Allison v. President of the Farmers' Bank
Opinion of the Court
The Declaration was specially demurred to, because the breaches were not set out with sufficient minuteness; and it was insisted in the argument, that tho amount of each particular sum, withdrawn by the Teller at each particular time, should have been specially stated. I think 1he breaches were well assigned, both upon (he English and American cases; and I refer to Strum v. Farrington, 1 Bos. & Pull. 160; Barton v. Webb, 8 Term Rep. 459; Carlin v. Chalklin, 3 Mau. & Selw. 502; Craghill v. Page, 2 Hen. & Munf. 446; Winslow v. Commonwealth, Ibid. 439.
Upon the special verdict, it is clear, (and indeed, was admitted,) that tho Appellant is responsible for the sums comprised in the 13th, 13lh and 14th findings of the Jury; these being direct and clear breaches of Fray ser’s official bond. The great controversy was upon the 4th, 5th, 6th, 7th and 8th finding-»; and as to these, the Counsel for the Appellant contended, that he, as surety for Frayser, bound himself only that Frayser should faithfully perform tho duties assigned to, or trust reposed in, him, as Accountant; not that he should commit no felony: that the takings stated in the 4th, &c. findings, were not connected with the duties of an Accountant, as expressly found by the Jury; hut were pure and simple felonies, committed by Frayser, rx c-caling tho money from tho Teller’s drawer: that, therefore, ihe Appellant was not. liable for these monies, frsl, because the i. lings were no breaches of the bond; ser.oudly, because, if they wore breaches, they wore felonies, and the felony merged the treNp.cs. so far at. io.as;, that no civil action could be maintained, till the fi-iony was proseemed to conviction or acquittal. On this Iasi poi it, yh nigh I have examined it much, and at one time thought the ease turned on it,) I shall $av not a word, because I am now' satisfied, ifc-'t it docs not fairly arise, as the first question disposes of ali inese findings. After stating in their 4t.h, &c. findings, the manner in which Frayser took and concealed the various sums contained in those findings, tho Jury, in their 10th finding, say, “ We find that the said Frayser was not, at any time while he was Accountant at the said Office of Discount and Deposit, nor in any wise by his said office of Accountant, or by the regulations or usuages of the end Bank there, entrusted with, or put, in possession of, the monies kept in the Teller’s cash drawer, or of nnv
I am, therefore, of opinion, that so far as relates to these findings, the Judgment be reversed, and entered for the amount of the 12th, 13th, and 14th findings, with interest from the 1st of January 1818, till paid.
This is an action upon a bond executed by an officer of the Bank and his sureties, with condition faithfully to perform the duties assigned to, or trust reposed in, him, as Accountant, and to he of good behaviour in office, so long as he continued therein. The Declaration sets out the condition of the bond, and assigns various breaches: 1. In availing himself of his office, fraudulently to withdraw and appropriate to his own use, divers large sums of money belonging to the Bank. 2. In fradulently keeping the books of the Bank, and fradulently omitting proper entries therein, whereby he himself fraudulently got and obtained, and others fraudulently got and obtained and appropriated to their own use, divers other large sums of money belonging to the Bank. 3. In permitting fraudulently, and by the fraudulent keeping of the books, divers persons to over-check, and thereby obtain other large sums of money from the Bank, to which they were not entitled. 4. In
failing to post charges, and enter as debits to any person or persons, divers large sums of money paid by the Bank upon checks prseent
To-this Declaration, a special demurrer was filed, assigning fob causes of demurrer, that the Declaration claimed no damages, and that the assignment of breaches was too general; not stating, in any single instance, time or place, names or sums of money.
I do not think, that in an action upon a bond with collateral condition, it is necessary to state, in the conclusion of the Declaration, the amount of damages sustained; for, if it be stated, the Plaintiff, in such cases, can recover more- damages than are laid in the Declaration. Yet in all cases, there ought to be an averment in the Declaration, that the Plaintiff sustained some damage, by reason of the facts upon which the action is founded. In the cases in this Court, in which it has been held that no damages need- be stated in an action of debt, although the amount of damages was not stated, yet it was averred- that the Plaintiff had sustained damage; and in these cases, there were verdicts. In all the Books, it is laid down,that in turn must conclude an allegation that the Plaintiff has- sustained damage; I cannot find in which the failure to make that allegation, was to upon is no rase reported, in which the question arose. It is probable, that no English Pleader ever omitted this averment in the Declaration. There is in this Declaration, no intimation that any acts or omissions of the Accountant, or the failure to pay the penalty of the bond, produced any damage to the Plaintiffs. But, in the place where this latter averment ought to have been made, we find an averment that the principal obligee had absconded.
