Home/W.D. Kentucky/In re Elk Valley Coal Mining Co.

In re Elk Valley Coal Mining Co.

213 F. 383, 1914 U.S. Dist. LEXIS 962
District Court, W.D. Kentucky·Decided April 18, 1914·Published·Cited by 2 cases

Opinion

EVANS, District Judge.

Mrs. Sallie J. Thompson had a lien upon most of the bankrupt’s estate and proved her very large claim as one thereby secured. At the sale of the property she bid upon it some $80,000, but, in view of her lien on the property purchased, she was required to and did only give a bond in the following terms, to wit:

“In the District Court of the United States for the Western District of Kentucky.
“In the Matter of Elk Valley Coal Mining Company, Bankrupt.
“In Bankruptcy.
“Bond for Purchase Money.
“Six months after date, we, Sallie J. Thompson, principal, H. C. Thompson, C. A. Rogers, L. N. Birk, and J. M. Thompson, sureties, jointly and severally promise to pay John Craig Brown, trustee of the bankrupt estate in the above-entitled cause,- the sum of ten thousand dollars ($10,000.00), with interest thereon from date hereof at the rate of six per cent, per annum until paid; it being the amount fixed by order of the court in the above-styled cause to meet the payment of all legal taxable cost in said cause and meet the payment of all prior lien claims in said matter, and also being payment of part of the purchase money for the Elk Valley Coal Mining Company property, known as Elk Valley mine and Diamond Block mine and all personal property connected therewith and office furniture and fixtures in bankrupt’s office in Drakesboro, Ky., this day sold by the said John Craig Brown, trustee aforesaid, by virtue of an order of the court in the said cause granted on September the 30th, 1912, and of which property at said sale the said Sallie J. Thompson became the purchaser. This bond is to have the force and effect of a judgment with a lien reserved upon all of said property to secure the payment of this bond.
“Witness our hands this the 18th day of November, 1912:
“Sallie J. Thompson,
“By J. M. Thompson,
“B« C. Thompson,
“Witnesses: C. A. Rogers,
“E. A. Taylor, L. N. Birk,
“Walker Wilkins. J..M. Thompson.”

At that time there appeared to be no probability that any greater sum than $10,000 would be needed to pay claims prior to hers, and the result showed that such was indeed the fact. However, after the trustee was appointed, he filed a petition before the referee asking that the principal and sureties on the bond be ruled to pay to him the entire $10,000, and interest, except the sum of $822, paid thereon on October 5, 1913, and the -further sum of $300, paid thereon on October 20, 1913. A show-cause order was made, and to it Mrs. Thompson and her sureties filed a response. The referee held the response to be insufficient, and made the rule absolute. Thus the case is again before us, but all questions except those pertaining to the claims made by the referee for his compensation and those made by the trustee for his [385]*385have probably been settled, and the present opinion will be confined to the claims of the referee alone, leaving all other questions and any claim of the trustee open to be disposed of at a later time.

The referee’s claim as made out by him is as. follows:

In the District Court of the United States for the Western District of Kentucky.
In the Matter of Elk Valley Coal Mining Company, Bankrupt.
In Bankruptcy.
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In re Elk Valley Coal Mining Co., 213 F. 383, 1914 U.S. Dist. LEXIS 962 (W.D. Ky. 1914).

213 F. 383 (In re Elk Valley Coal Mining Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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