Carroll County v. Ruggles

28 N.W. 590, 69 Iowa 269
CourtSupreme Court of Iowa
DecidedJune 21, 1886
StatusPublished
Cited by8 cases

This text of 28 N.W. 590 (Carroll County v. Ruggles) 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
Carroll County v. Ruggles, 28 N.W. 590, 69 Iowa 269 (iowa 1886).

Opinion

Botheock, J.

I. W. B. Buggies was elected treasurer of Carroll county at the general election in the year 1881. He was re-elected at the general election in 1883, and the bond upon which this suit is brought was approved by the board of supervisors at their meeting in January, 1884. In July, 1884, Buggies absconded, and it was found that he was a defaulter in the sum of about $24,000. There'are various defenses pleaded by the sureties upon the bond, which we will proceed to consider.' Some of them may properly be disposed of in a very brief manner.

The defendant E. Evans pleaded that he did not sign the bond, and that, as to him, it was a forgery. The court found against him upon this issue. It is sufficient to say that the finding of the court is amply sustained by the evidence.

II. It is claimed that the sureties are not liable, because there was a deficiency in the office of some seven or eight thousand dollars when the bond sued on was approved, and said shortage was not afterwards made good. It is claimed that the sureties are not, in any event, liable for the amount of the defalcation up to the time of the approval of the bond, upon the well established principle that sureties on official bonds are not liable for prior delinquencies of their principal. In our opinion, the court was warranted in finding from the evidence that at the semi-annual settlement, made in June, 1884, there was no delinquency, but that the full amount of money with which the treasury was properly chargeable was in the treasury, in cash. It is true, counsel [271]*271for the defendants strenuously insist that no proper settlement was made, and that checks and drafts were counted as money. If this were a trial anew in this court, upon the evidence, it might be a question of some importance to determine, from the weight of the evidence, whether thé actual amount in money was in the treasury at said settlement. But that the evidence fairly supports the finding of the court is too plain to admit of discussion.

1. COUNTY treasurer: reelection: apEomi^code §gd°. It is further claimed, in this connection, that there was no proper settlement made with the treasurer for the first term of office, and before the approval of the bond . 1 A in suit, and that there was no certificate to that eheet indorsed upon the bond, as required by section 690 of the Code. If we are correct in the belief that the court was authorized in finding from the evidence that there was no deficiency or defalcation at the settlement and counting of the funds in June, 1884, the burden of proof was on the defendants to show that there was a deficiency when the bond was approved. "Whether this would avail them as a defense may admit of some question. But we think the court was also authorized to find from the evidence that it did not appear that Euggles, the treasurer, was short in his accounts when the bond was approved, and we have held that the indorsement upon the bond required by the section of the Code above cited is merely a directory provision of the statute. Boone Co. v. Jones, 54 Iowa, 699.

2. -: bond: conditional signatures of sureties: conditions broken: liability. III. On the sixteenth day of November, 1883, Buggies, the- treasurer, called upon the county auditor, and requested a blank bond, that he might procure sureties thereto. The auditor inserted in the blank a penalty of $100,000, and filled other blanks, excepting the blank in the body of the instrument for the names of the sureties. Euggles took the oath of office before the auditor on the same day, which oath was indorsed on the bond, and the blank bond was delivered to him. It will be observed that this was several weeks before [272]*272the bond was approved. The sureties, being fourteen in number, reside in different parts of Carroll county. Rug-, gles procured their signature to the bond by personal application to them. Some of them were procured at the houses of the sureties, and others at stores and other places where Ruggles happened to meet them. The amount named in the bond being large, the matter of the undertaking by the sureties was fully discussed between the sureties and Ruggles. In all, or nearly all, of these interviews with the sureties, Ruggles assured them that he would procure a large number of the substantial citizens of the county to sign the bond, and, in most instances, he named certain persons who he stated had promised to become sureties; and he assured those whose names he obtained that he would procure the names of others, naming them. The sureties signed the bond with this understanding, and intending to be liable only upon the condition that the other names should be procured by Ruggles. But Ruggles failed to keep his agreement. He did not procure the signatures of many persons whom he promised the defendants he would procure, and upon which promise the defendants relied. The blank in the body of the bond for the names of the sureties was not filled until all of the defendants had signed their names. The blank was then filled with the names, excepting that of W. F. Minchen, whose name was not inserted in the blank. An affidavit of all the defendants but Minchen, justifying as to their qualifications as sureties, appeared upon the bond as having .been made and sworn to before a notary public on the seventh day of January, 1884. The affidavit of Minchen was made before the clerk of the district court on the eighth day of January, and on that day the bond was approved by the board of supei'visors.

It will be seen from the foregoing statements of facts that when the bond was.presented to the board for approval it was complete in every respect, and in the usual and proper form, with the single exception that the name of Minchen [273]*273was not inserted in the body of the instrument. It is claimed by appellants that, as the bond was not to be delivered to the county without the additional names which Euggles was to procure, the delivery and approval by the board was without authority from the sureties, and created no binding obligation against them. There is a large number of authorties cited by counsel for both parties upon the question of law arising upon these facts. Many of these authorities are not of much aid in the determination of the question, because they are not entirely in point. It apjiears, also, that such as are applicable to the question are not in accord. But our examination of them has led us to the conclusion that the great preponderance of authority, and the better principle, leave but little doubt that the sureties are liable. Indeed, we doubt if any case can be found where a bond such as this appeared to be upon its face, and which was signed by the sureties in blank, — that is, without the names of others inserted in the bond who were to be procured as sureties, — has been held invalid because the names of the sureties'were procured by the principal upon condition that he would procure others to sign the instrument.

The case of Dair v. U. S., 16 Wall., 1, is precisely in point. The defense of.the sureties was the same in that case as in this. The bond was a blank. The name of the surety to be procured as a condition was no't in the bond when the sureties signed their names. It was held that the defendants were liable, and the cause is distinguished from Pawling v. U. S., 4 Cranch, 219, in which the additional sureties to be procured were named on the face of the bond. In Dair’s Case one Cloud was to be procured as a co-surety.

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Bluebook (online)
28 N.W. 590, 69 Iowa 269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carroll-county-v-ruggles-iowa-1886.