Kast v. Pacific Surety Co.
Kast v. Pacific Surety Co.
Opinion of the Court
The facts in- this matter were stated in the opinion of the district court of appeal of the first appellate district, division one, as follows:
“This is an appeal from a judgment in favor of the defendant in an action brought by the plaintiff to recover upon an undertaking, issued by the defendant, as surety, for the purpose of securing the release from attachment of certain property, attached in an action entitled Allen v. Chatfield.
“The appeal is on the judgment-roll alone, it being agreed that the findings precisely present the facts involved. Allen, as plaintiff, commenced an action in the superior court, in and for the city and county of San Francisco, by filing a complaint against Chatfield, to recover the sum of five thousand dollars with interest and costs. At the time of issuing the summons, Allen procured certain property of Chatfield to be attached by the sheriff of the city and county of San Francisco, and by the sheriff of the county of Lake. Chat-field and Allen, by their attorneys, made and carried into effect a mutual agreement, pursuant to which Chatfield procured from the Pacific Surety Company, the defendant and respondent in this action, the written undertaking sued on here. Allen, through his attorney, received and accepted the undertaking, and in consideration thereof released the attachment which had theretofore been levied.
“The bond issued by the Surety Company appears to be in the usual form. It was entitled in the court and cause *452 and, after reciting the commencement of the action and the issuance of the attachments, continues: ‘And whereas the said defendant is desirous of having said property released from said attachment upon the acceptance by plaintiff of this undertaking, in lieu of the attachment effected as aforesaid; Now, therefore, the Pacific Surety Company ... in consideration of the release from said attachment of the property attached as above mentioned does hereby undertake in the sum of six thousand (6000) and no/100 dollars and promise that in case the plaintiff recover judgment in the action, defendant will, -on demand, pay to plaintiff the amount of whatever judgment may be recovered in said action, together with a percentage or interest and costs. ’
“This undertaking, as before stated, was delivered to the attorney for the plaintiff Allen. It operated to secure the release of the property attached. In arranging for the bond all the steps followed were taken independently of the sheriffs. The whole matter was arranged and carried into effect by and between the parties to the action, through their respective attorneys, without intervention or instrumentality of the court or either of the attaching officers. The undertaking was not given to, or approved by, either of the sheriffs, nor was it received by them, and it was not filed in the action. The sheriffs were not given any information or notice relative to the undertaking until after it had been arranged for and given by the Surety Company to the plaintiff. Under the personal direction of Allen’s attorney, written instructions for the release of the property attached were then delivered to the attorney for Chatfield and were by him delivered to the sheriffs.
“Judgment was thereafter rendered and entered in the action in favor of the defendant Chatfield, . . . Allen at once perfected an appeal to the supreme court. He failed, however, to comply with the requirement of section 946 of the Code of Civil Procedure, which provides that an appeal does not continue in force an attachment unless an undertaking be executed and filed on the part of the appellant for that purpose.
“On the appeal Allen was granted a new trial (Allen v. Chatfield, 172 Cal. 60, [156 Pac. 47]), and, upon the retrial of the action in the lower court, judgment was entered in his favor and against Chatfield in the sum of $7,300.50. By *453 various assignments, the plaintiff in this action became the owner of this judgment. He made written demand upon Chatfield and the Surety Company for payment of the same, which, not having been made, and no writ of execution having been issued in the action, he brought this suit against the Surety Company to recover upon the undertaking.
“The trial court decided that the attachment issued in the action of Allen v. Chatfield was discharged, and the undertalcing was released by the judgment in favor of the defendant in that action, and the failure of the plaintiff Allen to execute, and file, the undertaking provided in section 946 of the Code of Civil Procedure. It is the contention of the appellant that the bond in question was a common-law bond, executed directly to the plaintiff as a matter of first intention, and received by him in lieu of the property attached, and therefore, not a statutory undertaking subject to the provisions of the code. Respondent’s position is that, regardless of the nature of the bond, whether ‘statutory’ or ‘common law,’ it was an undertaking received in the action and as such released the attached property by operation of the code sections.”
This is a correct summary of the facts and claims of the parties, except for the statement that the bond “appears to be in the usual form.” The bond is not in all respects in the form of the statutory bond contemplated by section 540, of the Code of Civil Procedure, the only section which is claimed to be applicable here, it being obvious that the bond was not one given in pursuance of an order of court under sections 554 and 555 of the Code of Civil Procedure.
However liberally we construe the words “any undertaking received in the action,” we are satisfied they must be confined to such undertakings as are intended to be given in pursuance of some statutory provision relative to attachments. We can see no good reason for the delivery to the defendant of any undertaking other than one given by the plaintiff as a condition precedent to the issuance of the writ of attachment, and the statute might well be construed as referring to this undertaking, but however this may be, it certainly was not intended to prohibit the parties to an action from providing by contract between themselves for security for the payment of any judgment that might ultimately be given in an action, altogether regardless of the provisions of our laws relative to attachment. Such an intention to interfere with the right of private contract is not to be attributed to the legislature in the absence of language clearly compelling it. To our minds the language used compels no such conclusion. The words “any undertaking received in the action,” reasonably construed, mean at most undertakings of the sort concerning which the legislature was dealing in its provisions relative to attachment; in other words, undertakings for the giving of which it was making statutory provision. Those were the only undertakings that could be “received in the action,” within the meaning of that phrase. It must be conceded, in view of our decisions, that various restrictions upon the right to maintain action upon bonds provided in the chapter of our Code of Civil Procedure, relative to attachments have no application to bonds not purporting to be given pursuant to any provision of such statutes. (See Smith v. Fargo, 57 Cal. 157; Kanouse v. Brand, 11 Cal. App. 669, [106 Pac. 120]. See, also, Passow etc. v. United States etc. Co., 177 Cal. 31, [170 Pac. 1124].) Such bonds, if based on a sufficient consideration, are valid common-law obligations for the payment of money in accordance with the conditions therein expressed, altogether without reference to and independent of the statutory provisions. Whether any liability exists thereon must be determined solely by reference to the pro *457 visions of the bond, which constitutes the contract between the parties. We are satisfied that neither section 946 of the Code of Civil Procedure nor section 553 of the Code of Civil Procedure can fairly be held to have any application to or effect upon such a bond. So far as we can see, the expressions in various decisions and text-books relied on by learned counsel for respondent have reference solely to undertakings purporting to be given in pursuance of some statutory provision, and are not applicable under such facts as appear in this case.
In' view of our conclusions upon the matters discussed, other points made by respondent are of no moment. Upon the facts found by the trial court plaintiff was entitled to judgment against defendant for the full amount of the bond, with interest thereon from the date of the demand, viz., April 19, 1918.
The judgment is reversed, with directions to the trial court to enter judgment upon the findings already made in favor of plaintiff and against defendant for the sum of six thousand dollars, with interest at the legal rate thereon from April 19, 1918.
Shaw, J., Olney, J., Sloane, J., Wilbur, J., Lennon, J., and Lawlor J., concurred.
Reference
- Full Case Name
- MARIUS J. KAST, Appellant, v. THE CALIFORNIA CORPORATION, Named: PACIFIC SURETY COMPANY, Respondent
- Cited By
- 3 cases
- Status
- Published