State v. Cole
Opinion of the Court
delivered the opinion of the court.
By the aet of 1870, chapter 28, the chancery •court of Memphis was abolished, and its business transferred, in equal proportions, to two chancery •courts created for the same district by the names, of the first and second chancery courts of Shelby county, Under this act, on June 14, 1870, the defendant. E. A. Cole, was appointed and qualified as clerk and master of the first chancery court of Shelby county, for the constitutional term of sis years. By the act of 1875, ch. 23, sec. 2, the second chancery court of •Shelby county was abolished, and its business transferred to the first chancery court of Shelby county, which was directed to be thereafter styled the chancery court of Shelby county. On June 23, 1876, the defendant, Cole, was reappointed clerk and master of the chancery court of Shelby county, and qualified by giving three bonds, as required by law. His co-defendants are his sureties on his office bond and on his bond as special commissioner and receiver. The ■third bond given to cover public revenue which might •come to his hands is not in controversy. In November, 1878, Cole resigned the office of clerk and master, and the relator, R. J. Black, was appointed and qualified as his successor. On December 6, 1878, the court made an order upon Cole to pay over to his successor all moneys in his hands by virtue of his late office, and Cole acknowledged service of a copy of the order on the next day. This bill was filed •six days thereafter against Cole and the sureties on
The contest of the sureties is over the following items, with which the Referees have reported that they should be charged upon the bond of Cole as special commissioner and receiver, viz:
First, Amount received by Cole during Ms first'term of office, being the proceeds of sales of property made by [him during that term.$7,210 62:
Second, Amounts received by Cole during his^secondj term .of office from the following sources:
Proceeds of sales made by A. Alston as clerk and master, etc., of the chancery court of Memphis.$ 939 45
Proceeds of sales made by M. D. S. Stewart as clerk and master of the second chancery court of Shelby county.“ 438 81
Proceeds of sales made by Cole himself during his first term 6,475 09-
One objection made to all of these items, although-not much pressed, is that the sureties on the bonds*, under the last ■ appointment of Cole as clerk and master, can only be held liable upon the ground that Cole was his own successor, and also the successors of Alston and Stewart, whereas he was, under his first appointment, as well as the other officers named
It is next insisted as to the first of the above-named items that the defendant sureties are not liable-
A more difficult question, in view of one of our decisions, is whether the items in controversy as above specified are chargeable to the sureties upon the bond of the principal as special commissioner and receiver, or on the office bond. The office bond is in the penalty of $10,000, conditioned to safely keep the records of the court, and faithfully discharge the duties of his office.” The other bond is in the penalty of $30,000, and conditioned to “faithfully account for all property, and funds which may at any time come into his hands as special commissioner or receiver, and shall truly and faithfully deliver and pay over such property and funds to the persons who
By the act of 1794, ch. 1, which antedates the formation of our State government, clerks of court were required'to give bond “for the safe keeping of the records and the faithful discharge of the duties of his office.” In this state of the law, and with only such a bond, a clerk and master of the chancery court was authorized by order of the court to receive certain money, and by the same order was appointed receiver and directed to loan the money at interest. The clerk received the money, but failed to loan it. This court held that he and his sureties on his official bond were liable for the money, because it did not appear that he had done any act a's receiver: Waters v. Carroll, 9 Yer., 102. It was said by Judge Beese, in delivering the opinion of the court, that in England a receiver is an indifferent third person appointed ’ by the court to receive the rents of lands pending litigation, who is usually selected by the master, before whom he passes his accounts, and is ordinarily required to give security. “ In the constitution of our courts of chancery,” he said, “ we have united the office and duties of master, so far as they exist under our system, with those of clerk; but no statute, has been passed to annex the office and duties of receiver to those of clerk and master.” He then notices the existence of a practice in our chancery courts of sometimes appointing the
The practice was, however, not discontinued, and •the Legislature afterwards passed the act of 1849, ch. 150. By the .first section of this Act, the clerks of the circuit, chancery and supreme court, and their sureties upon the bond given under the act of 1794, were made liable under the bond for all money that may come into their hands by virtue of their appointment by the court as special commissioners to sell •property, or as receivers. The second section made it the duty of the judges of those courts to require the clerk to execute a bond in such sum as the judge may deem sufficient, conditioned for the faithful accounting for and paying over of all such sums as may come into their hands as such special commissioners. In Williams v. Bowman, 3 Head, 679, the liability of a clerk of the circuit court was considered, who had given bond as required by the second section of the act, and who had sold property by order of the court and retained and collected the notes after he, went out of office. The court held -that the act did in some sense annex the office of special commissioner and receiver to that of clerk, but not so as to merge the former in the latter, and -that the duration of the appointment of special commissioner not being limited by law, it might con
