Southern Surety Co. v. Kinney

127 N.E. 575, 74 Ind. App. 205, 1920 Ind. App. LEXIS 227
CourtIndiana Court of Appeals
DecidedMay 24, 1920
DocketNo. 10,155
StatusPublished
Cited by22 cases

This text of 127 N.E. 575 (Southern Surety Co. v. Kinney) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Surety Co. v. Kinney, 127 N.E. 575, 74 Ind. App. 205, 1920 Ind. App. LEXIS 227 (Ind. Ct. App. 1920).

Opinion

Batman, J.

Appellee brought this action in the Spencer Circuit Court against appellant Southern [208]*208Surety Company, on a bond given by appellant Beasley, as his deputy county treasurer, alleging a breach of the bond, by reason of which appellee was required to and did pay to said county the sum of $4,952.65. During the pendency of this action appellant Beasley was made a party defendant.

The complaint is in a single paragraph and alleges, among other things, that appellee, on January 30, 1913, was the duly elected, qualified and acting treasurer of Spencer county, Indiana, and that appellant Beasley was his duly qualified and acting deputy in said office, and so continued until the expiration of his term on December 31, 1914; that appellant company, on said January 30, 1913, in consideration of an annual premium of $20, executed to appellee its indemnifying bond in the sum of $5,000, by which it guaranteed that said Beasley would faithfully perform the duties of his office, and faithfully account to appellee for all moneys received by him as such deputy; that said bond, as originally executed, only covered the year 1913, but, by a written agreement, based on a valuable consideration, it was continued in force until January 22, 1915; that during the time covered by said bond said Beasley, as such deputy treasurer, collected moneys due said county in the sum of $4,952.65, which he wrongfully and unlawfully appropriated to his own use and at the expiration of his office, failed, neglected and refused to account for the same or any part thereof, and has continuously since said time wrongfully and unlawfully withheld the same; that, subsequently to the expiration of appellee’s term of office, to wit, on August 27, 1915, the default and failure of said Beasley was discovered; that, on the following day, appellee, in pursuance of the terms of said bond, gave to said company a written notice of the wrongful acts of said Beasley and his failure to account for said moneys coming into his hands as aforesaid [209]*209and named the. amount thereof as $4,836.72; that said company accepted said notice and acted thereon, waived any objection to the time of receiving it, and sent its representative to said county to investigate the amount of the embezzlement by said Beasley. (Here follows a recital of certain communications that passed between appellee and said company with reference to the terms of said bond, the furnishing of information thereunder, and of appellee’s efforts to comply with the terms, and the requests made by the company with reference to the default of said Beasley.) The complaint further alleges that the amount so collected and wrongfully retained by said Beasley was the money of the county, and that, by reason of such fact, appellee was required to pay, and did pay, thereto the said sum of $4,952.65, for and on account of said Beasley; that by reason thereof the company becamé indebted to appellee in said sum, which, together with interest thereon, is now due and wholly unpaid; that appellee has fully complied with all the terms of said bond by him to be performed, except such as have been waived, but that said company has failed to comply with such terms, in that it has refused to pay appellee said amount last aforesaid. The complaint concludes with a demand for judgment in the sum of $6,000, and is accompanied by copies of the several written instruments referred to therein as exhibits.

A change of venue was taken to the Dubois Circuit Court, where said company filed an answer in four paragraphs. The first paragraph is a general denial. In the second paragraph it is alleged that the following condition contained in said bond with reference to the discovery of the alleged pecuniary loss claimed was not met:

“Now therefore this bond witnesseth: That for the consideration of the premises, the company shall [210]*210during the term above mentioned or any subsequent renewal of such term, and subject to the conditions and provisions herein contained at the expiration of three months next, after proof satisfactory to the Company, as hereinafter mentioned, make good and reimburse to the employer such pecuniary loss as may be sustained by the employer by reason of the fraud or dishonesty of the said employee in connection with the duties of his office or position amounting to embezzlement or larceny, and which shall have been committed during the continuance of said term or of any renewal thereof, and discovered during said continuance or of any renewal thereof, or within six months thereafter or within six months from the death or dismissal or retirement of said employee from the service of the em-. ployer within the period of this bond, whichever of these events shall first happen.”

In the third paragraph it is alleged that the following provision contained in said bond was violated:

“Provided, That on the discovery of any act capable of giving rise to a claim hereunder, the employer shall, at the earliest practical moment, give notice thereof to the company and any claim made under this bond shall be in writing addressed to the Company at its general offices in the City of St. Louis, Mo., and shall within three months after the discovery thereof at the Employer’s expense furnish to the Company reasonable particulars and proofs of the correctness of said claim and such particulars if required shall be verified by affidavit.”

In the fourth paragraph it is alleged that no liability exists against it on said bond by reason of the following provision contained therein:

“Provided further, That the Company shall not be liable by virtue of this bond, for any act or thing done or left undone by the employee, in obedience to or in the pursuance of any instructions or authorization received by him from the employer or any superior officer, or for any mere error of judgment or bona fide mistake, or any injudicious exercise of discretion on the part of the employee, in and [211]*211about all or any matters wherein he shall have been vested 'with discretion either by instruction or by the rules and regulations of the employer.”

Appellant Beasley also filed four paragraphs of answer, which were in substance the same as those filed by his coappellant. Appellant company filed a cross-complaint against its coappellant, alleging suretyship,. to which an answer was filed by the defendant thereto, admitting its allegations. Appellant company thereafter filed an application for a change of judge, which was overruled.

Appellee filed a separate reply in three paragraphs to the second and third paragraphs of the separate answers of each of the appellants. The first paragraphs of said replies are general denials. The second paragraphs allege a waiver of the defenses pleaded therein. The third paragraphs plead an estoppel to set up the facts alleged in said paragraphs of answer as a defense. Appellee also filed a separate reply in general denial to the fourth paragraph of answer of each appellant.

The cause was submitted to a jury for trial, which returned a verdict in favor of appellee for $5,348, and found that appellant company was surety for its co-appellant. The jury also returned with its general verdict answers to three interrogatories submitted to it. Appellants each filed a motion for judgment on the answers to the interrogatories, notwithstanding the general verdict, which motions were overruled.

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Cite This Page — Counsel Stack

Bluebook (online)
127 N.E. 575, 74 Ind. App. 205, 1920 Ind. App. LEXIS 227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-surety-co-v-kinney-indctapp-1920.