Mulligan v. Phelps Construction Co.

88 S.W.2d 23, 261 Ky. 457, 1935 Ky. LEXIS 685
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedNovember 26, 1935
StatusPublished
Cited by2 cases

This text of 88 S.W.2d 23 (Mulligan v. Phelps Construction Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mulligan v. Phelps Construction Co., 88 S.W.2d 23, 261 Ky. 457, 1935 Ky. LEXIS 685 (Ky. 1935).

Opinion

Opinion of the Court by

Judge Richardson

Affirming.

*458 J. F. Mulligan, E. M. Mulligan, and J. W. Howard are appealing from a judgment of the Pulaski circuit court entered at the special December term, December 30, 1933, insisting that the case was tried tempo accelerando. Thus they were accorded rough justice.

Sustaining this insistence, they earnestly urge that the cause did not stand for trial at the time the judgment was rendered and it is not sustained by the evidence.

The Phelps Construction Company, a corporation, during the years 1931, 1932, and 1933, engaged in constructing highways under contracts with the State Highway Commission. It was the owner, and in possession, of road machinery and equipment which it employed in its business. The Mack Construction Company was the owner of a gasoline shovel, Monarch road grader, Sullivan air compressor, and jackhammers which came into the hands of J. C. Strong, who sold same to Mrs. E. M. Mulligan. Her husband, J. F. Mulligan, superintended, for her, the purchase of the machinery at the price of $4,500, of which $1,500 was paid in cash, and four notes, each for $750 payable in one, two, three, and four months. At the time they executed and delivered them to Strong, he executed and delivered a bill of sale for the machinery, retaining a lien thereon to secure the payment of the four $750 notes. The Mulligans were experienced in the construction of roads and had engaged in road construction for a number of years prior to the purchase of this machinery. They were, however, without means with which to meet the payments' of the four $750 notes of Strong, as they matured. To enable them to meet their payments, J. F. Mulligan, for himself and E. M. Mulligan, entered into an oral contract with the Phelps Construction Company, whereby he was to receive, for his services as superintendent of the construction of roads by the Phelps Construction Company, $250 to be paid him monthly. The salary was paid and it is not here involved. As a part of the same contract he turned over to the Phelps Construction Company the Strong machinery which was used by it in the construction of roads from the 6th day of March, 1931, until the 1st day of April, 1933, a period of 24 months and 24 days.

One issue to be determined on this appeal arises out of the Mulligans’ claim against the Phelps Construction Company for the latter’s use of this road machinery. *459 The Mulligans contend that it was rented to the Phelps Construction Company and it was to pay them a reasonable rental. The Phelps Construction Company insists that the use of the machinery was to be paid for by it on a percentage basis; i. e., that the machinery which it owned and the Strong machinery were to be used conjointly in constructing roads, and the Mulligans were to be paid for the use of Strong’s machinery a portion of the net profit derived by the corporation in the construction of roads under its contracts with the State Highway Commission. The Phelps Construction Company’s earnings were less than its expenses; therefore, nothing could be or was paid to the Mulligans, or any one for them, on a percentage basis. As Strong’s notes matured he demanded payment, and the Phelps Construction Company, with the consent of the Mulligans,, paid them, with interest. After it was ascertained that the Phelps Construction Company had lost money when executing its contracts for the construction of highways during the period of time the Strong machinery was used by it, it caused Strong to indorse the notes to it. The same not being paid, this action was filed to recover of the Mulligans the face of the four notes with interest, and enforce a lien on the Strong machinery to satisfy the same.

In bringing the action, counsel of the Phelps Construction Company prepared the petition on the theory that the road machinery in controversy was jointly owned by the Phelps Construction Company and the Mulligans. Later, an amended petition was filed by new counsel of the Phelps Construction Company, in which appropriate allegations were made to recover of the Mulligans “the face of the Strong notes with interest, to enforce a lien on,” and to sell the machinery to satisfy them. The Mulligans counterclaimed, charging that the machinery was rented to the Phelps Construction Company and that it was to pay E. M. Mulligan a reasonable rental for same and it was used by it in the construction of roads from March, 1931, until April 1 1933, which they averred was reasonably worth the sum of $17,360. The answer setting up their counterclaim was filed May 5, 1933. A reply thereto was filed July 3, 1933. This completed the issue as to the Mulligans. The Phelps Construction Company’s amended petition, containing the allegations upon which it sought to recover on the Strong notes, was filed May 9, 1933. J. W. Howard was made a defendant in the action of the Phelps *460 Construction Company against the Mulligans. He filed an answer the 5th day of May, 1933.

The bill of sale of Strong to E. M. Mulligan was ■executed and delivered March 5, 1931, in which a lien was retained to secure the payment of the four $750 notes. It was recorded May 4, 1931. In his answer, Howard claimed on the 'Strong machinery to secure $2,000, owing- him by E. M. Mulligan, a lien under a bill of sale ■executed and delivered by her to him April 1, 1933, or 2 years and 26 days after the instrument evidencing Strong’s lien to secure the four $750 notes was recorded in the clerk’s office in the county in which the Mulligans resided at the time it was executed and delivered to them by Strong. Howard charged in his answer that by virtue of the Mulligans bill of sale to him, he had a lien on the Strong machinery “superior to all other liens to secure the $2,000.00 owing to him by E. M. Mulligan. ’ ’

During the pendency of the action a motion was ■entered to require the Phelps Construction Company to ■elect whether it would prosecute its cause of action stated in its 'Original, or in its amended, petition. It elected “to rely upon the amended petition and dismissed the original, in so far as it was inconsistent with the amended, petition.” It filed a -demurrer to the answer of Plo'ward. Without waiting for the court’s ruling thereon, it filed a reply to his answer, denying his lien was superior to that of the Phelps Construction Company. This reply was filed at the special call term, December 23, 1933.

The depositions of E. M. Mulligan, J. F. Mulligan, C. E. Donovan, and Clauda Sagaser were taken the 27th day of December, 1933, to establish E. M. Mulligan’s counterclaim.

Later, by an agreement, E. M. Mulligan and J. F. Mulligan were cross-examined by the Phelps Construction Company.

The depositions of D. M. Phelps, Joe H. Gribson, Onie P. Hamilton, and W. E. Fisher were taken by the Phelps Construction Company to disprove E. M. Mulligan’s counterclaim.

The Phelps Construction Company, at the October term, 1933, entered a motion supported by an affidavit, for a submission of the cause for trial and judgment. *461 E. M. Mulligan resisted the motion. It was overruled;the cause continued and was set down for trial at the special December term, 1933.

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Bluebook (online)
88 S.W.2d 23, 261 Ky. 457, 1935 Ky. LEXIS 685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mulligan-v-phelps-construction-co-kyctapphigh-1935.