United States v. Plant

208 F. Supp. 111, 1962 U.S. Dist. LEXIS 5875
CourtDistrict Court, W.D. Arkansas
DecidedAugust 29, 1962
DocketCiv. A. No. 840
StatusPublished

This text of 208 F. Supp. 111 (United States v. Plant) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Plant, 208 F. Supp. 111, 1962 U.S. Dist. LEXIS 5875 (W.D. Ark. 1962).

Opinion

JOHN E. MILLER, Chief Judge.

On January 31, 1961, the plaintiff filed its complaint against the defendants, Robert D. Plant and wife, Lorrayne Plant, to obtain a judgment against defendants for the balance due on (1) a promissory note in the sum of $40,000 dated June 3, 1957, executed and delivered to the Bank of Prescott, Prescott, Arkansas, the payment of which was secured by chattel mortgage on certain personal property of even date, which mortgage and note were assigned to the Small Business Administration on September 7, 1960; (2) a promissory note in the principal sum of $20,000 executed October 7, 1958, payable to the Small Business Administration, and secured by chattel mortgage of same date on certain personal property therein described; and (3) a promissory note in the sum of $65,000 payable to Small Business Administration, dated May 27, 1957, the payment of which was secured by a nonnegotiable warehouse receipt issued by the St. Louis Terminal Field Warehouse Company for 97,500 tons of washed gravel. The warehouse agreement had been entered into by the defendants Plant [112]*112and wife, d/b/a Big Little Sand and Gravel Co.

Simultaneously with the filing of the complaint, C. W. Ferguson, Regional Director of Region X, Small Business Administration, executed and filed an affidavit, in which he stated that the defendants Plant and wife, d/b/a Big Little Sand and Gravel Co., “are about to remove, or have removed, their property, or a material part thereof, out of this state, not leaving enough therein to satisfy the plaintiff’s claim, or the claim of said defendants’ creditors.”

The affiant further stated that the amount due the plaintiff at that time was $107,955.63, together with interest thereon, and “that he ought, and he verily believes to recover thereon the sum of $107,955.63 with interest thereon, all as alleged in the original complaint on file herein, for which he has a lien on personal property described in Exhibits ‘B’, ‘D’, and ‘F’ in his complaint by virtue of the mortgages and pledges therewith exhibited; and affiant has reasonable cause to believe, and does believe, that, unless prevented by the court, the property will be sold, concealed, or removed from the state.” The Exhibits B, D and F are the two mortgages hereinbefore referred to and the original nonnegotiable warehouse receipt referred to.

Upon the filing of the affidavit a writ of attachment was issued and served on February 3 and 8, 1961. Under the writ the Marshal took charge of all the personal property described in the mortgages “including the gravel.”

On March 23, 1961, R. M. Crabtree, for an express consideration, executed an agreement for assumption of the indebtedness owed by the defendants Plant, d/b/a Big Little Sand and Gravel Co.

On May 3, 1961, the plaintiff filed a motion to quash writ of attachment “as defendant has made arrangements for paying the indebtedness outlined in plaintiff’s complaint.” An order quashing the writ of attachment and releasing all of the property therefrom was entered on the same date.

On March 27, 1962, plaintiff filed an amendment to the complaint and made several other parties defendant, including R. M. Crabtree, who had on March 23, 1961, for a good and sufficient consideration assumed the payment of the indebtedness.

On March 6, 1962, prior to the filing by plaintiff of the amendment to its complaint, the defendants Plant and wife filed a petition “for permission to plead,” in which they alleged:

“That the parties to said suit reached an agreement and as a result of said agreement the lawsuit was held in abeyance; that several months have passed during which the parties to this lawsuit abided by the agreement to hold the suit in abeyance; and
“That recently the plaintiff has sought to move again in said lawsuit and this defendant desires permission from this honorable court to file any pleadings that he might deem pertinent.”

Permission was granted the defendants to plead, and on March 19, 1962, they filed their answer and “cross complaint.” In the “cross complaint” the defendants Plant alleged:

“That in the foreclosure of the securities mentioned in the complaint of the plaintiff all of the gravel in the possession of defendants was tied up instead of the amount of gravel on which plaintiff acting through the Small Business Administration had a mortgage (namely ninety-seven thousand five hundred tons of washed gravel); this defendant further states by way of cross-complaint that instead of tying up only the ninety-seven thousand five hundred tons of washed gravel on which plaintiff had a mortgage, the entire amount of washed gravel consisting of some two hundred and fifty' thousand tons was tied up' and the entire operation of the defendants was brought to a standstill and was held at a [113]*113standstill for some period of months to the detriment of said defendants and caused them to lose profits on sales that would have amounted to Two Hundred and Fifty Thousand Dollars ($250,000.00).”

On May 22, 1962, the plaintiff filed its motion to dismiss the counterclaim of the defendants Plant, d/b/a Big Little Sand and Gravel Co. and alleged that the court was without jurisdiction to determine said counterclaim.

On June 12, 1962, after consideration of the motion to dismiss the counterclaim, the court entered an order which, omitting the formal parts, is as follows:

“It is ordered and adjudged that the said counterclaim (cross-complaint) be and is treated as a plea for set-off, and that the said motion to dismiss the counterclaim (cross-complaint) of the defendant be and is overruled.”

During all of this time the other parties who had been made defendants by the amendment to plaintiff’s complaint had filed various pleadings, counterclaims and cross claims against each other, but none of them asserted any claim against plaintiff except J. G. Puterbaugh, who denied that the plaintiff had a lien upon any gravel other than the 97,500 tons of washed gravel covered by the warehouse receipt.

Upon examination of the file it appeared to the court that the case was getting out of hand and the court was without jurisdiction to adjudicate many of the claims and counterclaims made by the additional defendants. Accordingly, the court on its motion ordered a full pretrial conference to be held in Hot Springs, Arkansas, on June 27, 1962. On that date most of the parties appeared in person and all of them appeared by attorneys. As a result of the conference, the issues to be tried were narrowed and all parties agreed that the issues to be tried were as follows:

“(1) The issue between the plaintiff and the defendant Plant on the questions arising from the set-off that is pleaded by the defendant Plant;
“(2) The issue or issues between the plaintiff and the defendants Puterbaugh and Plant as to the interest acquired by the plaintiff in the gravel involved, and the Lewis lease; and
“(3) The issues between the defendants Puterbaugh, Crabtree, and Plant, as to the amount of the indebtedness, if any, due the defendant Puterbaugh.”

By agreement the case was transferred from the Hot Springs Division to the Fort Smith Division and set f'or trial on August 7, 1962, on the above stated issues.

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Related

Archer-Daniels-Midland Co. v. North Arkansas Milling Co.
205 F. Supp. 524 (W.D. Arkansas, 1961)
Fahrenkamp v. Duncan, Dieckman & Duncan Mining Co.
205 F. Supp. 921 (W.D. Arkansas, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
208 F. Supp. 111, 1962 U.S. Dist. LEXIS 5875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-plant-arwd-1962.