County of Richland v. American Surety Co.
County of Richland v. American Surety Co.
Opinion of the Court
The opinion of the Court was delivered by
The complaint sets up three causes of action on three official bonds, given by the defendant, Owens, as supervisor of Richland county, for three consecutive terms of office, of two years each. The condition of each bond is that Owens, as supervisor, shall well and truly perform the duties of his office, as required by law.
The complaint alleges numerous breaches of the condition of each of the bonds, resulting in loss to the county; but it will be necessary to mention only those upon which the Court directed a verdict for the plaintiff. They were in substance, as follows:
1. That Owens, as supervisor, issued warrants, in payment of claims against the county for labor and materials, which were not itemized and verified, as required by law, and without proper security thereof.
3. That he issued warrants in payment of an extra salary or allowance to C. M. Douglas, as clerk of the county board of commissioners, in violation of law.
3. That he signed warrants in blank, and left them with C. M. Douglas, who' filled them up and issued them in payment of false, fictitious and fraudulent claims, having forged thereon the signatures of the necessary number of the members of the county board of commissioners!
Each of these breaches was proved by undisputed evidence. It cannot be denied that, in the particulars alleged, the supervisor violated the positive mandate of the statutes. The amount of the claims so paid was proved by production of the warrants and the claims. Under the first cause of *334 action, they amounted to $1,592.32; under the second, to $6,793.33; and, under the third, to $6,044.36. But as the recovery against the surety could not exceed the penalty of each bond, which was only $5,000, the Court directed the verdict for only $11,592.32, being the full amount proved under the first cause of action and $5,000 under each of the others.
Section 814, vol. I, Code 1902, is as follows: “No member of the county board of commissioners shall vote for an extra allowance to any person who' is paid by salary, nor shall the treasurer of said county knowingly pay to any such person any extra allowance.” By section 763, the salary of the clerk of the county board of commissioners was fixed at $500.
*335 Sections 806 and 814, above quoted, are mandatory, and the supervisor was a member of the county board of commissioners, and its chairman. Sec. 758, vol. I, Code 1902. The requirement that claims of the kind mentioned shall be itemized and verified is jurisdictional, and payment thereof without compliance with the positive mandate of the statute is void, and an illegal disbursement of the public funds. Bank v. Goodwin, 81 S. C. 419, 62 S. C. 100.
But, moreover, when a public officer pays out public funds without compliance with the terms of a mandatory statute, the law will presume that his act is the direct cause of the loss of such funds, and the burden is upon- him to rebut the presumption, and prove that, notwithstanding his violation of the law, no loss resulted. Analogous in principle is the holding that, when a statute, requiring signals to be given by railroad engines approaching highway crossings, is vio *336 lated, and injury results, it will be presumed it was caused by the failure to give the signals. On the first appeal in this case, it was held that if an officer so negligently discharges the duties of his office that loss results, his bond is liable. 86 S. C. 571, 68 S. E. 758.
Again, if one of two innocent persons must suffer by the fraud of another, he must bear the loss whose negligence makes the fraud possible. Since the defendant, Owens, by his negligence, in entrusting Douglas with warrants signed in blank, and his failure thereafter to examine the stubs and scrutinize the claims which were paid with such warrants, enabled Douglas to commit the fraud, his bond is liable for the loss caused thereby. The evidence warrants no other reasonable conclusion than that his negligence was at least a proximate concurring cause of the loss resulting from the forged claims.
This conclusion renders it unnecessary to follow the learned counsel in their discussion of the doctrine of independent intervening causes, and, also, the question whether Douglas was, under the statute, an agent or subordinate of the supervisor, or an independent officer, for whose acts the defendant, Owens, should not be held responsible. These would have been vital questions, if the negligence of Owens and his violation of the mandates of the law had not put it in the power of Douglas to commit the forgeries, which would have been almost, if not quite, impossible, but for the negligence of the supervisor and his disobedience of the law.
*337
Affirmed.
Reference
- Full Case Name
- County of Richland v. American Surety Company of New York.
- Cited By
- 9 cases
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- Published
- Syllabus
- 1. Recording Bonds. — Under the amendment of 26 Stats. 83, to section 948, of Code of 1902, a bond executed in a foreign State by a foreign corporation and probated by a foreign notary under his official seal may be recorded in this State. 2. Evidence — Bonds.—Under .the amendment 23 Stats. 1073, to section 2897, Code of 1902, original bonds issued by a foreign' corporation may be put in evidence on proper notice and their production is ‘prima facie evidence of their execution. 3. Harmless Error. — Erroneously adding into the amount for which a verdict is directed small sums is harmless error, where the amount for which the verdict is directed is much less than the plaintiff is entitled to. 4. County Warrants — Supervisor—Sureties.—Drawing warrants on county funds by a county supervisor and his hoard on claims not properly itemized and verified, is an illegal disbursement of public funds, for which loss to the county, he and his sureties are liable. 5. Ibid. — Salary.—A warrant drawn by a board of commissioners for the salary of their clerk in excess of the amount provided by statute is an illegal disbursement of public funds. 6. Officers — Negligence—Misfeasance.—The failure of a public officer to obey the positive mandate of the law is negligence per se and misfeasance in office. 7. Ibid. — Presumption—Proximate Cause. — Where a public officer pays out public funds without compliance with a mandatory statute, the law presumes his act is the direct cause of the loss to the county. S: County Warrants. — A oouNty supervisor and his sureties are liable for warrants used-by his clerk in paying claims not properly itemized and verified, which were signed in blank and left with the clerk, as his negligence was at least a concurring cause of the loss originated by him. 9.Ibid. — Ibid.—The law does not require the county supervisor to draw the body of a county warrant by his own hand, but it is sufficient if drawn by another, if he sees that it is based on a claim properly itemized and verified and approved by the board. This latter duty he cannot delegate except at his peril and that of his sureties. 10. Ibid. — Evidence.—A claim against a county not itemized and verified according to law is not legal evidence that the county has received for the money paid out on it any benefit, either directly or inferentially, hut payment of such claims raises a presumption of loss. 11. Expert Witness. — The preliminary question as to whether a witness should be allowed to testify as an expert must necessarily be left to the discretion of the trial Judge.