The Declaration in the case of Allison v. The Bank,
It is admitted, that the sums of money amounting to $3,115 33 cents, mentioned in the 12th, 13th, and 14th findings of the Jury, arc properly chargeable on the Book-keeper’s-sureties; but, as to those mentioned in the4th. 5!h, 6th, 7th and 8th findings, amount
'rea^ damage was the conseque?2ce of those acts done in breach of the were entitled ter whether these consequences were direct or Í7tdirect, so that they could be distinctly traced to that cause, and to no other. Whethci the loss of the money was really a consequence of those acts, was purely a questio?2 of fact belonging to the Jury exclusively; and I thin/cthcy have distinctly found, and intended to find, that the loss was the consequence of the taking and concealment, and that he was enabled to ta/re and conceal, by means of acts in violation of die condition of the bond. If, upon the other facts specially found, the Court, if in the place of the Jury, would have made a contrary inference, that would be the proper ground, for a new trial, and would not justify the Court in declaring the fact to be contrary to the verdict, and thereupon pronouncing a final Judgment. I think, not only that the Court is bound by the verdict, but that the Jury, in finding thus, did not indulge any rash or unfounded presumption. It cannot be said, that the loss could not possibly be the consequence of those acts; or, even that it probably wafe not. The Jury state the manner of keeping and examining the books daily; from which it is clear, that there was a moral certainty that if the books had been truly kept, the taking would have been immediately discovered; and that might, and probably would, have led to the detection of the thief, the recovery of the money, and the prevention of any futuro losses by the same means. The possibility that the taking might not have been detected, or if detected, traced to Fray ser, or, if traced to him, the money might not have been regained by reason of his flight, or any other imaginable cause, can hardly be considered as decisively outweighing the contrary probabilities. Suppose it to be the duty of the Book-keeper, to give immediate notice to the Cashier, if he should discover it in inspecting the books, that some one had overdrawn, and the money was lost to the Bank; would it be defence to or even that the who had got the money, might have, or did in fact, fly the or have been, or was in fact, before the money could have been recovered, of him, if the Accountant had douo his duty? 1 think not. One who flies, may if promptly pursued, he retaken even in a Foreign Country, and the money regained; and one who is insolvent may pay, by means of his friends,' to avoid imprisonment or disgrace. Depriving the Bank of a chance, however small, of indemnifying themselves, and by an act violating his official duty, I think subjects the Accountant and his sureties to a responsibility, which can only be measured by the full amount of the money taken and lost.
Upon the question, whether the felony- of the principal is a bar to, or a suspension until he is prosecuted criminally, of the action on his bond, I have no doubt. I have examined with great care the Ifinglish doctrine on this subject, from its origin to the present time. But, as this case is not to turn on that point, I shall not slate at large the grounds of the opinion that I have formed, but confine myself’ io a mere summary of the result of my enquiries and reflections upon it.
We find no trace of any thing-likc this doctrine in the Books of the
The rule in question has never been practically extended, or distinctly declared to extend, to any case, in which the suit was not gainst the felon himself, and founded on the felonious act, as thi
I think, that upon the merits, the Judgments in these cases were right.
The first question in these cases arises on the demurrers to the Declarations. I have some doubts on this question; but, on the whole, am inclined to support the Declarations.
This is an action of debt for the penalty of the bond, which is one with collateral condition for the faithful discharge, by the principal obligor, of his duties as Accountant in the Bank. They are several actions against each surety, for the sum in which they be-«mo jointly and severally bound with their principal.
There are two ways of declaring; one, simply in debt on Ihe bond, in which case, if the Defendant craves oyer of the condition, and pleads performance, the Plaintiff must reply and set out the breaches; or, if it goes to a Writ of Enquiry without plea, the Plaintiff must assign his breaches, &c. The Judgment is for the debt sued for, to be discharged by the damages found on the breaches assigned; and the will stand as for breaches which may be recovered on a Scire Facias setting out new breaches. This is by virtue of the Act of Assembly (1 Revised Code, 509;) before which, only one breach could be assigned, as the assignment of more would be duplicity; and however small that breach, the whole penalty was recovered, and the party was driven into a Court of Equity, to be relieved against the penalty. The other mode of declaring, is, to set out the condition in the Declaration , and assign the breaches in it. This latter mode has been pursued in this case.