The act of 1852, ch. 164, required all clerks of court to give a special bond to faithfully account for and pay over as the law directs all money which may come to their hands by the sale of property under orders of the court. By section 3, the court might declare the office vacant if the clerk refused to give the bond. In the State ex rel. v. Blakemore, 7 Heis., 638, 654, the learned Judge who delivers the opinion of the majority of the court, says that the office of commissioner is by this act made a part of the office of clerk, but the requirement of a special bond must be taken as a merger of all liability under the bond of office for his duties as commissioner into the new bond. And yet, curiously enough, he held the clerk and his sureties liable on his bond, of office, which covenanted for the faithful discharge-of his duties as clerk and master, “for the proceeds of sales made by. his predecessor which fell into his hands upon succeeding to the office, and for all moneys that came into his hands otherwise than by sales-made by him, and for any moneys which, though they came into his hands as commissioner, were nevertheless retained under the orders of the court, and
The Code provides, • section 320, that each court shall have a clerk “ whose duty it is to attend the court, and perform all clerical functions thereof.” By section 326 every clerk is required to give bond “ for the safekeeping of the records, and for the faithful discharge of the duties of his office;” and by section 327, also a bond “to account for and pay over all moneys arising from taxes on suits, fines and forfeitures ;” and by section 328, a bond also “to cover-property or funds which may, at any time, come to-
These provisions plainly show a' legislative intent ■that clerks of court, in addition to what the Code, sec. 320, denominates the “clerical functions'” of the -office, may be appointed to perform, ard may per
All of the funds in controversy were derived from sales of property, without any trust being attached to them by any order of court. They were therefore held by Cole as special commissioner. They fell within the condition of the bond given as special commissioner and receiver, and must be charged to-the sureties accordingly.
One other exception of the sureties is to that part of the report of the Referees which finds that the decree below on the office bond, which was for the full penalty, should-bear interest. But this court, upon the affirmance of a money decree in an equity cause, has always allowed interest thereon: Trainer v. Skein, 10 Yer., 369. And it is now so provided by statute, Code, sec. 3165. The interest is on the decree and not on the penalty. And it can make no-difference which party appeals, the interest being an incident to the affirmance.
The complainant' has excepted to the report of the
The exceptions to the report of the Referees will be disallowed, the chancellor’s decree modified in accordance with the report and this opinion, and a decree entered accordingly, with the costs of the cause. -against the defendant.
Dissenting Opinion
delivered the following dissenting opinion :
By Code, section 326, every clerk of the court, before entering upon the duties of his office shall enter into bond, with sufficient surety to the satisfaction of his court, in the sum of $10,000, payable to the State, and conditioned for the safe-keeping of the records, .and for the faithful discharge of the duties of his office. 'This is imperative, as well as the bond required by the next section, as to taxes on suits, fines and forfeitures. Section 328 is not so, however, but is: “The -several courts may also require their clerks to give bond, with surety, in such sum as the court may •deem sufficient, to cover property or funds which may -at any time come to the hands of such clerks, as -special commissioners or receivers by appointment of the court or any judge thereof.” Section 329: “The failure of any clerk to execute the special bond provided for in the last section shall not subject him to any penalty, but the court may confide the particular
In this ease considerable sums of money were received by Cole as clerk from the two former clerks,. Alston and! Stewart, which had been received by them as commissioners for sale of land, or as clerks, acting in this capacity. A larger sum was in his hands at his reappointment, received by himself from like sources-during his previous term, and upwards of $6,000 was-collected by him during his second term on sales made during former term. It may be assumed there was no default as to this during the former term, and it so remained in his hands until after his reappointment succeeding himself, and is the same so far as the question for decision is concerned, as if he has succeeded another and' different party.
The question is, whether these funds thus coming to his hands, and not the result of sales made by him after the new term commenced, shall be chargeable on the general clerk’s bond, or on the new bond given by him as special commissioner, required by section 328?
This means in case he shall act as such commissioner or receiver, and' funds come to his hands, no special bond having been ‘given, then he and sureties will be liable for such funds on general bond; so it follows in case of failui’e to exact a special bond, under-
I have carefully examined all our cases cited by my brother, Cooper, and while they do hold the payment of the funds in the hands of a predecessor into the hands of his successor, will discharge the sureties, and that if the funds are in the hands of the clerk, and he is his own successor, no default having occurred, the sureties for the second term are liable for such funds, still none of them have undertaken to fix this liability in eases of funds in his hands as commissioner, on the second commissioner’s bond, in preference to the general official bond. In fact, I think the principle announced, and the theory on which the cases go, require a different holding. In none of the cases cited was this question made.
