White v. Constitution Mining & Milling Co.

55 P.2d 152, 56 Idaho 403, 1936 Ida. LEXIS 54
CourtIdaho Supreme Court
DecidedFebruary 21, 1936
DocketNo. 6224.
StatusPublished
Cited by13 cases

This text of 55 P.2d 152 (White v. Constitution Mining & Milling Co.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White v. Constitution Mining & Milling Co., 55 P.2d 152, 56 Idaho 403, 1936 Ida. LEXIS 54 (Idaho 1936).

Opinion

BUDGE, J.

The appeals herein seek to determine the priorities in certain property of the Constitution Mining and Milling Company, hereafter referred to as the mining company, as between labor lien claimants, White, Neault, King and Golsong, and an attaching creditor, Wilson.

Chronologically stated, the facts leading up to the time of the taking of the appeals in the instant suit disclose the following situation: The mining company was the owner of mining property in the Coeur d’Alene Mining District in Shoshone County, consisting of a group of contiguous, patented and unpatented mining claims, worked as a unit, with 11,000 feet of underground workings, the whole fully equipped with ore hoists, skips, cages, pumps, compressors, ore ears, locomotives, tramway, crushers, ball mills, thickening tanks, surge tanks, flotation machines, Alters, loading equipment, motors, carpenter shop, sawmill, bunk houses, offices, dams, tanks, flumes, and innumerable items of small tools, supplies and equipment for the operation of such a mine.

Prior to July 1, 1930, the mine was actively producing and shipping lead, zinc and silver ore concentrates and employed from seventy to seventy-five men, at which time White was general manager and superintendent in charge of the property. The latter part of June, 1930, production ceased because of a shortage of funds and low silver prices and White at this time tendered his resignation to the president, director and large stockholder of the mining company, Jay P. Graves.

In order to retain a working nucleus and to promote a speedy resumption of production in the future, and to keep *407 the property and mine preserved and protected and in a workable condition, Graves, president of the mining company, made arrangements for the employment of White, Neault, King and Golsong commencing with July 1, 1930. White was employed on the basis of $500 per month, $300 to be paid in cash and the balance to be deferred until such time as the mine could be refinanced or development and production resumed. White, under instructions from Graves, employed Neault on the basis of $225 per month, $100 cash, balance deferred; Mr. King, $225 per month, $125 cash, $100 deferred; Golsong, $200 per month, $100 cash, $100 deferred.

Wilson brought suit against the mining company on assigned merchandise accounts, aggregating $20,000 on October 8, 1930, and an attachment was levied in such suit on the property of the mining company on October 9, 1930.

On January 31, 1933, claims of lien were filed for record by White, Neault, King and Golsong for unpaid salaries under the before-mentioned employment agreements. The present suit, to foreclose the liens of White, Neault, King and Golsong, was filed July 24, 1933.

Judgment was delayed in the Wilson suit for some time with the object in view that the mining company might be able to refinance itself, until on August 3, 1933, when judgment was entered, and on August 22, 1933, an execution was issued on this judgment. Negotiations had been and were being carried on between the directors of the mining company and certain foreign interests, looking to the refinancing of the mine, and with what appeared to be to all parties some degree of success and in which event all indebtedness of the mining company would be liquidated and operation resumed.

September 1, 1933, intervener E. I. DuPont De Nemours & Company recovered a judgment against the mining company and thereafter on September 25, 1933, an execution was caused to be issued and the sheriff levied on all the property of the mining company.

All of the property of the mining company was sold at sheriff’s sale under the Wilson judgment to Wilson on October 6,1933. On October 20, 1933, the property of the mining company was sold at sheriff’s sale under the DuPont judgment to such company. There being no redemption from the *408 first sheriff’s sale, namely, that to Wilson, sheriff’s deed issued to Wilson on October 7, 1934.

In the present action, instituted by White, Neault, King and Golsong against the mining company and Wilson to foreclose their claims of lien, Wilson answered and the DuPont company intervened, and the foregoing facts, with considerable detail, were alleged by the various parties.

Upon the trial of the instant action the court awarded a judgment to White, Neault, King and Golsong against the mining company for the amount that each claimed, together with costs and attorneys’ fees, this judgment being by default as against the mining company. The court decreed that no part of White’s judgment was lienable and that no part of it was prior to the Wilson judgment, the DuPont judgment, or the judgments of Neault, King and Golsong. •The court further decreed that that part of the judgment awarded Neault, King and Golsong, covering wages earned between July 1 and October 9, 1930, that is for all wages for work performed prior to the Wilson attachment, was a .lien upon all the property of the mining company, superior to the Wilson judgment, but, that the balance, for wages for work performed after the Wilson attachment was inferior to the Wilson judgment, and that the whole of the judgments awarded Neault, King and Golsong, were superior to the claims of White and the intervener DuPont.

The lower court in its findings, among other things, and after describing the various claims, machinery, tools and equipment of the mining company found the following:

“That the said mining company was the owner or reputed owner of the above described property from the first day of July, 1930, until the 6th day of October, 1933, and that prior to said period the mining company has operated said mine as a contiguous group or unit and that all the property above described is and was essential and necessary to the ordinary working operation and development and enjoyment of said mine.”

The court further found with respect to Wilson:

“That the delay between the date of the issuing of the attachment and the reduction of said claim to judgment was occasioned by the different requests of the defendant mining company for time as it desired an opportunity to refinance *409 the mine and that the same could not be done if the same was reduced to judgment and receive any publicity; that the said defendant, Lewis C. Wilson, in the prosecution of his said action against the mining company, was not guilty of latches, nor was the attachment proceedings abandoned. ’ ’

With reference to the employment of White, Neault, King and Golsong the court found as follows:

“ .... the president of said mining company, J. P. Graves, desired to retain a nucleus of an organization for the further operation of its mine when the price of metal had advanced so that they could operate without loss or the mining company were refinanced, were employed by the said mining company on the following terms and conditions:
“William P. White to be the superintendent and manager in looking after and taking care of said property and that the other three plaintiffs were to perform services and do work as laid out and determined by this plaintiff ....

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Bluebook (online)
55 P.2d 152, 56 Idaho 403, 1936 Ida. LEXIS 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-constitution-mining-milling-co-idaho-1936.