Merrimack River Savings Bank v. Curry
Merrimack River Savings Bank v. Curry
Dissenting Opinion
dissenting: I am unable to concur with the views expressed by the majority of the court in this case. In my opinion, a proper consideration of the circumstances under which the bond was made, and of the object of its execution, requires that such a construction be puc upon it as will give effect to the ’evident intention of the parties to .provide for., the pay
Opinion of the Court
The opinion of the court was delivered by
In April, 1885, the plaintiff commenced a suit in the district court of Shawnee county, which was afterward removed to the circuit court of the United States..for the district of Kansas, against Rufus Bean, Susan A. Bean (husband and wife), and Christopher E. Schmidt, to recover of the Beans the amount due on a promissory note secured by mortgage, and to foreclose said mortgage. Christopher Schmidt also held a mortgage on the same property, and was for that réason a party 'defendant. At the time of the commencement of this suit an application was made for a receiver. The defendants Bean and his wife tendered a bond in the sum of $1,200, upon which W. S. Curry was surety. The court accepted this bond, and overruled the application for a receiver. The bond is as follows:
“ Know all men by these presents, that we, Rufus Bean and Susan A. Bean, as principals, and W. S. Curry and-, as sureties, all of Shawnee county, in the state of Kansas, are held and firmly bound unto the Merrimack River Savings Bank, a corporation duly organized and existing under and .by virtue of ■the laws of the state of New Hampshire, in the penal sum of $1,200, lawful money of the United States, to the payment of which, well and truly to be made, we do hereby jointly and severally bind ourselves, our heirs, executors, administrators, and assigns, firmly by these presents. The conditions of this obligation are such that, whereas the said Rufus Bean and Susan A. Bean, on the 15th day of December, 1881, executed and delivered to said Merrimack River Savings Bank their*127 certain promissory note for the sum of $6,000, due 5 years after date, with interest thereon at the rate of 8 per cent, per annum, payable semiannually according to the coupons attached to said note, and to secure the same executed and delivered unto the Merrimack River Savings Bank a certain real-estate mortgage, which said mortgage was, however, junior and subsequent to' certain other mortgages held by Christopher E. Schmidt, to secure the sum of $3,500 and interest ; and whereas, said Merrimack River Savings Bank, as plaintiff, has commenced á suit in the district court within and for the county of Shawnee, in the state of Kansas, against said Rufus Bean and Susan A. Bean and Christopher E. Schmidt, as defendants, praying a personal judgment against said Rufus Bean and Susan A. Bean for the amount due on said note and mortgage, and also for a foreclosure of said mortgage, and the sale of said mortgaged premises to pay said indebtedness; and whereas, said plaintiff lias made an application to said court in said action for the appointment of a receiver therein to take charge of said mortgaged premises and collect the rents and profits thereof, which said order said court refused to make, but ordered this bond, conditioned as herein set forth, to be executed in lieu thereof : The condition of this obligation is such that, if the above-bounden' Rufus Bean and Susan A. Bean shall, within 10 days after the sale of said mortgaged premises under a decree of foreclosure rendered in said action, pay to the Merrimack River Savings Bank the balance, if any, to the amount of this bond, due upon the judgment rendered in favor of said Merrimack River Savings Bank in said action, after applying the proceeds arising from the sale of said mortgaged premises to the payment of the mortgaged indebtedness- thereon, under the order of said court, in accordance with the priorities established by said court, then this obligation shall be void ; otherwise shall remain in full force and effect. Dated this 6th day of May, 1885. Rufus Bean.
Susan A. Bean.
W. S. Curry.”
After this report was filed, in January, 1887, the plaintiff applied to the court, asking that the taxes levied and assessed against the real estate, amounting to $282.68, be paid. The court ordered the master in chancery to pay these taxes out of the proceeds of said sale. On the 16th day of February, 1887, W. S.
Why was this bond given? There was an action pending to foreclose two mortgages against the property of the principals on this bond — one belonging . to the plaintiff in error, and the other to one Christopher E. Schmidt. These were the only things under consideration at the time, and to provide for the payment thereof this bond was entered into. One of these must be a first, and the other a second lien on the land. The court must and would decide between them. This would constitute the "priorities” to be established. If the plaintiff’s was decreed to be a prior lien, then the liability of the bond would only be the difference between the purchase price (or proceeds) and the amount due on the judgment rendered. If the purchase price was more than the judgment,
We cannot believe that it was. contemplated by the. parties at the time the bond was given that the term “proceeds ” meant the amount due after all expenses were deducted, or that they intended to be bound for the payment of any and all liens that might be established against this property. They used the’term “proceeds” in its usual well-known general signification, “The sum, amount; money arising from the sale; the purchase price; the-bid.” We think the language of the bond admits of but one construction, viz. : That the proceeds (that is, the purchase price; the amount bid) shall be applied to themortgage
This bond was given in a legal proceeding. The parties could very easily have made it express what they "now claim it means. They did not, but have acted under it. The record shows that the surety paid (under the order of the court, adding interest and deducting costs) the sum of $606.14, and there is ■no showing made that any objection was ever entered
The contention of the plaintiff in error calls to mind the noted litigant in the court of last resort at Venice, reported unofficially some centuries ago. He, being in about the same frame' of mind and occupying the position they do here, stated his claim :
“ Till thou oaust rail the seal from off my bond, Thou but offend’st thy lungs to speak so loud. ... I stand here for law.”
Shylook v. Antonio, Merchant of Venice, act IV, scene I.
We can best meet this position by using the plea the plaintiff in that case urged, as he saw his right of recovery melting away before the argument of Portia r
“Is it so nominated in the bond? ’
I cannot find it; ’t is not in the bond.”
Shylook v. Antonio, supra.
And the courts of the present day have sustained this doctrine: "That a surety is a favorite of the law, and has a right to stand upon the precise terms of his obligation.” "That his liability cannot be extended by implication.” (Burton v. Decker, 54 Kan. 608.)
The judgment of the court will therefore be affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.