Husak v. Clifford

100 N.E. 466, 179 Ind. 173, 1913 Ind. LEXIS 25
CourtIndiana Supreme Court
DecidedJanuary 23, 1913
DocketNo. 22,092
StatusPublished
Cited by7 cases

This text of 100 N.E. 466 (Husak v. Clifford) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Husak v. Clifford, 100 N.E. 466, 179 Ind. 173, 1913 Ind. LEXIS 25 (Ind. 1913).

Opinion

Cox, J.

The appellant had recovered a judgment against one Walter B. Barnes in the city court of Valparaiso. Barnes appealed to the circuit court where judgment was again rendered against him in favor of the appellant. The appeal was taken upon the following bond:

[175]*175“Know all men by these presents, that we, Walter B. Barnes, P. W. Clifford, Geo. T. Miller and C. J. Kern are held and firmly bound unto Joseph Husak in the penal sum of Five Hundred and Fifty Dollars, for the payment whereof well and truly to be made, we bind ourselves, our heirs, executors and administrators, jointly and severally, firmly by these presents. Sealed with our seals and dated this 5th day of October, 1904.
Whereas the said Joseph Husak, lately, to-wit on the 28th day of June, 1902, in the City of Valparaiso Court of the County of Porter in the State of Indiana, recovered judgment against said Walter B. Barnes for the sum of $449.85, and costs and whereas said Walter B. Barnes has appealed therefrom to the Porter Circuit Court of the State of Indiana, now therefore, the condition of the above obligation is to the following, to-wit: that if said Barnes shall duly prosecute said appeal, and abide by and pay the judgment and costs which may be rendered or affirmed against him, then this obligation to be void, otherwise to remain in full force and effect.
P. W. Clifford,
Geo. T. Miller,
C. J. Kern.”

Appellant brought this action on the bond against appellees, the sureties thereon. Each of the appellees in addition to a verified general denial answered the complaint specially, alleging substantially the same facts. In substance these answers alleged that the appellees signed the bond as sureties for Barnes at the solicitation of one acting for him and without other consideration; that at the time they signed, it was agreed and understood that Barnes was to sign it as principal and coobligor and that it was not to be delivered for filing and approval or filed and approved until he had so signed it; that in violation of the condition it was delivered by the person who procured them to sign it, and it was filed and approved by the acting judge of the city court without the knowledge or consent of the appellees; that at the time he approved the bond the acting city judge had reason to and [176]*176did know of the agreement and condition upon which appellees signed the same.

Appellant’s demurrers to these special answers were overruled and the correctness of these rulings is presented.

1. It has been decided in this State, in accordancce with what seems to be the great weight of authority generally, that when a surety on a bond such as the one here involved has signed on the condition that the principal whose name appears as obligor in the body of the bond, also shall sign before the delivery of the instrument, and it is delivered by the principal or one acting for him in violation of the condition without his signature, the surety is not bound if the obligee has actual or constructive notice of the condition. Wildcat Branch v. Ball (1873), 45 Ind. 213, 218; Allen v. Marney (1879), 65 Ind. 398, 32 Am. Rep. 73; Markland, etc., Mfg. Co. v. Kimmel (1882), 87 Ind. 560, 565; State, ex rel., v. Gregory (1889), 119 Ind. 503, 508, 22 N. E. 1; Spencer v. McLean (1898), 20 Ind. App. 626, 629, 50 N. E. 769, 67 Am. St. 271; Dmis v. O’Bryant (1899), 23 Ind. App. 376, 55 N. E. 261; Ney v. Orr (1877), 2 Mont. 559; Cutler v. Roberts (1878), 7 Neb. 4, 29 Am. Rep. 371; Guild v. Thomas (1875), 54 Ala. 414, 25 Am. Rep. 703 note 706; Hall v. Parker (1877), 37 Mich. 590, 26 Am. Rep. 540; Gay v. Murphy (1895), 134 Mo. 98, 34 S. W. 1091, 56 Am. St. 496; Goodyear Dental, etc., Co. v. Bacon (1890), 151 Mass. 460, 24 N. E. 404, 8 L. R. A. 486; Bowditch v. Harmon (1903), 183 Mass. 290, 67 N. E. 333; Novak v. Pitlick (1903), 120 Iowa 286, 94 N. W. 916, 98 Am. St. 360; Baker County v. Huntington (1905), 46 Or. 275, 79 Pac. 187; School District, etc., v. Lapping (1907), 100 Minn. 139, 110 N. W. 849, 12 L. R. A. (N. S.) 1105 note; Weir v. Mead (1894), 101 Cal. 125, 35 Pac. 567, 40 Am. St. 46 and note p. 51; Benton County Sav. Bank v. Boddicker (1898), 105 Iowa 548, 75 N. W. 632, 67 Am. St. 310, 45 L. R. A. 321 note; Hendry v. Cartwright (1907), 14 N. Mex. 72, 89 Pac. 309, [177]*1778 L. R. A. (N. S.) 1056; 32 Cyc. 45; Childs, Suretyship and Guaranty 43, 44.

2. This State has also approved the rule that if the bond discloses by its face that all those named in it as obligors have) not signed it, this is sufficient to put the obligee on inquiry and is constructive notice of the condition. The apparent defect would lead a person of ordinary prudence to investigate and thus discover the condition and that the delivery was unauthorized. If the obligee fail to investigate, the surety who signed on condition is not bound. Wildcat Branch v. Ball, supra; Allen v. Marney, supra; Markland, etc., Mfg. Co. v. Kimmel, supra; Davis v. O’Bryant, supra. See, also, 32 Cyc. 49, 50 and cases there cited; Childs, Suretyship and Guaranty 38, 39.

3. The person or officer charged with the duty and acting therein of approving and accepting an appeal bond such as that involved in this case acts for and stands in the place of the obligee and notice to him of any matter affecting the validity of the bond is notice to the obligee. Covert v. Shirk (1877), 58 Ind. 264; Allen v. Marney, supra; Hendry v. Cartwright, supra; 32 Cyc. 49, note 27; Childs, Suretyship and Guaranty 40.

4. 5. These rules of law lead to the conclusion that the court did not err in its rulings on appellant’s demurrers to the special answers of the appellees. It is not to be understood however that sureties may not bind themselves to a liability on an appeal bond or other bond without the principal or other coobligors whose names are given in the body of the instrument signing if that is their intention. Nor is it to be understood that the mere fact that all whose names are written in the body of the bond have not signed it, of itself renders the bond void as to those who have signed as sureties. No presumption of a conditional delivery arises from such a condition of a bond. Those signing may have been willing to be bound [178]*178without the others. The rules apply to eases only where the sureties who have signed have actually annexed conditions which could be discovered by the obligee by inquiry. If none have been imposed, inquiry, of course, would disclose none. Wildcat Branch v. Ball, supra,; Childs, Suretyship and Guaranty 39, 40.

6. 7. Appellant replied to the special answers of each of the appellees by general denial and special matter in separate paragraphs numbered two, three and four. Each of the appellees demurred to each of these special replies and their demurrers were all sustained.

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Cite This Page — Counsel Stack

Bluebook (online)
100 N.E. 466, 179 Ind. 173, 1913 Ind. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/husak-v-clifford-ind-1913.