Town of Wallins v. Luten Bridge Co.

163 S.W.2d 276, 291 Ky. 73, 1942 Ky. LEXIS 181
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedJune 9, 1942
StatusPublished
Cited by3 cases

This text of 163 S.W.2d 276 (Town of Wallins v. Luten Bridge 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
Town of Wallins v. Luten Bridge Co., 163 S.W.2d 276, 291 Ky. 73, 1942 Ky. LEXIS 181 (Ky. 1942).

Opinion

Opinion op the Court by

Chief Justice Perry—

Dismissing appeal.

*74 The appellant, town of Wallins, Harlan county, Kentucky, is a municipal corporation of the sixth class.

In 1929, it contracted with the appellee, Luten Bridge Co., a non-resident corporation having its principal place of business at Knoxville, Tenn., for the construction of a bridge over Wallins Creek at a cost of about $4,000. Also it contracted with N. R. Denham for a survey to be made for the bridge at a cost of $400 and at about the same time it purchased from the Eureka Eire Hose Co. certain hose equipment at a cost of some $1,260 and a fire truck from the city of Pineville at a cost of $1,250.

Such construction and surveying services having been rendered and the purchased fire hose and truck delivered and accepted by the town, it failed to pay the indebtedness incurred therefor.

In 1932 suits were filed against the town and its board of trustees, by which they sought recovery upon the indebtedness incurred under these contracts and asked that the town be required to levy and collect a tax sufficient to pay these debts in addition to its current governmental expenses.

The town by its answer pleaded that the contracts sued on were each invalid, in that the indebtedness thereby incurred was in excess of the maximum amount of its constitutional debt limitation and all of the revenues receivable by it for that year were not sufficient in amount to pay even its current governmental expenses.

Following pleadings joined issue upon the question of the validity of the contracts.

Upon the later trial of the cause at the -, 1935, term of court, the town failing to present its pleaded defense and the cause being submitted upon the pleadings and proof taken thereon, a default judgment was rendered against the town and its board of trustees granting the relief prayed for in their petitions.

Counsel for the town states that the judgment was taken in violation of an agreement had with counsel for plaintiffs that the cause would not be tried at that term. However, he further states that notwithstanding such agreement had, he was called at London, where he was engaged upon trial of other cases in that court, and in *75 formed that the case had been called and was then on trial in the Harlan circuit court, but that he was unable to then leave London and return to participate in the trial at Harlan of these suits against the Town of Wallins, which were then being heard.

He further states that being of the opinion the default judgment rendered upon the contracts had been obtained-by fraud and was erroneous, on the ground that same were contracted in excess of the town’s constitutional debt limitation, he several times advised the members of the board that an appeal should be taken at once from the judgment rendered, but that he never was given a reply nor heard anything further from them as to prosecuting an appeal, nor, it is admitted, was the default judgment taken ever appealed from.

It further appears that following the rendition of this judgment, the town made several payments, totalling some $1,740, upon its judgment debt owing the appellee, Luten Bridge Co,, after which, no further efforts having-been made by the town to pay the balance owing upon its judgment debt, the Luten Bridge Co. employed B. L. Pope, a non-resident attorney of Knoxville, Tenn., to collect the balance of some $2,500 owing it by the town on its contract debt.

Pursuant to such special employment, he appeared in the Harlan circuit court at its -, 1940, térm, where he moved for a rule against the town and its board of trustees to show cause why they should not be punished for contempt in failing to obey the court’s order, made in its judgment rendered at its 1935 term, requiring them to levy and collect sufficient taxes to pay off the amount of this contracted indebtedness and also its current governmental expenses.

The town’s board of trustees responded to the rule issued that the judgments taken against them and the town were violative of Sections 156, 157 and 158 of the Constitution and were void.

The lower court ruled that though the judgments granted were each invalid, in that they were for indebtedness incurred in excess of the town’s revenues levied and receivable for that year, it could not go back of the prior T935 default judgment, which had then run for some four years, unchallenged and without appeal, and become final and res adjudicata of the question of the *76 validity of these debts. However, it overruled plaintiffs’ further motion made that the judgment debts be funded, to which ruling plaintiffs excepted.

Thereupon the appellant, Town of Wallins, filed its countersuit or petition in equity against the Luten Bridge Co. in the Harlan circuit court on the-day of -, 1940, seeking to have set aside the judgment rendered against it in 1935 for the balance of the contract price owing it, on the ground that the indebtedness thereby incurred was void as being in violation of Sections-157 and 158 of the Constitution. Also it alleged that the Luten Bridge Co. was a non-resident corporation, with no officer or process agent in Kentucky upon whom it could have process served and attempted to secure jurisdiction of the defendant bridge company by having the summons issued on its petition served on the company’s special attorney, R. L. Pope, a non-resident attorney, who visited Harlan county only occasionally as a practicing attorney, when specially employed by various parties including the bridge company.

Upon the return of this summons, the appellee nonresident corporation entered .its appearance, as it alleged, only for the purpose of moving the court to quash the summons and return thereon.

Further, appellant filed an amended petition, seeking to recover the amount the town had paid the bridge company (about $1,748) on its alleged void judgment debt.

The motion made to quash the return was sustained.

The order of the court quashing process was as follows:

“This cause having been submitted to the court on the motion of the defendant to quash the service of process or summons executed on R. L. Pope in this case on the 23rd of February, 1940, and the court after considering said motion and being advised, sustained said motion of the defendant and said process and service executed on said Pope is now and hereby held for naught and cancelled, to all of which plaintiff objects and excepts.”

An amended petition was filed, alleging that Mr. Pope, was an assignee of the judgment and if not, was the only agent of the company in Kentucky and had probably received a part of the $1,748 payment made on the judgment.

*77 Motion to quash, was extended to the amended petition and sustained.

At the later special June term of the court, the Luten Bridge Co., here appellee, having moved the court that funding bonds be issued by the town to meet the judgment debts rendered against it, the town’s special attorney, Hon. R. S. Rose, resisted said motion.

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Cite This Page — Counsel Stack

Bluebook (online)
163 S.W.2d 276, 291 Ky. 73, 1942 Ky. LEXIS 181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/town-of-wallins-v-luten-bridge-co-kyctapphigh-1942.