Steinback v. State ex rel. Madison Township

38 Ind. 483
CourtIndiana Supreme Court
DecidedMay 15, 1872
StatusPublished
Cited by27 cases

This text of 38 Ind. 483 (Steinback v. State ex rel. Madison Township) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steinback v. State ex rel. Madison Township, 38 Ind. 483 (Ind. 1872).

Opinion

Buskirk, C. J.

The assignment of errors presents for our consideration and decision a large number of questions, .but there is one leading and important question, the decision of which will be decisive of the cause. We shall not consider, in their order, the various questions that have been argued with so much ability by the counsel engaged in the cause, but we shall only state so much of the pleadings and the facts as shall be necessary to present, in an intelligent manner, the controlling and decisive question in the cause.

[484]*484William C. Steinback was duly elected, at the April election of 1867, trustee of Madison township, Jefferson county, Indiana, for the term of one year. On the 1 ith day of April, 1867, he took the oath of office prescribed by the constitution and laws of this State, and on that day he executed his official bond, conditioned according to law, with his co-appellants as sureties thereon, and entered upon the discharge of his duties as such trustee. Steinback had a settlement with the board of county commissioners, as required by law, in March, 1868. By that settlement he shows a balance in his hands of over two thousand seven hundred and thirty-one dollars. But it was shown that prior to the expiration of his term of office, he had paid to persons entitled by law to receive it all of the above sum except the sum of three hundred and seventy-six dollars. Of this sum his sureties paid three hundred and sixty-five dollars after he had gone out of office, but before the commencement of this action, leaving eleven dollars unpaid. The sureties intended to pay and supposed they had paid the entire amount, but by some mistake in.calculation the eleven dollars was unpaid. During the time that Steinback acted as such trustee, he kept a bank account at the National Branch Bank of Madison, Indiana. This account was kept in the name of W. C. Steinback; in that name he checked upon the hank. He checked out of the bank six hundred and thirty dollars and seventy-nine cents more than he had deposited. On the 9th day of April, 1868, the said trustee executed the following instrument:

“No. 8. $630.79.

Trustee’s Office, Madison Township, \ Jefferson County, Ind., April 9th, 1868. J

“ This certifies that there is due to the National Branch Bank of Madison, from this township, six hundred. and thirty dollars and s^&renty-nine cents, for money advanced to road and special school funds of Madison township. Payable ninety days after date. W. C. Steinback,

“ Trustee of Madison Township.”

[485]*485Israel Fowler was elected trustee for said Madison township, as the successor of the said Steinback, at the April election of 1868. Fowler gave bond and was sworn into office, on the 7th day of April, 1868. The bond was approved by the county auditor on the 8th day of April, 1868. Fowler did not receive the books of his office until the 14th day of April, 1868. Steinback retained the books, but it does not appear that he transacted any business as trustee after the 9th of April. Steinback testified that he deposited in the said bank his own private funds, as well as those belonging to the township; that all the deposits were made in his own name, and that the most of the money which he checked out was applied to the payment of township liabilities, and the residue to his own uses; and that when he found that he was indebted to the bank, by reason of his overchecking his deposit account, he gave the note above set out as trustee. The books of the bank, as well as the official record of Steinback, showred that the deposit account with the bank was kept in the individual name of Steinback, and that all his checks on the bank were drawn by him in his own name, and not as trustee. The officers of the bank were permitted by the court to testify, over the objection and exception of the appellants, that the bank did not pay the checks on the individual credit of Steinback, but paid them on the faith and credit of the township.

Fowler, as township trustee, paid to the bank the amount of the note which had been given by Steinback, on the 9th of April, and this action was brought by him to recover the amount from Steinback and his sureties on his official bond. It is very clearly shown that Steinback, during his term of office, applied over nine hundred dollars of money belonging to the township to his private uses; that during his term of office he paid on township liabilities all of said money which he had misapplied except three hundred and seventy-six dollars; and that his sureties, after he had gone out of office, paid three hundred and sixty-five dollars, leaving due eleven dollars.

[486]*486It thus appears that, having misapplied the public funds, Steinback repaid the amount to the township by his checks on the bank. We are required upon these facts to decide whether his sureties are liable upon his official bond. The question assumes a double aspect. We will consider it, first, without reference to the obligation given by Steinback, on the 9th day of April, and, secondly, with reference to such obligation.

We are very clearly of the opinion that the sureties of Steinback cannot be held liable for the misapplication of public funds which were subsequently, but before the commencement of this action, repaid by him. It surely can; make no difference how he acquired the money with which he repaid the money that he had converted to his own use. If he had acquired the money dishonestly, and the township had received and retained the money, there could be no liability on his official bond. It would amount to a satisfaction and discharge of his liability. It was held by this court, in Cook v. The State, 13 Ind. 154, that where a treasurer was his own successor, and was a defaulter at the end of his first term, and, after he had qualified under his second term, he used funds which came into his hands during his second term to pay the balance against him at the end of the first, the sureties under the first bond were discharged, and those under the second were liable.

He discharged the liabilities of the township by checks on the National Branch Bank of Madison.- The checks were paid by the bank, and it can make no difference whether the bank paid the checks upon the personal liability of Stein-back, or on the credit of the township, or through ignorance of the fact that he had overdrawn his deposit account. Under the facts of the case, the bank had no right to rely upon the liability of the township. The bank account was with Steinback individually, and not as trustee; and if the- bank permitted him to overdraw his account, it must look to him, and not the township. There was no. liability on the part of the township. The bank is entitled to no equitable consider[487]*487ation. It is now claimed that the money deposited by Stein-back belonged to the township, and that the credit was given to the township, and not to Steinback. The bank had no right to permit a public officer to deposit public funds in his own name, and to pay checks drawn in favor of persons who had claims against the township, when the checks were not signed by an officer, but by a private individual.

We are next to inquire whether the obligation executed by Steinback, as trustee, on the 9th day of April, 1868, created a valid and legal liability against the township.

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Bluebook (online)
38 Ind. 483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steinback-v-state-ex-rel-madison-township-ind-1872.