Deposit Guar. Nat. Bank v. Biglane

427 So. 2d 945
CourtMississippi Supreme Court
DecidedApril 13, 1983
Docket53511
StatusPublished
Cited by6 cases

This text of 427 So. 2d 945 (Deposit Guar. Nat. Bank v. Biglane) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deposit Guar. Nat. Bank v. Biglane, 427 So. 2d 945 (Mich. 1983).

Opinion

427 So.2d 945 (1983)

DEPOSIT GUARANTY NATIONAL BANK
v.
D.A. BIGLANE, Receiver, John S. Roberts, Nelson Case, J.C. Burgess, III and Richard E. Stratton, III.

No. 53511.

Supreme Court of Mississippi.

January 14, 1983.
Rehearing Denied March 9, 1983.
As Modified on Denial of Rehearing April 13, 1983.

*946 Young, Scanlon & Sessums, Pat H. Scanlon, Jackson, for appellant.

Richard E. Stratton, III, Brookhaven, for appellee.

Before SUGG, P.J., and ROY NOBLE LEE and DAN M. LEE, JJ.

En banc.

SUGG, Presiding Justice, for the Court:

This appeal is from a decree of the Chancery Court of Jefferson County terminating a receivership, declaring Deposit Guaranty National Bank to be the owner of a 10% interest in the assets of the Alcorn Pipeline Company, and denying the Bank's petition for partition. For a proper understanding of the issues it is necessary that the facts be set out in detail.

STATEMENT OF THE FACTS

On January 25, 1967, Nelson Case and John S. Roberts entered into a contract with the Board of Trustees of State Institutions of Higher Learning to construct a natural gas pipeline to furnish natural gas to Alcorn A. & M. College for a period of twenty years from the date of completion of the pipeline.

On August 1, 1967, the Mississippi Public Service Commission granted a temporary certificate of public convenience and necessity to John S. Roberts, Nelson Case and Richard E. Stratton, III d/b/a Alcorn Pipeline Company to construct a gas pipeline from a meter station provided by Union Gas Company to Alcorn A. & M. College.

On December 14, 1967, Nelson Case, John S. Roberts, Richard E. Stratton, III and J.W. Burt d/b/a Alcorn Pipeline Company (APC) entered into a contract with the Board of Trustees of State Institutions of Higher Learning. This contract canceled the previous contract of January 25, 1967, between Nelson Case and John S. Roberts and the Board of Trustees. The contract stated that APC was in the process of constructing a natural gas pipeline from Union Gas Company to Alcorn A. & M., and that APC agreed to complete the pipeline and connect it with the gas line system of the college on or before January 4, 1968. APC agreed to furnish natural gas to the College for twenty years from and after completion of the pipeline at rates to be fixed by the Mississippi Public Service Commission. The contract stated that APC was owned as follows:

  Nelson Case                28 1/2%
  John S. Roberts            59 1/2%
  Richard E. Stratton, III   10%
  J.W. Burt                   2%

On April 11, 1968, the Mississippi Public Service Commission granted a permanent certificate of public convenience and necessity *947 to John S. Roberts, Nelson Case and Richard E. Stratton, III[1] d/b/a Alcorn Pipeline Company to construct, maintain and operate the gas pipeline covered in the temporary certificate issued on August 1, 1967.

APC encountered financial difficulty and on February 15, 1968, a judgment in excess of $23,000 was entered in the Circuit Court of Lincoln County against John S. Roberts, Nelson Case, and Richard E. Stratton, III, partners, d/b/a Alcorn Pipeline Company. The judgment impressed a lien on the pipeline and directed the sheriff to sell the property to satisfy the judgment.

On June 3, 1968, the Mississippi Public Service Commission entered an order directing issuance of a citation to John S. Roberts, Nelson Case and Richard E. Stratton, III to show cause why they should not comply with the previous orders of the Commission and correct certain listed deficiencies in the pipeline. On June 26, 1968, the Mississippi Public Service Commission cancelled the certificate of public convenience and necessity previously issued to Roberts, Case and Stratton effective forty-nine days from the date of the order.

