Ordinary v. Connolly & American Bonding Co.

72 A. 363, 75 N.J. Eq. 521, 5 Buchanan 521, 1909 N.J. Prerog. Ct. LEXIS 12
CourtNew Jersey Superior Court Appellate Division
DecidedMarch 9, 1909
StatusPublished
Cited by18 cases

This text of 72 A. 363 (Ordinary v. Connolly & American Bonding Co.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ordinary v. Connolly & American Bonding Co., 72 A. 363, 75 N.J. Eq. 521, 5 Buchanan 521, 1909 N.J. Prerog. Ct. LEXIS 12 (N.J. Ct. App. 1909).

Opinion

Walker, Vice-Ordinary.

An administrator appointed by the Camden county orphans court for the personal estate of Elizabeth M. Stigale, deceased, was removed by that court for certain derelictions, and Mr. Bradley was substituted as administrator in his place and stead.

Subsequently, by an order of this court, suit was directed to be brought upon certain bonds given by the administrator and the American Bonding Company of Baltimore, his surety. Such suit was brought and judgment was recovered for $3,500, the penalties of the bonds, and $23.31 costs of suit.

[523]*523Application is now made to assess the damages, and for direction that execution issue upon the judgment to make sucli damages, with costs, including counsel fees. The application, so far as it refers to counsel fees, is resisted.

The solution of the question at issue depends, in my judgment, upon the conditions in the bonds upon which the judgment was recovered. There were three bonds. The first one was an ordinary administration bond (in the penal sum of $100), and, contained the following conditions—first, that the administrator will make and exhibit an inventory; second, that the goods, chattels and credits he will well and truly administer according to law; third, that he will make a true account of his administration; fourth, that all the residue of the goods, chattels and credits found remaining upon the account, as allowed by the proper court, he will deliver and pay over to the persons entitled. Ordinary v. Cooley, 30 N. J. Law (1 Vr.) 271, 274. In this case (Ordinary v. Cooley) the history and origin of the different conditions of an administrator’s bond are set forth and commented upon, and it is shown that the first two conditions were to secure the making an exhibition of an inventory and the payment of debts (Ordinary v. Cooley, 30 N. J. Law (1 Vr.) 277), and the last two were to secure an accounting and to pay over the surplus to the next of kin. Ordinary v. Cooley, 30 N. J. Law (1 Vr.) 278.

The second bond (in the penal sum of $1,000) recited that surplus money amounting to $487.06 arising from the sale of mortgaged premises which were of the decedent, was about to come to the hands of the administrator for the payment of debts, and contained three conditions—first, to well and truly administer the surplus money; second, to account for the- surplus which should be found remaining upon the account of such surplus money; third, to distribute and pay such surplus unto such person or persons as should be entitled to receive the same.

The third bond (in the penal sum of $2,400) contained three conditions—first, to well and truly administer the moneys arising from the sale of lands, tenements or real estate of the deceased directed by order of the orphans court to be sold; second, to account for his administration; third, and the surplus money [524]*524which should remain upon the account of such sale to distribute and pay unto the person or persons entitled to receive the same.

Administrators’ bonds are given to secure the creditors and next of ldn of the deceased from loss through the default or fraud of the administrator, and amount to indemnity to the estate. Indemnity is that which is given to a person to prevent his suffering damage. 1 Bouv. Dic. (Rawle’s Rev.) 1010. These bonds are given to the ordinary for the benefit of creditors and next of kin.

In Hazen v. Durling, 2 N. J. Eq. (1 Gr. Ch.) 133, it was held that the condition of an administration bond under the statute of this state is not restricted merely to the rendering of an account but is designed to secure a faithful administration of the estate. And in Ordinary v. Snook, 10 N. J. Law (5 Halst.) 65, the supreme court held (at p. 69) that the ordinary is appointed by statute to make good to all persons the damages sustained by occasion of the breach of the condition of an administration bond, and that he must have the whole penalty, if he should find it necessary, for those purposes.

A bond is a form of obligation under seal by which the party making it, the obligor, acknowledges himself bound to the other party, the obligee, in a specified form. Literally, the obligor, by the terms of the instrument, says that he is absolutely obliged to pay the penalty unless he fulfills the condition. On failure to perform the condition, the penalty became an absolute debt, and at law was recoverable. In equity, however, it was treated as security for the performance of a condition, and relief was granted against the enforcement of the penaly on payment of a sum as damages, ascertained to be an equitable equivalent of the condition not performed; in other words, the court would not allow the obligee to take more than in conscience he ought. 2 Suth. Dam. (3d ed.) § 470.

The application now made is to include in the assessment of damages a fee for the counsel who took the proceeding in the orphans court for the removal of the administrator, and for a fee to the administrator himself, who is an attorney, and who prosecuted the same in the supreme court which resulted in a judgment on the administrator’s bonds.

[525]*525The judgment is against the administrator and his surety. Whatever can be recovered against the administrator on this judgment, can, of course, be recovered from the surety.

In re Gaston Trust, 35 N. J. Eq. (8 Stew.) 60, Vice-Chancellor Van Fleet said (at p. 64) that if the accounts of a trustee become lost through his carelessness, he should be required to bear any injurious consequences arising from their loss, and that the persons bound as sureties for the defaults and fraud of the trustee have no right to any favor or immunity that -would not be accorded to the trustee. This case (In re Gaston Trust) was affirmed for the reasons given by the vice-chancellor. S. C., sub nom. Veghte v. Steele, 35 N. J. Eq. (8 Stew.) 348.

In Osborne v. Eales, 2 Moo. P. C. (N. S.) 125, it was held that recovery^'could be had to the full amount of the penal sum named in a bond of indemnity to protect a purchaser of land against adverse claims notwithstanding that the penalty greatly exceeded the original purchase-money, the purchaser having in discharge of the claim and expenses incident thereto expended a larger sum than the amount of the penalty named in the bond. The report of the case discloses that the amount recovered included two bills of costs amounting to over $3,500, one of which, amounting to over $2,000, was costs between attorney and client, and must, of necessity, have included a large amount of attorney’s fees.

In Ellis v. Norman, 44 S. W. Rep. 429, the court of appeals of Kentucky held that the surety of a forfeited bail bond is entitled to reimbursement out of indemnity given him by the principal to the extent of attorneys’ fees and' other expenses incurred by. him in good faith. As to the recovery of expenses on a forfeited bail bond, see, also, Fisher v. Fallows, 5 Esp. 171, and Sparkes v. Martindale, 8 East 593.

A surety may recover of his principal the costs which he has been compelled to pay in an action brought to recover of him the amount for which he was surety. Apgar’s Administrators v. Hiler, 24 N. J. Law (4 Zab.) 812.

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Bluebook (online)
72 A. 363, 75 N.J. Eq. 521, 5 Buchanan 521, 1909 N.J. Prerog. Ct. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ordinary-v-connolly-american-bonding-co-njsuperctappdiv-1909.