Broast v. Interstate Surety Co.

205 N.W. 717, 48 S.D. 581, 1925 S.D. LEXIS 116
CourtSouth Dakota Supreme Court
DecidedOctober 28, 1925
DocketFile Nos. 5506, 5507, 5613
StatusPublished
Cited by5 cases

This text of 205 N.W. 717 (Broast v. Interstate Surety Co.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Broast v. Interstate Surety Co., 205 N.W. 717, 48 S.D. 581, 1925 S.D. LEXIS 116 (S.D. 1925).

Opinion

CAMPBELL, J.

This proceeding involves three separate appeals arising’ out of the same case below. It appears that plaintiff’s father died intestate, and plaintiff’s mother, Eva Schaeffer, was appointed administratrix of decedent’s estate by the county court of Yankton county in October, 1919, and as a condition precedent to issuance of letters of administration to her she furnished and hied a bond in the sum of $2,000 executed by the Interstate Surety Company. The assets of the estate appear to have consisted of 120 acres of land in Yankton county. Several months later the administratrix petitioned the county court for leave to sell said real estate, which sale was ordered, said order also providing- that the administratrix before sale should furnish a bond as required by law in the sum of $27,000. Thereupon the administratrix furnished a bond in said amount of $27,000, executed by defendant Western Surety Company. Thereafter the county court entered its order confirming the sale of said real estate for the sum of $27,000, and subsequently the adm-instratrix rendered her final account of her trust in said county court, and the same was approved and allowed, and the county court entered its final decree adjudging inter alia that said estate was ready for final distribution, that all debts and taxes were paid, that the plaintiff herein was an heir at law entitled to a two-ninths share of said estate, and that his said share in the hands of said administratrix amounted to $5,717.48, and directing- the payment over of said amount to plaintiff. It further appears that the said administratrix has failed to pay said distributive share or any part thereof to plaintiff, although due demand has been made.

Thereupon the plaintiff instituted this action, naming said administratrix and both of said surety companies as defendants,. [585]*585alleging substantially the facts as above set forth, and praying judgment against each of the defendants for the sum of $5,717.48, together with interest thereon from December 31, 1920, being the date of the county court’s final decree of distribution.

The defendant Interstate Surety Company, being the surety on the original $2,000 bond of the administratrix, answered, admitting the execution of the $2,000 bond, but alleging that the same was given only for the accounting for «personal property and rents ’from- the real estate, and not as a guaranty for the performance by said administratrix of any duties in relation to the sale or accounting for the proceeds of real estate; that all personal property and rents had been accounted for, and the money here involved was proceeds of the said real estate, and said Interstate Surety Company should not be held liable. The defendant Western Surety Company being the surety on the $27,000 bond given prior to the sale of real estate answered by a general denial, excepting that it admitted the execution of the $27,000 bond.

Upon the issues so raised the action was tried to the court, a jury being waived. The court found the facts substantially as hereinbefore recited, and concluded therefrom as a matter of law that the action should be dismissed as to the defendant Interstate 'Surety Company, and that the plaintiff should have judgment for the full amount of his claim against the defendant Eva Schaeffer, the administratrix, and against the defendant Western Surety Company.

Upon these findings and conclusions two separate judgments appear to have been entered. One in favor of the defendant Interstate Surety Company dismissing plaintiff’s action as to said defendant and allowing its-costs against the plaintiff, and a second judgment in favor of the plaintiff and against the defendant Western Surety Company for the full amount claimed ^by plaintiff, with interest and costs.

Defendant Western Surety Company thereupon moved for a new trial, and, said motion being denied, perfected two separate appeals, the first appeal being from the judment in favor of plaintiff and-against said Western Surety Company and from the order denying motion for a new trial; and the second appeal being from the judgment in favor of Interstate Surety Company and against the plaintiff and from the order denying motion for a new trial.

[586]*586After both of said appeals were pending in this court the defendant Western Surety Company procured the record to be returned to the trial court, secured an extension of time, and made >a second motion for new trial in the cause upon the ground of ¿newly discovered evidence; its previous motion for new trial having been upon the grounds of errors in law occurring at the trial, insufficiency of the evidence to justify the judgment, and that the .judgment was against the law. This second motion for new trial was also denied by the trial court ,and from the order so denying' its second motion for new trial the defendant Western Surety Company perfected its third appeal to this court.

A fundamental question which pervades and dominates these three appeals is as to the nature of the two bonds involved in this proceeding and the relationship, if any, between them, and we deem it essential to dispose of that question before turning to detailed consideration of the three appeals:

The practice of requiring an executor, administrator, or guardian to give bond upon appointment for the faithful performance of his trust is almost universal. Likewise, the practice of requiring an additional bond from such fiduciary when he is about to sell real estate belonging to the trust is well established. The relationship between the two bonds is determined necessarily by the statutory provisions requiring the furnishing thereof.

Under some classes of statutes the bond upon the sale of real estate is an entirely separable matter, naming a different beneficiary, and given on different conditions. An example of this type of statute is found in the provisions of our own law with reference to guardianship. Under section 3499, Rev. Code 1919, before letters of guardianship issue, the guardian must give a bond to the minor conditioned for the faithful execution of the trust. In addition 'thereto, before selling real estate such guardian must give a bond under the provisions of section 3540, Rev. Code 1919, which reads as follows:

“Every guardian authorized to sell real estate must, before the sale, give bond to the county judge, with sufficient surety, to be approved by him, with condition to sell the same in the manner and to account for the proceeds of the sale as provided for in this article.”

[587]*587The provisions of our statute as to the bond of an executor or administrator, however, are quite different. Material provisions of our statute with reference to the original and additional bonds of executors and administrators are as follows:

‘‘Sec. 3284. Executors and Administrators Must Give Bond. Every person to whom letters testamentary or of administration are directed to issue, must, before receiving them, execute a bond to the state, with two or more sufficient sureties, to be approved by the judge of the county court, * * * ”

‘‘Sec. 3285. Condition of Bond. The bond must be conditioned that the executor or administrator will faithfully execute the duties of the trust according to law.”

“Sec. 3291. Bond Becoming. Insufficient.

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Related

Hoverstad v. First National Bank and Trust Co.
74 N.W.2d 48 (South Dakota Supreme Court, 1955)
American Surety Co. v. Western Surety Co.
22 N.W.2d 429 (South Dakota Supreme Court, 1946)
Ark of Refuge Rest Home Corp. v. First National Bank & Trust Co.
18 N.W.2d 791 (South Dakota Supreme Court, 1945)
In Re Requa's Estate
18 N.W.2d 791 (South Dakota Supreme Court, 1945)
Campbell v. Duncan
242 N.W. 916 (South Dakota Supreme Court, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
205 N.W. 717, 48 S.D. 581, 1925 S.D. LEXIS 116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broast-v-interstate-surety-co-sd-1925.