Harrisburg Coal Mining Co. v. Ender Coal & Coke Co.

272 Ill. App. 113, 1933 Ill. App. LEXIS 107
Appellate Court of Illinois·Decided October 25, 1933·No. Gen. No. 36,264·Published

Opinion

Mr. Presiding Justice Hall

delivered the opinion of the court.

On April 13,1931, the Harrisburg Coal Mining Company, complainant, filed its sworn bill in chancery in the superior court of Cook bounty in which it is alleged that the defendant, Ender Coal & Coke Company, is indebted to it, complainant, in a large sum of money, and complainant prayed that an accounting be had and that defendant be decreed to pay to complainant whatever sum the court might find to be due.

By this appeal, Thomas H. Cochran seeks the reversal of an order of the superior court of Cook county entered June 16, 1932, as amended June 28, 1932, in a proceeding against Thomas H. Cochran and John H. Evans, respondents, finding each of them guilty of contempt of court for wilfully refusing to produce for examination and inspection in the hearing of said cause, and for destroying certain books and documents of defendant company, ordered to be produced by the court. Separate appeals were taken and perfected by each of these respondents, and filed in this court as cases No. 36,264 and 36,265, which appeals, by order of the court, have been consolidated for hearing as case No. 36,264.

The bill is predicated upon various contracts alleged to have been entered into between the Harrisburg Coal Mining Company, complainant, the owner and operator of coal mines in southern Illinois, on the' one part, and the Ender Coal & Coke Company of Chicago, defendant, on the other part, by the terms of which it is alleged defendant agreed to and did become sales agent for complainant. The respondents, Thomas H. Cochran and John H. Evans, are and were during the pendency of the proceeding and on the date of the order appealed from, the president and secretary, respectively, of the Ender Coal & Coke Company, defendant. These contracts provided for the inspection of the books of the respective parties, by either of them.

It is charged in the bill, inter alia, that by the contracts between the parties, defendant, as sales agent, agreed to sell complainant’s product only, and after retaining its, defendant’s, commissions, to accouht to complainant for all such sales, and to pay complainant such sums as might be found to be due it; that large shipments of coal were made by complainant under said contracts and that defendant has failed to account to complainant as agreed, and that because of this fact and because of false statements made by defendant as to shipments of coal, complainant has been defrauded out of large sums of money, the recovery of which it seeks the aid of the court. Among other charges in the bill is one to the effect that in violation of defendant’s agreement with complainant, defendant sold and shipped coal coining from mines other than the mines of complainant, and represented to consumers that the coal shipped by defendant came from complainant’s mines, and further that defendant made false and fraudulent statements to complainant as to shipments of coal and of prices received therefor.

Defendant filed its answer in which it denies the charges of fraud, denies that it has failed to account to complainant, and denies that it is indebted to complainant in any amount whatever.

The bill prays a discovery from the records of defendant of the amounts out of which complainant alleges it has been defrauded; also of the details of shipments of coal alleged to have been made by defendant from mines other than the mines of complainant as follows:

“ (1) Whether the Sales Co., defendant, had shipped any No. 5 vein coal from said Counties other than that of complainant; and

(2) If so, the following details in respect of each transaction during said period:

(a) Date of purchase.

(b) ■ Name and address of seller.

(c) Location of mine from which coal was shipped.

(d) Amount. and kind of coal and purchase price paid per- ton.

(e) Name and address of person to whom coal was sold.

(f) Amount and kind of coal and sales price.

(g) Date of sale and terms of sale.”

The cause was referred to a master in chancery to take evidence and report, and on November 4, 1931, the master issued a subpoena duces tecum, which was served upon the defendant and the two respondents, directing them to appear before the master on Novem-, ber 5, 1931, and produce certain documents and records. The parties appeared before the master on November 5, 1931, when the master suggested that complainant proceed under section 9 of the Evidence Act, Cahill’s St. ch. 51, U 9, and on November 10, 1931, the solicitor for defendant in the cause and the attorney for respondents in the instant proceeding was served with a notice to produce the following:

“(a) All car records of Ender Coal & Coke Company from February 25, 1928, down to and including February 18, 1931;
“(b) All control accounts in the general ledger of Ender Coal & Coke Company from February 25, 1928, down to and including February 18, 1931;
“(c) All accounts receivable of Ender Coal & Coke Company from February 25, 1928, down to and including February 18, 1931; and
“ (d) All accounts payable of Ender Coal & Coke Company from February 25, 1928, down to and including February 18, 1931.”

It is claimed by complainant and it seems to be not disputed, that the books and records of defendant company contain the only evidence of coal shipments, sales, prices and other data required by complainant for the purpose of presenting its- case, and various notices were served upon the defendant and respondents to produce such documents and'books. On January 4,1932, by consent of the parties, the court entered the following order:

‘ ‘ This cause coming on to be heard upon the affidavit of William Roy Carney, filed in support of a motion by complainant under Section 9, Chapter 51 of Cahill’s Illinois Revised Statutes, to permit the agents, auditors and attorneys of complainant herein to examine and inspect before trial certain books, papers, records, documents, memoranda, etc., in the possession of defendant; and upon the affidavit of Raymond L. Boyle, likewise filed in support of said motion; and upon the counter-affidavit of Thomas H. Cochran, filed in opposition to said motion; and the court having heard the arguments of counsel, and being duly advised in the premises,

“Ordered, that the accountant, Raymond L. Boyle, retained by complainant, be permitted to make an inspection and examination of the following books, papers, records, documents, memoranda, etc., of the defendant, now in the possession of the defendant:

“(a) All car records of Ender Coal & Coke Company pertaining to sales of coal from Saline and Williamson Counties, Illinois, from February 25, 1928, down to and including February 18, 1931; &
“(b) All control accounts in the general ledger of Ender Coal & Coke Company pertaining to sales of coal from Saline and Williamson Counties, Illinois, from February 25, 1928, down to and including February 18, 1931;

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Harrisburg Coal Mining Co. v. Ender Coal & Coke Co., 272 Ill. App. 113, 1933 Ill. App. LEXIS 107 (Ill. Ct. App. 1933).

272 Ill. App. 113 (Harrisburg Coal Mining Co. v. Ender Coal & Coke Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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