Rainey v. Freeport Smokeless Coal & Coking Co.

52 S.E. 473, 58 W. Va. 381, 1905 W. Va. LEXIS 123
CourtWest Virginia Supreme Court
DecidedNovember 28, 1905
StatusPublished
Cited by5 cases

This text of 52 S.E. 473 (Rainey v. Freeport Smokeless Coal & Coking Co.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rainey v. Freeport Smokeless Coal & Coking Co., 52 S.E. 473, 58 W. Va. 381, 1905 W. Va. LEXIS 123 (W. Va. 1905).

Opinion

Cox, Judge:

W. W. Rainey filed his -bill in equity in the circuit court of Barbour county against the Freeport Smokeless Coal & Coking Company, a corporation, to enforce a lien under section I of chapter 15 of the Code, against the property of said corporation. The account filed charges the said corporation with salary as its general manager for fifteen months, from August 1, 1900, to November 1, 1901, at $75 per month, aggregating $1,125. Certain credits are allowed, bringing the aggregate down to $955.50. Of this latter sum only $675 is claimed to be a lien for services rendered within nine months preceding the recordation of the account. The bill also sets up a laborer’s lien on the same property, in favor of George Shanabarger, for a balance of $160.72, and makes him a defendant thereto. The cause was referred to a commissioner to ascertain' liens, set-offs, etc. Upon the hearing of the cause upon the commissioner’s report, a decree was entered declaring liens in favor of plaintiff, and defendant Shanabarger, as alleged in the bill, and giving a recovery therefor and for the balance of the plaintiff’s claim which was not a lien, and directing sale of the real and personal property of said corporation to satisfy the liens and debt. From this decree the said corporation appealed.

The appellant complains of the decree and of the report of the commissioner, and of the overruling of its exceptions thereto, for a number of reasons, among which is that the commissioner erred in finding, and that the court erred in [383]*383decreeing, that appellant was indebted to either the plaintiff or Shanabarger. In other words, appellant contends that there was nothing due either of them for which a lien might be asserted. We have examined the evidence, and, while a decree based upon a commissioner’s report should not be set aside unless plainly wrong, yet a consideration of the evidence and facts appearing compels us to say that this decree is plainly wrong so far as the plaintiff’s claim is concerned. Before there can be a lien there must be a debt, a liability, something due or to become due, for which the lien may be asserted. It appears from the record that the appellant corporation was organized on the 16th day of August, 1900, by the plaintiff, living in Barbour county, and certain other persons living in Baltimore, Md. At the meeting for organization, plaintiff was elected a director and general manager. The other officers elected were Frank H. Sloan, president; J. P. Wade, vice president; George B. Wade, treasurer; George B. Clifton, secretary. All the officers except plaintiff resided in Baltimore, and all so elected were stockholders of the company. The appellant corporation began the development of certain coal lands conveyed to it, and continued to a limited extent the mining and shipping of coal until some time in May, 1901, when mining practically ceased; but little, if any, coal being shipped after that time until the following year. The mining and shipping of coal at no time was extensive, only about one hundred cars being mined and shipped from the time of the organization of the corporation until May, 1901. Some of the witnesses for appellant, the majority of whom are the officers thereof, testified that the purpose of the corporation was to develop the property for sale and not to mine extensively, and that the shipping mentioned was principally to prospective purchasers of the property.

Plaintiff claimed an express contract for wages as general manager, at the rate of $75 per month. In one part of his testimony he says that the express contract was made with W. A. Wade as agent of the appellant; but Wade in his tes-timonv denies this, and it is shown conclusively that Wade had no authority to make such contract. In another part of plaintiff’s testimony, he says the express contract was made with W. A. Wade, George B. Wade and Frank H. Sloan; but this is also denied, together with the authority of those [384]*384persons to make such contract. In another part of his testimony, plaintiff says that the express contract was made with Frank H. Sloan, and this is likewise denied. No express contract is shown by the evidence. Plaintiff’ contends, however, that an implied contract is shown by proof of the performance of the services and the value "thereof. This contention is fully refuted by the evidence. Three witnesses, W. A. Wade, attorney for the corporation, George B. Wade, its treasurer, and Frank H. Sloan, its president, testified positively and certainly that it was agreed on the day the corporation was organized, at a meeting of the board of directors at which plaintiff was present and when the general manager and other officers were elected, that they were to receive no compensation whatever for their services, and especially that it was understood and agreed with the plaintiff that he was to have no compensation as general manager of the corporation, and that a resolution was adopted by the board of directors in accordance with such agreement and understanding. See C. & O. Ry. Co. v. Deepwater Ry. Co. et al., 57 W. Va. 641. Against this testimony, plaintiff testified that there was no such agreement or understanding as to him; and he also produced five monthly pay-rolls made out and sent by him to the appellant, upon one of which the following appears: UI would like to have $50 on salary to pay board and room rent.” Upon another appears the following item: “W. W. Rainey on time $100.” Upon another appears: “I am almost compelled to have $50 this day to meet some expenses. Do the best you can.” Upon another the following item appears. “W. W. Rainey $75.” With the return of one of these pay-rolls to plaintiff, a letter was received by him, with a postscript signed by G. B. Clifton, in which he says: “We could only allow you $25 this month on account of scarcity of cash.” Plaintiff testified that of these demands upon the pay-rolls he received the $25 and $50 mentioned above. W. A. Wade testified that the payments of these sums were made pursuant to an arrangement between plaintiff and him to have Wade, Sloan & Co., a different company from the defendant corporation, advance to plaintiff small sums to meet his board, which he was to repay to Wade, Sloan & Co. when the property of appellant was sold, and it is shown that these sums were advanced by checks of [385]*385Wade, Sloan & Co. The plaintiff allowed certain credits on his account hied for the lien, amounting to $169.50, which he did not claim were payments knowingly made by appellant on his salary, but credits or set-offs evidenced by checks given on appellant’s funds under his- control, in payment of his individual liabilities. It was not shown that the $25 above mentioned was included in said credits. The $50 above mentioned was certainly not included, arid no item of credit for that amount appears. The account of the plaintiff filed and recorded was sworn to, and the bill in this cause was sworn to, both of which say in effect that the defendant corporation is indebted to the plaintiff in the sum of $955.50 after allowing all credits. Now, if the $50 and $25 had been actually received by plaintiff from appellant as payments on his salary as general manager, the plaintiff should have known this when he filed his account and affidavit and when he filed his bill in this cause. The fact that plaintiff did not allow the $50 and $25 as payments or credits on his claim, very strongly corroborates the theory that these items were not received by plaintiff from appellant on salary, but on some other account or for some other purpose. Plaintiff also testified to many demands for payment of salary, but these demands were denied by the testimony for appellant.

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Cite This Page — Counsel Stack

Bluebook (online)
52 S.E. 473, 58 W. Va. 381, 1905 W. Va. LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rainey-v-freeport-smokeless-coal-coking-co-wva-1905.