Welch Lumber Co. v. Pageton Lumber Co.

71 S.E. 282, 69 W. Va. 282, 1911 W. Va. LEXIS 106
CourtWest Virginia Supreme Court
DecidedMay 2, 1911
StatusPublished

This text of 71 S.E. 282 (Welch Lumber Co. v. Pageton Lumber 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
Welch Lumber Co. v. Pageton Lumber Co., 71 S.E. 282, 69 W. Va. 282, 1911 W. Va. LEXIS 106 (W. Va. 1911).

Opinion

Miller, Judge:

This was a suit to wind up the business of the defendant B. E. Myers, trading as Pageton Lumber Company. His debts, secured and general, and their priorities, were*ascertained and decreed, and his assets marshalled and distributed in accordance with sundry reports of a commissioner, to whom the cause was referred.

The defendants, Graham Grocery Company, an execution creditor, and America Franklin, administratrix of Henry L. Franklin, deceased, the latter, in her petition, filed, asserting a lien on the funds in the hands of the special receiver, prior to all other creditors, have appealed.

[283]*283The commissioner, by his several reports, in effect, at least, reported, and the court decreed, that the first lien on said funds was the deed or deeds of trust of the Welch Lumber Company; the second, the lien by execution, of the Graham Grocery Company. The commissioner also reported the execution, of tire Graham Grocery Company the first lien on all property of said Pageton Lumber Company, not covered by plaintiff’s deeds of trust.

The lien of the Welch Lumber Company, so reported and decreed, was largely in excess of the net proceeds of the sale of lumber in the hands of the special receiver for distribution, and the court by the two decrees appealed from, the first of October 3, 1908, the other of July 8, 1909, though not in specific terms, yet in effect, confirmed the several reports of the commissioner, and directed that the balance of the money in the hands of the receiver, after payment of costs, expenses and counsel fees allowed, should be paid to plaintiff on account of its trust debt.

The commissioner in his final report, at the request of M. 0. Litz, attorney for America Franklin, administratrix, also reported, “that there is due the estate of said Franklin from the Pageton Lumber Company, the sum of $732.80, as shown by the statement of said M. 0. Litz, which is herewith returned.” He did not, however, report this debt a lien, and it was not decreed a lien on the funds in the hands of the special receiver. Litz’s statement, or evidence, before the commissioner, was purely hearsay, was objected to, as incompetent, which in fact it was. In her petition, or answer, the administratrix alleged said debt to be six hundred dollars, not seven hundred and thirty two dollars and eighty cents, as found by the commissioner. Litz says, that he had mislaid the papers at the time of preparing said petition, and that he estimated the amount.

The findings of the commissioner in his first and second reports, as to the liens and their priorities, were not excepted to, either by appellants or appellees. The decree of October 3, 1908, so finds, and decreed distribution to plaintiff of the larger portion of the funds in the hands of the special receiver. It appears from recitals in this decree, however, that a third report, by agreement of counsel, was made up by the commissioners in open court, and filed on the same day. It is to be in-[284]*284ferrecl from this decree and the arguments presented here that the agreement was, that the commissioner should make up the report on the pleadings and proofs already filed in the cause. He reported, however, that in order to ascertain the fact directed by the court to be inquired into and reported he had taken the deposition of Purcell, which he filed with his report. From this evidence he “finds and reports that the lumber taken over by the receiver in this cause was manufactured either from the logs mentioned in said deeds of trust in favor of Welch Lumber Company, or from timber mentioned in certain timber contracta referred to and embraced in said deeds of trust or some of them.”

To this report and the reading of the deposition of Purcell thereon the decree recites there were exceptions indorsed on the report, but by whom the decree does not say. We find in the record, however, following the report, an exception signed by counsel for appellants, excepting thereto, “in so far as it attempts to report any property belonging to the Pageton Lumber Company, which went into the hands of receiver in this case as being covered or affected by the deeds of trust set up by the Welch Lumber Co., there being no evidence to justify such finding.” The report shows also counsel for appellants 'was present at the taking of the deposition of Purcell, cross-examined the witness, and that no exceptions were noted to the testimony'. Without passing upon this exception, the decree for the fourth time re-committed the cause to the commissioner for the purpose of taking proof, and directed him to report what property went into the hands of the special receiver; whether any property other than that covered by the deeds of trust went into his hands; whether the logs mentioned in the deeds of trust were converted into lumber after the execution thereof; whether the lumber manufactured from said logs went into his hands, and whether any lumber which went into the hands of the special receiver was sawed from timber or logs other than those mentioned in said deeds of trust.

In his fourth report, the commissioner reports his inability to ascertain all the facts called for in said decree. He refers to his report filed at a former term, in which he says he reported as nearly as he could, from the evidence, all property of the Pageton Lumber Company, and the value thereof, which had [285]*285been taken over by the special receiver. He reports that a few logs cut from the lands of R. L. Johnson were not covered by said deeds of trust, but that all other logs, except those, came from the Franklin land, and were covered by the deeds of trust; also that a portion of the lumber was manufactured after the execution of the deeds of trust, and that all the timber at the mill at the time the receiver was appointed went into his hands. He was unable to report what quantity of lumber was manufactured after the deeds of trust were executed, or what logs were cut and hauled in after that time, or what logs were on the skidways at that time, that were afterwards cut into lumber and went into the hands of the receiver; he was of the opinion that it would be impossible to get information that 'would be sufficiently definite to report these facts. Another fact reported is that the receiver took possession of three horses levied on, under executions in favor of the Graham Grocery Company, and Hen-ritze & Henritze, as the property of the Pageton Lumber Company. He does not report whether these horses were or were not covered by the deeds of trust. This report was excepted to by no one.

By the final decree of July 8, 1909, the cause was brought on to be heard upon the several reports of said commissioner, and it recites that, “upon consideration whereof the court doth hereby confirm the said report * * * except as herein otherwise decreed”. While “report” is used in the singular, we must interpret this decree as a confirmation of all the reports, treated as one. In effect it is so. It finally disposes of all the matters in controversy.

This is a very incomplete and unsatisfactory record. To arrive at correct conclusions and to do exact justice between the parties is next to impossible. We can only do the best we can, consistent with established rules of practice, and with due regard to the findings of the commissioner, and the several decrees of the court below thereon.

We will first dispose of the appeal of the Graham Grocery Company.

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Bluebook (online)
71 S.E. 282, 69 W. Va. 282, 1911 W. Va. LEXIS 106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/welch-lumber-co-v-pageton-lumber-co-wva-1911.