Thompson v. Commercial Union Assurance Co.

20 Colo. App. 331
Colorado Court of Appeals·Decided September 15, 1904·No. No. 2478·Published·Cited by 1 cases

Opinion

Thomson, P. J.

The appellee brought this suit upon a bond executed to it on the 26th day of February, 1896, by the appellant, Thompson, as principal, and the appellants, La Salle and Kelly, as his sureties, conditioned for the faithful and punctual payment to it by Thompson as its agent of all amounts due or to become due [333] to it on account of moneys collected or received by bim for premiums on policies of insurance and renewals thereof, or on any other account whatever. The complaint, after stating that the plaintiff was an English corporation, authorized to do business in Colorado, alleged the appointment of Thompson as the plaintiff’s agent; and the execution of the bond on the day of its date; and further alleged that Thompson received as premiums on policies of insurance, in June, 1899, $322.44; in July, 1899, $126.39; in August, 1899, $121.07, and in September, 1899, $115.48, no part of which was paid over to the plaintiff.

Thompson and the sureties filed separate answers. By each the execution of the bond was admitted. Thompson denied that after the date of the bond he had collected any moneys as premiums on policies which he had failed to pay over to the company. He also put in issue the incorporation of the plaintiff, and its authority to do business in Colorado. The sureties likewise denied any default on the part of Thompson in the payment to the company of moneys collected for it; but they averred that prior to the execution of the bond, Thompson had, for a considerable time, been the company’s agent, and had become indebted to.it in a large sum; that, when they signed the bond, they were ignorant of the indebtedness, and that the company concealed the fact from them; that the company wrongfully applied sufficient moneys received from Thompson on account of business transacted after the execution of the bond to discharge the previous indebtedness, and in such manner created an apparent deficiency on account of which the suit was brought. They also put in issue the incorporation of the plaintiff and its authority to do business in Colorado. The trial resulted in a judgment against the defendants for $537.36, from which they appeal.

[334] The defendants contracted with the plaintiff by the name in which it sues. Thompson cannot, after so contracting and receiving money on its account which he had solemnly obligated himself to pay over, escape liability by denying its capacity to sue; and his own liability is the measure of the liability of his sureties. Formal proof of the plaintiff’s incorporation was unnecessary. — Plummer v. Mercantile Co., 23 Colo. 190; Lumber Co. v. Cotton, 12 Colo. App. 375. The plaintiff offered in evidence a document of some kind to show its authority to do business in this state. Such authority is evidenced by a certificate of the superintendent of insurance that the requirements of the laws of the state have been complied with.— Mills’ Ann. Stats., sec. 2217. The abstract prepared by the appellants does not contain the document, or state its contents; and not knowing what it was, we must presume that it was the certificate prescribed by the statute.

Four statements made by Thompson and forwarded to the plaintiff, one in June, one in July, one in August, and one in September, 1899, were admitted over the objection of the defendants. They seem to have been made and transmitted in the regular course of business. They showed money received by Thompson for the company as follows: In June, $322.44; in July, $126.39; in August, $121.07; and in September, $115.48. The plaintiff was also permitted against the protest of the defendants to prove that in October, 1899, in an attempt by the resident secretary of the company to effect a settlement with Thompson of the accounts between him and the company, Thompson agreed that he owed the company the several sums mentioned in the statements. It was further shown- that afterwards certain credits accrued, to Thompson on account of cancelled policies, and failure to collect a premium; and at the [335] trial it was shown, and was likewise testified by Thompson, that the actual balance due was $537.36.

The objection to the statements sent by Thompson to the company, and his admission of. indebtedness made to the company’s resident secretary, is that they amount only to declarations by Thompson, and not having been made in the presence of the sureties are not binding upon them. Whether the objection was well taken depends upon the circumstances under which the declarations were made. If they were made during the transaction of the business for which the sureties were bound, so as to become part of the rés gestae, they were admissible against the sureties; otherwise not. — 1 Greenlf. Ev., § 187; Bean v. Insurance Company, 10 Mo. 559; Savings Association v. Edwards, 47 Mo. 445. The statements objected to were made by Thompson while engaged in' the performance of his duties as agent, and pertained to those duties. They therefore belonged to the res gestae. At the time he made the admissions to the company’s secretary of his indebtedness to the company, he was still, so far as appears, the agent of the company. A settlement of his accounts, or an ascertainment of their condition as between himself and the company, pertained to the business in which he was employed; and as the admission was made in the course of an attempted settlement with the company, it was likewise part of the res gestae. We find no error in the rulings.

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Thompson v. Commercial Union Assurance Co., 20 Colo. App. 331 (Colo. Ct. App. 1904).

20 Colo. App. 331 (Thompson v. Commercial Union Assurance Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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