State v. Hackbarth

279 N.W. 687, 228 Wis. 108, 1938 Wisc. LEXIS 170
Wisconsin Supreme Court·Decided May 17, 1938·Published·Cited by 9 cases

Opinion

Feitz, J.

The bond, upon which this action is based, was given on June 24, 1935, pursuant to sec. 176.10, Stats. 1935 (ch. 13, Laws of Sp. Sess. 1933-34), and provides, in so far as here material, that the defendants, Hackbarth and Chin, as principals, and the Saint Paul-Mercury Indemnity Company, as surety, “are held and firmly bound unto the state of Wisconsin in the penal sum of one thousand dollars, well and truly to be paid to the said state of Wisconsin;” and that “the condition of this obligation is such: That whereas, the said” Hackbarth and Chin have applied to the clerk of the town of Brookfield for a Class “B” license to sell and deal in and have in possession with intent to sell and deal in intoxicating liquors — fermented malt beverages within the town, “now therefore, if such license shall be granted to” them and they and their representatives engaged in the business conducted under the license, “shall not violate any provision of chapter 176 of the statutes of Wisconsin; shall keep and maintain an orderly and well regulated house; shall not sell or give away any intoxicating liquor to any minor, having good reason to believe him to be such, or to any person intoxicated or bordering upon intoxication or tO' any habitual drunkard; shall pay all damages that may be recovered by any person pursuant to section 176.35 of the statutes of Wisconsin; and shall observe and obey all orders of the [111] supervisors, trustees or aldermen of said town of Brookfield, or any of them, made pursuant to law, then this obligation shall be null and void; otherwise to be and remain in full force and effect.”

It is alleged in the complaint that on August 17, 1935, the conditions of the bond were violated by the defendant Chin by keeping a disorderly house on the licensed premises, contrary to sec. 176.10, Stats. 1935; and that, by reason ^hereof, the defendants are indebted to the plaintiff in the full amount of said bond according to the provision of that statute. The answering defendants admit the conviction and sentence of Chin for keeping a disorderly house on August 17, 1935, but they allege that she was convicted and imprisoned for the same violation which is the basis of this action. They also allege that the town of Brookfield adopted an ordinance which provided that applicants for a Class “B” liquor license, who wished to furnish a cash bond under sec. 176.10, Stats. 1935, may furnish such a bond in the sum of $200, which was the amount required by the general custom throughout the state from those wishing to furnish a cash bond; and that if sec. 176.10, Stats. 1935, and bonds executed by a surety company thereunder are construed to require payment of the full sum of $1,000 to the state upon a breach of any condition thereof, then the statute is in violation of the equal-protection and due-process provisions of the Fourteenth amendm., U. S. Const., and also secs. 1 and 22 of art. I, Wis. Const.

The defendants concede in their briefs that the state can maintain this action against them on their bond for the breach of a condition thereof, but contend that the bond is merely for “indemnity” and therefore the state is not entitled to payment of the full amount of $1,000, as liquidated damages thereunder. Although this appeal is from an order sustaining demurrers to alleged defenses in answers, the real [112] purpose of the parties is to' test and have an adjudication as to whether upon the allegations .of the complaint, — assuming the facts stated in the answers are admitted, — the state is entitled, upon establishing a breach of any condition of the bond, to judgment for immediate payment to it of the full penalty of $1,000 specified in the bond. The state contends that that full amount is due and payable to- it upon breach of any condition of the bond; and that it can have judgment herein for the immediate payment thereof under the provisions of the bond and some of the provisions in sec. 176.10, Stats. 1935, in view of the construction given to similar provisions in a bond and in sec. 1549, Stats. 1878-1917, in State v. Helmann, 163 Wis. 639, 646, 158 N. W. 286, and Thomas v. Kind, 222 Wis. 645, 652, 269 N. W. 543.

In the Helmann Case the court said,—

“We reach the. conclusion that the legislative purpose was as expressly stated, that judgment in a case of this sort, where a breach is found, shall go for ‘the full penalty thereofthat being treated as liquidated damages; but that the court may apply the proceeds, primarily, to the satisfaction of existing judgment indebtedness. This, we think, is not only the plain meaning of the bond, but is supported by authorities in general.”

In the Thomas Case we said,—

“It must be presumed, in the absence of anything showing a contrary intention, that when the legislature, in 1934, incorporated into sec. 176.10 language which theretofore had been construed by this court in State v. Helmann, supra, it intended that it should mean what this court had construed it to mean.”

And therefore we concluded that,—

“. . . the full penalty of the bond was recoverable by the state, notwithstanding the facts that no' judgment for damages had been recovered by anyone against the principal by reason of the breach of the conditions of the bond, and no [113] penalties or forfeiture had been incurred under the chapter, of which sec. 1549 was a part.”

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State v. Hackbarth, 279 N.W. 687, 228 Wis. 108, 1938 Wisc. LEXIS 170 (Wis. 1938).

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