Commonwealth v. Lewis

205 S.W. 921, 181 Ky. 804, 1918 Ky. LEXIS 613
CourtCourt of Appeals of Kentucky
DecidedOctober 29, 1918
StatusPublished

This text of 205 S.W. 921 (Commonwealth v. Lewis) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth v. Lewis, 205 S.W. 921, 181 Ky. 804, 1918 Ky. LEXIS 613 (Ky. Ct. App. 1918).

Opinion

Opinion of the Court by

Judge Carroll

Reversing.

This suit was brought in the name of the Commonwealth for the use and benefit of the Whitley National Bank of Corbin v. J. K. Lewis, master commissioner of the Laurel circuit court and the sureties on his bond as commissioner, to recover $826.00.

It appears from the petition to which a general demurrer was sustained that Lewis, as master commissioner of the Laurel circuit court, sold under a decree of the court certain land which-was purchased at the decretal sale by W. R. Ramsey, who executed sale bonds in accordance with the judgment, with J. S. Brown, W. L. Bruner and S. E. Randell as sureties. The reporLof sale was filed and confirmed but when the bonds fell due they were not paid and thereupon executions were issued against the obligors in the bonds which in due time were returned “no property found.” Afterwards rules were issued against the purchaser, Ramsey, and his sureties to show cause why they did not pay the bonds and to this rule his sureties responded that neither of them had any property out of which to pay the same and did not have at the time they were accepted as sureties in tne bonds by the commissioner.

When this was made to appear the court ordered a re-sale of the property and thereafter it was sold for $826.00 less than it brought at the first sale. Thereafter this suit was brought by a judgment creditor, who alleged that on account of the insolvency of the principal [806]*806and sureties in the first bonds and the re-sale of the property it suffered a loss in the amount of the difference between what the property brought at the first sale and what it brought at the second sale. The petition further averred the appointment of Lewis as master commissioner and the execution of his bond in due form as such commissioner, and in apt terms the breach of the bond which consisted as averred in the fact that the principal in the bond, W. R. Ramsey, was at the time of the execution of the bond as well as before and since a nonresident of the state and that he and the sureties in the sale bonds were at the time they were accepted as such sureties, each insolvent. It was further averred that “the defendant, J. K. Lewis, as master commissioner, broke the covenant in his bond in that he failed to take good and solvent sureties upon the said bonds heretofore set out and thereby caused this plaintiff to loose $826.00, and thereby he and his sureties on the master commissioner’s bond became and are liable to this plaintiff for all loss sustained by it in the failure of said commissioner to collect and pay over said money to the party entitled thereto, and this plaintiff alone sustained all the loss by the wrongful conduct of the defendant as master commissioner in failing to take solvent bonds and to collect same and properly discharge his duties as provided by law.”

It will be observed that there is no specific charge in the petition that the master commissioner acted negligently or fraudulently in accepting the sureties in the sale bonds or that he failed to make any inquiry into the solvency of the sureties in the sale bonds, the only allegation being that W. R. Ramsey, the principal in the bonds, was at the time of their execution a non-resident of the state and “that at the time the defendant, J. K. Lewis, as master commissioner, accepted said sale bonds the principal, W. R. Ramsey, and each of the sureties thereon, to-wit, Brown, Bruner and Randell, were each insolvent,” and that he broke the conditions of his bond in failing to take good and solvent sureties, whereby the judgment creditor sustained the loss for which the suit was brought to recover.

It is provided in part in section 392 of Kentucky Statutes that the circuit court shall appoint a master commissioner, who, “before acting, the master commis[807]*807sioner shall be sworn and execute a bond, with surety, to be approved by the court, for the faithful performance of the duties of his office. The bond shall be entered of record in said court, and shall be renewed once in each year, and oftener if required by the court, and a copy thereof, certified by the clerk, shall be evidence in all proceedings in this state.” And in section 393, that “a recovery may be had upon such bond by any person, in the name of the Commonwealth, for his use, against the obligors in it, for all damages, property or money to which he is entitled from the principal; and as many actions on the bond as may be necessary for that purpose may, from time to time, be brought.”

Judicial salés of property are regulated by the Civil Code of Practice, and it is provided in section 683 that “an officer whose duty it is to take a surety in any bond provided for by this Code may require the person offered as surety to make affidavit of his qualifications, which affidavit may be made before such officer. The taking of such an affidavit shall not exempt the officer from any liability to which he might otherwise be subject for taking sufficient security.” And in 684, that “the surety in every bond provided for by this Code must be a resident of this state, and be worth double the sum to be secured beyond the amount of the debts, and have property liable to execution in this state equal to the sum to be secured. If there be two or more sureties in the same bond they must, in the aggregate, have the qualifications prescribed in this section. ’ ’

Under this statement of the facts and law the question for decision is—Must the petition in a suit such- as this, in order to be good, charge that the commissioner negligently or fraudulently failed to take a good bond or failed to use reasonable care and diligence to ascertain the solvency of the surety? And this in turn brings up the question—-Is the burden on the plaintiff in a suit like this to allege and prove that the master commissioner, through negligence or fraud, accepted insolvent sureties or failed to-exercise reasonable care and diligence to see ‘that the sureties were solvent, or is it sufficient for the plaintiff to only allege that the master commissioner accepted insolvent sureties as was charged in the petition in this case? Or to put it in other words, if the plaintiff alleges that the master commissioner ac[808]*808cepted insolvent sureties, is this sufficient to put on the defendant commissioner the burden of showing that he exercised the required care to ascertain the solvency of the sureties? If the burden is on the plaintiff to allege and prove that the commissioner negligently or fraudulently accepted insolvent sureties or failed to exercise reasonable care to ascertain the solvency of the sureties, the petition in this case was bad and the general demurrer was properly sustained, but if the naked allegation in the petition that the commissioner accepted insolvent surety was sufficient to put on the commissioner the duty of showing thqt he exercised the required care to ascertain the solvency of the surety before accepting them, the petition was good and the demurrer should have been overruled.

In the case of Edward-Barnard Company v. Pflanz, 115 Ky.

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Related

Edwards-Barnard Co. v. Pflanz
73 S.W. 1018 (Court of Appeals of Kentucky, 1903)

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Bluebook (online)
205 S.W. 921, 181 Ky. 804, 1918 Ky. LEXIS 613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-v-lewis-kyctapp-1918.