There is no question, that an assignment of breaches against the sureties need not be more specific, than if assigned in a Declaration against the principal, (Barton v. Webb, 8 Term Rep. 459;) and the question is, whether it is sufficient to say, after setting out the-: particular manner in which the principal violated his duty in each particular case of loss, that thereby divers large sums, &c. were lost, without setting out in detail each particular sum. It seems that if, after the words ££ divers large sums,” the Declaration had gone on to state, ££ amounting to the sum of $ 1,000,” or any other gross sum, it would have been sufficient; though the Plaintiff would pot be bound to prove that identical sum to have been lost. This ^hows that particular ivvm is not traversable, or necessary to Ik*
As to the merits. It seems to me, that the great question in controversj’' in those cases, rests on the first breach assigned, and the verdict in relation to it. It avers, that William Yrayser, the prin™ eipal obligor, did not faithfully perform the duties assigned to him, or the trust reposed in him as A.ccountant, and was not of good behaviour in Ms said office, of Accountant, particularly in this, that whilst acting as'Accountant, he availed himself of the said office of Accountant, fraudulently to withdraw, and did fraudulently withdraw from the said office, &c. and appropriate to his own use, divers large sums of money belonging to the sa’id Bank.
It is not pretended, I presume, that the first branch of this assignment, in the words of the condition, had it stopped there, would have been a good assignment of a breach in a case like the present; and I understand it as merely preliminary to the specific assignments afterwards set out, in the same manner as if repeated before each. This specific breach, then, unless it can be construed to mean that the fraudulent taking was perpetrated in the course of the fulfilment of the duties assigned, and the trust rep/osed in him as Accountant, could have been supported by evidence simply proving, that whilst acting as Accountant, he availed himself of his contiguous stand to the Teller, or his drawer, and had taken from the pocket of the Teller, or from his drawer, monies belonging to the Bank. This would be a simple felony, which a dealer in the Bank, admitted behind the counter, or which a servant in the Bank, so admitted, might be guilty of, owing to the advantage of his situation so obtained. Had the breach been thus broad, or if it can be so considered, it seems to me that it would be substantially bad, and would be reached by the demurrer.
But, it is connected with the actings of Frayser in his office, not only by the general allegation preceding it, that he had violated the duties of his office, but it connects the act done with his acting, at the time it was done, as Accountant, “ whilst acting as Accountant;” and it lays’ it as a fraudulent abduction of the money, not a felonious taking, or such a taking as the preceding statement would show to be a felonious taking. It is laid to be a taking connected with his duty and trust as Accountant, and so only a breach of trust.. It might have been so. It might have been a duty assigned to him, to pay and receive money in the absence of the Teller; and so he would have been entrusted with the money. Had .the breach been simplV, that being Accountant, and entitled to stand
The Defendant’s second plea intended to put this matter of tact in Issue; (hat is, to aver that the taking was not connected with his duties or trust as - Accountant, and was a mere fraudulent taking, of which any other man might have been guilty, and so the surety not liable. The replication to this plea, as I understand it, denies this, and affirms, that the damage sustained was by reason of the nonfeasance, malfeasance, and misbehaviour of the said William Fray ser, in his office of Accountant, as the Plaintiffs in declaring have alledged. Had the Plaintiffs demurred to this plea, thereby admitting that the loss sustained was by means of’a felonious stealing by the Accountant, but that nevertheless the sureties were liable as ful-, ly as the thief himself was, that question of Law would have been thus fairly before the Court. But, the case is not rested on that. The taking is insisted on as a mere fraudulent breach of that trust and confidence reposed in him as Accountant, and for the faithful discharge of which he gave the bond sued on.
The Jury, in their first finding, negative the idea that F ray ser ever acted for, or performed the duties of, the Teller, in his absence from indisposition, or in any short or occasional absence; and in the 1.0th finding, it is stated, that be was in no wise by virtue of Ids office, or by the regulations or usuages of the Bank, entrusted with, or put in possession of, the monies kept in the Teller’s cash-drawer, or with the safe-keeping, receipt, or disbursement of monies: and that he fraudulently and improperly, and without the consent or knowledge of any other officer of the Bank, took and carried away from the Teller’s cash-drawer, and to his oion tise concerted, the said several sums of money, in the 4th, 5th, 6th, 7th and 8th findings; a\\A also concealed such taking in the manner in said finding stated, with intent to convert them, and well knowing he had no right to take and convert them. In other words, they find a felonious stealing and carrying away, setting out all the means of concealment, &c. which accompanied the various acts of felony. This is the substance of the finding, taking it all together.
