Ordinary of New Jersey v. Thatcher

41 N.J.L. 403
CourtSupreme Court of New Jersey
DecidedNovember 15, 1879
StatusPublished
Cited by3 cases

This text of 41 N.J.L. 403 (Ordinary of New Jersey v. Thatcher) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ordinary of New Jersey v. Thatcher, 41 N.J.L. 403 (N.J. 1879).

Opinion

The opinion of the court was delivered by

Beasley, Chief Justice.

The first subject of inquiry in this case is, whether a guardian’s bond, given in the common form to the Ordinary, can be delivered in escrow to-the surrogate of a county ? The proposition is stated intentionally in this general form, so as to separate the question,, for the purposes of the research, from the specialties of this particular case, and which specialties will be considered in another aspect of the discussion.

It has been frequently decided that a deed may be delivered in escrow to a co-obligor, even though such obligor be the principal bondsman. Such were the judgments in the leading cases in this state of State Bank v. Evans, 3 Green 155, and of Black v. Lamb, 1 Beasley 108; 2 Id. 455. In both of these instances the deed in Question respectively was delivered conditionally to one of the co-obligors, and -in each case the instrument was regarded as having been well delivered in escrow. This same doctrine is maintained by such a multitude of authorities that it seems hardly open to controversy anywhere, and it certainly is at rest so far as concerns our own .tribunals. It might, however, tend to misconception if this general statement of the legal'rule should not be qualified by an intimation that there may be cases in which an obligor may, by his incaution, impart to the depositary of the instrument delivered in escrow such an apparent right to pass it away in an unqualified form to the obligee, as to prevent such obligor from setting up the existence of a condition that was to have been complied with before such instrument became deliverable. This restrictive rule has been sanctioned by a number of the courts of this country, and has recently [405]*405been enforced by the Supreme Court of the United States in the case of Dair v. United States, 16 Wall. 1, in which a bond perfect on its face had been executed by sureties and by them delivered in escrow to the principal obligor, and who ■had passed it over in the ordinary course to the government; the attempted defence was that the instrument had been placed with the principal obligor as an escrow, and had been delivered by him in violation of the condition imposed; but the court adjudged that as the principal obligor had been clothed with an apparent right to transfer the bond without •qualification, and as the officer of the government receiving it, no matter how vigilant, would be unavoidably deceived by ■such conduct, the defence could not prevail. The decisions in the cases of State v. Peck, 53 Maine 284; State v. Pepper, 31 Indiana 76, and Millett v. Parker, 2 Metc. (Ky.) 608, are to the same effect.

From this explication it will be noted that the cases in this ■train proceed on the ground, not of a denial that a deed may be delivered by a surety in escrow to the principal obligor, but that an estoppel in pais may arise from the position of ■the circumstances; the consequence therefore is, that the principle thus introduced does not obtain unless the recipient ■of the bond is so situated as almost unavoidably to be misled, by the appearance of things, into the belief that the obligor in making delivery has the legal power to do such act. If there is in the affair anything to put him on his guard, as, for example, the indications on the face of such a bond as is now under consideration, which has not been executed by all the persons named in its body as obligors, the rule does not become applicable. Inasmuch, however, as the bond in the present case was not delivered by the sureties through any intermediate agency, but by their own hands, this doctrine of estoppel is not pertinent, and was alluded to only to avoid mistake with respect to the extent of the general rule that the co-obligor may hold the deed in escrow in behalf of the sureties.

As the surrogate received this bond from the sureties them[406]*406selves, the only inquiry under the present head is, as to the legal status of that officer in an affair of this kind. Does he stand sufficiently aside of the obligation, so as to be capable of taking, for the benefit of the sureties, the bond in escrow ;■ or does he, in its reception, represent, simpliciter, the obligee ?' Can this officer in such a matter be the agent of the surety,, as well as the agent of the surrogate-general ?

My consideration of the subject has led me to the conclusion that the county surrogate is in this respect the agent of the Ordinary alone, who is the obligee in the instrument. The procedure comprising the making of these bonds is this r a petition is presented to the Orphans’ Court, praying for the appointment of a person nominated as guardian, and offering to have executed a bond with certain named sureties; the court assenting, a bond is prepared and given to the surrogate, t who presents it to the court for approval, and, upon being passed, files it in his office. In form, the bond is between the guardian and his sureties.of the one part, and the Ordinary, or surrogate-general, of the other.

It is thus evident that unless the tradition of these bonds to the county surrogate be a tradition in law tó the surrogate-general, they are not, in point of fact, passed to him at all. It seems to me, therefore, that the county surrogate is, in this matter, the representative of his superior officer, and that therein his entire function consists in a right to accept a delivery of the bond. He has no authority to do more than this y he is not empowered to make any terms, or to assent to any conditions, in behalf of his principal; and being a public officer, the extent of his ability is known to all persons dealing with him. The receipt-of the bond on the part of the surrogate is a mere ministerial act, and in doing it he is the deputy of the Ordinary. It is, too, an official act, and, being a public officer, he cannot in such a transaction be the agent of an individual. In short, in my judgment, the surrogate-general receives this bond from these obligors by the hand of his subordinate, and, in point of law, the transaction consists of a delivery of the instrument to the obligee.

[407]*407This being the situation, I think it follows unavoidably that this defence is invalid, for a deed cannot be delivered in escrow to the grantee, or obligee. Authorities may be found that deny, or question, this proposition, but I see not the least ground for saying that it has not always been one of the admitted canons of the common law. I am not aware that any English judge has ever doubted the prevalence of the rule. The doctrine is stated as established law, both in the Touchstone and in the Institutes of Lord Coke. In the former of these authoritative works the principle is stated in these plain words : “ The delivery of a deed as an escrow is said to be where one doth make and seal a deed and deliver it unto a stranger until certain conditions be performed, and then to be delivered to him to whom the deed is made, to take effect as his deed.” And again, in a subsequent passage, this master of the common law says: “ So it must be delivered to a stranger; for if I seal my deed and deliver it to the party himself, to whom it is made as an escrow upon certain conditions, &c., in this case let the form of the words be what it will, the delivery is absolute,'and the deed shall take effect as his deed presently, and the party is not bound to perform the conditions; for

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Bluebook (online)
41 N.J.L. 403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ordinary-of-new-jersey-v-thatcher-nj-1879.