Wheeling Valley Coal Corporation v. Mead

171 F.2d 916, 1949 U.S. App. LEXIS 3638
CourtCourt of Appeals for the Fourth Circuit
DecidedJanuary 3, 1949
Docket5774
StatusPublished
Cited by23 cases

This text of 171 F.2d 916 (Wheeling Valley Coal Corporation v. Mead) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wheeling Valley Coal Corporation v. Mead, 171 F.2d 916, 1949 U.S. App. LEXIS 3638 (4th Cir. 1949).

Opinion

DOBIE, Circuit Judge.

This case has already been before us -twice. Warner Coal Corporation v. Costando Transportation Co., 4 Cir., 144 F.2d 589, certiorari denied 323 U.S. 791, 65 S.Ct. 432, 89 L.Ed. 631; Wheeling Valley Coal Corporation v. Brady, 4 Cir., 159 F.2d 155. In this last opinion, we gave a brief chronology of the most important events ■in this complicated bankruptcy case, 159 F.2d at pages 155, 156. Our holding on -that same appeal is thus summarized (159 F.2d 155) in the third headnote to the •opinion:

“Where district court ordered claims .against bankruptcy receiver to' be filed in ■district court by a specified date and claimant with full notice and opportunity did -not seasonably move for an extension of -time on any reasonable ground and without .-any excuse took no step whatever until -three weeks after lapse of time prescribed ¡¡in court’s .order, refusal to consider claims which arose out of operation of property by receiver was not an abuse of discretion, but order refusing to consider claims not arising out of receiver’s operation of property would be reversed.”

In the same opinion (159 F.2d at page 156) we said:

“In this connection it might be noted that a great majority of the claims asserted by the appellants were not obligations incurred by the bankrupt. At least one of the claims, No. 4, for damages alleged to have arisen from an explosion in the mine during December, 1942, seems to have arisen prior to the appointment of the receiver. The other claims, apparently, had no existence prior to the petition in bankruptcy or before the Court appointed the receiver; they are alleged to have arisen out of the operation of the mines by the receiver. No demand was made on the receiver, nor was there even an attempt to assert these claims or to give notice of them, prior to the receiver’s discharge.”

And, pursuant to our mandate, the District Court, December 10, 1947, entered an order, reading, in part:

“The Court having now further considered the opinion of the United States Circuit Court of Appeals, Fourth Circuit, * * * and having concluded that all of said claims arose out of the operation of the mines of the bankrupt by A. Spates Brady, Receiver, with the exception of a claim described in the opinion of the United States Circuit Court of Appeals, as Claim No. 4 for damages alleged to have arisen from an explosion in the mine during December, 1942 * * *. It is ordered that the claim described in said opinion as Claim No. 4 be and the same is hereby referred to Thomas H. Duval, one of the Referees in Bankruptcy for this court, in order that said claimant may be afforded an opportunity to prove its claim for damages alleged to have arisen from said explosion as a claim against this bankrupt estate.”

Appellants assent' that, since they had no notice or opportunity to appear in connection with this order, it is in no way binding upon them.

Appellants made no effort to prove their claim before the Referee in accordance *918 with said order but on April 12, 1948, filed a petition in the District Court asking leave to file Amended Claim No. 432, for $291,205. The Trustee objected on the grounds that the claim was actually a new and separate claim and covered items entirely foreign to Claim 432, asserting that original Claim No. 432 was against the Receiver and Amended Claim No. 432 was for obligations alleged to have been incurred by the bankrupt prior to the time the Receiver began operation.

The District Court sustained the Trustee’s objection, refused to permit the filing of the amended claim by appellants, and stated in a brief memorandum opinion filed April 21, 1948:

“Gentlemen, prior to the argument of this case, I read the petition to amend the claim of the Costanzo interests, and the answer of the Trustee to that petition. I am convinced that the so-called amendment actually introduces a new claim, which is barred by the Statute.

“I, therefore, refuse to permit the filing of the amended claim.”

No claim whatever was ever filed within the statutory period against the bankrupt for the items covered in Amended Claim No. 432. Not until April 12, 1948, did appellants enter the petition in the District Court seeking permission to file Amended Claim No. 432. This was more than three years after both the first meeting of the creditors and the restoration of the mines to appellants. It might be noted that, after the death of A. Spates Brady, Charles Mead was, on June 6, 1947, elected Trustee in place of Brady.

The basis for Amended Claim No. 432 seems to be found in a provision in the lease agreement whereby appellants leased two mines to the bankrupt. This provision requires, substantially, that in the event the lease is terminated for any reason before the coal is either mined or paid for, the lessee must surrender the -mines to the lessors sufficiently equipped to mine 70,000 tons of coal per month. With the exception of the claim for the -explosion, the Original Claim No. 432, however, was for amounts alleged to have become due by reason of the operation of the -mines by the Receiver.

We set out the items in Claim No. 432 and Amended Claim No. 432:

Claim No.'432 — $138,458.98

1. Minimum royalties due petitioners October 23, 1943 to January 15, 1945....... $ 74,380.64

2. Payments to owners of Hughes sublease ......... 14,758.06

3. To Costanzo Coal Mining Company’s payments to 220 employees of receiver in the amount of $3,072.48 owing by the receiver, vacation money — period June 27, 1944, to June 27, 1945, based on $7,500 per year, and the above amount owing by the receiver and paid by Costanzo Coal Mining Company and due from the Receiver to the Costanzo Coal Mining Company.... 3,072.48

4. To clean the head, put in wires, timbers, etc. in Wheeling Coal Company.. 25,000.00

5. Damages to (Wheeling Coal Company) tipple, mining cars, river docks, equip"ment, by the receiver’s abandonment ............ 50,000.00

6. Damage to river docks of Wheeling Valley Coal Corporation for neglect and refusal of receiver after demand to repair........... 5,081.87

7. To Costanzo Coal Mining Company for use and occupation by receiver of its properties — 15 months at $500.00 per month........ 7,500.00

8. June 7, 1945, paid by Costanzo Coal Mining Company to receiver for “alleged” receiver’s assets, when receiver had no assets to sell............... 12,500.00

$192,293.05

Total Credits ............ 53,834.07

Balance Due $138,458.98

*919 Amended Claim No. 432 — $291,205.00

3450 feet of 20# rails taken out of worked out places by Warner Coal Corp., and not replaced ............. $ 816.00

900 feet of 40# rails taken out of worked out sections by Warner Coal Corp., and not replaced ............. 408.00

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Bluebook (online)
171 F.2d 916, 1949 U.S. App. LEXIS 3638, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wheeling-valley-coal-corporation-v-mead-ca4-1949.