IN RE RIDDLESBURG MINING CO., 22128.

Decision Date30 June 1954
Docket NumberNo. 22128.,22128.
Citation122 F. Supp. 560
PartiesIn re RIDDLESBURG MINING CO., Inc.
CourtU.S. District Court — Eastern District of Pennsylvania

R. Lester Moore, Philadelphia, Pa., for Waldo & Maltby, Inc.

E. W. Van Horn, Jr., Bedford, Pa., for Commercial Coal & Coke Corp.

Paul E. Hutchinson, Pittsburgh, Pa., for trustee.

Philip Baskin, Pittsburgh, Pa., for objectors, the purported 3rd & 4th Mortgagees.

Walter F. Michael, Pittsburgh, Pa., for debtor.

GOURLEY, Chief Judge.

In this reorganization proceeding, the question has been raised as to the legality and priority of, and the amount due and owing by the Riddlesburg Mining Co., Inc., debtor corporation, to Waldo & Maltby, Inc., and its secured claim status as a second mortgagee on the property of the debtor corporation.

An order of reference was made to Stephen P. Laffey, Referee in Bankruptcy, acting as Special Master. Rule 53 of the Federal Rules of Civil Procedure, 28 U.S.C.A.

The Special Master entered findings and conclusions, and exceptions have been taken thereto by Waldo & Maltby Co., Inc., assignee of the said second mortgage.

Ordinarily, a Master's findings are not to be set aside unless clearly erroneous. 28 U.S.C.A. Rule 53(e) Federal Rules of Civil Procedure; Polish Nat. Alliance of U. S. of A. v. N. L. R. B., 7 Cir., 159 F.2d 38; N. L. R. B. v. Arcade-Sunshine Co., 76 U.S.App.D.C. 312, 132 F.2d 8; N. L. R. B. v. Remington Rand, Inc., 2 Cir., 130 F.2d 919, 925.

Riddlesburg Mining Co., Inc., executed a second mortgage on its coal lands to Union Factors Corporation of New York. The original loan consisted of $50,000 repayable monthly in twelve notes of $2500 each, commencing January 26, 1950, and a twelfth and final payment of $22,500 due December 26, 1950.

Prior to Riddlesburg's default on the said mortgage, it had, on July 31, 1950, contracted with Waldo & Maltby, Inc., and Commercial Coal & Coke Corporation, providing them with exclusive right to strip coal on Riddlesburg's property as well as an exclusive sales agency, the coal to be processed by Riddlesburg and the sales price to be distributed according to a fixed formula.

Waldo & Maltby, Inc., at the time that Riddlesburg became financially embarrassed paid two of the outstanding notes in the sum of $2,500 each and the balance of the last installment of $23,812.50, taking at the same time an assignment of the aforesaid second mortgage.

On the basis of the assignment of said second mortgage and contract dated November 8, 1950, in the form of a letter from Riddlesburg to Waldo, Waldo asserts a right for secured claim in the amount of $160,593.53, representing $28,812.50 based on the principal of the second mortgage and $122,500.08 with interest in connection with loans and advances, pursuant to the July 31, 1950 contract, made for and on account of Riddlesburg before and after the date of its purchase of the second mortgage.

The holders of the third and fourth mortgage contend that Waldo is entitled as a secured claim only to the amount advanced by it on the second mortgage.

The question...

To continue reading

Request your trial
7 cases
  • D'Angelo v. Blue Chip Fed. Credit Union (In re D'Angelo)
    • United States
    • U.S. Bankruptcy Court — Middle District of Pennsylvania
    • May 13, 2013
    ...construction [applicable] to other written instruments.” In re Dolata, 306 B.R. 97, 122 (Bankr.W.D.Pa.2004); In re Riddlesburg Mining Co., Inc., 122 F.Supp. 560, 561 (W.D.Pa.1954). Thus, Pennsylvania contract principles direct my analysis on the mortgage language at issue. On its face, I ho......
  • D'Angelo v. Blue Chip Fed. Credit Union (In re D'Angelo)
    • United States
    • U.S. Bankruptcy Court — Middle District of Pennsylvania
    • February 7, 2014
    ...construction [applicable] to other written instruments.” In re Dolata, 306 B.R. 97, 122 (Bankr.W.D.Pa.2004); In re Riddlesburg Mining Co., Inc., 122 F.Supp. 560, 561 (W.D.Pa.1954). I find that Metro Mortgage 2 is ambiguous for the same reasons stated in D'Angelo 1.D'Angelo 1, 494 B.R. at 64......
  • McGraw Edison Company v. Central Transformer Corp.
    • United States
    • U.S. District Court — Eastern District of Arkansas
    • June 23, 1961
    ...depositions, or undisputed facts. United States v. 15.3 Acres of Land in City of Scranton, D.C. Pa., 154 F.Supp. 770; In re Riddlesburg Mining Co., D.C.Pa., 122 F.Supp. 560; Helene Curtis Industries v. Sales Affiliates, D.C.N.Y., 121 F.Supp. 490, affirmed 2 Cir., 233 F.2d 148, certiorari de......
  • United States v. 620.98 ACRES OF LAND, ETC.
    • United States
    • U.S. District Court — Western District of Arkansas
    • June 21, 1966
    ...depositions, or undisputed facts. United States v. 15.3 Acres of Land in City of Scranton, D.C.Pa., 154 F.Supp. 770; In re Riddlesburg Mining Co., D.C.Pa., 122 F.Supp. 560; Helene Curtis Industries v. Sales Affiliates, D.C.N.Y., 121 F.Supp. 490, affirmed 2 Cir., 233 F.2d 148, certiorari den......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT