Star Grocery Co. v. Bradford

74 S.E. 509, 70 W. Va. 496, 1912 W. Va. LEXIS 49
CourtWest Virginia Supreme Court
DecidedMarch 12, 1912
StatusPublished
Cited by11 cases

This text of 74 S.E. 509 (Star Grocery Co. v. Bradford) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Star Grocery Co. v. Bradford, 74 S.E. 509, 70 W. Va. 496, 1912 W. Va. LEXIS 49 (W. Va. 1912).

Opinion

POEEENBARGER, JUDGE:

The bond, constituting the basis of this action and given by a traveling salesman to secure faithful performance of his written contract with his principal, contains, in the obligatory clause thereof, the name of the salesman, described as principal, and the condition recites his emp^ment, his duty to collect accounts for his employer and the existence of an article of agreement between them, giving its date, but is signed by the two defendants herein only as sureties.

Its obligation as to them is denied on two grounds: (1) its acceptance by the obligee in an obviously incomplete condition, and (2) acceptance thereof by' the obligee with knowledge of its execution and delivery upon condition that other persons, who did not do so, were to execute it as sureties along with the defendants and the principal, one O. J. Wilson.

Incompleteness of a bond on its face, when tendered to the obligee, is sufficient to put him upon inquiry as to whether those whose signatures it bears intended to be bound by it in such condition. This is particularly and universally true when the names of persons, apparently contemplated as additional sureties appearing in the body of ’the bond or elsewhere, have not been signed to it. Wendlinger v. Smith, 75 Va. 309; Nash v. Fugate, 32 Grat. 595; Ward v. Churn, 18 Grat. 801; Hicks v. Good, 12 Leigh 479. The apparent imperfection is suggestive of a delivery upon condition, and imposes upon the obligee the duty of inquiry as to whether there was such a qualified delivery, omission of which releases the sureties, and parol evidence is admissible to prove the condition, which diligent inquiry would have revealed.

Nothing on the face of this bond, however, indicates incompleteness as to the sureties, or failure of any person to sign it as surety. But lack of the signature of the principal renders it [498]*498in- a sense incomplete and this fact is relied upon as having the same effect as incompleteness in respect of sureties. As to whether lack of the signature of the principal raises the same duty on the part of the obligee, and discharges the sureties in case of omission thereof, the authorities are in conflict. In some jurisdictions and under some circumstances, the sureties are held not bound. Wood v. Washburn, 2 Pick. 24; Ferry v. Budget, 21 Conn. 602; Brown v. Jetmore, 70 Mo. 228; Russell v. Annable, 109 Mass. 72; Bryant v. Kinyon, 127 Mich. 152; Bean v. Parker, 17 Mass. 591; People v. Hartley, 21 Cal. 585; Johnson v. Township, 39 Mich. 187; Lyman v. Williams, 84 Ill. App. 82. On the contrary, many cases hold the bond good and valid as to the sureties, without the signature of the principal, when the latter is bound by law or his special contract, for the debt or default for which the bond was given. State v. Bowman, 10 Ohio 445; Trustees v. Sheib, 119 Ill. 579; Pema County v. Snyder, 44 Pac. Rep. 297; Cockrill v. Davie, 35 Pac. Rep. 958; Mitchell v. Building Stone Co., 129 S. W. 148; Wright v. Jones, 120 S. W. 1139; Williams v. Marshall, 42 Barb. 524; Braving Assn. v. Hayes, 97 Fed. Rep. 859. The decided weight of authority throughout the country and especially of the later. cases is that the sureties are bound by such an instrument, if the principal is bound by law or jhis special contract for the debt or default for which the sureties have obligated themselves. The argument of inconvenience or violation of technical rules is answered by the court in State v. Bowman, cited, as follows: “Great reliance is placed upon the fact,' that if the instrument is not executed by the principal, it wall affect the remedy over against him by the securities. There would be great force in this argument, if the remedy-were destroyed; but it is not, the force and the extent of his liability to them are unimpaired. Whether they .could use the bond, per se, as evidence of his liability, presents a question merely of convenience in the use of the right, but does not affect the right itself, any more than -would the loss or destruction of the bond.” That the sureties can recover from the principal what they have been compelled to pay on account of their suretyship in a bond not executed by the principal, is asserted in Harnsberger v. Yancey, 33 Grat. 537. This being true, the sureties are not in any [499]*499substantial sense prejudiced by inability of the obligee to sue the principal along with them on the bond. The ground of their release, in case of the omission of a surety to sign, as contemplated by the parties, is the injury resulting to those who signed in case they were bound, because of their inability to exact contribution from the omitted co-surety, since he is not bound at all. This result cannot be predicated of the omission of the principal to sign, when the law or another contract binds him as firmly and fully as the bond would have bound him, had he executed it, and for the benefit of the sureties under the law of subrogation as well as that of the obligee. Every rule and exception is co-exteilsive only with the reason underlying it, and, as there is no substantial reason for discharge of the sureties under such circumstances, they should -be held liable. The equitable remedies for subrogation and indemnity are as fully available and efficacious as if the principal had executed the bond. In no substantial sense, therefore, are the sureties affected by the omission.

The record discloses no direct evidence of notice to the obligee of any agreement with the two defendants, the obligors in the bond, for additional sureties. The charge of such notice stands upon the theory of agency -on the part of the principal debtor to obtain the bond. Having sought emplorcment by the obligee he had been required, as a condition, to give a bond with two sureties to be approved by his employer. He submitted the names of the two defendants, but no others, so far as the evidence indicates, and they, after investigation as to their financial ability, were accepted. Then Wilson, the principal debtor, went and procured their signatures to the bond as prepared by the obligee. He obtained and gave this bond as a condition of his employment. Prior to that time, he had not been unconditionally employed, nor permanently employed at all. Obviously, therefore, the procurement of the bond was primarily his business and not that of his employer, and accordingly he must be held to have acted for and on behalf of himself and not of his prospective employer in the procurement of it. Ho authority sustaining the contention of the plaintiff in error for the theory of agency under such circumstances has been produced or found. Newlin v. Beard, 6 W. Va. 110, invoked for the purpose, does [500]*500not do so. Before the principal debtor in that case was directed to obtain sureties on the bond, it had been accepted as complete without any sureties on it. Here there had been no such acceptance. There the obligee, having completed a contract, made the debtor his agent to obtain sureties. Here the principal acted for himself, because no contract had been completed. ' He was making a contract for his own benefit. The facts here shown apply the rule stated in Lytle v. Cozad, 21 W. Va. 183, declaring the principal to be the agent of the sureties.

Wilson defaulted and left the country.

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Cite This Page — Counsel Stack

Bluebook (online)
74 S.E. 509, 70 W. Va. 496, 1912 W. Va. LEXIS 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/star-grocery-co-v-bradford-wva-1912.