City of Chicago v. Southern Surety Co.

239 Ill. App. 628, 1926 Ill. App. LEXIS 207
CourtAppellate Court of Illinois
DecidedMarch 2, 1926
DocketGen. No. 30,254
StatusPublished
Cited by6 cases

This text of 239 Ill. App. 628 (City of Chicago v. Southern Surety Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Chicago v. Southern Surety Co., 239 Ill. App. 628, 1926 Ill. App. LEXIS 207 (Ill. Ct. App. 1926).

Opinion

Mr. Presiding Justice Matchett

delivered the opinion of the court.

The plaintiff brought an action in debt on the bond given by Age Zylstra as collector of the City of Chicago. The defendant filed certain pleas to which a demurrer was sustained, and electing to stand by its pleas, judgment was entered in favor of the City of Chicago for the amount of the bond, with damages assessed at $81,000.

The breach assigned was that on January 1, 1922, Zylstra had in his hands by virtue of his office the sum of $96,840.06, which it was his duty to immediately turn over, which he failed to do.

The pleas averred that one Henry Wulff was the principal clerk in the collector’s office at the times stated in the declaration during the term of Zylstra, and that the funds sued for came into the hands of Wulff and were by him converted to his own use; that the City of Chicago prior to the conversion of these funds demanded that Wulff execute a bond with conditions similar to those of the bond of Zylstra; that Wulff executed such a bond in the amount of $15,000, upon which defendant also became surety; that defendant has admitted, its liability on this bond of Wulff to the amount of the penalty, and paid the same without prejudice.

The pleas further averred that other clerks in the collector’s office gave bonds with similar conditions and in various amounts upon the demand of the city, upon which bonds this defendant also became surety, and that in assuming this liability defendant relied upon these facts and became surety upon Zylstra’s bond for a smaller premium than it otherwise would have demanded; that the City of Chicago is now estopped to assert the supposed obligation incurred on the bonds of Zylstra by reason of any defalcation on the part of Wulff.

Further, it is averred that the city collector never received and never had. in his possession as such collector the money mentioned in the declaration; that the same was received and actually held by Wulff as principal clerk in the office of the city collector, and that he never turned over the same, or any part thereof, to Zylstra.

The pleas also set up certain ordinances of the City of Chicago, some of which are averred to be inoperative by reason of the Civil Service Law; that Wulff was appointed pursuant to the provisions of the Civil Service Law; that under that law Zylstra, as city collector,, was without authority, obligation or duty as to the fidelity of the employees in his office, except the duty of exercising general supervision or direction over such employees as were certified to him by the Civil Service Commission of the City of Chicago; that Zylstra did exercise such supervision faithfully and honestly and did faithfully perform and discharge all the duties of his office and account for and pay over all moneys received by him as such city collector; that the money in question was not received by Zylstra as city collector, but by Wulff as principal clerk and by Wulff converted, of which Zylstra had neither knowledge nor the means of acquiring knowledge until the whole of it had been converted.

It will be unnecessary to discuss at length some points made in the briefs.

It must be conceded that the obligation of a surety is strictissimi juris and that his liability cannot be extended or enlarged beyond the strict condition of his bond. Cooper v. People, 85 Ill. 417.

It is also the settled law of Illinois (whatever the rule may be in other States) that a public officer’ who has the custody of public money and whose duties, with respect thereto are ministerial, as well as the sureties on his bond, are held to the liability of insurers rather than bailees. The rule is laid down in many cases. Ramsay’s Estate v. People, 197 Ill. 572; People v. McGrath, 279 Ill. 550; U. S. v. Prescott, 3 How. (U. S.) 578; and Smythe v. U. S., 188 U. S. 156.

Again, we are not impressed with the contention of the defendant that the City of Chicago is precluded from maintaining its suit by reason of the fact that it demanded and received from Wulffi a bond conditioned for the proper performance of his duties as principal clerk. The mere fact that a special bond was required from Wulffi is not, we think, material under the facts which here appear.

The defendant Surety Company invokes the general rule that where the statutes require a public officer to give a general bond conditioned for the performance of the duties, of his office, and also require a special bond conditioned for the performance of a special duty, the surety on the general bond is not liable for the failure of the officer in respect to his duties under the special bond in the absence of an express declaration that the surety will be so liable. Village of Bath v. McBride, 221 N. Y. 231, 116 N. E. 980, 4 A. L. R. 1428, is cited to this point with Cooper v. People, supra; Walker v. People, 95 Ill. App. 637; People v. Hoover, 92 Ill. 575, and People v. Stewart, 6 Ill. App. 62.

In these and in other cases cited by both sides, an examination discloses that the fundamental and controlling question in determining the liability of ministerial officers in such cases is, what was the legislative intention as expressed in the statutes or ordinances which required the particular bond to be given?

The statutes and ordinances, in so far as the same are valid and existing at the time of the execution and delivery of such a bond, enter into the bond and become as much a part of it as if the same were written at length into the obligation and are therefore conclusively presumed to have been within the contemplation of the parties.

The purpose of requiring a bond is to secure the performance of a duty. There is no reason why the legislature may not require any number of bonds to that end. The principle upon which, in the case of Cooper v. People, supra, and other cases upon which defendant relies, the surety upon the general bond was held not to be obligated, was that such particular obligation was not within the contemplation or intention of the parties to the bond. Thus in Cooper v. People, supra, the court says: “There cam, heno question but that each bond relates to distinct and independent duties from the other, and, consequently, the sureties upon the one could not have contemplated that they were incurring the same liabilities as the sureties, upon the other.”

This distinction is pointed out in Mechem on Public Officers, see. 285, where it is said:

“Sureties who have undertaken to become responsible for the defaults of their principal in respect to a particular office are not liable for the defaults of the same principal in his character as the incumbent of another and independent office, unless the duties of the second office were hy law then made a part of the regular duties of the first, or unless the duties of the second office were such as the officer, as incumbent of the first office, might naturally and legally be called upon to perform. Thus the sureties of a clerk of court are not responsible for the defaults of the same person while acting’ as a receiver, nor of a registrar in chancery while officiating as probate ¡judge, nor of a sheriff while acting as trustee.

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239 Ill. App. 628, 1926 Ill. App. LEXIS 207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-chicago-v-southern-surety-co-illappct-1926.