Caperton's Ex'r v. State Bank & Trust Co.
Caperton's Ex'r v. State Bank & Trust Co.
Opinion of the Court
Opinion of the Court by
Affirming.
Following his appointment, Scott executed bond as Special Commissioner in the following form:
“We, S. E. Scott, Special Commissioner and Receiver of the Madison Circuit Court, Principal and W. B. Smith, J. W. Caperton, J. A. Sullivan, J. C. and D. M. Chenault, sureties, do hereby covenant to and with the Commonwealth of Kentucky that the said S. E. Scott shall correctly and faithfully discharge all the duties of his office as Special Commissioner and Receiver in all the cases in which he has been so appointed aforesaid, and shall properly account for all the money received and pay or deliver the same when, and as ordered by the court, in the cases, as set out on page 372, Order Book 37, which are too numerous to mention herein.
Witness our hands this January, 1904.
S. E. SCOTT, Principal,
JOHN C. CHENAULT, Set.,
D. M. CHENAULT,
J. A. SULLIVAN, security,
J. W. CAPERTON,
W. B. SMITH.”
Attest: — Roy C. White, C. M. C. C.
In April, 1911, the appellee, State Bank & Trust Company, filed its petition in the Madison Circuit Court against Scott, the two Chenaults, W. B. Smith, J. A. Sul
To the petition answer was made by the Chenaults, Caperton’s Executor and W. B. Smith. The first paragraph was a denial in- substance that any of them ever executed any bond for Scott in the Walker case. The second paragraph took the position that by the terms of the bond the sureties only became responsible for Scott’s action as Special Commissioner in the cases set out on page 372, of order book 37; and that the Walker case was not set out on that page. The third paragraph alleged that the appointment of Scott as Special Commissioner in the Walker case was void for the reason that one Thorp was then the regular Commissioner, and that he was not interested either as attorney or party in the Walker case (Ky. Statutes, Section 399); that Scott had not been appointed by agreement or consent of the parties to the Walker suit (Ky. Statutes, Section 400); and that no Special Commissioner could be appointed save under the conditions named in these sections of the Statutes. The fourth paragraph set up that the plaintiff had been guilty of laches and gross negligence in prosecuting the claim against Scott without the knowledge or consent
The first argument urged in behalf of appellants is that the Walker case does not appear on page 372 of the order book, and that by the very terms of their obligation the sureties are bound for the good conduct of Scott only in the cases named upon that page. It is urged that sureties are not bound beyond the terms of a strict construction of their undertaking; and that since the bond mentions only the cases named upon page 372 of the order book, their liability could not, by any fair construction of the bond, be extended to include other cases. The proof, as a matter of fact, showed that the Walker case was the fifth from the top of page 374 in the long list of cases above named. This position, in our judgment, is not well taken; for the obligation of the bond is that Scott should correctly and faithfully discharge his duties “in all the cases in which he has been so appointed.” The reference to page 372 of the order book is not, in terms, one to convey the intent of the sureties upon the bond to obligate themselves' as sureties only in the specific cases named upon that page; but on the contrary its purpose was to indicate the place in that order book where the general order appointing Scott as Special Commissioner might be found. It is a custom well-known in the preparation of legal documents, in making reference to any matter of record, to refer to the beginning page of the specific order, deed, mortgage or the like, which is made the subject of reference. For instance, a deed may be recorded upon some four or five pages of a deed book. If, in the drawing of a subsequent deed or mortgage, it is desired to refer to such deed, it is customary to refer to it as the deed to be found in deed book 37, page 372, for example. As an illustration of this custom attention may be called to the amendment of 1904, to Section 495 of the Ky. Statutes; whereby it
It is next urged that the court erred in sustaining the demurrer to the second paragraph, wherein was taken the position that Scott’s appointment was void because neither the conditions named in Section 399 or 400 of the Statutes, existed to authorize his appointment. The case of the Louisville Public Warehouse Co. v. Miller & Tilford, 26 Ky. L. R., 351, is cited to sustain their position. We do not, however, have this question before us. Litigants and the public at large have been protected by wise provisions of the statutes in the faithful discharge of the duties of public officials. Those of them wbo have trusts imposed upon them, and the collection and handling of public and private funds, are required to give bond for the faithful conduct of their offices and for the payment over of the moneys handled by them. Litigants
It is next objected that the delay of the trustee in enforcing collection was negligent and unfair to the sureties ; and that, as Scott was solvent at one time after he owed this obligation, the loss should be suffered by those who permitted the time to slip away until his condition had been so altered that, not Scott, but his sureties must pay. Generally, he who holds a debt upon which others than the debtor have obligated themselves as sureties, owes to them an obligation to deal fairly, and strictly to observe every burden which the law places upon him for the protection of the sureties. But we cannot say that a mere indulgence to the principal is unfair to the surety when no other legal rules intervene to demand that there shall be no indulgence. The surety, when once the debt has matured, has the right at any time to pay the debt and to proceed to enforce payment from his principal. So, if by any valid agreement or arrangement, the creditor extends to the principal the right to pay at some future definite time, the surety is released; for he loses his right then to pay and to proceed against his principal. This general principle runs through all the multiform relations of debtor, principal and surety. Here, however, the delay was merely the delay of indulgence. The record does not disclose that the plaintiff, -ever, for a single in
It is also urged that the trustee had not the right to sue without joining the Commonwealth. If this were a defect, it was waived by the failure of the defendants to file a special demurrer to the petition, as is provided in Section 92, Civil Code of Practice.
The conclusions reached render it unnecessary for us to discuss the questions as to the sufficiency of the bill of exceptions, and as to whether the bond in question was good as a common law bond.
For'the reasons given the judgment is affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.