In the Matter of a Mail Dispute Between:

JOHN H. JOHNSON c/o JAMES A. JOHNSON
and
BILL STEELE c/o JOEY STEELE n1

n1 The case was docketed and mail was addressed to Disputant Steele
without the final "e" in his name. However, from documents subsequently
received from the Postmaster it is clear that the names of both Bill Steele
and Joey Steele are spelled with the final "e" added.

P.S. Docket No. MD-71

Thompson, Joan B., Administrative Judge

APPEARANCE FOR DISPUTANT JOHNSON: John H. Johnson, c/o James
A. Johnson, Box 1129, Crab Orchard, WV 25827-1129

APPEARANCE FOR DISPUTANT STEELE: Bill Steele, c/o Joey Steele,
HC 61, Box 1320, Hatfield, KY 41514

INITIAL DECISION

By letter received November 22, 1989, an Assistant Field Counsel referred a mail dispute to this office for resolution. He reported that the post office in Sidney, KY 41564-9998, had received conflicting requests for mail addressed to K.A.D. Mining but that the Postmaster had been unable to communicate with or receive cooperation from either party.

When neither Disputant filed a submission in accordance with the Notice of Docketing and Submittal Due Date and the rules of practice pertaining to mail disputes (39 C.F.R. Part 965), an Order dated December 27, 1989, afforded additional time for the Disputants to file a statement of facts to support their positions. The Assistant Field Counsel was also requested to furnish any additional information he or the Postmaster had concerning this matter.

To date nothing has been filed by either Disputant or by the Assistant Field Counsel. The Order dated December 27, 1989, was mailed to the only addresses in the record at that time. The Order addressed to John H. Johnson, c/o James A. Johnson, Box 1129, Crab Orchard, WV 25827-1129, was returned unclaimed January 23, 1990, and re-sent by regular mail that day. The Order addressed to Bill Steel, c/o Joey Steel (see footnote 1), HC 61, Box 1320, Hatfield, KY 41514, was returned unclaimed January 29, 1990, and re-sent by regular mail that day.

In view of the absence of any information in the record, on February 5, 1990, a telephone call was made to the Postmaster of the Sidney, KY, Post Office. The following Findings are based on her statements as set forth in the Memorandum of that telephone call (dated February 6, 1990) and documents she transmitted to this office thereafter.

FINDINGS OF FACT

1. On April 7, 1989, an application for P. O. Box 269, Sidney, KY, was filed in the name of K.A.D. Mining & Leasing, Inc. (hereafter K.A.D.) by Pamela S. Patterson, as Secretary and Treasurer. John Johnson was listed as one of the individuals authorized to accept mail addressed to that box.

2. Disputant Johnson and Disputant Bill Steele entered into a stock purchase agreement on August 25, 1989. On September 11, 1989, Disputant Johnson resigned as President of K.A.D. "in lieu of the stock purchase this date being exercised by Mr. Bill Steele."

3. On October 23, 1989, after previously being refused the mail in P. O. Box 269 to which he did not have a key, Disputant Steele filed an updated application for that box under K.A.D.'s name. He claimed he was the owner of K.A.D. and showed the Postmaster copies of documents as proof. Therefore, she changed the lock and issued him a key to the box.

4. The next day, October 24, 1989, James Johnson, with a power of attorney from John Johnson, and Randy Roope (who had previously picked up mail for K.A.D.) requested the mail from the box. Mr. Johnson gave the Postmaster a copy of a court restraining order against Mr. Steele. The Postmaster refused to give them the mail addressed to K.A.D. without first obtaining advice. After consultation with two Postal Service inspectors and the Assistant Field Counsel, the Postmaster has withheld the mail addressed to K.A.D. at P. O. Box 269. The Assistant Field Counsel was unable to communicate with the Disputants and this mail dispute was forwarded to this office.

5. In a proceeding in the Pike Circuit Court, Commonwealth of Kentucky (C.A. No. 89-CI 1215), brought by John H. Johnson, Plaintiff, against Bill Steele, Defendant, that Court issued a Temporary Restraining Order dated October 20, 1989. The Order restrained Disputant Steele from coming on the premises of K.A.D., from representing himself to be authorized to conduct business on behalf of the company, and from disposing of any corporate assets or property or from incurring further indebtedness on behalf of the company, without a further Order of the Court. This was based on a finding, following an Ex Parte Motion and Affidavit filed by the Plaintiff, that the Defendant was operating K.A.D. without legal authority and the Plaintiff would suffer irreparable injury unless the Defendant was restrained. There is no information in the record concerning any subsequent court orders or proceedings relating to K.A.D.

6. On January 5, 1990, Disputant Johnson and James P. Matz went to the Post Office and discussed the box situation with the Postmaster. Disputant Johnson stated he was selling "the mines" to Mr. Matz who was now in charge. She advised them about the mail dispute and referred them to the Assistant Field Counsel.

CONCLUSIONS OF LAW

1. Neither Disputant has filed the submissions required by the rules of practice, has kept this office informed of his current address, nor has complied with the Order dated December 27, 1989. Therefore, both parties are in default. See 39 C.F.R. § 965.7.

2. The record shows that Disputant Johnson resigned as president of K.A.D. because of a stock purchase agreement with Disputant Steele. However, litigation by Disputant Johnson resulted in the Court's Temporary Restraining Order prohibiting Disputant Steele from representing that he is authorized to conduct business on behalf of K.A.D. In the absence of evidence showing that Order is no longer in effect and Disputant Steele is an authorized agent of K.A.D., he will not be so considered. Domestic Mail Manual § 153.51. See also § 153.73.

3. Instead, Disputant Johnson, or whomever he has authorized, may direct delivery of K.A.D.'s mail addressed to P. O. Box 269, Sidney, KY. The attached mail delivery instruction should be issued.

4. The purpose of resolving the mail dispute in this proceeding is to enable the Postal Service to carry out its responsibility to deliver the mail. This proceeding does not determine the ownership of the mail or other legal rights between the Disputants.