171 Ky. 748 | Ky. Ct. App. | 1916
Opinion of the Court by
Affirming as to Sallie J. Thompson and the Continental Fuel Company, and denying the appeal of the Consolidated Coal Company against the Victor Fuel Company.
These two appeals have been consolidated and will be considered in one opinion.
In the month of April, 1914, the Kentucky Consumers Oil Company and Vogel Brothers & Company each recovered a judgment against the Continental Fuel Company. On September 7th, 1914, they each filed a suit in equity, based on a return of “no property found,” and prayed and obtained general orders of attachment against the property of the Continental Fuel Company. The attachments were served on the Louisville & Nashville Eailroad Company the same day they were issued.
On September 9th, 1914, John J. Schulten & Company sued the Continental Fuel Company to recover the sum of $730.62 upon open account, and asked and obtained a general order of attachment, which was executed upon the Louisville & Nashville Eailroad Company the same day that it was issued.
During the month of September, 1914, the Consolidated Coal Company recovered a judgment against the Continental Fuel Company. On November 9th, 1914, the Consolidated Coal Company brought suit on a return of “no property found,” and asked and obtained a general order of attachment against the property of the
All of these cases were transferred to equity and consolidated.
On January 11th, 1915, the Louisville & Nashville Railroad Company filed its answer as garnishee and paid into court the sum of $1,024.86. On May 5th, 1915, the same company answered as garnishee and stated that it had in its hands $274.51 due the Victor Fuel Company.
On January 14th, 1915, Sallie J. Thompson intervened and alleged that she was the owner of the attached fund, by virtue of a written order of assignment made to her by the Continental Fuel Company on September 5th, 1914, and accepted on the same date by the Louisville & Nashville Railroad Company. The allegations of her petition were denied by the Kentucky Consumers Oil Company, Vogel Brothers & Company and John J. Schulten & Company. In addition to a denial of the' allegations of the petition, the Consolidated Coal Company pleaded that the alleged transfer was fraudulent and was made for the purpose of preventing the creditors of the Continental Fuel Company from collecting their debts.
On final healing it was adjudged that the intervening petitioner, Sallie J. Thompson, was the owner of the fund, attached in the hands of the Louisville & Nashville Railroad Company, and that the attachments be -discharged. From this part of the judgment all of the plaintiffs in the consolidated actions appeal. It was •jfurther adjudged that the sum of $274.51, attached in
The Continental Fuel Company is a corporation engaged in the coal mining business. It issued $125,000.00 in bonds! These bonds were secured by a mortgage lien upon all of its property, which consisted of certain leases and mining plants. The mortgage covered all coal in place and in its natural state. Sallie J. Thompson was the owner of $92,000.00 worth of the bonds. J. M. Thompson, who says that he was the general manager of the Continental Fuel Company at the time, testifies to the foregoing facts. He further says that the aceummulated interest on Mrs. Thompson’s bonds amounted to about $7,000.00. Mrs. Thompson wanted some money to meet certain obligations. He discussed the matter with the president and another officer. The president directed him to assign to Mrs. Thompson the company’s claim against the Louisville & Nashville Railroad Company amounting to $1,024.86. Thereupon a written assignment was drawn up and signed by him as general manager. This took place on September 5th, 1914. Thereupon the written assignment was forwarded to T. P. Harrison, assistant purchasing agent of the Louisville & Nashville Railroad Company. Receipt of this assignment was acknowledged by Harrison on September 4th, 1914. On September 7th, 1914, Harrison again wrote the Continental Fuel Company to the effect that he had directed the treasurer of the railroad! company to send Mrs: Thompson an acceptance of the* assignment, payable September 20th. After this the.' various attachments were served on the railroad company. Thereupon Mr. Harrison advised the Continental Fuel Company that, acting upon the advices of the road’s attorneys, the acceptance to Mrs. Thompson would not be given. It further appears that J. M. Thompson was the agent of his wife and had full charge of her business.
So far as the Kentucky Consumers Oil Company,, Vogel Brothers & Company and John J. Schulten & Company are concerned, only one question is presented, and that is the authority of J. M. Thompson to make the assignment, for, if he had that authority, the claim of the assignee, Mrs. Thompson, to the attached fund
On the appeal of the Consolidated Coal Company against Sallie J. Thompson and the Continental Fuel Company the question of fraud is presented. It is argued that the assignment was fraudulent, because it was made by Thompson to his wife just after the creditors had obtained judgments against the Continental Fuel Company and returns of “no property found.” While this circumstance is sufficient to arouse suspicion as to the good faith of the transaction, it must be remem
On the appeal of the Kentucky Consumers Oil Company, Vog’el Brothers & Company, John J. Schulten & Company and the Consolidated Coal Company against Sallie J. Thompson and the Continental Fuel Company, the judgment is affirmed.
The appeal of the Consolidation Coal Company against the Victor Fuel Company is denied.