Appeal of P.S. Docket No. MD-39 -- NEAL W. KELLISON, MANYON M. MILLICAN, J. STEVEN HUNTER and JOHN E. LEWIS

In the Matter of a Mail Dispute Between: NEAL W. KELLISON, MANYON M. MILLICAN, J. STEVEN HUNTER and JOHN E. LEWIS P.S. Docket No. MD-39 12/20/88 Lemert, James E., Administrative Judge

INITIAL DECISION

This mail dispute was docketed under Domestic Mail Manual $S153.72, which requires Regional Counsel to forward unresolved mail disputes to this Department for decision. The dispute involves the right to delivery of mail to P.O. Box 70 in Slatyfork, WV, and P.O. Box 239 in Snowshoe, WV.

FINDINGS OF FACT

1. Disputants Kellison, Millican and Hunter (sellers), along with David M. Brown (who has since sold his interests to Disputants Hunter and Kellison) were the owners of all issued and outstanding common stock of Southland Satellite Communications, Inc. (Southland) from October 10, 1981, until November 30, 1983, when the common stock was sold to the John Lewis Corporation. Disputant John E. Lewis is president of the John Lewis Corporation (Lewis Corporation).

2. In exchange for the shares of common stock sold to the Lewis Corporation, the sellers received promissory notes executed by the Lewis Corporation and Disputant Lewis. The sellers also received a security interest in all the outstanding shares of common stock of Southland, and a security interest in all of Southland's assets.

3. Because of a failure to make the required payments on the promissory notes, the sellers filed in the Circuit Court of Pocahontas County, West Virginia, (Court) a legal action against the Lewis Corporation, Southland, Disputant Lewis and a bank in Charleston, WV.

4. On August 16, 1988, the Court issued a judgment order against Southland which provides that the sellers are entitled to immediate possession of all assets of Southland utilized in its cable television operation.

5. Pursuant to that judgment the sellers have taken possession of all of Southland's assets and have been operating the Southland cable television system.

6. Southland had also done business as Skyline Satellite Communications (Skyline).

7. The sellers claim their entitlement to all assets of Southland would include assets of Skyline and any payments which have been or will be made by customers to Southland or Skyline. Customer payments are being made to Southland and Skyline at P.O. Box 70 in Slatyfork, WV, and P.O. Box 239 in Snowshoe, WV, which were rented by Disputant Lewis in the names of Southland and Skyline. In order to recover such payments, the sellers claim entitlement to delivery of mail to those boxes. By failing to file any submittal, Disputant Lewis has not rebutted these claims of the sellers.

CONCLUSIONS OF LAW

Disputant Lewis failed to make the submittal required by 39 C.F.R. § 965.5 and thus is in default in this proceeding. 39 C.F.R. $S965.7.

Disputants Kellison, Millican and Hunter have submitted proof of their entitlement to all assets of Southland Satellite Communications, Inc. and the assets of Skyline Satellite Communications, which include payments from customers of those corporations sent to post office boxes in Slatyfork, WV, and Snowshoe, WV, rented by Disputant Lewis in the names of Southland and Skyline. Accordingly, Disputants Kellison, Millican and Hunter are entitled to delivery of all mail addressed to P.O. Box 70 in Slatyfork, WV 26291, and to P.O. Box 239 in Snowshoe, WV 26209.