The old case of Waters v. Carroll, 9 Yer., 102, held that the sureties were liable for funds received •by the clerk from a former receiver, he having himself been appointed receiver, and, ordered to loan the money out. It was held to be in his hands as clerk, because he had done no act in obedience to the order, and had assumed no control over it as receiver. The theory of this holding is, that the duties of clerk and receiver are distinct, and farther, that where money is paid over by a receiver to' a clerk, he receives and holds it as clerk, until he takes it under an order of •court in a different capacity.
Without going over the cases cited, Bowen v. Evans, 1 Lea, 107; Smalling v. King, 5 Lea, 585; Yoakley v. King, 10 Lea, 67, 73, it suffices for this argument, to say, while it. is held that payment to successor, having the funds in hand without default, makes the sureties on clerk’s bond liable for these funds, the question whether this liability shall be fixed on the sureties on second bond as commissioner, over the sureties on the general official bond, is not raised, discussed or decided. By Code, section 805, it is now provided in all cases where an office is vacated, “ all books and papers, property and money belonging or appertaining to the office, shall be handed over to the qualified successor.” I concede too, that if the successor receive it in the capacity' of commissioner, than by virtue of section 771, et seq., the bond would cover it. But the question is, does he receive this money as commissioner under the fair construction of the Code, or in accord with the whole theory of the question as found in our decisions? I think not, but that he receives the money virtute offieio, by virtue of his official position, which is that of clerk. To this office is added, by our law, a bond to be given as such officer, to cover
The case of Waters v. Carroll presents the point clearly, lor there the clerk received the money from a former receiver, and was by the court appointed receiver to loan out the fund. He failed to loan it, and his sureties as clerk wore held liable because he did no act under the appointment as receiver. So in this case, he receives the money, or it may be property, as clerk by law, by virtue of his appointment or election to his office, and holds it in that capacity, until he is directed to do some act in the other capacity of commissioner or receiver, or does-such an act, and thén all such acts are covered by the commissioner’s bond. The opposite conclusion can only be reached by holding that he becomes an official commissioner and receiver for the term of his office, by virtue of appointment as clerk or clerk and master; and this is rebutted by all the provisions cited. The language of section 328 is not impera
Suppose the clerk had given no special commissioner’s bond, and the money had been paid over by '■'Stewart and Alston to him, would he not have received it as clerk, and been liable on ’general bond? No one .could doubt this. It is equally clear under .•section 805, as clerk he was entitled to demand and ¡receive it, and as he could be clerk without a commissioner’s bond at all, it follows that by law. the ■one party was bound to pay, and the other entitled to receive as clerk. It might be he could not have received it as ’ commissioner, because it may be, another may have been appointed to perform that function in that office.
This theory is further supported by the language ■of section 328, that the bond shall be taken “ to cover property or funds which may at any time come to the hands of such clerk as special- commissioner •or receiver, by appointment of the court or any judge thereof. If the statute had stopped at the words “come to the hands of the clerk as special commis.sioner,” etc., it might have served better to have supported- the conclusion sought to be maintained, but when it is added “as special commissioner or receiver by appointment of the court, it is seen the liability -does not ¡[attach by reason of his office only, but to
In accord with this theory, it was ' held in the case of. Tanner v. Dancy, 4 Heis., 483-1-5, that on failure to pay over funds in his hands to the successor, the former clerk was liable to judgment on motion, or even by the action of the court alone,' the judgment to be in the name of the clerk and master. Judge Nicholson, in delivering the opinion, says, page 485 : “ The object of the proceeding is to have the funds which the former clerk and master was withholding from the office, paid into the office where they belonged. It was therefore proper to enter up-judgment in the name of the clerk and master who-was the rightful custodian of the funds.” This was a case where the fund was in the hands of the former clerk as commissioner, it being proceeds of a sale of land ordered to be sold by the court.
For these reasons, I think, all funds not derived from sales, or from some act performed under appointment of the court, or in performance of duties of commissioners during the official term, are covered by the official bond, or may be covered by a special bond under section .330, but can never be held to be covered by the special- commissioner’s -bond under the facts in this case. It may turn out a hardship in this particular case, but in general the bonds will be found sufficient — at any rate the law gives ample means
The principle of this opinion excludes the $7,000 and upwards item, the first in the account, where ■the money had been collected during the first term, -with the other items received from Stewart and Alston.
It does not exclude the last item of upwards of •■$6,000, where the sales had been made before reappointment, but money collected afterwards. This act ■of collection of sale money is the act of a special •commissioner, and may well be referred to that character, he collecting it necessarily either ■ in such capacity, and probably under decrees of the court in most pases. It is like the case in 9th Yerger, where •clerk was ordered to loan out the money as receiver. If he had done any act under that order he would •have been responsible on his bond as receiver, and not as cierk:' He could not in my judgment receive money from a former clerk or term except in his ■character of clerk, and this is either covered by his general bond, or may be by a special bond under .section 330.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.