State ex rel. Parkersburg Corrugated Paper Co. v. U. S. Fidelity & Guaranty Co.

95 S.E. 783, 81 W. Va. 749, 1918 W. Va. LEXIS 40
West Virginia Supreme Court·Decided February 26, 1918·Published

Opinion

POFFENBARGER, PRESIDENT:

The judgment here coiiiplained of -was recovered on an attachment bond given in a case in which the attachment was [751] quashed on a plea in abatement, putting in issue tbe truth of the matters set forth in the affidavit, as grounds of attachment.

The writ was levied on the machinery and materials in a small manufacturing plant in Parkersburg, a paper box and container factory, that was idle at the time. For some time prior to the year 1914, S. W. Golf had owned, and his son F. C. Goff, had managed, the plant arid it was enlarged in the fall of 1913. In the spring of 1914, a corporation known as the Parkersburg .Corrugated Paper Company was organized and it took over the machinery and business, in consideration of $19,500.00 of its capital stock and $450.00 in cash.' The corporation began business March 10, 1914, but partially, if not wholly, shut down, July 23, 1914. The C. L. La Boiteaux Company had caused an attachment to be levied on the plant October 15, 1914, for a claim amounting to about $350.00, and the United Paper.Board Company, the principal in the bond sued on, caused a second one to be levied on it, October 17, 1914, for a claim amounting to nearly $1,000.00.

Both attachments were quashed and actions were brought on both of the bonds. In each ease, the declaration claimed the penalty of the bond, $700.00 in the first and $2,000.00 in the second, and the full amount of the penalty was recovered in each case. The bills of particulars filed in the two cases were exactly alike and each claimed $3,800.00 for deprivation of profits and use of the property; $1,000.00 for deterioration; $200.00 for deprivation of the use of the rented building in which the plant was installed; $4,000.00 for prevention of a sale of the property; $250.00 for costs of dissolution of the attachment; and $1,266.00 for wages of employees retained in the hope of resumption; total $10,516.00.

While numerous errors are assigned, the. general ground of complaint seems to be assumed or suspected 'excessiveness of the damages awarded. One ground of attack is alleged impossibility of any losses by deprivation of profits, use, or deterioration of the property, because, it- is said, the facts and •circumstances disclosed by the evidence prove the business was unprofitable, the plant idle at the time of the seizure and the corpoartion insolvent and unable to obtain funds' neces[752] sary to prosecution of its business. Lack of suck funds at that time is admitted, but evidence was adduced, tending to prove a good profit in the operation of the plant and probability of procurement of financial help sufficient to enable the company to resume full operation. The machinery had originally cost $10,030.00 and, at the date of the transfer to the corpoartion, the accounts, stock and cash amounted to $5,-000.00 or $6,000.00, while the debts were at least $10,000.00. Prom that date until the plant shut down, there was no considerable increase of assets, but the indebtedness swelled to $27,000.00 or $28,000.00. On a certain day in 1914, the company’s balance in a bank in which it kept an account was only $10.74 and, on another, only $340.22. Generally, however, the bank balance was in the neighborhood of $1,000.00. The company had orders .for a large amount of work, which had been obtained in an effort to make its trade commensurate with the capacity of the plant. About $5,700.00 of the indebtedness was really due to S. W. Goff, and it is said he had endorsed all of the company’s paper, but this claim rests on no evidence found in the. record. It is claimed one of the purposes of the cessation of operations was delay for maturity and collection of bills amounting to about $5,000.00, which would have provided some working capital, and another effectuation of arrangements for additional money. The Goffs say their efforts in this behalf would have been successful, but for the levy of the attachment of the United Paperboard Company, notwithstanding another one had been levied two days previously at the instance of the C. L. La Boiteaux Company. S. W. Goff says the first levy would not have defeated his purpose, because, on discovery thereof, he had arranged for money with which to pay off the claim and the arrangement would have been, consummated,' but for the levy of the second one. ,

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State ex rel. Parkersburg Corrugated Paper Co. v. U. S. Fidelity & Guaranty Co., 95 S.E. 783, 81 W. Va. 749, 1918 W. Va. LEXIS 40 (W. Va. 1918).

95 S.E. 783 (State ex rel. Parkersburg Corrugated Paper Co. v. U. S. Fidelity & Guaranty Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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