National Surety Co. v. Rives' Guardian

175 S.W. 351, 164 Ky. 201, 1915 Ky. LEXIS 355
CourtCourt of Appeals of Kentucky
DecidedApril 21, 1915
StatusPublished

This text of 175 S.W. 351 (National Surety Co. v. Rives' Guardian) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky 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. Rives' Guardian, 175 S.W. 351, 164 Ky. 201, 1915 Ky. LEXIS 355 (Ky. Ct. App. 1915).

Opinion

Opinion of the Court by

Chief Justice Miller — ■

Affirming.

In 1909 E. W. Whittemore qualified as the statutory guardian of Ms stepson, Harold Milburn Rives, with the appellant, the National Surety Company, as surety upon his bond.

[202]*202The infant owned a small farm in McCracken County; and it becoming necessary to use the proceeds of the farm for the support and maintenance of his ward, Whittemore, as guardian, brought an action in January, 1910, under Sub-section 3 of Section 489 of the Civil Code of Practice, to sell the infant’s farm for that purpose. That action proceeded regularly to a sale, which was held in October, 1910. The sale netted $880.69, which was turned over to Whittemore, the guardian.

On December 9th, 1913, Whittemore was removed as guardian, and the appellee, the Mechanics Trust & Savings Bank, was appointed guardian, in his stead, of the infant Harold Milburn Rives.

On March 12th, 1914, the Mechanics Trust & Savings Bank, as guardian, brought this action against Whittemore and the National Surety Company, his surety upon the guardian’s bond, to recover the $880.69 derived from the sale of the land, which had been paid to Whittemore in 1910.

The petition prayed'judgment against both defendants for $1,070.00, that being the aggregate of the $880.69, with the interest included. Whittemore failed to defend the action; and, on May 2nd, 1914, a default judgment was rendered against him for $1,070.00, as prayed in the petition.

The Surety Company contested the plaintiff’s claim, and interposed two defenses: (1) That the judgment and sale in the action to sell the farm, in 1910, were void because the title papers under which the property was held were not filed with the petition, as is required by Sub-section 2 of Section 492 of the Civil Code of Practice; and (2) that by a judgment entered in the McCracken County Court on May 16th, 1914, and subsequent to the institution of this action, Whittemore’s liability as guardian had been fixed at the sum of $678.20, and that the surety was liable for no greater sum than that fixed against its principal. A demurrer was sustained to this second plea, and, by an amended answer, the surety specified certain credits to which it claimed Whittemore was entitled, aggregating $435.24, and that it, as surety, was entitled to the benefit of those payments.

An issue was made as to these credits; and, the chancellor having heard the case, gave a judgment against [203]*203the surety for $916.15. From that judgment the surety company prosecutes this appeal.

On the other hand, the present guardian has taken a cross-appeal, claiming that it should have had a judgment against the surety for $1,070.00, the amount of the default judgment against Whittemore.

1. Sub-section 2 of Section 492 of the Civil Code of Practice provides as follows:

“492. In an action mentioned in Sub-sections 3, 4 and 5 of Section 489, and in Section 491 * * *
‘ ‘ 2. The title papers, or copies of them, under which the property is held, must be filed with the petition. ’ ’

Appellant insists that the failure to file the title papers in the action by Whittemore, as guardian, to sell the farm, rendered the judgment and sale void; while appellee insists that they were, at most, erroneous only.

We are of opinion there can be no serious doubt upon this question, and that the judgment was, at most, only erroneous. If an appeal had been prosecuted from the judgment, the failure to file the title papers might have furnished a ground for a reversal. Conrad v. Conrad, 152 Ky., 422, 426. But the proceedings having been regular in all other respects, and the infant defendant having been brought before the court and a defense made for him in all respects as is required by the Civil Code of Practice, the failure to file the title papers under which his land was held, was error only, which cannot be taken advantage Of collaterally in another suit.

2. The order of the McCracken County Court, entered on May 16th, 1914, fixing the liability of Whittemore, as guardian, at $678.20, further recites that Whittemore made a settlement as guardian in the county court on December 9th, 1913, which showed he was chargeable with the sum of $1,113.48, and entitled to a credit of $435.38, leaving him indebted in the said sum of $678.20. This record, however, shows no settlement of any kind, unless the recital in the order of the county court above referred to may be treated as a settlement.

Furthermore, said order was not only made after this action for a settlement had been brought against Whittemore, as guardian, but, on May 20th, the appellee, the present guardian, excepted to the settlement made by Whittemore in the county court by specifically setting forth its objections thereto, and asking that [204]*204Whittemore be charged with $1,113.48, subject to a credit only of $55.00. It is stipulated in the record that these exceptions were never acted upon; but, in view of the subsequent proceedings in the circuit court, the failure of the county court to act upon the exceptions became unimportant.

Passing these technical questions, and proceeding to the merits of the case, it will be seen that at the time this action was filed no settlement had been made or offered by Whittemore, as guardian, in the county court. Up to that time the county court had made no order respecting the obligation of the guardian to the ward. Evidently, Whittemore not only neglected, but refused, to make a settlement in the county court; and, under this state of facts, the present guardian filed this action in the circuit court against Whittemore and his surety, to require a settlement, and to enforce the payment of whatever amount might be found to be due. Black v. Kaiser, 91 Ky., 422.

As it was not until after this action was brought that a settlement was attempted by Whittemore, in the county court, it would have been impossible for the appellee to sue to surcharge a county court settlement, because none had been made by Whittemore.

Moreover, a settlement made in the county court is only prima facie correct, and can be corrected and surcharged by a suit brought in the circuit court for that purpose. Kentucky Statutes, Sec. 2038; Tanner v. Skinner, 11 Bush, 120; Commonwealth v. Craves C. B. & T. Co., 159 Ky., 455.

This action in equity by the present guardian against the former guardian to compel him to settle his accounts and pay the amount due by him, was the proper remedy. Kentucky Statutes, Sec. 2039; Commonwealth v. Henshaw, 2 Bush, 286. And, having been properly begun, no subsequent proceedings in the county court could defeat the action.

The parties fully recognized this rule of procedure in this case by trying it upon its merits regardless of the subsequent order of the county court. The circuit court had jurisdiction to so try the case; and since the judgment is sustained by the proof, it will not be disturbed.

3. As a general rule, sureties upon official bonds are not concluded by a decree or judgment against their principal, unless they have had their day in court, or an [205]

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Related

Commonwealth ex rel. Hooper v. Henshaw
65 Ky. 286 (Court of Appeals of Kentucky, 1867)
Tanner v. Skinner
74 Ky. 120 (Court of Appeals of Kentucky, 1874)
Black v. Kaiser
16 S.W. 89 (Court of Appeals of Kentucky, 1891)
National Surety Co. v. Arterburn
62 S.W. 862 (Court of Appeals of Kentucky, 1901)
United States Fidelity & Guaranty Co. v. Joseph W. Russell & Co.
133 S.W. 572 (Court of Appeals of Kentucky, 1911)
Conrad v. Conrad
153 S.W. 740 (Court of Appeals of Kentucky, 1913)
Commonwealth v. Graves County Banking & Trust Co.
167 S.W. 411 (Court of Appeals of Kentucky, 1914)

Cite This Page — Counsel Stack

Bluebook (online)
175 S.W. 351, 164 Ky. 201, 1915 Ky. LEXIS 355, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-surety-co-v-rives-guardian-kyctapp-1915.