Wyman v. Robinson

73 Me. 384, 1882 Me. LEXIS 58
CourtSupreme Judicial Court of Maine
DecidedMay 9, 1882
StatusPublished
Cited by18 cases

This text of 73 Me. 384 (Wyman v. Robinson) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wyman v. Robinson, 73 Me. 384, 1882 Me. LEXIS 58 (Me. 1882).

Opinion

Peters, J.

The important question presented by this case, is, ivhether, in an action upon a replevin bond against principal and sureties, when the damages exceed the penalty of the bond, the recovery must be limited to the penalty, or Avhether it may exceed the penalty so far as to include interest upon the amount of the same from the date of the breach of the bond. We think the reasonable doctrine to be that, so far as necessary to secure the damages sustained by the obligee, the recovery may go [387]*387beyond the sum of the penalty, by allowing interest on such sum from the date of the breach; such interest not to be considered as any part of the penalty, but as damages for the non-payment or detention of the penalty after it becomes payable and due.

It is commonly said that the damages cannot exceed the penalty of a bond. Nightly understood, the statement is true. But what is the penalty in a bond for the payment of damages ? It is the amount which the obligors agree to pay, if the whole penalty be needed for the purpose, for the damages sustained by the obligee by a breach of the bond, the amount to be paid as soon as the breach occurs. The obligee is to have the penalty at a particular and definite time. Immediately upon a breach of the bond the penalty is due to him. If he gets it then, he gets what the contract provides; if he gets it later, he gets less than what the contract provides. If, then, the penalty be paid after the breach, interest should be added for the detention of the penalty, to make it equivalent to a payment at the date of the breach.

After the penalty is forfeited, it becomes a debt due. The sureties then stand in the relation of principals to the obligee, owing him so much money then due. To ascertain the precise-sum may require calculation, but that is certain which can be made certain. The rule, common to contracts generally, applies, that where money is due and there is a default in payment interest is to be added as damages. The defendants should pay damages for detaining the damages which they bound themselves, to pay at a prior date. The penalty of the bond is payable because the principal did not fulfill his obligation; the interest is the penalty upon the sureties for not fulfilling theirs.

In some cases, courts appear to have been reluctant to allow the interest to commence before the date of the writ upon the penal bond. But why not, logically, from the default as well as-from the date of the writ ? Interest is allowable from the date of a writ, only because a defendant is considered in default from that date. Why not to be reckoned from an earlier date, if the-default ante-dates the writ? In some cases, of course, it would not 5 in this case it does. It might as well be urged that the [388]*388■costs of an action upon a bond should not be allowed, as that no interest should be, where the costs would carry the execution beyond the penalty named in the bond, for costs are as much of the nature of a penalty as interest is when interest is allowed as damages.

• We feel strongly assured that the rule, as' declared by us, is maintained by a great majority of the leading American authorities. There appears to be some obscurity and confusion in quite a class of cases, growing out of the want of distinction between what is debt or penalty, and what is merely damages for a detention of the debt or penalty some courts trusting to the general rule, without stopping to notice differences. Mr. Sedgwick ¡seems to think that, by the English cases, the penalty is regarded -as being the absolute limit of recovery (2 Sedg. Dam. 6th ed. 262). Still, there is some contrariety of view in the English mases, and Sergeant Williams struck the key of the doctrine, in his note to the case of Gainsforth v. Griffith (1 Saund. 51, note 1), saying: "But cases may occur, where the obligee may •recover more than the penalty of the bond, as where, by the breach of the condition, the penalty becomes a real debt due from the obligor to the obligee.”

It was decided in the early case of Williams v. Willson, 1 Vt. 266, that interest upon a penalty could be added to the amount of the penalty, as damages for detention. In Perit v. Wallis, 2 Dall. 252, Shippen, J., expresses the idea in common •sense terms, saying: "In short, the five thousand pounds (penalty), paid with interest at this day, is not, in fact or law, more than the five thousand pounds paid without interest, at the •day it became due.” In Carter v. Carter, 4 Day, 30, it was well stated by counsel, arguendo, that where the whole penalty is given, it becomes a liquidated sum, and, as such, will carry 'interest; and, in same case, it was said, per curiam, "The penalty becomes forfeited on the first breach; and as it then becomes a debt due unconditionally to the obligee, the court may allow interest from that time, but can never exceed the penalty with interest on it from the first breach.”

In Smedes v. Houghtaling, 3 Caines, 48, it was admitted that interest might be recovered against a principal beyond the penalty [389]*389of a bond. It is difficult to appreciate any difference between the liability of a principal and that of a surety on a penal bond. The liability of all the obligors is expressed in precisely the same terms. In Clark v. Bush, 3 Cow. 151, Savage, Ch. J., after reviewing such leading authorities as were in existence at the date of that case, says : " The weight of those authorities is, I think, in favor of the doctrine, that in debt on bond nothing more than the penalty can be recovered, at any rate, nothing beyond that and interest after a forfeiture, even against the principal obligor.” The case of Brainard v. Jones, 18 N. Y. 35, a case upon a replevin bond, is like the case at bar, assimilating it in all particulars, and it was there determined, that interest couldbe added to the penalty from the date of the judgment in the original action, that being the date of the breach of the bond; and the opinion in that case, after a clear and convincing argument of the question, concludes with these words : "The question, in short, is not what is the measure of a surety’s liability under a penal bond, but what-does the law exact from him for an unjust delay in payment after his liability is ascertained and the debt is actually due from him.”

In United States v. Arnold, 1 Gall. 348, Story, J., said: "Notwithstanding some contrariety in the books, I think the true principle supported by the better authorities, is, that the court cannot go beyond the penalty and interest thereon from the time it becomes due by the breach.” In Bank of United States v. Magill, 1 Paine, (C. C. R.) 661, Thompson, J., gave interest only from the date of the action, upon the ground that there was no breach in that case till a demand was made, and no demand before the commencement of the suit.

In Harris v. Clap, 1 Mass. 307 is a very earnest and interesting discussion of the question, in which all the judges actively participated. Sewall J., said: "This court, especially in a case where a surety may be affected, cannot exceed the express, contract of the parties, and the legal effect of it.

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Bluebook (online)
73 Me. 384, 1882 Me. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wyman-v-robinson-me-1882.