People ex rel. Hoyt v. McGrath

204 Ill. App. 169, 1917 Ill. App. LEXIS 315
CourtAppellate Court of Illinois
DecidedFebruary 19, 1917
DocketGen. No. 22,619
StatusPublished
Cited by1 cases

This text of 204 Ill. App. 169 (People ex rel. Hoyt v. McGrath) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. Hoyt v. McGrath, 204 Ill. App. 169, 1917 Ill. App. LEXIS 315 (Ill. Ct. App. 1917).

Opinion

Mr. Presiding Justice McSurely

delivered the opinion of the court.

Plaintiffs are seeking, by an action on his bond, to recover $577.50 paid to the defendant Richard J. McGrath, clerk of the Superior Court of Cook county, in a proceeding in court. The defense was that the money was lost by the clerk without his fault. We are informed by counsel that other sums totaling about $22,000 have been deposited with the clerk, Mr. Mc-Grath, under similar circumstances and lost.

The declaration alleges that in an action pending in the Superior Court, James Mitchell Hoyt and Emma Patten Hoyt paid into court $577.50 under the following order:

“that the clerk of this court accept the sum of five hundred seventy-seven dollars and fifty cents ($577.50), tendered herein by the defendants, and to hold the same until the further order of this court.” It is alleged that Bichard J. McGrath accepted this sum and receipted therefor as clerk of the Superior Court, and that thereafter, on November 4, 1914, it was ordered in said cause
“that the clerk of this court pay to defendants’ counsel, E. L. Garey, the sum of $577.50, said sum being the amount heretofore paid into court by said defendants, and deposited with the clerk of this court, subject to further order of this court.”

This order it is averred the defendant McGrath refused to comply with, wherefore the plaintiffs bring suit on his bond, which is conditioned that he shall “faithfully perform all the duties required of him by law,” against him and the defendant Surety Company,

By appropriate pleas the defense was set up that the money was lost without the fault of Richard J. McGrath, by reason of the failure' of' the La Salle Street Trust & Savings Bank, in which he had deposited it after making inquiries which led him to believe that this was a safe banking institution. Plaintiffs moved to strike said pleas for insufficiency, but the court, being of the opinion that the pleas set forth a good defense, denied the motion, and plaintiffs elected to stand thereby.

The question, therefore, presented for our determination is whether the clerk of the court and his surety are liable in an action on his bond for the loss of money paid into court and deposited with him by order of court, when the loss is due to the failure of a bank in which he, in the exercise of ordinary care, has deposited it. The statutory obligations on the clerk material to this question are, that “the said clerks shall attend the sessions of their respective courts, preserve all the files and papers thereof, make, keep and preserve complete records of all the proceedings and determinations thereof, except in cases otherwise provided by law, and do and perform all other duties pertaining to their said offices, as may be required by law or the rules and orders of their courts respectively.” Hurd’s Ill. St. 1916, ch. 25, sec. 13 (J. & A. ¶ 2138). And in the same chapter, section 4 (J. & A. ¶ 2129), it is provided that the bond of the clerk of the court shall be conditioned “for the faithful performance of the duties of his office, and to pay over all moneys that may come to his hands by virtue of his office, to the parties entitled thereto, and to deliver up all moneys, papers, books, records, and other things appertaining to his office, whole, safe and undefaced, when lawfully required so to do.”

We are in accord with the proposition that “when money is paid into court by order of the court, the clerk is its proper custodian and receives it by virtue of Ms office, and upon Ms failure to account therefor a recovery may be had on Ms official bond.” 6 Amer. & Eng. Encyc. of Law (2nd Ed.) 142. A large number of sound decisions support this rule; among those, perhaps as convincing as any, is Howard v. United States, 184 U. S. 676, where Mr. Justice Harlan in the opinion of the court said:

“But it is suggested that, in the absence of a statute distinctly so providing, the clerk was not entitled to receive the money deposited in payment and satisfaction of Stewart’s claim. It is true that no statute declares in words that a clerk may receive money brought into court for the purposes of a pending suit. But it is clear that Henry county was entitled to bring, into court and tender to its adversary the amount it was willing to pay in satisfaction of his claim. It cannot be that it was the duty of the judge of the court himself to have received the money and personally deposited it as required by law. No one has ever supposed that a judge was under obligation to perform such services. Who, then, was to receive the money? Plainly it was the duty of the clerk, who was the arm of the court, kept its records showing money paid in by suitors or officers, and was under bond conditioned that he would faithfully perform all the duties of his office. He was allowed by statute a commission ‘for receiving, keeping and paying out money in pursuance of any statute or order of court.’ Rev. Stat. sec. 828. It was well said by Judge Caldwell, delivering the unanimous judgment of the Circuit Court of Appeals, that ‘for more than a century the clerks of the Circuit Courts of the United States have been receiving and paying out the moneys of suitors in those courts in the usual and customary manner, and during that time neither the clerks nor the suitors nor the court ever dreamed that they were performing this service as private individuals, and were not officially responsible for the moneys they were receiving as such clerks.’ ”

Among many other cases in other jurisdictions so holding are: In re Finks, 41 Fed. 383; Coleman v. Ormond, 60 Ala. 328; Walters-Cates v. Wilkinson, 92 Iowa 129; Bantley v. Baker, 61 Neb. 92. This rule has also been stated in decisions in our own State, in Hammer v. Kaufman, 39 Ill. 87; Doyle v. Teas, 5 Ill. 202; DeWolf v. Long, 7 Ill. 679, and especially in the more recent case of Baltimore & O. R. Co. v. Gaulter, 165 Ill. 233. In this latter case, although the order for the payment of money did not designate the clerk as a depositary nor order him to receive the money, yet the court held that it was paid under a decree, was received by the clerk as a fund of the court, and became such a fund under the control of the court; and the opinion seems to recognize the rule to be that if the fund was received by the clerk by virtue of his office he was a guarantor of its safety.

It has long been the recognized practice in the courts of this State for the clerks to receive and pay out money of litigants. It cannot be seriously contended in the face of the overwhelming weight of authority that the clerks in so acting are acting merely in a private capacity. We are of the opinion that it is established beyond any controversy that clerks in receiving such funds receive and hold them in their official capacity.

We think it follows, as a corollary to the above rule, that a bond conditioned upon the faithful performance of the duties of the office should be construed as an undertaking to pay over to parties entitled thereto all moneys coming into the hands of the clerk as an officer of the court.

In 5 Cyc.

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204 Ill. App. 169, 1917 Ill. App. LEXIS 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-hoyt-v-mcgrath-illappct-1917.