People ex rel. Lapeer County Bank v. O'Connell

183 N.W. 195, 214 Mich. 410, 1921 Mich. LEXIS 673
CourtMichigan Supreme Court
DecidedJune 6, 1921
DocketDocket No. 79
StatusPublished
Cited by18 cases

This text of 183 N.W. 195 (People ex rel. Lapeer County Bank v. O'Connell) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. Lapeer County Bank v. O'Connell, 183 N.W. 195, 214 Mich. 410, 1921 Mich. LEXIS 673 (Mich. 1921).

Opinion

Stone, J.

The Lapeer County Bank is a banking corporation with its place of business at Imlay City, Lapeer county. Stuart B. Nicol was elected county drain commissioner for the county of Sanilac in November, 1916, and on December 6, 1916, he executed his official bond to the people of the State of Michigan in the penal sum of $5,000, signed by himself as principal, and by the defendants herein as [412]*412sureties. Said bond was conditioned upon the faithful discharge by the said Stuart B. Nicol of the duties-of his office as- county drain commissioner aforesaid, and was duly approved and filed. On April 16, 1918, said Nicol, as such commissioner, let the contract for part of the construction work on what was known as the Frost drain to Ross Davis, and on August 28, 1918, he let to said Davis the contract for construction of the Ingles drain, so called. On April 19, 1918, Nicol as county drain commissioner, issued drain order No. 1,403 for $1,000, purporting to be for construction work on the Frost drain, and payable to-the order of Ross Davis. And on August 30, 1918, said Nicol, as such drain commissioner, issued order' No. 1,520 for $2,500, purporting to be for construction work on the Ingles drain, and payable to the order of Ross Davis.

No part of the construction work on the Frost drain had been done at the time order No. 1,403 was-issued; and no part of the construction work on the Ingles drain had been done at the time the order No. 1,520 was issued. On May 3, 1918, Ross Davis sold the order No. 1,403 on the Frost drain fund to the-plaintiff bank for $939.76, and on August 31, 1918, he sold to plaintiff bank the order No. 1,520 on the Ingles drain fund for $2,391.71. Both of said orders were made payable March 15, 1919, were duly presented for payment, and payment refused. At the time they were presented for payment, the county treasurer of the county of Sanilac had been served with injunction restraining payment.

Stuart B. Nicol, the county drain commissioner, died about December 15, 1918. This suit was brought against the sureties on his official bond to recover the money paid for the two orders above described, with interest at the legal rate from the date of their purchase by the plaintiff bank.

[413]*413Section 4904, 1 Comp. Laws 1915, as amended by Act No. 316, Pub. Acts 1917, provides that it shall not be lawful for the county drain commissioner to issue orders on the fund of any drain exceeding two-thirds of the amount earned on any contract, until after the acceptance of said work by the county drain commissioner, and the said certificate of the surveyor or the drain commissioner is filed by said county drain commissioner. The'case was tried by the court without a jury, and the trial court filed findings of fact and conclusions of law. After a statement of the case, and that the drain commissioner was deceased, and Ross Davis was uncollectible, and after stating the claims of the defendants upon the trial, the court found as follows:

“No work had been done on the drains involved to any appreciable extent at the time of issuing said orders, and said orders were issued by said drain commissioner before the requisite amount of work had been done, under the contract as required by statute.
“The court finds that the law of this State holds a drain commissioner and his sureties liable for torts committed in his official capacity. The orders involved in this case were not negotiable paper, but it is common knowledge that contractors obtain financial aid from banks on these orders; they are not payable presently, but have to await the levy and collection of the tax, and the court finds that the signature of the drain commissioner on these orders was sufficient warrant for the bank to treat them, in the hands of the contractor, as lawfully issued; that the purchases were made in good faith, and full consideration paid for them by the plaintiff bank.
“The bank is not suing in this case as the assignee of Davis but for a wrong, committed by the drain commissioner in his official capacity.
“The claim that there was a judicial determination of the amount of work done is not backed by any record; the issuing of the orders was an administrative act, and the court must find that the commissioner issued these orders with knowledge that they were [414]*414likely to be negotiated. His object was, possibly, to help finance the contractor and so secure construction of important drains, but the act was unlawful, notwithstanding.”

The court then finds the amount due the plaintiff and entered judgment therefor.

No amendments were proposed to the findings, but all of the findings both of fact and law appear to be excepted to. We think the only question raised by the exceptions is that the findings do not support the judgment; and we shall consider that question only.

1. The first contention of counsel for appellants is, that the issuing of the orders by the commissioner involved judicial decisions, and that no private action will lie against the commissioner or his sureties for any error in such decisions; and the following eases are cited in support of the proposition: Pawlowski v. Jenks, 115 Mich. 275; Amperse v. Winslow, 75 Mich. 234; Bailey v. Van Buren, Circuit Judge, 128 Mich. 627. These cases relate to the approval of liquor bonds by boards or bodies, and we think are not at all controlling of the question we are here considering.

We do not agree with the contention of counsel that the issuing of the orders by the commissioner was the result of a judicial determination. The trial court found, and there was evidence to support the finding, that no work had been done under the contracts at the time the orders were issued. It seems to us that the act of the commissioner in issuing the orders, under the circumstances shown in the case, was a wilful and intentional violation of his official duty; and we agree with the circuit judge that it was an administrative or ministerial act.

In Raynsford v. Phelps, 43 Mich. 342, it was held that a public officer is liable to private individuals for [415]*415injuries resulting to the latter from his failure to perform ministerial duties in which the latter have a special and direct interest, and that he is also liable for the failure to perform duties of a judicial nature if. he neglects them maliciously.

The purchase of these drain orders by the plaintiff bank was a lawful transaction, and, as such purchasers, they had a direct interest in the duties of the drain commissioner attendant upon the issuing of the orders. As illustrating the general rule concerning liability of sureties on official bonds, the following cases are cited: People v. Treadway, 17 Mich. 480; Doran v. Butler, 74 Mich. 643; Curtiss v. Colby, 39 Mich. 456.

In People v. Treadway, where the action was brought against a county clerk and the sureties on his official bond, in speaking of certain moneys drawn upon an order wrongfully filled up and issued by the clerk, Justice Campbell, speaking for this court, said:

“It certainly is very plain that this money was obtained by a misuse of his official authority to sign warrants, and that wrongful act was an official act.

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Bluebook (online)
183 N.W. 195, 214 Mich. 410, 1921 Mich. LEXIS 673, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-lapeer-county-bank-v-oconnell-mich-1921.