Western Indemnity Co. v. Murray

237 S.W. 1109, 1922 Tex. App. LEXIS 247
CourtTexas Commission of Appeals
DecidedMarch 8, 1922
DocketNo. 212-3311
StatusPublished
Cited by3 cases

This text of 237 S.W. 1109 (Western Indemnity Co. v. Murray) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western Indemnity Co. v. Murray, 237 S.W. 1109, 1922 Tex. App. LEXIS 247 (Tex. Super. Ct. 1922).

Opinion

McCLENDON, P. J.

This suit was brought by Margaret Murray against E. Martinez, several railroad companies, and plaintiff in error, Western Indemnity Company, the latter being sued as surety of Martinez, to recover compensatory damages for the death of plaintiff’s husband, caused by the alleged negligence of Martinez and the railway companies. Deceased at the time of his death was a passenger in a jitney bus which collided with a train operated by one of defendant railway companies in the City of El Paso. Martinez was the owner of the jitney bus, which he operated under license issued by the City of El Paso. The ordinance under which this license was issued required the giving of a bond in the sum of $1,000 for each vehicle operated by the applicant.' The bond was to be payable to the mayor and his successors—

“for the use and benefit of any and all persons as his or their interests may appear who shall have a cause of action against the principal in such bond by virtue of the negligence or misconduct of said principal, or his or its agents,-' servants, or employés, in connection with the operation of any such vehicles, and which'bond shall be conditioned for the prompt payment of all damages which said principal or the surety bonding company in any civil suit, in a court of competent jurisdiction be condemned to pay on account of the injury to the person or property of any person or persons by reason»of the negligence or misconduct of the said principal, his agents, servants or employes in connection with the operation of said vehicle for which the said principal has filed an application for a license.”

The ordinance further provided that—

“Such bond shall continue as a subsisting obligation until it shall have been fully exhausted, but in no event shall the surety or sureties thereon be liable for more than the amount of such bond.”

Also that—

“Should such bond be partially or wholly exhausted by recovery or recoveries thereon, it shall thereafter be unlawful for the principal therein to continue to operate any motor bus or motor busses upon the streets, alleys or public places in the city of El Paso until the person operating said motor bus shall have first filed with the city clerk of El Paso county, Texas, a new bond in like sum as the original bond and in like manner conditioned and approved.”

Other provisions of the ordinance are not material.

On January 1, 1917, Martinez applied for a license, describing the vehicle to be used, and giving the name of the driver and the route over which the bus was to be operated, at the same time filing a bond in the penal sum of $1,000 with the Indemnity Company as surety; the bond in all respects complying with the ordinance. This is the bond sued upon in this case. Later, on May 1, 1917, Martinez made another application for license to operate the same bus over the [1110]*1110same route with tlie same driver, and gave a like bond in like amount, with, the Maryland Casualty Company as surety. The purpose of giving the second bond is not shown by the record. Before the trial of the case the Casualty Company settled its liability to plaintiff by paying $900, and secured a full release, and the railway companies entered into an agreement with plaintiff whereby judgment was entered against some of them for $3,000, and discharging the others. The case was tried as to Martinez and the Western Indemnity Company before a jury upon special issues, and, upon findings of the jury that Martinez was liable by reason of negligence of the driver, and that the damages sustained by plaintiff were $10,000, judgment was rendered against Martinez for that' amount, and this judgment was credited with the $3,000-recovery against the railway companies and the $900 paid by the Casualty Company. The trial court further rendered judgment against the Western Indemnity Company for $500, holding that the two surety companies were cosureties, and each was liable for one-half of the total amount of the penalty of one of the bonds. The Court of Civil Appeals reformed this judgment by requiring the Indemnity Company to pay $1,000, the full amount of the penalty of its bond. 208 S. W. 696.

The only question for decision is the extent of liability of the Indemnity Company under the facts above outlined. Plaintiff contends that'the penalty of the two bonds was cumulative, and that she was entitled to recover against each surety the full amount of the penalty of its bond. The Indemnity Company on the other hand contends that $1,000, the prescribed penalty in the bond under the ordinance, represents the full amount which in any event could be recovered against the sureties upon the two bonds, and that, the Casualty Company having pa,id $900, the Indemnity Company’s liability could not exceed $100.

The question thus presented is not free from difficulty, and, so far as we have been able to determine, is .without exact parallel in the decided cases.

The contention of plaintiff in error is grounded in the main upon the proposition that the sureties in the two bonds occupied towards each other the position of cosureties, and each was required' to contribute to any sum the other might pay upon the liability so as to make their loss equal.

[1] This position we think is unassailable in so far as the liability might not exceed the penalty of either bond. There is a unanimity of authority upon this question rarely found among adjudicated cases. The first case in which it appears to have been decided, as pointed out by judges and text-writers, is Deering v. Winchelsea, 2 B. & P. N. R. 207, decided by the Exchequer in 1787. The question there arose as to the right of contribution between three single sureties upon three separate bonds executed at different times to secure to the Crown the faithful performance of the duties of a custom’s official. The net loss to. the Crown was slightly under £4,000. It was held as between the sureties that each was liable for one-third of the loss. In the course of the opinion it is said:

“The point remains to be proved that contribution is founded in contract. If a review is taken of the cases, it will appear that the bottom of contribution is a fixed principle of justice and is not founded in contract.”

A clear and succinct statement of the rule in such matters follows:

“It is universally admitted that sureties for the same debt or obligation must divide the loss between themselves, though they are liable in obligations of different dates and with different penalties, even though one bond was given without the knowledge of the sureties on the other bond. 10 Cent. Law J. 264.”

Among other authorities to the same effect might be cited: Lacy v. Rollins, 74 Tex. 566, 12 S. W. 314; Rush v. Bishop, 60 Tex. 177; Thompson v. Dekum, 32 Or. 506, 52 Pac. 517, 755; Rudolf v. Malone, 104 Wis. 470, 80 N. W. 743; Ketler v. Thompson, 13 Bush (Ky.) 287; Gilbert v. Board of Education, 45 Kan. 31, 25 Pac. 226, 23 Am. St. Rep. 700; Postmaster General v. Munger, 2 Paine, 189 (Fed. Cas. No. 11,309); U. S. v. Hoyt, 1 Blatch. 326, Fed. Cas. No. 15,409; 21 R. C. L. 948 ; 27 A. & E. Ency. of Law (2d Ed.) 483; 32 Cyc. 17; Stearns on Suretyship (2d Ed.) 263. This rule, however, does not meet the issue in the present case, since the loss recovered against the principal exceeded the combined penalties of both bonds.

[2]

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Bluebook (online)
237 S.W. 1109, 1922 Tex. App. LEXIS 247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-indemnity-co-v-murray-texcommnapp-1922.