Sargent v. Wallis
Sargent v. Wallis
Opinion of the Court
Prior to the time G. O. Cherry became guardian of the estate of the appellee, he took into his possession United States four per cent bonds amounting to three thousand dollars. This was done under an agreement with his wife, who was then the guardian of the estate of the minor to whom the bonds belonged. At the time he received the bonds he executed an instrument as follows:
“ Know all men by these presents, that I have this day borrowed from my wife, Mrs. C. C. Cherry, guardian of the estate
“ Given under my hand and seal, this the thirtieth day of October, 1878, in the city and county of Galveston, State of Texas.”
Subsequently to the execution of this instrument and receipt of the bonds, he hypothecated them, and after this, was appointed and qualified as guardian, and having been required to do so, he, on July 13, 1882, executed a new bond as guardian, to which the persons who are made defendants, with him became sureties; but prior to the time his last bond was executed, the debt for which the bonds had been hypothecated not having been paid, their holder disposed of them. On the seventh day of August, 1884, Cherry was removed from the guardianship, and the person who serves as guardian in this case, was appointed and qualified in his stead.
From the time that Cherry qualified, until the last report made by him, and inclusive of that, he charged himself with the face value of the bonds as so much money in hand, but credited himself with the maintenance of his ward and some other matters which more than equaled the interest due on the bonds, but he never had on hand the money which his reports showed to be on hand, nor did he ever regain possession of the bonds. He was directed to turn over to his successor the ward’s estate, which he showed to be in his hands, and this he failed to do, whereupon this action was brought against him and the sureties on his bond to recover it.
The petition is such as to authorize a recovery against the guardian and his sureties, under any view of the case, if the law affects them with liability under the facts. A judgment was rendered against the principal and all the sureties, and from it only the surety Sargent appeals.
The transaction through which Cherry obtained the bonds from his wife was unauthorized, and the bonds remained a part of the ward’s estate, and he may be held either as a debtor to his ward, that relation attaching before he became guardian, or
The bond of the guardian bound him, not only to account for and pay over such money or other effects of his ward as came within his hands, but also to faithfully discharge the duties of guardian of the estate of his ward according to law. The bonds were the property of his ward, and it was his duty continuously, from the time of his first qualification, to regain and maintain possession of them; and the fact that his own act, before he became the guardian, rendered such action necessary, in no way relieved him from that duty. For the faithful discharge of this duty the sureties on the last bond were as much bound as were those on the first.
If the person who held the bonds through the hypothecation, or any other person, cáme into their possession through illegal means, with which the guardian was in no way connected, before his appointment or afterwards, it certainly would have been his duty to recover them, as any other property belonging to his ward’s estate; and the fact that he was an actor in the illegal diversion certainly can not relieve him or his sureties from liability for his failure of duty in this respect. “The guardian of the estate shall use due diligence to collect all claims or debts owing to the ward, and to recover possession of all property to which the ward has a title or claim; provided there is a reasonable prospect of collecting such claim or debts, or of recovering such property; and, if he neglects to use such diligence, he and his sureties shall be liable for all damages occasioned by such neglect,” is the plain declaration of the statute. (Rev. Stat., art. 2546, 2616.)
If we regard the guardian as having been a debtor to his ward’s estate, on account of what transpired before his appointment, the position of himself and sureties would be no better. If a person appointed executor, administrator or guardian be a debtor admitedly, at the time of his appointment, to the estate of which he is made the representative, having voluntarily assumed the trust, and his sureties having obligated themselves that he will faithfully execute it, and thus prevented the appointment of any other person, and being unable to sue himself, he must, in legal contemplation, be considered to have paid
The indebtedness of the guardian would be assets, for which, as other assets, he and his sureties must account. The rule that sureties are not liable for the misappropriation of assets made before they became sureties, is not applicable in this case; for the duty violated—whether it consists in failure to recover the bonds or to account for assets, if the guardian be deemed to have been a debtor, and therefore to hold for his ward a sum of money equal to his indebtedness—is one continuous in character.
There is no error in the judgment, and it will be affirmed.
Affirmed.
Opinion delivered March 11, 1887.
(Chief Justice Willie did not sit in this case.)
Reference
- Full Case Name
- R. P. Sargent v. Kate Lee Wallis
- Cited By
- 12 cases
- Status
- Published
- Syllabus
- 1. Guardians and Wards.—A guardian who, before his appointment and qualification as such, obtains illegal possession of the ward’s property and disposes of it before his appointment and qualification, but who, in his account, charges himself with its value as so much money on hand to represent it, constitutes himself a debtor to the ward’s estate, and the sureties on his bond are responsible for his failure to turn it over to the ward or his successor in the guardianship. H. Same.—By the terms of the statute it is made the duty of a guardian to use due diligence to collect all claims and debts owing to the ward, and to recover possession of all of his property; and whether the guardian by his own wrong, in illegally disposing of the ward’s property before his appointment, constituted himself the ward’s debtor, or whether it was his duty as guardian to regain possession of the specific property, in either event the sureties on his bond would he liable for his default. (Rev. Stat., arts. 2546-2610.) 3. Same.—The rule that sureties on a guardian’s bond are not liable for a misappropriation of assets made before they became sureties, has no ap- ' plication to the ease above stated. Whether the guardian’s default consisted in a failure to recover the property illegally disposed of by him, before his appointment, or to account for assets, if he be deemed to have been a debtor, and therefore to hold for his ward a sum of money equal to his indebtedness, the duty violated was continuous in its character. 4. Same.—If a guardian by his own wrong constituted himself a debtor to his ward’s estate before his appointment, and by qualifying as such prevented the appointment of another to protect the estate, being unable to sue himself, he would be considered in legal contemplation as having paid the debt to himself, and to continuously hold the money as long as his representative character continues, for the payment of which to the ward the sureties on his official bond are liable.