayment of this loan, the contract, clearly contemplating that all the timber and logs described in the contract shall be cut and shipped either as logs or after they have been sawed into lumber, contains the provision that the parties of the second part shall repay the $12,000 "without interest," and, in addition, shall pay to the party of the first part as much as 50 cents per thousand feet on all logs or lumber shipped, to an amount not less than 20,000,000 feet, and as to the time when these payments shall be made, makes stipulation as follows:

"(4) Parties of the second part covenant and agree after the expiration of 90 days from the execution of this agreement to commence to repay and to pay to the party of the first part the sum of $12,000 advanced to them as aforesaid, at the rate of $2 per thousand feet for all the lumber cut and logs shipped, which payments shall not amount to less than $500 per month, payable on the 10th day of each month. The same is to be credited by the party of the first part to the parties of the second part each month as paid.

"(5) The parties of the second part further covenant and agree that after they have repaid to the party of the first part the sum of $12,000 cash advanced as aforesaid, which $12,000 is not to bear interest, they are to pay to the party of the first part 50 cents per thousand for all logs shipped by them from the mill, and also 50 cents per thousand feet *Page 406 on every thousand feet of lumber and all kinds cut at their mill. These payments are to be made on all logs shipped or lumber cut from the time of the execution of this agreement, but these payments are not to begin to be made until after the original $12,000 has been repaid as aforesaid. And after that has been repaid the parties of the second part are to make these payments in the same manner as they were to repay the original $12,000, to wit, they are to pay $2 per thousand and no less than $500 per month on all logs cut, until they have paid to the party of the first part a sum equal to 50 cents per thousand feet (514) on all logs shipped and 50 cents per thousand feet on all lumber cut from the beginning of this contract, after which time parties of the second part are to pay to the party of the first part monthly a sum equal to 50 cents per thousand feet upon each thousand feet of lumber cut during the last month. And it is hereby declared to be of the essence of this contract and the consideration for the loan of the $12,000, that parties of the second part are to purchase all of the timber possible in the section of the country hereinbefore named, and to pay to the party of the first part the 50 cents per thousand feet on all logs shipped and 50 cents per thousand feet on all lumber sawed as aforesaid:Provided, that the parties of the second part are not to pay anything for the lumber cut and used by them in structures to be used for the conduct of the business herein referred to."

And further:

"(7) Parties of the second part further covenant and agree to and with the party of the first part that if they fail to make any payment, or part payment, as hereinbefore stipulated to be made, or if they fail to perform any of the other agreements herein made at the time and in the manner stipulated, then all of said payments shall become immediately due and payable at the option of the party of the first part, including any and all damages which said party of the first part may suffer by reason of the breach of this contract, or any provision thereof; and the party of the first part is hereby authorized to forthwith take possession of all the property of the parties of the second part upon which a lien has been given, or is intended by this contract to be given, and to sell the same by public auction after due advertisement according to law, for the purpose of paying said debts and damages aforesaid."

That shortly after the execution of this contract, S. P.

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

Related

Odell v. Legal Bucks, LLC
665 S.E.2d 767 (Court of Appeals of North Carolina, 2008)
Wade v. Darring
511 S.W.2d 320 (Court of Appeals of Texas, 1974)
Kessing v. National Mortgage Corporation
180 S.E.2d 823 (Supreme Court of North Carolina, 1971)
Associated Stores, Inc. v. Industrial Loan & Investment Co.
202 F. Supp. 251 (E.D. North Carolina, 1962)
Commercial Credit Corporation v. Robeson Motors
90 S.E.2d 886 (Supreme Court of North Carolina, 1956)
Plitt v. Kaufman
53 A.2d 673 (Court of Appeals of Maryland, 1947)
Bailey v. . Inman
31 S.E.2d 769 (Supreme Court of North Carolina, 1944)
Roesch v. De Mota
150 P.2d 422 (California Supreme Court, 1944)
Hill v. . Lindsay
188 S.E. 406 (Supreme Court of North Carolina, 1936)
Porter v. Jefferson Standard Life Insurance
178 S.E. 223 (Supreme Court of North Carolina, 1935)
S. B. Parker Co. v. Commercial National Bank
157 S.E. 419 (Supreme Court of North Carolina, 1931)
Ripple v. Mortgage & Acceptance Corp.
137 S.E. 156 (Supreme Court of North Carolina, 1927)
Noland v. . Osborne
97 S.E. 714 (Supreme Court of North Carolina, 1919)
Midland Savings & Loan Co. v. Tuohy
1918 OK 60 (Supreme Court of Oklahoma, 1918)
MacRackan v. . Bank
80 S.E. 184 (Supreme Court of North Carolina, 1913)
MacRackan v. Bank of Columbus
164 N.C. 24 (Supreme Court of North Carolina, 1913)
Lay v. Bouton
131 P. 1153 (Washington Supreme Court, 1913)

Cite This Page — Counsel Stack

Bluebook (online)
70 S.E. 997, 154 N.C. 509, 1911 N.C. LEXIS 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charles-a-riley-co-v-w-t-sears-co-nc-1911.