National Surety Co. v. O'Connell

81 So. 146, 16 Ala. App. 654, 1918 Ala. App. LEXIS 308
CourtAlabama Court of Appeals
DecidedNovember 12, 1918
Docket1 Div. 256.
StatusPublished
Cited by8 cases

This text of 81 So. 146 (National Surety Co. v. O'Connell) is published on Counsel Stack Legal Research, covering Alabama Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Surety Co. v. O'Connell, 81 So. 146, 16 Ala. App. 654, 1918 Ala. App. LEXIS 308 (Ala. Ct. App. 1918).

Opinion

BROWN, P. J.

[1] The appeal in this case was taken on the 22d day of March, 1917, and was returnable on the 15th day of April, following. The first call of the division to which the case belongs, after the suing out of the appeal, was during the week embracing April 3, 1917, and on this day the case was docketed on certificate and continued. The transcript was filed on the 16th day of August, and the case was argued and submitted at the next call of the division, November 15, 1917. At the submission, counsel for appellant made a showing, which is in no way controverted, that the delay in filing the transcript resulted from the efforts of the appellant to perfect or establish a bill of exceptions, and from this showing it appears that the withholding of tile transcript from the files was not for the purpose of delaying the hearing of the appeal, but for the purpose of perfecting the appeal. The motion to. dismiss the appeal is therefore overruled. Codd v. Reynolds, 186 Ala. 207, 65 South. 41.

[2] The appeal here is on the record, the appellant having failed in its efforts to perfect or have a bill of exceptions established, and the only questions presented for review arise from the rulings of the court on demurrers to the complaint and the motion to strike certain averments thereof as to the elements of damages claimed.

The action is on a bond given by one Willis as principal and the appellant here as surety, in an equity proceeding in the District Court of the United States for the Southern District of Alabama, and payable to the plaintiff, as a prerequisite to obtaining a temporary restraining order restraining the appellee, who was the defendant in the equity proceeding in the federal court, from making certain alleged libelous and defamatory publications in a newspaper which he owned and was then publishing. The bond is conditioned “to pay all costs and expenses and damages which the said plaintiff might incur in the dissolving of the said restraining order, should the same be held to be improvidently issued.”

[3] We have no hesitancy in reaching the conclusion that the dismissal of the bill for want of equity by the federal court on motion of the defendant in that suit operated a dissolution of the restraining order and was in effect an adjudication that such restraining order was improvidently issued. National Surety Co. v. Citizens’ Light, Heat & Power Co. et al., 201 Ala. 456, 78 South. 834, and authorities there cited.

[4, 6] The complaint substantially follows the form laid down in the Code for suits on bonds with condition, and is sufficient to authorize the award of general damages, not required to be specifically claimed, resulting from the breaeh of the bond sued on. Code 1907, § 5382, form 7; Dothard v. Sheid, 69 Ala. 135; Nat. Surety Co. v. Citizens’ Lt., Ht. & Power Co., supra. If the restraining, order was functus officio by lapse of time, and was not in force when the order dismissing the bill was made, it was not dissolved by that order, and was defensive matter admissible under the general issue.

[6] This disposes of the several grounds of demurrer other than those relating to the elements of damages that are recoverable. As to such matters, it is the settled rule in this state that demurrer is not the proper remedy to expunge from a complaint a claim for nonrecoverable damages. W. U. T. Co. v. Garthright, 151 Ala. 413, 44 South. 212; Nat. Surety Co. v. Citizens’ Lt., Ht. & Power Co., supra.

In Oelrichs v. Spain, 15 Wall. 211, 21 L. Ed. 43, the Supreme Court of the United States held that such expenses as fees paid to counsel incurred by a litigant in defending against and seeking the dissolution of an injunction granted by a federal court were not recoverable “damages” in a suit on injunction bonds conditioned to “prosecute the writ of injunction with effect and pay all damages and costs which the obligees or any of them shall sustain by the granting of this injunction,” or to prosecute the writ of injunction “with effect and satisfy and pay as well the costs, damages, and charges which shall accrue in said circuit court * * * as all costs, damages, and charges which shall be occasioned by said writ of injunction, unless the * * * court shall decree to the contrary.” This ruling has been reaffirmed in Tullock v. Mulvane, 184 U. S. 497, 22 Sup. Ct. 372, 46 L. Ed. 657, and followed by our Supreme Court in National Surety Co. v. Fletcher, 186 Ala. 605, 65 South. 150, Ann. Cas. 1916D, 872.

Nonliability for attorney’s fees on a bond so conditioned is rested on two grounds: (1) *656 That, inasmuch as such fées are not recoverable as a part of the damages in ordinary-actions, it is illogical to allow such fees as a part of tire “damages” on a bond so conditioned; and (2) there being no fixed standard “by which the honorarium can be measured,” and inasmuch as some counsel demand much more than others and some clients are willing to pay much more than others, the litigation ,to recover the fees on the bond might become more animated than the original litigation, resulting in an embarrassment to the court that might perchance be called upon to reduce the fees allowed by a jury or the master on reference. The court says:

“In actions of trespass where there are no circumstances of aggravation, only compensatory damages can be recovered, and they do not include the fees of counsel. The plaintiff is no more entitled to them, if he succeed, than is the defendant if the plaintiff be defeated. Why should a distinction be made between them? In certain actions ex delicto vindictive damages may be given by the jury. In regard to that class of cases, this court has said: ‘It is true that damages assessed by way of example may indirectly compensate the plaintiff for money expended in counsel fees, but the amount of these fees cannot be taken as the measure of punishment or a necessary element in its infliction.’ Day v. Woodworth, 13 How. 370, 371 [14 L. Ed. 181].
“The point here in question has never been expressly decided by this court, but it is clearly within the reasoning of the ease last referred to, and we think is substantially determined by that adjudication. In debt, covenant, and assumpsit, damages are recovered; but counsel fees are never included. So in equity cases, where there is no injunction bond, only the taxable costs are allowed to the complainants. The same rule is applied to the defendant, however unjust the litigation on the other side, and however large the expensa litis to which he may have' been subjected. The parties' in this respect are upon a footing of equality. There is no fixed standard by which the honorarium can be measured. Some counsel demand much more than others. Some clients are willing to pay more than others. More counsel may be employed than are necessary. When both client and counsel know that the fees are to be paid by the other party, there is danger of abuse. A reference to a master, or an issue to a jury, might be necessary to ascertain the proper amount, and this grafted litigation might possibly be more animated and protracted than that in the original cause. It would be an office of some delicacy on the part of the court to scale down the charges, as might sometimes be necessary.”' Oelrichs v. Spain, supra.

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Bluebook (online)
81 So. 146, 16 Ala. App. 654, 1918 Ala. App. LEXIS 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-surety-co-v-oconnell-alactapp-1918.