Union Trust Co. v. Conus

88 N.W. 407, 129 Mich. 156, 1901 Mich. LEXIS 901
CourtMichigan Supreme Court
DecidedDecember 21, 1901
StatusPublished
Cited by1 cases

This text of 88 N.W. 407 (Union Trust Co. v. Conus) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Trust Co. v. Conus, 88 N.W. 407, 129 Mich. 156, 1901 Mich. LEXIS 901 (Mich. 1901).

Opinion

Moore, J.

The appellants bring the case here by writ of error. The plaintiff sued and obtained a judgment upon a bond reading as follows:

“Know all men by these presents, that Anthony M. Conus, of the city of Detroit, county of Wayne, and State of Michigan, as principal, and John Siwka and John Zynda, of the city of Detroit, county of Wayne, and State of Michigan, as sureties, are held and firmly bound unto John Bialk, Sr., of the city of Detroit, county of Wayne, and State of Michigan, as trustee for John Bialk, Jr., Bose Bialk, and Elizabeth Bialk, children of Christina Bialk, deceased, in the sum of two thousand dollars ($2,000), good and lawful money of the United States, to be paid to the said John Bialk, Sr., trustee, his successors, executors, administrators, or assigns, for which payment well and truly to be made we do bind ourselves, our heirs, executors, and administrators, jointly and severally, firmly by these presents.
“ Sealed this 29th day of June in the year one thousand eight hundred and ninety-eight.
“The condition of the obligation is such that if the above-bounden Anthony M. Conus, his heirs, executors, and administrators, or any of them, shall well and truly pay, or cause to be paid, unto the above-named John Bialk, [158]*158Sr., trustee, his successors, executors, administrators, or assigns, the just and full principal sum of one thousand six hundred and eighty-three and 48-100 dollars ($1,683.48), with interest thereon at the rate of six per cent, per annum, payable semi-annually, at the times and in the manner following, to wit: One hundred and eighty-three and 48-100 dollars ($183.48) on or before the 5th day of November, A. D. 1898, together with such interest as may be due upon the aforesaid principal sum, and the remainder of said principal sum in twelve (12) equal semi-annual payments, of one hundred and twenty-five dollars ($125) each, on the fifth day of each succeeding month of May and November following, until the full payment of the said principal sum; the accumulated interest upon such part of the principal sum as may be due at the time of making any of said payments to be paid semi-annually and at the time of making the payments on the said principal sum as aforesaid, — without fraud or other delay, then this obligation to be void.
“And it is hereby expressly agreed that should default be made in the payment of said principal sum, the interest, or any part thereof, when the same is payable as above provided, and should the same, or any part thereof, remain unpaid for a period of sixty days, then the whole of the aforesaid principal sum, with all arrearages of interest, shall, at the option of said John Bialk, Sr., his successors, legal representatives, and assigns, be due and payable immediately thereafter, notwithstanding the time as above limited for the payment of said principal sum and interest shall not have then expired.
“But, if default be made in the payment of any or either of the said sums on the days on which the same ought to be paid as aforesaid, then this obligation shall remain in full force and virtue.
[Signed] “Anthony M. Conus. [L. S.]
“John Siwka. [L. S.]
‘ ‘ John Zynda. [L. S.'
“ I hereby accept the within trust.
“Detroit, July 20th, A. D. 1898.
[Signed] “John Bialk.”

This bond was acknowledged by the parties thereto before a notary public.

There are twenty-three assignments of error. We have considered them all, but shall discuss only those which we deem to be important.

[159]*159To understand the questions involved, a brief statement of facts is necessary: In March, 1892, the defendant Conus was appointed general guardian of three minors (John Bialk, Jr., Rose Bialk, and Elizabeth Bialk) by the probate court. He filed the usual guardian’s bond, with two sureties. Later he filed an additional bond. The defendant Zynda was not on either bond. The defendant Conus converted funds belonging to said minors to his own use. He was removed as guardian on the 21st day of September, 1897. John Bialk, Sr., was appointed on the 30th day of September, 1897, guardian of said minors. On the 1st of November, 1897, the probate judge found Mr. Conus indebted to the minors in the sum of $2,242.20; and he was ordered to pay this sum “over forthwith” to his successor, John Bialk, Sr. Conus subsequently made payments on this indebtedness, and, at the time of giving the bond on which this suit is brought, was indebted to the estate in the sum of $1,683.48. The defendant Siwka was a surety on both the probate bonds. As Mr. Conus did not pay the balance, Mr. Bialk put the claim in the hands of an attorney for collection. The attorney satisfied himself that the only person on the probate bonds who was good was Mr. Siwka. He had a conference with Mr. Conus and Mr. Siwka, and he also called the attention of the prosecuting attorney to the situation. A letter was written from the office of the prosecuting attorney, the contents of which do not appear. The record is not as full as could be desired as to what occurred between counsel and the parties to the bond, but the result of the conference of the attorney with Mr. Conus and Mr. Siwka was that the bond in controversy was given, and no further effort was made to collect the claim through the probate court. October 24, 1898, Mr. John Bialk, Sr., died. On the 16th of December an administrator of his estate was appointed, and in December, 1898, the Union Trust Company was appointed guardian of the minors. After the appointment of the Union Trust Company as guardian, defendant Conus made payments on the bond [160]*160to the Union Trust Company as guardian, — seven in all. When it became evident that suit must be commenced to collect the bond, the question arose as to who had the right to sue, — whether the Union Trust Company, as guardian, Basil A. Lemke, as administrator, or a new trustee. In order that there might be no question about it, a bill was filed making all the parties in interest defendants, and a decree was made appointing the Union Trust Company trustee. As Mr. Conus made default in his payments, this suit was commenced in January, 1900, and judgment was rendered for the full amount due in November of'the same year.

It is claimed the bond was impeached because it was given solely to secure a past indebtedness, and to keep Mr. Conus out of prison. There is nothing in the evidence that warrants the inference that the bond was given to prevent the imprisonment of Mr. Conus; and, while the bond was given to secure an indebtedness then due, we think it a fair inference from all the facts and circumstances that it was given to enable Mr. Conus to have such additional time in which to pay this indebtedness as would enable him to do so. This court has held that extending the time in which to pay an existing indebtedness is a sufficient consideration for the giving of a bond. Calkins v. Chandler, 36 Mich. 320 (24 Am. Rep. 593); Lee v. Wisner, 38 Mich. 82. See, also, Sanders v. Barlow, 21 Fed. 841; 14 Am. & Eng. Enc. Law (2d Ed.), 1136.

The case of Webbe v. Stone Co., 58 Ill. App. 222, is an instructive one. In the opinion it is said:

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Bluebook (online)
88 N.W. 407, 129 Mich. 156, 1901 Mich. LEXIS 901, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-trust-co-v-conus-mich-1901.