Detroit Savings Bank v. Ziegler

13 N.W. 496, 49 Mich. 157, 1882 Mich. LEXIS 512
CourtMichigan Supreme Court
DecidedOctober 18, 1882
StatusPublished
Cited by22 cases

This text of 13 N.W. 496 (Detroit Savings Bank v. Ziegler) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Detroit Savings Bank v. Ziegler, 13 N.W. 496, 49 Mich. 157, 1882 Mich. LEXIS 512 (Mich. 1882).

Opinion

Cooley, J.

This suit is upon a bond, given by defendant,Herman H. Ziegler, as principal, and the other defendants as sureties, to secure to the plaintiff the faithful performance of Ziegler’s duties as teller.

The bond is dated February 10,1877. The penalty named is five thousand dollars, and the condition is as follows:

“ The condition of this obligation is such, that whereas the above-bounden Herman H. Ziegler has been appointed receiving teller savings department, and by the terms of the by-laws of said bank,' is made responsible for all such sums of money, property and funds of every description, as may from time to time be placed in his hands by the cashier, or otherwise come into his possession as receiving teller:
“Now, therefore, the condition of the foregoing obligation is such that if the said Herman H. Ziegler shall faithfully and honestly discharge the duties of his said office, and shall faithfully apply and account for all such moneys, funds and valuables, and shall deliver the same, on proper demand, to the board of directors of said bank, or to the person or persons authorized to receive the same, then the foregoing obligation shall be void, otherwise to remain in full force and virtue.”

At the time when this bond was given and Herman Zieglier entered upon the performance of his duties, his brother Charles Ziegler was the general teller of the bank. As such he had charge of commercial deposits and payments, and he was also the superior of Herman Ziegler, whose duty it was to account to him at the close of each business day for the money received in the savings department for that day. It seems to have been customary in the bank, if for any reason the general teller was temporarily absent, for the receiving teller of the savings department to take his place while the absence continued, and the cashier of the bank testified that he directed this, and understood it to be the duty of the receiving teller of the savings department to comply with the direction. Such temporary absences occurred while Herman Ziegler was such receiving teller, and he took his brother’s [159]*159■place while they continued. The case shows that of the moneys which came to his hands while thus temporarily acting for his brother, he embezzled a sum larger than the penalty ■of his bond. His brother was privy to the embezzlement.

I. This suit is in assumpsit/ and it is objected that assumpsit will not lie. That at the common law the action must have been debt, is conceded; but the statute provides that •“ In all cases arising upon contracts under seal, or upon judgments, when an action of covenant or of debt may be maintained, an action of assumpsit may be brought and maintained in the same manner, in all respects, as upon contracts without ■seal.” Comp. L. § 6194. Counsel for the defense make an ingenious argument to convince us^ that this statute is not •applicable to a penal bond without covenants. We do not agree in this. We think the intent of the statute is made plain in its words : to permit the action of assumpsit to be brought “ in all eases ” where before an action of debt might ■be brought on a contract under seal. This is such a contract •and such a case.

II. The second objection to a recovery is more specious, •and goes to the merits. It is that there has been no breach of the bond. The moneys for which Herman Ziegler failed to account did not, it is said, come to his hands as receiving teller of the savings department of the bank, or in the performance of his duties as such; but they came to his hands while he was temporarily performing the duties of another office. But this bond is not conditioned that he shall faithfully perform the duties of any other office, or account for moneys that might come to his hands by virtue of any other trust; and his sureties cannot be supposed to have contemplated when they undertook to be responsible for his con■duct as receiving teller of the savings department, that they were making themselves responsible for his conduct in •some other position, to which he might be assigned, and of which the duties might be different and the responsibilities greater. This, in short, is the argument for the defence.

Abstractly considered, this argument is undeniable. The sureties upon an official bond undertake for nothing which [160]*160is not within the letter of their contract. The obligation is strieUssimi jwris; and nothing is to be taken by construction against the obligors. They have consented to be bound to a certain extent only, and their liability must be found within the terms of that consent. Paw Paw v. Eggleston 25 Mich. 36, 40; Detroit v. Leadheater 29 Mich. 24; Johnston v. Kimball 39 Mich. 137; Bullock v. Taylor 39 Mich. 187; United States v. Boyd 15 Pet. 187; State v. Cutting 2 Ohio St. 1; McCluskey v. Cromwell 11 N. Y. 593 ; Urmston v. State 73 Ind. 175. This is familiar law, and rests-on sound reason.

But has this law any application to the facts of this case t The judge of the Superior Court thought it had, and turned the case out of court. "We are not satisfied he was correct in this.

The bank, it appears, was one which had two departments j a savings department, and a commercial department. It had for both one cashier and one general teller; and the money does not appear to have been kept separate, but was brought daily into a common fund. The receiving teller was subordinate to the general teller, as well as to the cashier. The exact duties of the receiving teller of the savings department do not seem to have been particularly defined,, except as the designation of the office would define them, or as-they would be indicated by the condition of the bond. He was to be responsible for all such sums of money, property and funds as the cashier might place in his hands as such teller, and also for all such other money, property and funds as might otherwise come into his hands as such teller. His-duty was to account faithfully for all these.

When the teller should stand at his desk and receive savings deposits, he would of course receive them as receiving teller; and it might also be said that he would receive them because they were placed in his hands by the cashier, who, as chief financial officer of the bank, had placed him at that post. But if the defence is correct in the view taken of this offieei,’s duties, it is not very manifest that the cashier could have had any occasion to intrust him with moneys [161]*161otherwise. lie simply received what was paid in, and handed it over to the general teller. "What occasion could have arisen for putting other moneys into his hands as receiving teller merely ?

But we think this view is too restricted and narrow. Every such appointment is made with the general course of business in such institutions in mind, and it must contemplate that what is customary will take place. If it is customary for one officer to assist another when the need arises, we must assume that he expected to render such assistance, and that by implication he undertook to do so as a part of his official duty. And if he was bound to have this understanding of his undertaking and his duty, his sureties were bound to have the like understanding.

The number of the officers of a bank will vary with the extent of the business and with its needs.

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Bluebook (online)
13 N.W. 496, 49 Mich. 157, 1882 Mich. LEXIS 512, Counsel Stack Legal Research, https://law.counselstack.com/opinion/detroit-savings-bank-v-ziegler-mich-1882.