Daves v. Lawyers Surety Corporation

459 S.W.2d 655, 1970 Tex. App. LEXIS 2759
CourtCourt of Appeals of Texas
DecidedOctober 5, 1970
Docket8075
StatusPublished
Cited by7 cases

This text of 459 S.W.2d 655 (Daves v. Lawyers Surety Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daves v. Lawyers Surety Corporation, 459 S.W.2d 655, 1970 Tex. App. LEXIS 2759 (Tex. Ct. App. 1970).

Opinion

DENTON, Chief Justice.

This is an appeal from a summary judgment in favor of appellees, defendants below, that appellants, plaintiff below, take nothing. The suit is by Florence M. Daves against the County Clerk and his Deputy of Hartley County, Texas and the sureties on the clerk’s bond for the breach of the clerk’s duty. Both plaintiffs and defendants filed motions for summary judgment. The trial court granted the defendants’ motion, hence this appeal by the plaintiffs below.

On November 10, 1965, Florence M. Daves, Individually and as Independent Executrix of the Estate of John J. Daves, Deceased, obtained a judgment in the district court of Dallam County against Jewel McBurnett, Individually and as Ad-ministratrix of the Estate of Guy McBur-nett, Deceased; and Robert L. Dennett and wife, Peggy J. Dennett. Later that same month the attorney for Mrs. Daves mailed an abstract of that judgment to Noble Thomas, County Clerk of Hartley County, for the purpose of recording the abstract of judgment in Hartley County. On December 1, 1965, Sue Cash, Deputy County Clerk, executed a certificate stating that the abstract of judgment had been recorded in the judgment records and entered upon the index to the judgment records. Subsequently, Peggy J. Dennett, a defendant in the Dallam County judgment, inherited an undivided one-half interest in some real property in Hartley County. She later conveyed her interest to her mother, Mrs. Jewel McBurnett, who in turn conveyed the property to Joe L. Smith, Sr, On November 10, 1967, Smith filed suit against Florence Daves to remove the abstract of judgment lien as a cloud on the title to this property. By affidavit it is shown appellants’ attorney discovered the abstract of judgment was not properly recorded in March, 1968. In April, 1969 the district court of Hartley County entered judgment removing the abstract of judgment as a cloud on Smith’s property. On May 7, 1969 appellants filed this suit against Noble Thomas, the County Clerk of Hartley County at all times material here, his deputy, Sue Cash, and Lawyers Surety Corporation, his surety on the clerk’s bond, dated January, 1963. It is admitted the abstract of judgment was not properly recorded by the deputy clerk in that it was not indexed under the name of each plaintiff and each defendant.

The defendants below in its motion for summary judgment pleaded the suit was barred by the two-year statute of limitation. Article 5526, Vernon’s Ann.Civ. St. Appellants concede that cases involving official bonds which only require the official to properly discharge the duties required of him by law are controlled by the two-year statute of limitation. However, the contention is made that because the obligation under Thomas’ bond was not only that Thomas “shall faithfully perform and discharge all duties required of him by law as County Clerk aforesaid,” but *657 the additional obligation “shall safe-keep the records of his office,” makes the action one upon a contract in writing, to-wit, the statutory bond. The obligation that the clerk “shall safe-keep the records of his office" does not create an additional contractual duty but merely requires him to perform his official duties as required by statute. Article 6652, V.A.C.S.

It is well established in this state that the bond of an officer for the performance of official duties is collateral security for the performance of such duty. The obligation sought to be enforced was created by statute. Statutory obligations are subject to the two-year statute of limitations. Hatcher v. State (Com.App.) 81 S.W.2d 499 (Opinion Adopted); Cowart v. Russell (Com.App.) 135 Tex. 562, 144 S.W.2d 249 (Opinion Adopted); Hodges v. Price (Tex.Civ.App.) 163 S.W.2d 868 (Ref. want of merit); Lawyers Surety Corp. v. Gulf Coast Investment Corp. (Tex.Civ.App.) 410 S.W.2d 654 (N.R.E.), Tex., 416 S.W.2d 779.

Under the second point, appellants contend there is a material fact issue as to whether or not the statute of limitation was tolled by the concealment of the failure of the county clerk and his deputy to properly perform their duties.

It is undisputed the deputy clerk incorrectly indexed the abstract of judgment in that it was not indexed under the names of each plaintiff and each defendant in the judgment. Appellees take the position the cause of action accrued on December 1, 1965, the date the abstract of judgment was recorded and indexed. If this be so, appellees’ motion for summary judgment was correctly granted since the present suit was filed May 7, 1969, more than two years after the date appellees contend the cause of action accrued.

The burden of proof is upon the appellees to establish that there was no material issue of fact as to the tolling of the statute of limitation. Appellants pleaded the tolling of the statute in both their amended petition and answer to ap-pellees’ motion for summary judgment. They alleged that they had no knowledge of its cause of action against appellees, inasmuch as appellees had concealed the cause of action by issuing a certificate which stated the judgment had been properly recorded and indexed; that the ap-pellees relied on the certificate, and did not have actual knowledge of the incorrect indexing until March, 1968.

Under this record we are confronted with constructive or legal fraud and not actual fraud. Constructive fraud is the breach of legal or equitable duty which, irrespective of moral guilt, declared by law to be fraudulent because of its tendency to deceive others, or violate confidence. Archer v. Griffith, 390 S.W.2d 735 (Tex.Sup.1964); 37 C.J.S. Fraud, § 2.

It is well established that fraud prevents the running of the statute of limitations until it is discovered, or by the exercise of reasonable diligence it might have been discovered. However, knowledge of the facts that would cause a reasonably prudent person to make inquiry which, if pursued, would lead to the discovery of fraud, is in law equivalent to knowledge of fraud. Sherman v. Sipper, 137 Tex. 85, 152 S.W.2d 319; Ruebeck v. Hunt, 142 Tex. 167, 176 S.W.2d 738; City of Port Arthur v. Tillman (Tex.Civ.App.) 382 S.W.2d 138. Ordinarily, what constitutes reasonable diligence to discover fraud is a question of fact. Ruebeck v. Hunt, supra. Brownson v. New (Tex.Civ.App.) 259 S.W.2d 277 (Writ. Dism.); Edsall v. Edsall (Tex.Civ.App.) 238 S.W.2d 285 (Ref. N.R.E.).

The summary judgment proof shows the abstract of judgment was recorded in the Hartley County Clerk’s records on December 1, 1965; that on this date the deputy clerk executed a certificate which stated the abstract of judgment had been properly recorded and indexed; that such certificate was received by appellants’ attor *658 ney and was relied upon by appellants. Subsequently Peggy J.

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Bluebook (online)
459 S.W.2d 655, 1970 Tex. App. LEXIS 2759, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daves-v-lawyers-surety-corporation-texapp-1970.