American Indemnity Co. v. Noble

216 S.W. 441, 1919 Tex. App. LEXIS 1152
CourtCourt of Appeals of Texas
DecidedNovember 13, 1919
DocketNo. 488.
StatusPublished
Cited by1 cases

This text of 216 S.W. 441 (American Indemnity Co. v. Noble) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Indemnity Co. v. Noble, 216 S.W. 441, 1919 Tex. App. LEXIS 1152 (Tex. Ct. App. 1919).

Opinion

BROOKE, J.

This suit originated in the district- court of Shelby county, Tex., by petition filed therein on January 28, 1918, by J. Bennett Noble, as plaintiff, against J. S. McLamore, Jr., General Bonding & Casualty Insurance Company, American Indemnity Company, Louis A. Adoue, George Sealy, and Lion Bonding & Surety Company, all designated as defendants, said petition- alleging the appointment of McLamore as plaintiff’s guardian on a former date with General Bonding & Casualty Insurance Company as surety on such bond as such guardian, of his reappointment at a later date with appellant as surety on his second bond. Said petition further alleged the receipt on the part of said McLamore as guardian of two several sums of money, one being the proceeds, of a judgment rendered against Mrs. Fannie Noble, plaintiff’s mother, and former guardian, and her surety, Fidelity & Deposit Company of Maryland, in the sum of $2,953.85, the other-being in the sum of |600 arising from the sale of a tract of land in Shelby county by said McLamore as guardian, in which said ward had one-half interest. Misappropriation and failure to account for each and both of such sums of money was alleged and judgment therefor asked against the defendants Mc-Lamore as guardian, General Bonding & Casualty Insurance Company, and American Indemnity Company, Adoue and Sealy as sureties on his two bonds, and against Lion Bonding & Surety Company as a reinsurer of General Bonding & Casualty Company. He also asked for interest on said sums of money, as provided by statute.

McLamore, guardian, though duly cited, made no appearance in the case.

Appellant, American Indemnity Company, answered denying liability on said bond as to the proceeds of said sale of land, assigning as reason therefor, among other things, that said purported sale of the said land was illegal under the law,' as amended by act of 1913, in that no sale bond was required or given in said proceeding. It denied liability for any part of the $2,953.S5 item, alleging that if the same, or any portion thereof, had been received and misapplied by said McLa-more, it was prior to the execution and filing of the bond on which applicant was surety. Appellant asked for judgment over against McLamore, its principal, and its codefendant, General Bonding & Casualty Insurance Company, for any sum for whifch judgment might be rendered against it.

Defendant General Bonding & Casualty Insurance Company answered denying liability on the ground that, while it was at one time surety on McLamore’s bond, it had been released and relieved thereon from liability by the acceptance of the bond on which American Indemnity Company was surety; that no misappropriation occurred during the tenure of its bond. It also impleaded the Lion Bonding & Surety Company on a contract of reinsurance, asking for judgment over against *442 it, and also over against its principal, Mc-Lamore.

Defendants Adoue and Sealy answered that they were not sureties on said bond, but that they executed same as officers of the corporation and not individually, and adopting, if answer was required, that of the American Indemnity Company.

Lion Bonding & Surety Company filed its' plea of privilege to be sued in the county of its domicile, which does not seem to have been acted on, and also denying liability on the ground that, if any misappropriation oc-cured, it was either before or after the term of its reinsurance contract.

Trial was before the court without a jury, and resulted in a judgment in favor of Adoué and Sealy and Lion Bonding & Surety Company and against General Bonding & Casualty Company for $2,073.89, and against American Indemnity Company for $663.

Upon motion therefor, the court duly filed its findings of fact and conclusions of law, whereupon appellant, having previously given notice of appeal, filed its appeal bond, and has perfected its appeal to this court.

The various parties and defenses thereof, together with the cross-action thereon, are substantially correct, as stated above.

As .presented to the court, this case really hinges on one proposition. A guardian’s bond is to he construed with reference to the law in force when and where it was given, and read in the light of the provisions of the law then in force. The obligation of the sureties will be measured and determined by it. Prior to the passing of chapter 151, General Laws of the regular session of the Thirty-Third Legislature, the guardian of the estate of a ward was required to give bond in an amount equal to double the estimated value of the property belonging to such estate (McAdams v. Wilson, 164 S. W. 59), and acting under such bond, and without additional bond, the guardian has the right to sell property belonging to the said ward and take into his charge the proceeds of said sale. By the act of 1913 (Vernon’s Sayles’ Civil Statutes 1914, art. 4099), the existing law was so changed as to require the guardian’s bond to be in an amount equal to double the estimated value of the personal property belonging to the estate of said ward, plus a reasonable amount to be fixed at the discretion of the county judge, to cover rents, revenues, and income derived from the renting or use of real estate belonging to said estate. The condition of the bond under the amendment is identical with the condition provided for under the act, and it is clearly apparent that the form of the bond would be the same, whether executed prior or subsequent to the act of 1913. The law was further changed by the act of 1913, in that an order for the sale of real estate should require the guardian to file a good' and sufficient bond in an amount equal to twice the amount for which such real estate is sold, and required the court, in confirming this sale, to be satisfied that the guardian had filed his bond as required. On August 12, 1901, Fannie Noble, mother of appellee, was by the probate court of Shelby county appointed guardian of the estate of appellee, and qualified, giving bond with the Fidelity Deposit Company of Maryland as surety, and she continued as guardian of the estate of this ward until July 8, 1913, when, in a proceeding brought' by appellee, acting through a next friend, she. was removed as his guardian, and one McLamore was appointed with directions to collect from Fannie Noble and the surety on her bond a sum of money owing to the ■minor and in the hands of the guardian. McLamore qualified as guardian, having on August 23, 1913, filed1 his application to be allowed to return an inventory and appraisement and make bond) and qualify as such guardian. McLamore filed his bond in the sum of $10,000, as guardian of the estate of the minor appellee in legal. form with General Bonding & Casualty Insurance Company as surety.

All proceedings seem to be regular, and after which McLamore took possession of the estate of the minor, collected the judgment against the former guardian and her surety, and afterwards on June 8,1914, filed an additional application in the probate court of Shelby county, wherein he recited that some question had been raised as to the legality of his former appointment, and asking again for the appointment as guardian of the estate of the minor. In regular order he was appointed as prayed in his application, his bond was fixed at $10,000, his former bondsmen released, and he made a new bond with appellant as the surety on his bond, which bond was duly approved, and he continued in possession of the property of the estate as guardian.

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Related

American Indemnity Co. v. Noble
235 S.W. 867 (Texas Commission of Appeals, 1921)

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Bluebook (online)
216 S.W. 441, 1919 Tex. App. LEXIS 1152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-indemnity-co-v-noble-texapp-1919.