Festler v. Wallach

71 N.W.2d 836, 245 Minn. 222, 1955 Minn. LEXIS 641
CourtSupreme Court of Minnesota
DecidedJuly 8, 1955
Docket36,553
StatusPublished
Cited by2 cases

This text of 71 N.W.2d 836 (Festler v. Wallach) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Festler v. Wallach, 71 N.W.2d 836, 245 Minn. 222, 1955 Minn. LEXIS 641 (Mich. 1955).

Opinion

Frank T. Gallagher, Justice.

Appeal from that part of the judgment of the district court entered in favor of intervener, Harry Truppman, sole trader doing business as United States Fruit Company, which is against defendants Louis Ratner and Sam Bell.

Defendant principal, Maurice Wallach, doing business as Bell Fruit Company, was licensed by the commissioner of agriculture as a wholesale produce dealer. Incident to the obtaining of such license, Wallach filed with the commissioner a bond as required by M. S. A. 27.04, with sureties approved by the commissioner, providing for the faithful performance of his duty as dealer and wholesaler, in the amount of $10,000. Ratner and Bell were sureties on the bond.

In late 1949 Wallach defaulted under his bond, and the sureties were notified of the default by the commissioner as required by law. Numerous claims against Wallach and his sureties were filed with the commissioner, and on April 12 and May 5, 1950, the commissioner held hearings with reference to the default. On August 14, 1950, the commissioner made his findings, conclusions, and order, in which he allowed seven claims totaling- $6,420.70, as set forth specifically in the findings, and disallowed six claims as not being eligible within M. S. A. e. 27..

The claim involved in the present appeal, that of intervener, was among those disallowed by the commissioner. This claim was reviewed at length by the commissioner, who found:

*224 “From all of the evidence and testimony adduced at the disclosure in this matter, the Commission finds that the complainant has not proven what amount, if any, is due and owing to him on the claim as filed.”

Section 27.06 provides that, after the commissioner has reported his findings and has rendered his conclusions on the matter complained of to the complainant and respondent in each case, they shall have 15 days following in which to make effective and satisfy the commissioner’s conclusions. If this settlement is not effected within that time, either party, if aggrieved by any condition of the bond, may, upon first obtaining the approval of the commissioner, commence and maintain an action against the principal and sureties on the bond of the party complained of as in any civil action; provided, however, that no action against the bondsmen of a licensee shall in any instance be maintained without the written approval of the commissioner, which shall be attached to and made a part of the original complaint in the action.

The claims allowed by the commissioner were not paid by the sureties within 15 days after the entry of the commissioner’s order. After having obtained the consent of the commissioner, the successful claimants commenced an action in the district court against the sureties. Truppman filed a complaint in intervention seeking to recover on his claim, which had been disallowed by the commissioner.

Prior to the time that the action came on for trial, the sureties settled with the claimants who had been successful before the commissioner. Those claimants were plaintiffs in the action in district court. The claim of intervener was then tried by the court without a jury. The trial court ordered judgment against defendant principal, Wallach, for $7,243.66, which was the full amount it found due from him to intervener. Of that amount the court found that $7,128.44 was properly chargeable for produce 2 and therefore an eligible claim under the provisions of c. 27. Since the total of that eligible claim plus the claims allowed by the commissioner (total of $13,549.14) exceeded the amount of the bond, the court ordered judg *225 ment against the sureties for that proportion of $10,000 which intervener’s claim was of the total of all claims allowed against the sureties. Thus the court ordered judgment against the sureties for $5,260.79. It made clear in its memorandum that intervener’s claim had been tried on the theory of a trial de novo and not by way of certiorari.

The only question we need consider on this appeal is whether a claimant against the bond of a wholesale produce dealer, whose claim has been disallowed by the commissioner of agriculture pursuant to his powers under § 27.06, can bring an action in district court to have his claim against the sureties on the bond tried de novo. On this question the trial court said in its memorandum:

“It is not a moot question in this case, for this Court would have to find and would find, if the proper method of review is by way of certiorari, that the commissioner’s findings should be confirmed, while on a trial de novo, the weight of the evidence is as indicated by the findings herein made.”

This question involves construction of the language of § 27.06. 3 The fourth sentence of § 27.06 is determinative of the question presented. It provides:

*226 “* * * If this settlement is not effected within this time [15 days following the commissioner’s report], either party, if aggrieved by any condition of the bond, may, upon first obtaining the approval of the commissioner, commence and maintain an action against the. principal and sureties on the bond of the party complained of as in any civil action, provided, no action against the bondsmen of a licensee shall in any instance be maintained without the written approval of the commissioner, which shall be attached to and made a part of the original complaint in the action.”

Although the quoted language is not entirely clear as to the meaning of the phrase “as in any civil action,” a reasonable construction of that language would indicate that what the legislature intended to provide was that the civil action is available for the purpose of confirming the award on claims allowed by the commissioner and for the further purpose of reducing those claims to judgment against the principal and sureties. Thus, the parties are given 15 days in which to effect a settlement after the commissioner has reported his findings and conclusions, and, after that time, the complainants, with the commissioner’s consent, are given the right to sue the prin *227 cipal and sureties for payment of the eligible claims. That was the course of action taken in the case before us.

By way of explanation, however, the above rule does not apply where the eligible claims exceed the amount of the licensee’s bond or where the claimants request the commissioner in writing to commence an action for the recovery of the amount claimed. In such cases, 4 the last sentence of § 27.06 provides:

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Cite This Page — Counsel Stack

Bluebook (online)
71 N.W.2d 836, 245 Minn. 222, 1955 Minn. LEXIS 641, Counsel Stack Legal Research, https://law.counselstack.com/opinion/festler-v-wallach-minn-1955.