Bankers Surety Co. v. Wyman

120 N.W. 116, 141 Iowa 574
CourtSupreme Court of Iowa
DecidedMarch 11, 1909
StatusPublished
Cited by5 cases

This text of 120 N.W. 116 (Bankers Surety Co. v. Wyman) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bankers Surety Co. v. Wyman, 120 N.W. 116, 141 Iowa 574 (iowa 1909).

Opinion

Evans, C. J. —

On the face of it, this case is very complicated in its facts and legal questions. A condensed statement of the pleadings alone covers seventy-five printed pages in the abstract, and the case'is submitted to us upon briefs covering more than three hundred and fifty pages. At the heart of it, however, there is less complication. It involves the question whether a surety on a new executor’s bond, ordered by the court for the stated purpose of discharging the original bond because of 'the death of the surety thereon and the pendency of his estate in probate, may nevertheless require contribution from the estate .of the surety on the first bond; and, if so, whether such contribution may be worked out after the closing of such first surety’s estate through the beneficiaries thereof, such beneficiaries being also the obligees and beneficiaries of the bond of the last surety. It involves the question, also, whether a supersedeas bond, filed by the executor on appeal to the Supreme Court, from the judgment of the lower court fixing his liability, is primarily liable for the [577]*577amount of the judgment upon affirmance; and, if so, whether the surety on the new executor’s bond has any interest as such in enjoining the surety on the supersedeas bond from paying the judgment, it being made to appear that such surety on the supersedeas bond holds an indemnifying bond, executed by the complainant surety; such indemnifying bond having been executed by the complainant surety in order to enable the executor, its principal, to stay proceedings on appeal to the Supreme Court, and before any payment had been made by the surety itself, and before any judgment had been rendered against it. To put the question in another way, if the complainant surety must answer the call of its indemnifying bond to the surety on the supersedeas bond, can it enforce contribution against the surety on the original executor’s bond ?

On or about May, 1883, one Lewis was appointed by the district court of Polk County as executor of the estate of L. S. Wyman. He executed a bond for $5,000, with John Wyman, surviving husband of L. S. Wyman, as his surety. Mrs. Wyman left as the beneficiaries of her estate an infant son, Arthur Wyman, and two daughters, Anna and Nettie, who will be referred to in this opinion as the Wyman heirs. The estate was kept open and pending until the youngest child should become of age, which majority occurred shortly prior to May, 1904. In the meantime, in May, 1903, John Wyman died testate, in Polk County, leaving surviving him his widow, Bina M., and the three children of L. S. Wyman, already named, and Mabel Wyman, a daughter of the second marriage, all of which were left as beneficiaries of his estate. Defendant Bowen was appointed by the district court of Polk County as executor of his will soon after his death. In pursuance of section 3268 of the Code, the clerk of the district court, in January, 1904, noted his disapproval of the executor’s bond in the L. S. Wyman estate, because of the death of the surety and because his estate was being [578]*578administered, and placed the “matter upon the calendar of the court at the next term for a proper order.” On June 25, 1904, in response to the disapproval of the clerk, the executor filed a report. On the same day the court entered an order “that a new bond be given by the executor in the’sum of seven*thousand dollars, to be approved by the clerk of this court. And upon the filing of such bond the old bond is released and discharged.” In pursuance of said order^ the executor procured a new bond for $7,000 with the Bankers’ Surety Company, complainant herein, as his surety, and the same was then and there filed and approved by the clerk. On November 9, 1904, the executor filed a purported final report. On December 2, 1904, exceptions were filed to it by the AVyman heirs. December 16, 1904, the executor filed an amended report. December 30, 1904, further exceptions were filed by the heirs. This was the beginning of a controversy between the Wyman heirs and the executor, Lewis, as to the amount with which he should be charged as such executor. This controversy culminated in a judgment entered by' the court on September 10, 1906, holding the executor liable in the sum of about $6,000. From this judgment an appeal was perfected by the executor Lewis to the Supreme Court on October 5, 1906, no supersedeas bond being then filed. In the meantime the estate of John Wyman had been fully administered upon and was closed in due form, and the executor discharged on Hay 25, 1905. Gn De-' cember 28, 1906, the AVyman heirs filed an application for judgment on the bond against the complainant surety company, in pursuance of section 3361. On January 25, 1907, the complainant surety filed its petition in equity in the ease at bar, asking that the Wyman heirs be enjoined from prosecuting their summary proceeding under-section 3361. The contention urged was that John Wyman was a co-surety with the complainant and liable to contribution, and that the AVyman heirs had received all of [579]*579his estate, and that they had therefore been fully indemnified by reason of his suretyship, and that they were not entitled to recover again from the complainant surety; but if such contention be not sustained, then that the complainant surety was entitled to contribution from the estate of John Wyman, and that such contribution should be charged against the Wyman heirs as the beneficiaries of his estate. Substantially the same matters were set up in defense to the application of the Wyman heirs for a summary judgment.

On February 16, 1907, the executor, Lewis, filed a supersedeas bond in his appeal to the Supreme Court, and thereby stayed all proceedings pending the appeal. Thereupon the Wyman heirs dismissed without prejudice their application for summary judgment, and all proceedings in the lower court slept for the time being. On May 8, 1907, the judgment of the lower court was affirmed on appeal, the appellant having failed to file an abstract within the statutory time, and judgment was then entered against the United States Fidelity & Guaranty Company, the surety on the supersedeas bond. Upon this judgment execution issued. Thereupon, on May 11, 1907, the complainant, Bankers’ Surety Company, paid in to the clerk of the district court the amount -adjudged against the supersedeas bond in the Supreme Court, and at the same time filed an amendment to its petition, making the clerk of the district court and the sheriff of Polk County, and the clerk of the Supreme Court, all parties defendant, and asking for a temporary injunction to restrain the collection of the judgment of tire Supreme Court upon the supersedeas bond, and to restrain the clerk of the district court from paying out to the Wyman heirs -the money which the complainant had itself páid in. ■ It obtained a temporary injunction to this effect, which was continued in force until the hearing of the case upon its final merits. In this amendment the complainant Bankers’ Surety Com-. [580]*580pany also alleged an interest in restraining the collection of the judgment against the United States Fidelity & Guaranty Company as surety on the supersedeas bond, in that it had executed an indemnifying bond to the said United States Fidelity Company to protect it against such payment. It should have been stated earlier in this narrative that the complainant became a surety on the executor’s bond for hire, and that the cost of such surety-ship was charged and allowed against the estate, and therefore borne by the Wyman heirs, its beneficiaries.

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Bluebook (online)
120 N.W. 116, 141 Iowa 574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bankers-surety-co-v-wyman-iowa-1909.