State ex rel. Hyslop v. Bilby

50 Mo. App. 162, 1892 Mo. App. LEXIS 303
Missouri Court of Appeals·Decided May 16, 1892·Published·Cited by 6 cases

Opinion

Ellison, J.

— This suit is by a present guardian against the surety on a prior guardian’s bond, and is here on plaintiff’s appeal. March 20, 1876, one John S. Wood was appointed guardian and curator of his minor son, and on that day executed his bond for $6,000 conditioned for the faithful performance of his duties. April. 2, 1883, the probate court, finding that one of the sureties on such bond had become insolvent, ordered Wood to give an additional bond for $6,000, in lieu of the first, which he did on that day, the defendant herein being one of the sureties. On May 15, 1891, the probate court revoked Wood’s authority as guardian for his failure to file another additional bond, and placed the guardian and curatorship in the hands of this relator, he being the public administrator of Nodaway county, as provided by section 5336, Revised Statutes, 1889. Wood filed his final settlement of his accounts, whereby it appeared that he was indebted to the ward, the amount of which the probate court ordered him to pay over to this relator, and which he has refused to do.

The principal defense set up by defendant is that the greater portion of the sum for which Wood defaults arose from the sale of the ward’s real estate for reinvestment, and that a guardian is not responsible on his general bond for such trust, the security for such fund being a special bond which should be required of the guardian. Such was the law prior to the revision of 1879, under which this case arose. It was so held in a well-considered opinion by Judge Thompson in State to use of Martin v. Harbridge, 43 Mo. App. 16. The sections of the statute of 1879 bearing on the subject are as follows: Sec. 2592. “When it shall appear that it would be for the benefit of a ward that his real estate, or any part thereof, be sold or leased, and that the proceeds be put on interest, .or [166] invested in United States or state bonds, or in other real estate, or in the preservation of other estate of the minor the probate court may authorize and order such sale, leasing or investment.” Sec. 2593. “To obtain such order, the guardian or curator shall present to the court a petition setting forth the condition of the estate, and the -facts and circumstances on which the petition is founded. If, after full examination, on the oath of credible and disinterested witnesses, it appears to the court that it would be for the benefit of the ward that the real estate, or any part of it, should be sold or leased, the court may make an appropriate order for such sale or lease under such regulations and conditions, subject to the provisions of this chapter in relation to the sale of the real estate of minors, as the court shall consider suited to the case, first requiring the guardian or curator to enter into good and sufficient bonds to make such leases and conduct such sales with fidelity to the interests of his ward, and faithfully to account for the proceeds of such sales and leases according to law, and as the order of the court may require, if the court shall he of the opinion that such bond is necessary

The only material amendment relating to this question in the first section was substituting the probate court for the circuit court. The italics in the latter section are what was added, by way of amendment, in 1879. And the question is whether such amendments do not change -the law. "We will presume that in a case, where the probate court does not require the bond referred to in the latter section, such court does not deem it necessary, and we think it almost necessarily follows that such court, in determining whether it is necessary, considers the guardian’s general bond, its sufficiency in amount and solvency. We cannot, for a moment, believe that the legislature intended by the [167] addition of those words, in any event, to authorize a guardian to sell real estate, take possession of the fund arising thereon and reinvest it without the protection of a bond. It would he against the whole policy of the law. So that we must conclude that, where the legislature gave authority to the probate court to order a sale without requiring a special bond, it contemplated that the general bond already in existence would cover the case. Otherwise, as before intimated, we would, in many instances, have guardians handling and investing trust funds without bond — a condition of affairs relating to the interests of minor children not to he tolerated unless clearly directed by law.

II. Since the cause must be retried, We will proceed to dispose of the remaining points urged by appellant relating to money unaccounted for which arose from other sources than the sale of real estate. Notwithstanding such money may have been misappropriated by the guardian before the execution of the second bond, the one here sued on, yet such sum was carried forward in his settlements and made up a part of the balance against him on his final settlement, and his failure to pay over such sum occurred during the existence of the latter bond, and is a breach thereof. The statute regulations of administrator’s bonds are made applicable to the bonds of guardians. And section 30 of the administration statute of 1879 provides that, when the additional bond is approved, it shall discharge the former securities from liability arising after filing the same. But the fact that a breach of the old bond occurred by the malfeasance of the guardian, so as to render the sureties thereon liable, does not prevent liability also attaching under the new bond for failing, as before stated, to pay over the amount found due on his settlements. State [168] ex rel. v. Drury, 36 Mo. 281; State ex rel. v. Berning, 74 Mo. 94.

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State ex rel. Hyslop v. Bilby, 50 Mo. App. 162, 1892 Mo. App. LEXIS 303 (Mo. Ct. App. 1892).

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