Resolute Insurance Company v. Ervin

234 So. 2d 867, 285 Ala. 575, 1970 Ala. LEXIS 1075
CourtSupreme Court of Alabama
DecidedApril 30, 1970
Docket1 Div. 571
StatusPublished
Cited by1 cases

This text of 234 So. 2d 867 (Resolute Insurance Company v. Ervin) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Resolute Insurance Company v. Ervin, 234 So. 2d 867, 285 Ala. 575, 1970 Ala. LEXIS 1075 (Ala. 1970).

Opinion

HARWOOD, Justice.

David G. Durham was adjudged guilty of carnal knowledge of a girl over twelve years of age and was sentenced to ten years imprisonment in the penitentiary. He gave notice of appeal and the court suspended the execution of the sentence and fixed his appeal bond at $10,000.

[577]*577Durham was released from prison on a bond signed by himself and two individuals. However, he was later surrendered by his sureties and reincarcerated.

Thereafter on 21 January 1969, he presented to Hon. John E. Mandeville, Clerk of the Circuit Court of Mobile County, an appeal bond signed by himself and Resolute Insurance Company, as surety. This bond was refused by the clerk. At this time the attorney for petitioner learned of a rule (Rule 20) adopted by the circuit judges of Mobile County. This rule provides that professional bondsmen in Mobile County would present to the presiding judge of the circuit court during February 1968, and January of each following year, evidence of their qualifications as such bondsmen, evidence of financial responsibility, power of attorney from any principal or surety, corporate or otherwise, showing the maximum responsibility of any surety, as well as any other limitations placed upon an agent signing such bonds.

The rule further provided that the presiding judge would from time to time furnish the names of qualified professional bail bondsmen doing business in Mobile County, including their maximum limit of liability, to the Sheriff of Mobile County, and other officers of Mobile County having authority to approve bail bonds in criminal cases.

On 24 January 1969, the attorney for Resolute, accompanied by David D. Livingston, attorney in fact for Resolute, appeared before a meeting of the circuit judges and presented evidence tending to establish that Resolute was qualified to execute bail bonds in Mobile County.

Thereafter, on 3 February 1969, a second appeal bond was presented to the clerk of the circuit court. This appeal bond was refused by the clerk on the basis of a letter written to the clerk by the Hon. William D. Bolling, one of the circuit judges of Mobile County. This letter reads:

“At a meeting of the Circuit Judges on Friday, January 31st, (1969) it was the consensus of those present that bonds executed by the above company (Resolute Insurance Company) should not be accepted as good and sufficient surety.
“You are therefore directed not to accept bonds by this company until further direction of the Judges.” (Par. ours.)

After refusal of the second proffered appeal bond, Durham filed in this court a petition for a writ of prohibition, or in the alternative a writ of certiorari, or in the further alternative, for a writ of mandamus.

The sworn petition sets forth the facts above shown. Additional averments in the petition, and the exhibits attached to and made a part of the petition, show that at all times relevant hereto, Resolute Insurance Company was licensed and qualified by the Insurance Department of the State of Alabama to write casualty and fire insurance, and to issue through resident licensed agents all types of fidelity and surety bonds, including appearance and appeal bonds.

By an instrument dated 23 September 1968, filed with the Alabama Insurance Department, David D. Livingston and Tommy A. Nolan, were appointed agents and attorneys in fact of Resolute with authority to execute in behalf of Resolute bail bonds, supersedeas bonds, and appeal bonds in all judicial proceedings, subject to the limitation that no bond was to exceed $25,000.

The petition averred that the action of the circuit judges, and of the clerk in refusing the proffered bond, was unauthorized by law.

The petitioner prayed that this court issue a rule nisi or other appropriate alternative writ to review the action of the respondents, and that upon a final hearing that this court grant an appropriate peremptory writ directing the respondent judges to desist from instructing the clerk to refrain from accepting Resolute as a surety [578]*578on bonds, and further to instruct the clerk to accept bonds executed by Resolute. There was also a prayer that such other and further general relief as the petitioner might be shown to be entitled.

This court issued a rule nisi as prayed.

The respondents have filed their answer to the rule nisi. The petitioner filed a motion to quash the answer on the grounds that the same was argumentative, conclusionary, showed no valid reason justifying the actions of the respondents, and was not addressed to the writ issued, but rather to the petition.

This matter was submitted on the petition, the, answer of respondents, the motion to quash the answer, and brief of the petitioner.

In their answer the respondents have listed some fifteen reasons allegedly justifying their actions. Some of these grounds or reasons are patently irrelevant as constituting a sufficient answer to the rule nisi, and we pretermit a discussion of them.

The respondent judges assert that Section 201, Title 15, Code of Alabama 1940, confers upon them an absolute discretion in the matter of accepting bonds made by a corporate surety. This section sets out the qualifications -of acceptable bailors or bondsmen,- the required extent of their financial worth, etc. The concluding sentence of the section reads:

“ * * * ; or the court, magistrate, or officer, in taking bail, in lieu of the foregoing, may allow a corporation, foreign or domestic, qualified to do a bonding business in this state, and authorized to execute the undertaking of bail, to execute such bail.”

The use of the word “may” in the foregoing sentence is the basis of respondents’ assertion of absolute discretion in controlling the acceptance of corporate sureties. A reading of the entire section, we think, necessarily dictates the conclusion that the word “may” in the sentence is not used in the sense of permissiveness, but to authorize alternately and additionally the acceptance of bonds executed by corporate sureties qualified to do business in this state, and authorized to execute such undertakings.

Chapter 2, “Insurance,” Sections 1-431 of Title 28, Code of Alabama 1940, vests exclusively in the Alabama Department of Insurance the superintendence and regulation of insurance companies, foreign and domestic, doing business in this state. Under these provisions, the Department of Insurance had authorized Resolute to execute appeal bonds.

As we interpret Section 201, Title 15, Code of Alabama 1940, that part dealing with the acceptance of individual bonds, clothes the officer taking such bonds with quasi judicial authority in the matter of determining the acceptability of the bond.

However, under the last sentence pertaining to corporate bonds which we have set out-above, it is our view that where a corporate bond is executed by an insurance company authorized by the Department of Insurance to execute such bonds, the sufficiency of the corporate surety has already been determined by the Department of Insurance. No exercise of judgment or discretion is cast upon the officer to whom such bond is presented. His action in accepting such bond is purely ministerial. See Taylor v. Kolb, 100 Ala. 603, 13 So. 779; Ex parte Thompson, 52 Ala. 98.

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Bluebook (online)
234 So. 2d 867, 285 Ala. 575, 1970 Ala. LEXIS 1075, Counsel Stack Legal Research, https://law.counselstack.com/opinion/resolute-insurance-company-v-ervin-ala-1970.