O'Hanlon v. Scott

35 N.Y.S. 31, 89 Hun 44, 96 N.Y. Sup. Ct. 44, 69 N.Y. St. Rep. 227
New York Supreme Court·Decided July 26, 1895·Published·Cited by 2 cases

Opinion

BROWN, P. J.

This action was brought by the plaintiffs, as trustees of a school district, upon an official bond of James Scott, Jr., the tax collector of said district, to recover money collected and misappropriated by him. The collector and two of his sureties failed to answer. Upon the trial of the issues raised by the answers of the three other sureties, the court directed a verdict in favor of the defendants John Scott and John L. Feeney, and in favor of the plaintiffs, against the defendant Michael Cahill for the sum of $3,-645.10. The plaintiffs and the defendant Cahill moved for a new trial upon the exceptions, and the court ordered the motion to be heard in the first instance at the general term.

Scott was elected collector on August 21, 1891, and on September 17th personally delivered the bond in suit to the plaintiffs, after its execution by the sureties. Although named as one of the obligors in the bond, he did not sign it. The statute requires the collector “to execute a bond to the trustees * * * conditioned for the due and faithful execution of the duties of his office”; and provides that the collector vacates his office by not executing a bond, and that the trustees may supply the vacancy. It is the claim of the defendants that, by reason of the failure of the collector to sign the bond, they never became liable as sureties. The authorities cited to sustain this contention are all decisions from other states. Some of them, like Bean v. Parker, 17 Mass. 591, which was the case of a bail bond; Wood v. Washburn, 2 Pick. 24, which was the case of an administrator’s bond; and Fletcher v. Austin, 11 Vt. 497, which was the case of a failure of a cosurety to sign,—are plainly distinguished from the case before us. But the cases of City and County of Sacramento v. Dunlap, 14 Cal. 421, and People v. Hartley, 21 Cal. 585, and Bunn v. Jetmore, 70 Mo. 228, fairly sustain the defendants’ position. We are not disposed, however, to follow the rule applied in these cases. The defense is the merest technicality possible, and is absolutely without any merit, so far as it has relation to any of the rights of the parties. The statute provides that, for the recovery of all balances in the hands of the collector which he shall neglect or refuse to pay to his successor, “the trustees in their name of' office shall have a remedy upon the official bond of the collector or any action and any remedy given by law.” The defendants contend that, as no other action or remedy by law is given to the trustees, this provision restricts the remedies of the trustees [33] against a defaulting collector to an action on his official bond. Such a construction, we think, is too narrow and technical to be given to the statute. It should be liberally construed, and we are of the opinion that it grants to the trustees the right to pursue every remedy or action that exists for the collection of debts; that they may sue the collector for money received, entirely independent of his official bond, and that proceedings by attachment, injunction, and every other remedy which a creditor may have against his debtor, are available to the trustees. Under such a construction as to the rights of the trustees, it is apparent that the execution of the bond by the collector did not change in the slightest degree his relation to the trustees or to his sureties. The trustees might sue him either on the bond .or for money received and misappropriated, and the sureties’ rights to recover against him for money they should be compelled to pay would be the same whether he signed the bond or not. The case is entirely different from one where one who had agreed to become a cosurety failed to sign the bond, as in such a case those who did sign would be deprived of their right of contribution against the one not signing. But no such result follows the failure of the collector to sign. His liability to the trustees is entirely outside of and independent of the bond, and, such being the fact, the case falls within the rule applied in Parker v. Bradley, 2 Hill, 584; Williams v. Marshall, 42 Barb. 524; Chouteau v. Suydam, 21 N. Y. 179; Mattoon v. Barnes, 112 Mass. 466; Trustees v. Sheik, 119 Ill. 579, 8 N. E. 189; State v. Bowman, 10 Ohio, 445. In all these cases it was held that the bond was binding upon the sureties, although not signed by the principal. The requirement of the statute that the collector should execute the bond was not intended for the benefit of the sureties, but of the trustees; and, as the instrument expresses upon its face that it was given as security for the performance of the collector’s duties, it was apparent to the sureties that the signature of the collector was, as to them, of no importance whatever. We are of the opinion, therefore, that the court properly ruled that the bond was binding upon the defendants.

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O'Hanlon v. Scott, 35 N.Y.S. 31, 89 Hun 44, 96 N.Y. Sup. Ct. 44, 69 N.Y. St. Rep. 227 (N.Y. Super. Ct. 1895).

35 N.Y.S. 31 (O'Hanlon v. Scott) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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