Wolfe v. Fidelity & Deposit Co.

11 Ohio App. 58, 30 Ohio C.A. 593, 1919 Ohio App. LEXIS 286
CourtOhio Court of Appeals
DecidedJanuary 9, 1919
StatusPublished
Cited by3 cases

This text of 11 Ohio App. 58 (Wolfe v. Fidelity & Deposit Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wolfe v. Fidelity & Deposit Co., 11 Ohio App. 58, 30 Ohio C.A. 593, 1919 Ohio App. LEXIS 286 (Ohio Ct. App. 1919).

Opinion

Kunkle, J.

In the lower court the plaintiffs in error were defendants and the defendant in error was plaintiff.

It appears from the petition that the plaintiff below, a surety company, sought to recover judgment against defendants below, as trustees under the will of Henry C. Pirrung, deceased, in the sum [59]*59of $2,500, for premium on a bond upon which it was surety for such trustees.

Defendants below were required by law and the order of the probate court to give a bond or bonds for the faithful discharge of their duties as such trustees. The amount of such bond or bonds to be so given by said defendants as such trustees was fixed by the probate court at the total sum of $1,750,000.

The defendants below jointly gave three several bonds as such trustees. Two of such bonds were in the sum of $500,000, and one was in the sum of $750,000. One of the said $500,000 bonds was executed April 5, 1915, and, among other things, was conditioned as follows:

“That if the said trustees should well and truly do, perform and discharge with fidelity all and singular the duties which they, as such trustees, should do, perform and discharge, and act in all things as required by law, and faithfully account for all money and funds, that might come into their hands as such trustees, then said bond should be void; that otherwise the same should be and remain in full force and virtue in law.”

A copy of the bond is attached to the petition. The petition recites that the defendants are still acting as such trustees under said appointment and that the estate has not been settled or the trust terminated; that to procure the plaintiff to sign and execute the bond as surety the defendants and each of them severally made application to plaintiff in writing, and in said application defendants and each of them agreed that in consideration of the plaintiff executing or guaranteeing the bond the defendants [60]*60would pay in advance the sum of $2,500 premium, upon execution of the bond, and the sum of $2,500 annually thereafter until plaintiff should be furnished with satisfactory and conclusive evidence'of the termination of its liability under said bond; that plaintiff accepted said applications, and each of them, and duly signed and executed said bond, and thereby became liable for any default of said trustees, or either of them, in the particulars recited in said bond; and that the liability of plaintiff on said bond has not been terminated.

The petition also states that a further premium in the sum of $2,500 has become due and payable, but defendants, have failed and refused to pay the same or any part thereof, and therefore asks judgment in the sum of $2,500.

Defendants below filed an answer which in brief states that on April 5, 1916, on their application and showing that the total amount of their said bonds, namely $1,750,000, was excessive and burdensome, and unnecessary for the protection of said trust estate, the probate court — ordered in due form made and entered upon said application and the evidence adduced — reduced the bond or bonds which should thereafter be given by said trustees to the total sum of $1,250,000, and ordered that the trustees should immediately -give a new bond or bonds in the total sum of $1,250,000, with sureties to the approval and satisfaction of the court and conditioned according to law, for the faithful discharge of their duties as said trustees; that on April 5, 1916, said trustees did, pursuant to said order, give new bonds as said trustees in the total amount of $1,250,000, with sureties to the accept[61]*61anee and approval of said probate court; and that thereupon said probate court duly ordered that said bonds given April 5, 1915, including the bond upon which said plaintiff company was surety, should be no longer operative for the protection and indemnity of said trust estate for accounts or transactions thereafter occurring, and that said plaintiff company was, on said 5th day of April, 1915, to take effect on and after said 5th day of April, 1915, released and discharged as surety on said bonds.

Plaintiff below demurred to the answer upon the ground that the probate court was without jurisdiction to release plaintiff as surety on said bond.

This demurrer was sustained upon the ground that the probate court had no jurisdiction to release the surety company, and the court held that the trustees were liable upon their separate applications to the said surety company.

Defendants below not desiring to plead further, a final judgment was rendered in favor of the plaintiff, and from such judgment defendants below prosecute error to this court.

Plaintiffs in error in substance claim that the lower court erred:

1. In holding that said demurrer did not constitute a collateral attack upon a proceeding of the probate court.

2. In holding that the probate court was Without jurisdiction to release a surety unless the legislature first passed a statute authorizing such action, and providing for notice, etc., because the beneficiaries of the estate had a vested interest in the bond.

3. In holding that although defendants had been sued jointly as trustees, they might be held liable jointly as individuals.

[62]*62We have carefully considered the pleadings in this case and also the very helpful briefs filed by counsel. We shall, however, not attempt to discuss in detail the various authorities cited by counsel.

Section 10591, General Code, provides:

“Every trustee appointed in a will, before entering upon his duty as such, must execute a bond with freehold sureties, payable to the state, in the probate court of the county in which such will is admitted to probate, to the satisfaction of the court, conditioned for the faithful discharge of his duties as trustee; except that, when by the terms of a will, the testator expresses a wish that his trustee may execute .the trust without giving bond, the court admitting the will to probate, may grant permission to the trustee to execute the trust with or without bond. When granted without bond, at any subsequent period, upon the application of a party interested, the court may require bond to be given; and, upon the application of an interested party, if deemed necessary, require a new or additional bond at any time before the completion of the trust.”

Section 10214, General Code, provides:

“The provisions of part thifd and all proceedings under it, shall be liberally construed, in order to promote its object, and assist the parties in obtaining justice. The rule of the common law, that statutes in derogation thereof must be strictly construed, has no application to such part; but this section shall not be so construed as to require a liberal construction of provisions affecting personal liberty, relating to amercement, or of a penal nature.”

The section of the code first above quoted, expressly provides for the giving of a new or addi[63]*63tional bond. Under this section of the code the probate court upon the application of an interested party can authorize or require either a new or an additional bond to be given.

We can not concur in the suggestion that the giving of a new bond and the giving of an additional bond mean one and the same thing.

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11 Ohio App. 58, 30 Ohio C.A. 593, 1919 Ohio App. LEXIS 286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wolfe-v-fidelity-deposit-co-ohioctapp-1919.