Maryland Casualty Co. v. Waldrep

126 F.2d 555, 1942 U.S. App. LEXIS 4209
CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 3, 1942
DocketNo. 2328
StatusPublished
Cited by2 cases

This text of 126 F.2d 555 (Maryland Casualty Co. v. Waldrep) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit 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. Waldrep, 126 F.2d 555, 1942 U.S. App. LEXIS 4209 (10th Cir. 1942).

Opinion

BRATTON, Circuit Judge.

The appeal in this case presents the question of the liability of the surety on a guardian’s bond. In August, 1929, the county court of Pottawatomie County, Oklahoma, appointed John H. Merlcle guardian of the estates of Una, Dora, Irene, and Alva Hembree, minors, to succeed a former guardian, and fixed his bond at $10,000. Merkle gave the required bond with the Fidelity Union Casualty Company as surety and otherwise qualified; in September, he purchased a dairy farm consisting of four hundred and forty-six acres with improvements thereon near Neosho, Missouri, and paid $55,750 for it; in March, 1930, he executed a second guardian’s bond in the penal sum of $240,000 with Maryland Casualty Company as surety; in December, he resigned and submitted his final account; and in January, 1931, after notice and hearing, the county court entered an order approving the account and discharging the sureties. In September, 1934, the then guardians of the minors filed in the proceeding a petition to vacate the order of the court approving Such final account and discharging the sureties, and to surcharge the guardian with the expenditure made for the purchase of the dairy farm and the sums which he had received as fees and expenses. The court denied the petition; the guardians appealed to the district court of the county; and in October, 1935, that court entered its judgment vacating the order of the county court, surcharging the guardian with the $55,750 paid for the dairy farm, together with interest thereon, further surcharging [557]*557him with all fees allowed and received, together with interest thereon, and remanding the cause to the county court with directions to proceed in accordance with such judgment. The guardian appealed, but without supersedeas. In January, 1938, the supreme court modified the judgment so as to permit the guardian to make such showing as he might desire with' respect to the collection of insurance on a building on the dairy farm and with respect to one of the minors having parted with his interest in the dairy farm after becoming of age and thereby ratifying the action of the guardian in making the purchase; and as thus modified, the judgment was affirmed. Merkle v. Waldrep, 184 Okl. 633, 89 P.2d 746. In January, 1935, while the appeal was pending in the district cour.t and before the entry of the judgment of that court, the county court of Pottawatomie County entered an order transferring the guardianship proceedings to the county court of Cleveland County. After entry of the judgment in the district court and pending the appeal to the supreme court, the then guardian of the minors filed in the county court of Pottawatomie County a motion for judgment surcharging the guardian with the amount paid for the dairy farm, together with interest thereon, and with the additional sum of $14,758.96 alleged to be the total amount of the fees allowed and received, together with interest thereon, in accordance with the judgment of the district-court; and in March, 1936, the county court entered its order surcharging him with $84,160.49.

After the supreme court modified and affirmed the judgment of the district court in the manner indicated, the guardian for Una and Dora, minors, and Irene and Alva, then of age,' instituted this suit against the guardian and the surety on the second bond. The execution of the bond and the entry of the order of surcharge by the county court were pleaded. By separate answers the defendants interposed certain defenses. Through proceedings not material here, other persons became parties. Trial by jury was waived. Extended findings of fact and conclusions of law were made, and judgment was entered against the guardian and the surety in the sum of $55,434.28, together with interest thereon, and the further sum of -$4,735, together with interest thereon. The judgment contained other provisions but they are not now in question. The 'surety appealed. ■

The order of the county court approving the final report of the. guardian contained a provision expressly discharging the sureties. A valid order of a county court of competent jurisdiction in Oklahoma making final distribution of assets in a guardianship proceeding, closing- the proceeding, and discharging the surety on the bond, is conclusive in respect to the rights of the parties interested in the estate and their privies, and is not subject to collateral attack. Hartford Accident & Indemnity Co. v. Goldberg, 178 Okl. 75, 61 P.2d 704. But this order was not of that final character. The assets were not distributed, and the proceeding was not closed. The order was interim in nature, and the petition to vacate it and surcharge the guardian was filed before any of the minors became of age. A county court in Oklahoma has jurisdiction, at any time prior to the majority of a minor whose estate is involved in a proceeding in such court, upon proper notice and for sufficient reasons, to modify or vacate an order or judgment made in the proceeding. Ozark Oil Co. v. Berryhill, 43 Okl. 523, 143 P. 173; Dunleavy v. Mayfield, 56 Okl. 470, 155 P. 1145; Twin State Oil Co. v. Johnson, 72 Okl. 174, 179 P. 605; In re Hickory’s Guardianship, 75 Okl. 79, 182 P. 233. And that sweep of jurisdiction brings within its reach power to reopen and examine the accounts of a former guardian at any time prior to final termination of the guardianship proceedings. Appeal of Higginbottom, 176 Okl. 188, 55 P.2d 122; Merkle v. Waldrep, supra.

The 'surety was not formally named as a party in the proceeding to vacate the final report and surcharge the guardian, and no summons or other process was served on it. But process was served on the guardian and he appeared; a special privity existed between the guardian and the surety by virtue of the contract of suretyship, and such a privity continues until the final settlement and closing of the proceeding; the surety had actual knowledge of the proceeding; it bore part if not all of the expenses incurred on behalf of the guardian; it compensated the attornéys who appeared for him; its own attorney attended and observed in that capacity the proceeding throughout its course in the district court; anil he signed the brief as attorney for the guardian and participated in the argument in the supreme court. The surety was bound by the va[558]*558cation of the order of approval and the surcharge of the guardian, even though it was not formally named as a party and no summons or other process was served on it. Title Guaranty & Surety Co. of Scranton, Pa., v. Owens, 114 Okl. 166, 244 P. 591; Hartford Accident & Indemnity Co. v. Goldberg, supra.

The surety attacks the proceeding to vacate the order of approval and to surcharge the guardian on the further ground that Annie Hembree was not named as a party. In the order appointing the guardian Annie was included with the other minors already mentioned, and she was one of the wards named in the bond. But through oversight or some other reason not apparent in the record, she was not mentioned in the petition to vacate the order and surcharge the guardian. Ordinarily all those in interest must- be expressly joined as parties in an independent action to vacate or set aside a judgment or order of adjudication in the nature of a judgment. But this proceeding was not an independent action of that kind. It was in the original guardianship proceeding. A petition to vacate the order and surcharge the guardian was not requisite or essential to the jurisdiction of the court over the subject matter or the parties in that proceeding.

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Bluebook (online)
126 F.2d 555, 1942 U.S. App. LEXIS 4209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maryland-casualty-co-v-waldrep-ca10-1942.