State Ex Rel. Brontrager v. Mundy

205 N.W. 684, 53 N.D. 249, 1925 N.D. LEXIS 78
CourtNorth Dakota Supreme Court
DecidedOctober 22, 1925
StatusPublished
Cited by14 cases

This text of 205 N.W. 684 (State Ex Rel. Brontrager v. Mundy) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Brontrager v. Mundy, 205 N.W. 684, 53 N.D. 249, 1925 N.D. LEXIS 78 (N.D. 1925).

Opinion

*252 Biedzbll, J.

This is an appeal from a judgment in favor of the plaintiff and the interveners herein. The action is against the defendants as principal and sureties upon a warehouseman’s bond. Counsel for the appellants have very properly limited the questions for consideration on. appeal, so that an extended statement of the facts is not called for. The bond was evidently given, as the complaint declares, for the purpose of obtaining for the defendant J. G. AL'undy a state warehouse license which would enable him to operate a warehouse for buying, selling, storing, shipping and handling grain at Umbria in accordance with the requirements of chapter 138 of the Session Laws of 1919. This entire chapter having been declared unconstitutional by the Supreme Court of the United States, Lemke v. Farmers Grain Co. 258 U. S. 50, 66 L. ed. 458, 42 Sup. Ct. Rep. 244, but, nevertheless, grain having been delivered to the principal, and he having failed to account for or redeliver the same in circumstances that render him liable for breach of his obligations as a warehouseman, the question presented on the record is whether or not those who signed the bond may be held for his defaults. The appellants argue:

1. “That if the bond be considered a statutory bond, then its enforcement fails because the statute is unconstitutional.
(a) “That if such bond be considered a common law bond, then the state of North Dakota has no power to enforce it.
2. “That if such bond be declared valid,, despite the invalidity of the statute under which it was given, and the state be conceded power to enforce it either as a« common law or as a statutory bond, nevertheless the bondsmen are not liable for any acts of J. G. Mundy, their principal, except such acts as were performed by him as a public warehouseman, and are not liable for any grain received by him prior to his becoming such public warehouseman, and prior to the issuance of the warehouse license by the state.”

The bond, omitting the justification and approval, is as follows:

*253 IÍNOW ALL MEN BY THESE PRESENTS, That J. G. Mundy of- the county of Eolette and state of North Dakota as principal, and Mark Mundy and Ben Imhoff of the county of Eolette and E. E.’ Bock and A. E. Grassman of the county of Eolette and state of North Dakota, as sureties, are held and firmly bound unto the state of North Dakota in the penal sum of Dive Thousand Dollars, good and lawful money of the United States, the payment of which, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, firmly by these presents, In witness whereoe, We have hereunto subscribed our names and affixed our seal this 13th day of October, 1921. The conditions oe this obligation are suci-i, That whereas the principal hereof is the owner, lessee, or manager of an elevator, or a line of elevators or warehouses, doing business in the state of North Dakota as a public warehouse, with elevators or warehouses located at the following places in said State, viz.: Umbria.

That the elevators or warehouses herein named or located, are to be used and operated for the purpose of buying, selling, storing, shipping and handling grain for profit, as public warehouses, as provided by law, relating to public warehouses and warehousemen;

Now, therefore, if the said J. G. Mundy shall faithfully discharge and perform his duties as such public warehouseman and comply with all the laws of the state of North Dakota relative thereto and the rules and regulations adopted by the state inspector of grades, weights and measures of said state in connection therewith, and shall pay for all grain purchased, and all sums for which said principal shall become liable to the holders of warehouse receipts, then this obligation to become null and void, otherwise to remain in full force and effect. Liability upon this undertaking commences on the 1st day of August, 1921, and terminates on the 31st day of July, 1923, unless the same is sooner cancelled by order of the State Inspector of Grades, Weights ■& Measures.

J. G. Mundy, Principal. Mark Mundy, Ben Imhoff, F. E. Bock, A. E. Grassman ” Sureties.

*254 The above bond was approved by the state inspector of grades, weights and measures on October 23, 1921 and filed. Some of the grain, the value of which enters into the judgments in question, was deposited with the principal between the first day of August, 1921 and October 23, 1921, the date of the approval of the above bond, and the remainder of the grain was deposited subsequent to the approval.

The contention that the bond fails because of the unconstitutionality of the statute is based upon reasoning to the effect that the statute, being void in toto, would give rise to no liability against or no right in favor of those who have complied with its void provisions. That, since the act is void, the bond was a mere voluntary obligation supported by no independent consideration and, hence, not enforceable.

It is said that, as the state had no authority to demand the bond, its action in taking such bond was wholly nugatory. Reliance is had upon the familiar principle that an unconstitutional law confers no rights and imposes no duties and that any contract dependent thereon for its consideration is necessarily >void. We fully recognize the force of this principle, but we are of the opinion that it is not applicable in the instant case. Chapter 13S of the Session Laws of 1919, having been held to be unconstitutional, must necessarily be regarded as void, and, so far as this case is concerned, it is as though the statute had never been enacted. This being true, § 3111 of the Compiled Laws for 1913, which purports to have been repealed (Sess. Laws, 1919, § 32), was not in fact repealed. The section still stands and requires a bond to be furnished. From this it follows that the warehouseman Mundy had no right to engage in the business of a warehouseman without furnishing a bond, and that the unconstitutional statute did not afford the sole impediment upon the right of the warehouseman to engage upon or continue in his business. Hence, the bond in suit does not depend wholly for its consideration upon the unconstitutional statute ; it is supported by an independent consideration wholly apart from the void enactment. It is well settled that bonds thus supported are enforceable. See 9 C. J. 28 and cases cited. They are in no sense contrary to public policy.

We think the bond enforceable for another reason. At the time the bond was executed it may properly be assumed that Mundy was legally confronted with the alternative of offering compliance with § 3111, *255 Comp. Laws, 1913, or of tendering a compliance witb tbe unconstitutional act of 1919. He chose the latter alternative. Since ignorance of the law can not excuse either him or his bondsmen, it must be assumed that this choice was made with knowledge of the invalidity of the requirements under which the bond was given.

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Cite This Page — Counsel Stack

Bluebook (online)
205 N.W. 684, 53 N.D. 249, 1925 N.D. LEXIS 78, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-brontrager-v-mundy-nd-1925.