American Bonding & Trust Co. v. Coons

1917 OK 293, 166 P. 887, 66 Okla. 34, 1917 Okla. LEXIS 113
CourtSupreme Court of Oklahoma
DecidedJune 6, 1917
Docket8160
StatusPublished
Cited by9 cases

This text of 1917 OK 293 (American Bonding & Trust Co. v. Coons) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Bonding & Trust Co. v. Coons, 1917 OK 293, 166 P. 887, 66 Okla. 34, 1917 Okla. LEXIS 113 (Okla. 1917).

Opinion

Opinion by

HOOKER, O.

In the petition here it is alleged: That Robert Ohasteen on the 15th day of May, 1902, did execute a bond as the guardian of Arthur Coons with the plaintiff in error as his surety, which bond was duly approved by the judge of the probate court of Pawnee county on the 22d day of May, 1902. That from said date until June I, 1906, the said Robert Ohasteen continued' to act as said guardian by virtue of the bond aforesaid, when he executed another bond with the Columbia Bank & Trust Company in the su(m of $2,000, which bond was duly approved on the 26th day of June, 1906, and thereafter on the 1st day of June, 1908. the said Ohasteen executed another bond as such guardian in the sum of $1,600. with the Southern Surety Company as his surety, which bond was duly approved. That on the 27th day of September, 1913. .after due notice to the said Robert Ohasteen as such guardian, the judge of the county court of said county made a settlement of the ac- ' counts of the said guardian, and as a result thereof ord'ered and directed the said Robert Ohasteen to pay to said Arthur Coons, who *35 had prior thereto 'become of age, the sum of $1,783.02; but that the said guardian had failed and refused so to do, on account of which a judgment was sought against the guardian and all of the sureties upon his bond for said money with interest thereon from 'September, 27, 1913.

The answer of the American Bonding & Trust Company asserts that on the 30th day of June, 1906, it was released and discharged' from all future liability by virtue of its suretyship upon th.e bond aforesaid, to which a reply of general denial was filed.

Upon the trial thereof the defendant in error introduced the reports filed by Robert Chasteen in 1906, 1907, and 1908 and rested his case. To this evidence the company presented a demurrer, but the court declined to pass upon the same and directed the company to introduce its evidence. Thereupon the company offered in evidence the guardian’s report of June 2, 1906, and the petition of the company filed in the probate court of Pawnee county to be released as the surety upon said bond, and' the order of the court made on the 20th day of June, 1906, discharging it from further liability, and then rested its case. The court thereupon rendered a judgment against the' plaintiff in error for the sum of $249.57 with 6 per cent, interest from January, 1916.

To reverse this case, the American Bonding & Trust Company has appealed, asserting that, inasmuch as it was released under an order of the probate court of Pawnee county in 1906, before any judgment could be rendered against it the plaintiff below should have shown that there was a breach in the obligation of the guardian’s bond upon which it was a surety prior to the date of its discharge. If this be true, the plaintiff in error is entitled to prevail here; if not, the judgment of the lower court should be sustained.

Wilson’s Revised and Annotated Statutes of 1903, § 1866, conferred authority upon the judge of the probate, court to require a guardian to execute a new bond whenever it was deemed necessary, and that the judge of said court might discharge existing sureties from further liability after proper notice when no injury could result to those interested in the estate.

This court, in the case of United States Fidelity & Guaranty Company v. Hansen, 36 Okla. 473, 129 Pac. 66, Ann. Cas. 1915A, 402, has said: “This statute gave the authority to release the bond. * * * ” See, also, Spencer v. Houghton, 68 Cal. 82, 8 Pac. 679; Jamison v. Cosby, 11 Humph. (Tenn.) 273; Wilborne v. Commonwealth, 5 J. J. Marsh. (Ky.) 617, and 21 Cyc. 235.

The reports filed by the guardian in 1906, 1907, and 1908 merely show the amount of money with which the guardian was chargeable on said dates, and the judgment of settlement mad'e by the county judge with the guardian, which is conclusive here, shows that the guardian had in his hands, or should have had, ail during the life of the bond upon which the plaintiff .in error was surety, more money than the amount of the bond or the judgment rendered here. A defalcation exists here upon the part of the guardian. He was ordered to pay the money in his hands to his ward. He has failed and refused so to do. Will the law say when this misappropriation is presumed to have taken place? M!ust the ward who was unable to act for himself, and who was all during the life of this bond a minor, be compelled to show that this misappropriation happened before its discharge, or does the duty rest upon the surety apon said bond relying upon said discharge and release to show that it did not occur while said bond was in force? It must be treated as settled law in this state that, if the guardian had this money in his hands when the company was released and discharged, then it is not liable for any subsequent defaults; but it is also true that it was not discharged or released from past defalcations.

It is the purpose of the law to protect the property interest of all wards and to carefully guard their rights from the conduct of their guardians. Here a surety for hire seeks to avoid paying for the default of the guardian and says the ward has not shown any default, while it was surety upon the bond. A default is shown to exist. The ward’s money is gone — spent while he was unable to act or protect himself. He perhaps would not be able to show when or how his money was wasted. ‘He has shown enough to justify a recovery against his guardian. He need show no more. The surety must, pay, or show why he should not. 21 Cyc. 235, says;

“In an action against a discharged surety the burden is on him to show that the guardian was not in default when the release was made.”

In Freeman v. Brewster, 93 Ga. 651, 21 S. E. 166, the Supreme Court of Georgia said:

“And where it is shown, in an action of this kind, that one of the guardians, during the minority of the ward and while the letters of guardianship were in force, received assets belonging to the ward, the burden is *36 cast upon the defendants to show that a legal disposition of such assets was made. * #

While defaults nor defalcations upon the part of guardians are not presumed to exist, yet, when the admitted facts show such to 'be true, it seems to; be the better rule of law to require the surety upon the guardian’s bond, in the absence of any evidence as to when the ward’s money was spent, before a release can be relied upon as a bar to recovery, to show that the same did not happen while he was surety upon the guardian’s bond. The surety is in a better position to protect himself from liability than the infant or incompetent ward is to safeguard his interests. '

In Childs v. McGrew, 171 S. W. 506, the Court of Civil Appeals of Texas uses the following language:

“The burden is upon the sureties on a guardian’s bond to clearly establish' their defense which would relieve them of liability.”

In Boyd v. Withers, 103 Ky. 702, 46 S.W. 13, the Supreme Court of that state said:

“The main question to be determined on the appeal is: On whom does the burden rest of proving the date when the insolvent guardian appropriated to his own use the funds of liis wards?

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Cite This Page — Counsel Stack

Bluebook (online)
1917 OK 293, 166 P. 887, 66 Okla. 34, 1917 Okla. LEXIS 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-bonding-trust-co-v-coons-okla-1917.