National Surety Corp. v. Ladd

115 S.W.2d 600, 131 Tex. 295, 1938 Tex. LEXIS 306
CourtTexas Supreme Court
DecidedApril 13, 1938
DocketNo. 7158.
StatusPublished
Cited by47 cases

This text of 115 S.W.2d 600 (National Surety Corp. v. Ladd) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Surety Corp. v. Ladd, 115 S.W.2d 600, 131 Tex. 295, 1938 Tex. LEXIS 306 (Tex. 1938).

Opinion

Mr. Justice Sharp

delivered the opinion of the Court.

W. G. Turner died testate in Tarrant County, and W. T. Ladd and B. H. Martin, named as coexecutors under Turner’s will, qualified as such coexecutors, with the National Surety Company as surety on their bond in the sum of $40,000.00. Thereafter the National Surety Corporation, by virtue of a contract made with the National Surety Company, assumed liability as surety under the executors’ bond. This occurred in 1933.

*297 In 1934 the National Surety Corporation filed its petition in the Probate Court of Tarrant County to be relieved from further liability on the bond. The petition alleged that it desired to be discharged from all liability, and prayed that the executors be required to give a new bond, and that the National Surety Corporation be discharged from all liability for the further acts of such executors, or either of them. The executors urged a general demurrer to the sufficiency of the petition. The county court, sitting in probate matters, sustained the general demurrer, and the cause was appealed to the district court. The cause was tried to the court and executors’ general demurrer was overruled, and the district court ordered the executors to give a new bond. The executors appealed to the Court of Civil Appeals at Fort Worth, and that court reversed the judgment of the district court and rendered judgment for the executors. 94 S. W. (2d) 1204.

A decision in this case involves the construction of Article 3392 et seq., Vernon’s Annotated Texas Civil Statutes. These articles of the statutes were in force when the matters here arose. In 1929 Article 3393a was added. (Acts 1929, 41st Leg., p. 130, chap. 63, Sec. 1.) In 1935 Article 3396 was amended. (Acts 1935, 44th Leg., p. 654, chap. 266, Sec. 1.)

Article 3392 reads as follows: “An executor or administrator may be required to give a new bond in the following cases:

“1. When the sureties upon the bond or any one of them shall die, remove beyond the limits of the State, or become insolvent.

“2. When, in the opinion of the county judge, the sureties upon any such bond are insufficient.

“3. When, in the opinion of the county judge, any such bond is defective.

“4. When the amount of any such bond is insufficient.

“5. When the sureties or any one of them petition the court to be discharged from future liability upon such bond.

“6. When the bond and the record thereof have been lost or destroyed.”

Article 3393 provides when a judge shall require a new bond, and reads as follows: “When it shall be known to him that any such bond is in any respect insufficient or that it has, together with the record thereof, been lost or destroyed, he shall without delay cause the executor or administrator to be cited to show cause why he should not give a new bond.”

Article 3394 provides how any person interested in an estate *298 may demand a new bond, and reads as follows: “Any person interested in an estate may, upon application in writing filed with the county clerk of the county where the administration is pending, alleging that the bond of the executor or administrator is insufficient or defective, or has been, together with the record thereof, lost or destroyed, cause such executor or administrator to be cited to appear and show cause why he should not give a new bond.”

Article 3395 provides the method as to how sureties may be discharged from such bond, and reads as follows: “The sureties upon the bond of an executor or administrator, or any one of these, may, at any time, present a petition to the county judge praying that such executor or administrator may be required to give a new bond and that he or they may be discharged from all liability for the future acts of such executor or administrator, whereupon such executor or administrator shall be cited to appear and give a new bond.”

Article 3396 describes how citations shall issue, and fixes the return date thereon.

Article 3397 reads: “Upon the return of any such citation served, the county judge shall, on the day named therein for the hearing of the matter, whether in term time or vacation, proceed to inquire into the sufficiency of the reasons for requiring a new bond, and if satisfied that a new bond should be required he shall enter an order to that effect, stating in such order the amount of such new bond, and the time within which it shall be given, which shall not be later than twenty days from the date of such order.”

The Court of Civil Appeals in substance held: (1) Under the articles of the statutes a surety desiring to be relieved of future responsibility under an executor’s bond must allege and prove sufficient reasons for being relieved. (2) The surety company which assumed the liability under the executors’ bond held not entitled to be relieved of future responsibility under the bond, in the absence of allegation and proof of any reason for being so relieved. (3) The statute permitting a surety to be relieved of responsibility under an executor’s bond, on allegation and proof of sufficient reason for being relieved, did not warrant the court in relieving the surety company which assumed, by virtue of a contract, liability under an executor’s bond where the original surety made no application to be relieved from liability upon the bond. The Court of Civil Appeals further held that Article 3397 dominates the other articles, and *299 leaves it to the discretion of the trial court “to inquire into the sufficiency of the reasons for requiring a new bond, and if satisfied that a new bond should be required he shall enter an order to that effect.”

The Legislature in enacting the foregoing articles of the statutes had certain objects in view, among which were the following :

(1) To require an executor or administrator to furnish a sufficient bond for the protection of an estate.

(2) To permit the county judge to require a new bond when it appears that the bond executed is in any respect insufficient, or that it and the record thereof have been lost.

(3) To authorize any person interested in an estate to require a new bond when certain facts are made known to the court.

(4) To permit sureties to be discharged from liability for future acts of such executor or administrator by presenting a petition for such discharge.

It is contended that the use of the word “may” in the sentence which reads, “An executor or administrator may be required to give a new bond in the following cases:” means that the discretion is left to the county judge to refuse to require a new bond under the six sections of Article 3392, and particularly under section 5 thereof, which is the section involved here.

1 In the construction of laws, courts will not hesitate to construe words in order to carry out the expressed intention of the Legislature. In many cases the word “may” has been construed to mean “shall,” and vice versa. The rule is governed by the intention "expressed in the statute. For a discussion and construction of the rule, see: American Mortgage Corporation v. Gussie Samuell et al., 130 Texas 107, 108 S. W. (2d) 193; San Angelo Nat. Bank v.

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Bluebook (online)
115 S.W.2d 600, 131 Tex. 295, 1938 Tex. LEXIS 306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-surety-corp-v-ladd-tex-1938.