Longmire v. Fain

18 S.W. 70, 89 Tenn. 393
CourtTennessee Supreme Court
DecidedNovember 7, 1890
StatusPublished
Cited by3 cases

This text of 18 S.W. 70 (Longmire v. Fain) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Longmire v. Fain, 18 S.W. 70, 89 Tenn. 393 (Tenn. 1890).

Opinion

Caldivell, J.

On December 16, 1882, Will H. Pain was appointed and qualified as Clerk and Master of the Chancery Court at Blountville for [395]*395the constitutional term of six years. He executed the official and special commissioner’s bonds required by Code (M. & V.), §§ 368 and 370, and took charge of the affairs of the office on that day.

In 1885 the grand jury of the county, after making the examination provided for by Code, § 383, reported that those bonds were insufficient. Whereupon, requisition was made by the Chancellor, under Code, §§ 966, 967, and two sets of additional bonds, of like penalties and conditions as the original bonds, were executed — one set on October 3, 1885, and the other on January 10, 1886.

On April 10, 1884, Fain was appointed special receiver in what is called “the Hopkins case,” and executed a special receiver’s bond in that case in the penalty of $3,000, and conditioned as required by law.

When making his financial reports, under Code, § 386, Fain, on two or three occasions in 1885 and 1886, filed and exhibited certain hank checks in lieu of cash that should have been on hand. These checks were drawn in his favor, as follows: One by George R. Barnes for |500; one by John M. Fain for $1,000, and another by A. H. Bullock for $1,150. After these checks had been so used, and served the purpose of passing Fain’s account from term ' to term, he surrendered them, without consideration, to their respective drawers.

Finally, in October, 1886, Fain vacated his office by resignation, and made default to the extent of $6,010.65. The defalcation embraced funds in vari[396]*396ous causes, “ the Hopkins case ” among them. Some of the funds were appropriated before and some after the execution of each set of additional bonds, and' before and after the execution of the special receiver’s bond in “ the Hopkins case.”

Anticipating litigation on account of Eain’s maladministration of his office, several of his sureties made conveyances of their property.

The complainants in this cause are the persons entitled to the various funds converted by Eain. They filed this bill in September, 1887, against the principal and sureties on all the said original, additional,, and special receiver’s bonds, and against Barnes and others (called “check-men”), to recover the misappropriated moneys.

Defense was made; proof taken, account stated, and decree pronounced granting the relief sought in the bill. Several of the defendants have appealed, and assigned errors.

First. — Certain sureties on the additional bonds of October 3, 1885, and of January 10, 1886, submit and earnestly urge the proposition that they can, in no event, be rightfully held liable for any of Eain’s defalcations occurring before they became his sureties.

The language of the decree on this subject is as follows: “ That the sureties, as between the creditors and themselves, are jointly and severally liable for the full amount of the default, the additional bonds being merely cumulative, and covering the entire period of the Clerk and Master’s incumbency.”

[397]*397The decree is right. As to the creditors of the office, the original and additional bonds are to be treated as a unit. They constitute a joint and several guaranty on the part of each and all the obligors for the benefit of all beneficiaries of funds coming to the hands of the Master during his entire term. This is the requirement of the statute and the obligation of the bonds.

The bonds of October 3, 1885, and of January 10, 1886, were executed under that article of the Code entitled: “ Requiring new bonds or additional sureties from public officers.” This title seems to indicate that other, bonds may be given, or that other sureties may be added to the bonds already given, in any of the cases contemplated.

As to the form of the new bond, it is provided : “ Such additional. bond shall be in the same penalty, conditioned, approved, and filed in the same office, as the first official bond, and under like penalties in case of failure.” Code, § 969. The penalty and condition of the additional bond, are to be the same as those of the first bond, and the same liabilities are to follow a breach — the sureties on each are to be “ under like penalties in case of failure.” This means that the bonds are to be alike in form and also in legal effect.

Confessedly. the first bond, in this instance, by its terms and by the statute, covered the full time of Fain’s incumbency. The additional bonds should have the same scope. We think they have, both in fact and in law. In penalty and condition they [398]*398are identical. In dates they are different, of course. But the additional bonds recite that “ the above bound Will H. Eain has heretofore been appointed Clerk and Master, * * * for the term of six years from the sixteenth day of December, 1882.” This recital, without some limitation of the period to be covered by the additional bonds, indicates a purpose on the part of the obligors to comply with the statute, and bind themselves for the official delinquencies of Eain “for the term of six years from the sixteenth day of December, 1882.”

With respect to the obligation of the new bond, the statute provides: “Every such additional bond is of like force and obligation on the principal and sureties thereon from the time of approval, and subject to the same remedies, as the first official bond.” Code, § 970. The exact office of the phrase, “from the time of approval/’ is not clear. Two contrary interpretations are suggested by adverse counsel — one that it was intended to limit the liability of such sureties to defalcations occurring after the approval of the additional bond; the other, that it was intended simply to define the date at which the additional bond should become operative,- and nothing more. Both views have the merit of plausibility; the latter is more consonant with the general purpose of the statute at. large concerning additional bonds. This . section may properly be transposed and read as follows: Erom the time of approval, every such additional bond [399]*399stall be of like force and obligation, and subject to tbe same remedies as the first ofiicial bond.

If “every such additional bond is of like force and obligation, * * * and subject to the same remedies as the first official bond,” it must, of necessity, embrace the same period of time, cover the same defaults, and be subject to the same recoveries.

The correctness of the construction herein placed upon §§ 969 and 970 is rendered the more manifest by the next succeeding section, which defines the effect of the new bond on the old one in these words: “ In no case provided for in any. of the preceding sections of this article are any of the official bonds previously executed discharged, but each remains of the same force and obligation as if the additional bonds had not been given; and any person aggrieved can have his remedy upon either or all of such bonds, in the same or in separate proceedings.” Code, § 971..

Here is a distinct and unqualified provision that any person aggrieved can have his remedy upon either or all of the original and additional bonds. Ho limitation as to time is imposed. Whether the default occurred before or after the execution of the additional bonds is entirely immaterial.

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Bluebook (online)
18 S.W. 70, 89 Tenn. 393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/longmire-v-fain-tenn-1890.