Court Opinion

ID: 9532661
Source: CourtListenerOpinion
Date Created: 2023-08-07 04:23:43.958479+00
Date Added: 2024-06-11T13:28:48.282552
License: Public Domain

Lockett, J.,
dissenting:
I respectfully dissent. The majority notes that revenue bonds constitute a contract between the obligor and the bondholder. The majority points out that the rights and obligations of the parties are governed by the written contract and the law in effect on the date that the bonds were issued. According to the contract, the plaintiff, whose bond has matured, has the right to receive principal and interest on the date of maturity.
In approving the trustee’s unauthorized attempt to keep the defaulting facility running, the majority acknowledges that it is not relying on the intent expressed in the bond documents, but rather on the particular undisputed facts involved. After disregarding the contract, the majority erroneously places bondholders with matured bonds in the same position as those whose bonds have not matured. In affirming the “narrow issue” it created, the majority concludes that K.S.A. 60-254(b) provides that interest due and owing to all bondholders be distributed from moneys in the principal and interest account fund before payment of principal and indebtedness on Mumma’s bond.
K.S.A. 60-254(b) states:
*958“Judgment upon multiple claims. When more than one claim for relief is presented in an action, whether as a claim, counterclaim, cross-claim or third-party claim or, when multiple parties are involved, the court may direct the entiy of a final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reason for delay and upon an express direction for the entry of judgment. In the absence of such determination and direction, any order or other form of decision, however designated, which adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties shall not terminate the action as to any of the claims or parties, and the order or other form of decision is subject to revision at any time before the entry of judgment adjudicating all the claims and the rights and liabilities of all the parties.”
To reach a result, the majority has narrowed the issue to the point that neither the law nor the contract applies. I understand the majority’s decision, but cannot determine how it reached its result. Therefore, I must dissent.