Maryland Casualty Co. v. Lucky Budge Mining Co.

180 S.W. 1011, 192 Mo. App. 337, 1916 Mo. App. LEXIS 80
CourtMissouri Court of Appeals
DecidedJanuary 28, 1916
StatusPublished

This text of 180 S.W. 1011 (Maryland Casualty Co. v. Lucky Budge Mining Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maryland Casualty Co. v. Lucky Budge Mining Co., 180 S.W. 1011, 192 Mo. App. 337, 1916 Mo. App. LEXIS 80 (Mo. Ct. App. 1916).

Opinion

FARRINGTON, J. —

Appellant and respondent Stone agree that the following is a correct statement of the case presented:

On the 26th day of May, 1911, the Maryland Casualty Company obtained a judgment in the circuit court of Jasper county, Missouri, against the Lucky Budge Mining Company for $561.26 debt and costs taxed at $21.50 for and on account of insurance having been furnished the defendant by plaintiff and not paid for.

At that time the defendant was engaged in mining, having a lease and concentrating plant and being a go-' ing concern.

That the defendant thereupon gave a bond in appeal and duly appealed the cause tó the Springfield Court of Appeals on the 2d day of June, 1911, where said cause remained until the 2d day of April, 1912, when said appeal was dismissed for failure, of the appellant in that suit to prosecute its appeal. After this time' and while the appeal was pending in this court, the Lucky Budge Mining Company was adjudged a bank[339]*339rupt and its creditors only received dividends of 8.6 per cent of their claims.

The plaintiff after the return of the mandate of this court brought this suit on the bond given by the Lucky Budge Mining Company on appeal, with John Durby and O. W. Stone as sureties. John Durby having departed this life, the suit Was dismissed as to his administrator before the trial and was continued only against the Lucky Budge Mining Company and 0. W. Stone.

The cause was tried before the court without a jury, and at the close of all the evidence the court gave the plaintiff a judgment against the Lucky Budge Mining Company, the principal in the bond, but rendered judgment in favor of the other defendant, Stone. To this action the plaintiff duly excepted, and has brought this cause to this court claiming that the court erred in not giving the plaintiff judgment against the defendant Stone, the surety on the bond.

The bond, omitting the caption and signatures, is as follows:

“We, Lucky Budge Mining Company, as principal, and John Durby and 0. W. Stone, as- securities, acknowledge ourselves indebted to Maryland Casualty Company in the sum of twelve hundred and no-100 dollars, to be void on this condition:
“Whereas, Lucky Budge Mining Company has appealed from the judgment of the circuit court of Jasper county, Missouri, rendered at the April term, 1911, of said court, in an action between Maryland Casualty Company, plaintiff, and Lucky Budge Mining Company, defendant.
“Now, if said appellant, Lucky Budge Mining Company shall prosecute their appeal to the appellate court with due diligence to a decision, and shall perform such judgment as shall be given by any appellate court, or such as any appellate court may direct the circuit court to give, and if the judgment of said circuit court, [340]*340or any part thereof, be affirmed, that it will comply with and perform the same as far as it may be affirmed, and will pay all damages and costs which may be awarded against the appellant by any appellate court.
“Witness our hands and seals this 31st day of May, 1911.”

We have italicized that part of the condition of the bond on which there is to be placed a construction.

It will be observed that the condition of the bond is drawn in conformity with and in the same language as that prescribed in section 2042, Revised 'Statutes 1909, providing for a stay of execution in certain cases when an appeal is taken. A construction therefore of the condition of the bond in this case is necessarily a construction of that part of the statute.

In the recognizance required under section 2068, Revised Statutes 1909, where an execution is stayed under a writ of error, the statute makes the condition as follows: “Conditioned that the plaintiff in error will prosecute such writ with effect, and pay the money that shall therein be adjudged against him by the Suprime Court or Courts of Appeals, or otherwise abide the judgment of such courts therein.” The provision, “will prosecute such writ with effect” has been construed to mean “will prosecute with success,” and that the dismissal by the plaintiff in error of a cause pending on writ of error -will forfeit the bond and render .the sureties on the bond liable. [Campbell v. Harrington, 93 Mo. App. 315.]

We have no hesitancy in holding that the condition of the appeal bond in the present case has been breached and that the surety on this bond was rendered liable by the principal allowing the appeal which he had contracted in the bond would be prosecuted “with due diligence to a decision” to be dismissed for failure to prosecute. It would be a novel proposition to hold that a failure to prosecute an appeal is complying with an agreement to prosecute an appeal with due diligence to [341]*341a decision. We, therefore, hold that to prosecute with due diligence to a decision means a successful decision, a decision that either affirms in whole or in part or modifies or reverses and remands or reverses outright the judgment appealed from which forms the basis of the appeal bond.

The conditions prescribed by the statute and in this bond following the one under consideration all clearly indicate that the decision to be had in the appellate court refers to one in which some relief is given the appellant from the judgment of the trial court.

In the case of Swofford Bros. Dry Goods Co. v. Livingston (Colo.), 65 Pac. l. c. 415, we find the following excerpt, pertinent here, that being a suit against a surety on an appeal bond after the appeal was dismissed: “But the complaint charges that the appeal was dismissed. The bond was conditioned for the due prosecution of the appeal. By the due prosecution of the appeal is meant its effectual prosecution, and the dismissal was the result of a want of such prosecution. Charging the dismissal of the appeal was, therefore, equivalent to charging the failure of the defendants to prosecute their appeal effectually, and such failure was a breach of the conditions of the bond. A right of action upon the bond therefore accrued to the plaintiffs.” [See, also: Callbreath v. Coyne (Colo.), 109 Pac. 428.]

In the case of L. Kimball Printing Co. v. Southern Land Imp. Co. (Minn.), 58 N. W. 868, we find the following discussion (l. c. 869): “The question now presented is as to the liability of the sureties upon the bond for the full amount of the judgment in the municipal court. On the trial of the present action the court held that the liability of the sureties arising out of the extra-statutory condition above quoted was simply for the amount of the judgment entered in this court on the order of dismissal. The controlling words used and to be construed are, ‘after decision of the supreme court,’ and, of course, as against these sureties, they are to be [342]*342construed with, reasonable strictness. It is contended by the appellant that a dismissal under the rules is a decision within their meaning, but we think not, as did the court below. Certainly there was no decision upon the merits. ’ ’

It has been held that where an appeal bond contains a provision conditioned to pay, etc., “in case said judgment shall be affirmed in said Court of Appeals,” a dismissal for failure to prosecute renders the sureties liable on the bond. [See: Harrison v. Bank of Kentucky, 26 Ky. 375; Duntermann v. Storey (Neb.), 58 N. W. 949; McClain v. Starr (Okla.), 150 Pac. 666.]

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Bluebook (online)
180 S.W. 1011, 192 Mo. App. 337, 1916 Mo. App. LEXIS 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maryland-casualty-co-v-lucky-budge-mining-co-moctapp-1916.