Britton v. City of Fort Worth
Britton v. City of Fort Worth
Opinion of the Court
This suit was brought by the city of Fort Worth to recover money charged to have been received by John Nichols as treasurer of said city and misapplied by him.
Nichols qualified as treasurer on the 6th day of April, 1883, and his first term of office expired on the 21st day of April, 1885, at which time he was re-elected treasurer and gave a new bond. He died in August, 1885. Appellants were sureties upon his first bond.
We copy the following statement of the pleadings of the defendants from the brief of appellants’ attorneys filed in this court:
“Defendants all answered by filing general demurrer and general denial, and appellants filed the following special plea, to-wit: And now come all the defendants herein, and for further answer say that on, to-wit, the-day of March, 1884, the said John Nichols, being then treasurer of the city of Fort Worth, and defendants being then his sureties, made his annual report as he was legally bound to do, wherein he gave a statement of the sums received and paid out by him as such treas
“ That the city council of said city had the right, power, and opportunity, and it was its legal duty directly or through its agents, to examine into the accounts of said Nichols as aforesaid to see if they were correct, and if the said Nichols had the sums in his hands belonging to said city as shown in said report, and had full power and authority under the law to make settlement with said treasurer on plaintiff’s behalf. That these-defendants had not the means nor the opportunity to examine into the said Nichols’ accounts and finances to ascertain what sums he in fact might have on hand belonging to said city, but were compelled to trust to the said city in conducting such settlement with said treasurer to make all necessary investigation, and the right to rely on said city, and did sorely upon it for such purpose; and when the said city council made the settlements aforesaid with said treasurer these defendants had the right-to believe and did believe that such settlements were final and correct, and that they were discharged from all liability on his said bond up to the-date of said settlement last mentioned.
“Defendants further aver that after the settlements aforesaid between the plaintiff and the said treasurer Nichols on, to-wit, the 10th day of April, 1885, the said Nichols was re-elected treasurer of said city of Fort.
The court sustained an exception to this plea, and appellants complain of the ruling. We think the exception was properly sustained. It was incumbent upon the sureties to keep a watch upon their principal for the protection of the city, rather than the duty of the city to keep such watch on its treasurer for the benefit of his sureties.
We do not think that the approval by the city of the treasurer’s reports amounted to an assertion that the treasurer actually held in his handsthe money so appearing by the reports.
The verdict of the jury was for $9000 principal and $2096 interest. The statement made from the books showed that the total amount of the unexpended balance in the hands of the treasurer on the 20th day of April, 1885, was $23,299.33, of which $10,417.29 belonged to the school fund. But the evidence indicates that before the last mentioned date the treasurer had paid out on account of the school fund the sum of $8966.73, for which he had not been credited on the books. The last amount being deducted left his total deficiency $14,332.60, of which the deficiency to the school fund was the sum of $1450.56.
It was conceded that the sureties upon the bond in suit were not liable for the school fund. Broad v. The City of Paris, 66 Texas, 119. The
• The record contains evidence of the misapplication of $10,070 by the treasurer previous to the 20th day of April, 1885. While the evidence shows that there Avas a deficit in his accounts at the date of his death in August following, it is not made certain by it that a greater deficiency than the amount mentioned ($10,070) Avas chargeable to the sureties on the first bond.
In that state of the evidence and of the law it became necessary to instruct the jury as to the distribution of the deficiency existing on the 20th day of April, 1885, between the general fund and the school fund. The court charged the jury as MIoavs:
• “The defendants would not be liable for any school moneys that may have come into his hands as said treasurer that he may have failed to pay Over at said time to himself as his own successor. The evidence shows that John Mchols during his term as treasurer preceding April 21j 1885, received both school moneys or money on the school fund and moneys on other funds. In determining or estimating what money he Should have paid over at the time of the approval of his second bond as treasurer on the 21st of April, 1885, to himself as his OAvn successor, you will find what moneys of plaintiff before that time came into his hands as treasurer, both on the school funds and the other funds, and what moneys he had disbursed or paid out for plaintiff on all such funds, both school and other funds. You will then find what balance, if any, he should have had in his hands at said time on all such funds. You Avill then find Avhat balance he should have had on hand at said time of the school fund so received and disbursed by him, and also what balance he should have had on hand of all the moneys on the other funds so received and disbursed by him. You Avill then find what amount of money from all the funds, both school and other, he did actually have on hand at such time and turn over to himself as his own successor. If after complying with the above directions and instructions you should find that John Yiehols had on hand at the time of the approval of his second bond and turned over to himself as his own successor a less amount than he should have had and paid over, you will next consider and ascertain Avhat amount of deficit or shortage Avas on funds other than school funds (and such other funds will for convenience be determined the general fund). You will look to the proportion that existed betAveen the school fund, if any, that should have been on hand and paid over, and between the general fund, if any, that should have been on hand and paid over at the time of the approval of his second bond. To give you a definite and plain mode of calculation, you may use the following rule: As the whole amount of funds, both school and general, that should have been on hand at said time is to the amount of general funds that should have been on hand, so is the difference between said whole amount and the amount that
As the funds were intermingled in the hands of the treasurer it is impossible to say that any sum less than the whole that was misappropriated by the treasurer belonged exclusively to either fund. In such a case we think a pro rata appropriation of it to both , funds is the correct rule. The court clearly stated the principle to the jury. The direction as to the mathematical process of applying the rule was incorrect. But the verdict shows that the principle was followed by the jury, and their verdict, if in anything different to what it would have been under a correct .application of the principle, was for somewhat less than the plaintiff was ■entitled to recover.
We do not find in the charge any error for which we think the judgment should be reversed, and it is affirmed.
Affirmed.
Delivered October 21, 1890.
Reference
- Full Case Name
- A. M. Britton v. The City of Fort Worth
- Status
- Published