United States Fidelity & Guaranty Co. v. Sabath

3 N.E.2d 330, 286 Ill. App. 320, 1936 Ill. App. LEXIS 457
Appellate Court of Illinois·Decided July 3, 1936·No. Gen. No. 38,410·Published·Cited by 1 cases

Opinion

Mr. Justice Scanlan

delivered the opinion of the court.

An appeal from a judgment, entered upon a finding by the court, in favor of defendant and against plaintiff for costs.

The special count of plaintiff’s amended declaration alleges, in substance, that on January 17, 1928, an attachment suit was pending in the circuit court of the City of St. Louis, Missouri, in which Samuel Stores, Inc. was plaintiff and Millard’s, Inc. was defendant; that certain goods of Millard’s, Inc. had been seized by the sheriff under an attachment writ issued in the suit and to regain possession of the goods it was necessary that Millard’s, Inc. give bond in the sum of $8,500, with surety satisfactory to the sheriff, conditioned upon the forthcoming of the property, etc.; that on the said day Millard’s, Inc. made application in writing to plaintiff to become surety on such a bond, and attached to the application was an indemnity agreement, signed by defendant; that in conformity with the application and in consideration of the indemnity agreement (both set out verbatim) and a premium paid, plaintiff, on January 18, 1928, executed, as surety, a forthcoming bond of Millard’s, Inc. of that date, which- was delivered to the sheriff, accepted by him, and the goods of Millard’s, Inc. were returned to it under the conditions of the bond (the bond is here set forth verbatim); that on April 24,1930, a judgment was rendered in favor of Samuel Stores, Inc. and against Millard’s, Inc. for $3,710.72 and costs; that sections 1297 and 1327 of the Revised Statutes of Missouri (set up verbatim) were then in force; that Millard’s, Inc. did not return the goods to the sheriff, the same were not forthcoming, and the judgment remained unsatisfied; that the value of the goods was at all times greater than the amount of the judgment; that by means of the premises, plaintiff became liable on its bond to pay the judgment, together with 20 per cent of the judgment as damages; that afterward an execution issued on the judgment and was delivered to the sheriff, and the personal property not being forthcoming, plaintiff became liable to pay Samuel Stores, Inc. the amount due upon the execution with interest from April 24, 1930; that at the instance and request of defendant, plaintiff paid $3,350 to Samuel Stores, Inc., for an assignment of the judgment. Defendant pleaded the general issue and filed therewith an affidavit of merits. The material parts of the affidavit are as follows:

“That he verily believes that he has a good and substantial defense to all the plaintiff’s claims except the sum of $20.00 and costs.

“ . . . That the nature of his defense is that the bond set forth in plaintiff’s declaration and upon which said claim is based was not given to secure the payment of such judgment as should be rendered in the cause therein mentioned in St. Louis, but only for the forthcoming of the property released and for the payment of costs, but not of the principal of said judgment ; that the plaintiff, as surety, did not on said bond become liable to pay the said judgment of $3,710.72, interest and costs, to the said Samuel Stores, Inc., as alleged in said declaration, and was not obliged to and did not pay or satisfy the same, but if it paid the said Samuel Stores, Inc., the sum of $3,350.00 and in consideration thereof received a duly executed assignment of said judgment, it paid said sum and received said assignment of its own volition and without any compulsion or legal liability thereto as a purchase of the judgment and not otherwise; that, although the said defendant Millard’s was insolvent and a bankrupt, its estate ivas valuable and paid out twenty cents on the dollar; that the personal property originally attached was taken in said bankrupt proceedings by order of the Court by the Trustee in Bankruptcy; that the laws of Missouri require that when forthcoming bonds are given for the release of property seized on attachment, it is necessary in order to fix a liability on the bondsman that the Court direct the officer to assign to the plaintiff the bonds taken by him for the forthcoming of the property attached; appraise the value of the property; and, thereupon on motion, render judgment in favor of the plaintiff against the obligors on the bond for the value of such property; but this affiant says that in the present case, no such order was entered by the Court; no such appraisement was made and no liability attached to the present plaintiff except as to costs; and that defendant did not become liable to pay the plaintiff therefor, as alleged in Count I in said declaration.” (Italics ours.)

The application for the bond and defendant’s indemnity agreement were drawn on one sheet of paper, and it is agreed that they must be construed together. Their material parts are as follows:

“Application to be Used for
Appeal or Supersedeas Costs
Attachment or Garnishment Removal Release Attachment or Injunction
Garnishment Dissolve Injunction
Replevin Libel
Counter Replevin Release Libel or Stipu-
Intervening Claimant’s lation for Value
Indemnity to Sheriff or Bail
Marshal
and Other Bonds
“United States Fidelity and Guaranty Company Baltimore, Maryland
“1. Name of Applicant Millards, Inc.
2. Occupation Retail Clothing Stores
3. Address 110 S. Dearborn St. Chicago
4. Nature of Bond applied for Release Attachment
5. Penalty $8500.00
6. Title of case The Samuel Stores, Inc. vs.
Applicant
7. Court in which filed Circuit Court
City of St. Louis Case #125164
“Signed, Sealed, and Delivered this 17th day of January 1928.
“Witness: Victor E. Krajci
“Millards, Inc. (Seal)
By Lawrence Neumann (Seal)
V. P.
“Indemnity Agreement

‘ ‘ The Undersigned Hereby Agrees to Indemnify and keep the United States Fidelity and Guaranty Company indemnified and to hold and save it harmless from and against any and all demands, liabilities, charges and expenses of whatever kind or nature, which it may at any time sustain or incur by reason or in consequence of its having executed the above described bond. And thereto he agrees to waive, and does hereby waive, any right to claim any property, including homestead, as exempt, under the constitution or law of any state or states, from levy, execution, sale or other legal process.

“And Further, He Guarantees that the premium on the bond will be paid as above agreed.

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United States Fidelity & Guaranty Co. v. Sabath, 3 N.E.2d 330, 286 Ill. App. 320, 1936 Ill. App. LEXIS 457 (Ill. Ct. App. 1936).

3 N.E.2d 330 (United States Fidelity & Guaranty Co. v. Sabath) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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