Pepper v. State ex rel. Harvey

22 Ind. 399
CourtIndiana Supreme Court
DecidedMay 15, 1864
StatusPublished
Cited by26 cases

This text of 22 Ind. 399 (Pepper v. State ex rel. Harvey) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pepper v. State ex rel. Harvey, 22 Ind. 399 (Ind. 1864).

Opinions

Hanna, J.

The State on relation of Harvey, State Treasurer, brought an action on the bond of Batzner, county treasurer of Franklin county, for defalcation. Default as to Batzner-, appearance for the sureties. Demurrer to the complaint for the following reasons:

1. That the plaintiff has no capacity to sue.

2. Defect of parties plaintiff, in this, that the Auditor of State is the only officer having legal capacity to sue.

[401]*4013. The complaint does not contain facts sufficient to constitute a good cause of action.

These appellants also file a separate demurrer to each of the three paragraphs of the complaint. Demurrer sustained to the first and overruled as to the other paragraphs. Answers by all the defendants separately or together, amounting to non est factum. Eeply: general denial; trial by the Court; finding against all the sureties but one Qrinkmier. Motion for a new trial overruled, and judgment on the finding for over 25,000 dollars, and this appeal prosecuted to reverse that judgment.

The reasons for a new trial are:

1. The Court erred in overruling the demurrer to complaint.

2. The judgment is contrary to the evidence.

3. The judgment is contrary to law.

4. The judgment should have been for the defendants below.

The errors assigned are precisely those named in the motion for a 'new trial. The evidence is set out in a bill of exceptions.All-the sureties, or nearly all, were examined under oath as witnesses.

The only questions raised and discussed in this Court, are-:

1. Is the suit well brought in the name of the State on relation of the State Treasurer?

2. Is the bond binding on the sureties under the eircum- * stances shown in the evidence?

As to the first question, we are of the opinion the suit should have been upon the relation of the Auditor of State to recover the funds, as shown here, due the State, for the plain and simple reason that the statute so provides in the “act prescribing the powers and duties of Auditor of State.”

“Sec. 2. He shall, * * * 6th. Institute and prosecute, in the name of the State, all proper suits for the recov[402]*402ery of any debts, moneys or property of tbe State, or for the ascertainment of any right or liability concerning the same.

“7th. Direct.and superintend the collection of all moneys due to the State, and employ counsel to prosecute suits at his instance, on behalf of the State.”

“Sec. 7. Whenever any officer or other person shall render an account to and make settlement with the Auditor, as in this act required, and shall fail to pay over to the Treasurer of State the amount to be paid by such officer or person into the State treasury, or to such person as shall be entitled by law to receive the same, within the time prescribed by law, ■or if no time is' prescribed by law, then within the time specified by such Auditor; the Auditor, upon being notified by said Treasurer, or otherwise, of such failure, shall institute suit for the recovery of the amount due and unpaid.” 1 R. S. pp. 147-8.

In this case, it is averred, a settlement with the Auditor had been made.

Perhaps it is useless to search for the reasons for the passage of said statutes; but it appears to us that they are so obvious, that we will, for a moment, advert to them. Any mode of auditing, adjusting, settling and keeping a record of public accounts, and of receiving, keeping and disbursing the public moneys, was intended to be based upon what is called a system of checks and balances. The Auditor of • State keeps an office in which settlements and adjustments, &c., are made, of claims against and in favor of the State. In that office ought to appear the exact sums in the hands of the Treasurer of State belonging to any particular fund. At the time this suit was instituted no funds could properly get into the State treasury except upon a certificate of the Auditor of State to the Treasurer, stating the amount to be paid and to what fund, and upon a draft by said Auditor, in favor of the Treasurer upon the person who is to make the payment: [403]*403Acts 1859, p. 227, § 6. Further, it is only in the Auditor’s office that, in the first instance, a statement of the accounts of county treasurers with the State can be found. Sec. 2, part 2d, 1 R. S. p. 146. It is true, the balance is certified to the Treasurer of State. It is not hy virtue of that mere balance that the suit is maintained, hut upon a copy of the account certified hy the Auditor. In a word, the Auditor superintends the fiscal concerns of the State. Id. 147. This he might not be able to do if the Treasurer could sue for and collect moneys belonging to the State in his name. We have decided that a county treasurer can not, of his own volition, sue his predecessor. Snyder et al. v. The State ex rel., at this term.

As to the second question made, we will notice the evidence bearing upon it.

The evidence of Grinkmier, one of the sureties, was positive that he had not signed the bond nor authorized any other person to place his name to it; that he could not read nor write, and it was shown that the hand writing was Batzner’s. Upon this the Court found that as to said surety the signature was a forgery.

Levi W. Buckingham, one of the sureties, testified that his signature was thus obtained: he asked Batzner if George Berry and Daniel D. Jones were going to sign, and he said they were. He also said that he intended to get a hundred good men on the bond. Buckingham then signed, and was induced to do so by having the assurance of Batzner as to the number, and the particular persons he expected to obtain as sureties on the bond. To Auguste Pepper, another appellant, Batzner said he must or would have a hundred names on the bond; and because of this pledge Pepper signed. Was not informed what the paper was for; supposed it was for the character of the man. Walter was assured that Batzner intended, in addition to the persons on his bond for the term [404]*404then expiring, to get a hundred good'men; thinking, in that case, there could not be much danger, he signed also. Schroeder was told by Batzner that he had to have a hundred good men on it, and on these conditions he signed the bond. Henry Berry, knowing that Batzner had promised to get a hundred good men on his bond, asked him if he intended to redeem his pledge. He replied he did so intend, and, if necessary, he would get two hundred. Berry then told Batzner if he would get one hundred good men on the bond he would sign it. He promised, and Berry signed. Simpson Galfee was promised if he would put his name down a hundred good men should be obtained to sign the bond also; and he swears he signed by means of this inducement. To John H. Quick, Batzner promised he would get a hundred good men on the bond before he presented it to the commissioners. To John Martin he declared he would have a hundred good men on the bond before he attempted to file it. He then signed with that understanding. Alther

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22 Ind. 399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pepper-v-state-ex-rel-harvey-ind-1864.