The State of Mississippi, Ex Rel, Joe T. Patterson, Attorney General and W. Hampton King, Auditor of Public Accounts, for the use and benefit of Alcorn A. & M. College and Board of Trustees of State Institutions of Higher learning, filed a bill of complaint in the Chancery Court of Jefferson County to appoint a receiver for the partnership owned by Case, Roberts, Stratton and Burt doing business as APC. The bill alleged that APC had failed to pay complainant $74,552.40 advanced for the construction of the pipeline, had operated the line in such a manner that the certificate of public convenience and necessity had been canceled by the Mississippi Public Service Commission, had permitted judgments impressing a lien on the pipeline to be rendered, had over-billed Alcorn A. & M. College for gas, and had operated the pipeline in such a manner that an adequate supply of natural gas was not assured Alcorn A. & M. College.

On August 23, 1968, the Chancery Court of Jefferson County appointed D.A. Biglane as receiver of the property and assets of the partnership and directed him to take possession and control of the pipeline, to repair it in accordance with the citation issued by Mississippi Public Service Commission, and to pay the liabilities of the partnership from receipts derived from the operation of the pipeline in the order of priority established by the court.

On May 26, 1967, John S. Roberts executed a deed of trust on a 10% interest in the pipeline to secure payment of a promissory note for $12,000 to DGNB. Upon default the 10% interest in the pipeline was sold by the substituted trustee and DGNB became the purchaser for $8,000. By decree of the Chancery Court of Jefferson County dated August 18, 1971, DGNB was declared to be the owner of a 10% interest in the pipeline subject to payment of 10% of all claims allowed by the court and 10% of all costs of repair and operation of the pipeline, including administrative costs.

DGNB obtained a consent judgment on January 12, 1971, in the Circuit Court of Lincoln County against John S. Roberts and his wife in the amount of $112,549.57. On the same date, in a separate suit, DGNB was awarded a judgment by the Lincoln County Circuit Court against Nelson Case, John S. Roberts and wife, Migonnie C. Roberts, in the amount of $10,614.97.

On March 31, 1971, DGNB filed a bill of complaint against John S. Roberts and Nelson Case and other defendants in the Chancery Court of Jefferson County alleging that Roberts and Case had fraudulently conveyed and assigned interests in the gas pipeline to the persons and in the percentages set forth in the bill of complaint. In its final decree dated October 9, 1974, the Chancery Court of Jefferson County cancelled assignments by John S. Roberts to *948 40% of his interest in the pipeline to the following persons:

  Melody J. Roberts                  5%
  Mimi Roberts                       5%
  Misti Roberts                      5%
  Mr. and Mrs. Dan Calcote           5%
  John S. Roberts, Jr.              20%

However, the cancellation of the assignment to John S. Roberts, Jr. was made subject to a lien in favor of John S. Roberts, Jr. in the amount of $6,350 with interest at 6% from the date of the decree, the court holding that the conveyance to John S. Roberts, Jr. was for a valuable, but inadequate, consideration. The decree then provided:

The Complainant, Deposit Guaranty National Bank, is hereby awarded a lien in the amount of $136,714.45 (subject to the lien of John S. Roberts, Jr., on the undivided twenty percent (20%) interest) against the undivided forty percent (40%) interest hereby declared invalid, as well as any other undivided interest owned by John S.

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

Related

Johnson v. Parker Tractor & Implement Co.
132 So. 3d 1032 (Mississippi Supreme Court, 2014)
Lloyd v. Bank of the South
796 So. 2d 985 (Mississippi Supreme Court, 2001)
Edgar C. Lloyd v. Bank of the South
Mississippi Supreme Court, 1999
Deposit Guar. Nat. Bank v. Roberts
483 So. 2d 348 (Mississippi Supreme Court, 1986)
Peeples v. Yarbrough
475 So. 2d 1154 (Mississippi Supreme Court, 1985)
Red Enterprises, Inc. v. Peashooter, Inc.
455 So. 2d 793 (Mississippi Supreme Court, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
427 So. 2d 945, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deposit-guar-nat-bank-v-biglane-miss-1983.