Grundy v. Pine Hill Coal Co.

• Decision Date: 16 October 1888
• Citation: 9 S.W. 414
• Parties: GRUNDY v. PINE HILL COAL CO. et al. PINE HILL COAL CO. et al. v. GRUNDY.
• Court: Kentucky Court of Appeals

9 S.W. 414

GRUNDY v. PINE HILL COAL CO. et al.

PINE HILL COAL CO. et al. v. GRUNDY.

Court of Appeals of Kentucky.

October 16, 1888

Appeal from circuit court, Boyle county.

This was an action for a settlement of partnership accounts instituted by Samuel R. Grundy against C. Crooke. The parties were the owners of the Pine Hill Coal Company, of which Crooke had been acting as president, with a general supervision of the affairs of the company. Judgment was rendered in favor of Grundy for $2,300, and he has appealed. Crooke also filed a cross appeal. Grundy insists that Crooke has been credited twice for the item of $2,775.05 for "props" mentioned in the opinion below. These props were the supporting timbers that were placed in the roof of the mines to prevent it from caving in upon the workmen as the excavations were lengthened. Grundy claims that these timbers were felled and prepared by day-laborers, and that Crooke has been credited by the amount he paid these laborers, and also by the total cost of putting in the props. The credit of $9,650.56, for "entries," is also claimed to be of a similar character; credit being allowed Crooke for the sum he paid the laborers for making the "entries," and also for the total cost of said entries. Complaint is also made that Crooke was credited by $706.50, paid out for beef cattle to sell to the miners while he has not been charged with the $1,006.50 received by him for them.

W. B Harrison, for appellant.

W. O. Bradley, for appellees.

BENNETT J.

On the 18th day of March, 1879, the appellant bought of W. P. Crooke his one-fourth interest in the Pine Hill mining property; the appellee C. Crooke owning the other three-fourths interest therein. The said W. P. and C. Crooke held and owned said property in partnership, and the appellant, upon his said purchase, became the partner of the appellee C. Crooke to the extent of one-fourth interest, and the appellee to the extent of three-fourths interest, in said property. The appellant in part consideration of the purchase price of said fourth interest, conveyed to the Pine Hill Coal Company some land which he owned, and which adjoined the Pine Hill property, known as the "Richetts Mines;" and the Pine Hill Coal Company executed to W. P. Crooke its notes for the price, and the appellant executed to said Crooke his note for the balance of the purchase money, which he thereafter paid. By an act of the legislature of this state, passed at its session of 1878-79, said Pine Hill Coal Company was incorporated, with the consent of the appellant and appellee C. Crooke, with power to elect a president, agent, treasurer, and board of directors. In September, 1879, said company was organized in accordance with the provisions of said charter. The company, as thus organized, did business in mining coal, etc., until some time in 1882, when that branch of the business was suspended; but the business of merchandising, which was carried on in connection with mining, was continued for some time longer. The appellant, in 1881, filed his petition against the appellee C. Crooke, for the purpose of having the partnership matters settled, etc.; in which suit he claimed that the appellee, who had the entire control of the business, had mismanaged the same, and had wrongfully appropriated to his own use large amounts of the partnership funds; and that, in consequence thereof, he was largely indebted to the appellant. A denial of these allegations necessitated a reference of the case to a commissioner, upon whose report the chancellor gave judgment for appellant for about the sum of $2,300, and also adjudged that the appellant pay his proportion of costs and taxes. From this judgment he has appealed, and the appellee has filed a cross-appeal. It is agreed that, in addition to the consideration above mentioned, the appellant was to pay one-fourth of the existing indebtedness of said firm. But the appellant contends that W. P. and C. Crooke represented that the books of the firm would show all of its indebtedness, upon which he relied, and with that view he employed McElroy, a competent clerk, to examine said books in connection with said Crookes and their clerk, Proctor, and that a...