Suppose the means of concealment had not proved quite so good, but that the Cashier had, within an hour after the first transaction, or the next day, taken the trouble to compare the books, &c.; and the Accountaut, seeing he must be discovered, had absconded with the monev: would his surofv hare been responsible? Suppose he
But, this question seems to me not to be presented by the breach assigned, or by the replication to the second plea. Both put it, as aforesaid, on the breach of trust, duty, confidence, &c. belonging to his actings and doings in his office of Jlccountant. The verdict negatives this. No loss, as to the cases in these first findings, arose to the Bank, or would have arisen, by any of them, if he had not stolon the money. Suppose, in order to pave the way for taking the money, he had made false entries, &c. had actually spindled a check, but had taken it off afterwards, on finding that he could not take the at that time. The books so that no loss was sustained, these acts, however contrary to duty and good intention, would not have been a breach of the bond, so as to subject the sureties. An intention to commit a felony, without doing it, is not indictable.
The verdict finds, that no loss was sustained, as to the matter in these first findings, ‘except what arose from the act of taking the money from the drawer.
I think, therefore, there can be no Judgment for those sums: but, that we can enter Judgment for those in the other findings.
In the case of Jillison v. The Farmers’ Bank, the objections to the Declaration are first to be considered. The most of these oh
Pi the, case of Barion v. Webb, the bond was conditioned for a ciolisctor’s aceomuitig for, ami paying over to ihc Plaintiffs as Treasurers of a Charity School, such voluntary ivmtributi ms as he should eolfcct for the use of the charily. The breach assigned was, that the collector “had received diveis large sums of money, amounting in the whole to a large sum of money, to wit, the sum of 100/. of and from divers as and for clivers voluntary couirihutions, &c. for the use of the Charity School,” and had not ac-■i-.ounted and paid, &e. This assignment was demurred to, because the Plaintiffs had.not named, or ascertained the persons from whom the collector had-reeeived the several sums of money mentioned in the breach, so as to enable the Defendant to meet the charge; and because the broach was too vague anti general. This breach, also, was held to be
The objection to the breaches in the case before us, as to generality and vagueness, is not stronger than it was in the cases just referred to; so far at least, ns relates to the designation of persons, and of the sums received fiom each. It is true, that in the cases cited, the aggregate amount of the sunt is slated. But, this appears to me to be an unimportant particular; for, the Plaintiff would not be bound to prove the amount stated; nor, was Ihc statement of the aggregate amount necessary for enabling the Defendant to meet the charge. The objection as to vagueness and generality, is, therefore, entitled to no weight.
The breaches hove been objected to on another ground; that the lime is not stated with sufficient precision. The Declaration, it is true, has not paid much rc-gard to form, in this respect. But, although the precise time is not mentioned, ye.t the breaches have been as been committed by Fraywr, whilst acting
The objection, that there is no statement of any amount of damage as having been sustained by the Bank, appear# to me to be hivolous. This is an action of debt on a bond, the penalty of which is forfeited by a single breach of the condition, however small the damage occasioned by it may be. At Common Law, the Judgment was entered accordingly, for the whole penally; and the Jwdginent is still to be thus entered. But, by the provisions of .the Statute, it is to be discharged by the damages assessed by the Jury, for the breaches proved. But, the Plaintiff is not bound, even since the Statute, to do more than to state the condition of the bond, and to assign the breaches; nor is it ur.ua! for him, in assigning breaches, either in the Declaration or replication, to state the damages occasioned by the breaches. Thé Plaintiff's right to recover » Judgment for the whole penalty, is established by any breach of the condition; and it is the province of the Jury to assess the amount of damage sustained, and by payment of which, the Judgment for the penalty is to be discharged.
The demurrer to the Declaration was rightly overruled.
I come now to the merits of the case, as disclosed by the special verdict.
The Jury, in their 4th, 5th, Oth, 7th, i ih, 1.3th, 13t.li and I 4f.fi findings, set forth various acts of Frayser, by which the Bank, has, in fact, lost $35,615 32 cents. But, as the Jury doubted hew five the Appellants are liable therefor, they pray the advice of the Court and say, “ if upon the whole ease, the Court is of opinion, that the Defendant is liable to the Plaintiffs, to the amount of $10,000, there we find for thr Plaintiffs the debt in the Declaration mentioned; and if the Court shall be of opinion, that the Defendant is- liable for a less sum than $10,000, then we find for the Plaintiffs the debt in the Declaration mentioned, to be discharged by the payment of such sum as the Court shall hold the Defendant liable for, upon the facts stated, with interest from the 1st of January, in Ihe year ISIS, till paid; so as such sum, with intei-est, exceed not $10,000.” The Superior Court, being of opinion that the Law was for the Plaintiffs^ gave Judgment for the debt in the Declaration mentioned.
It was admitted in the argument by the Counsel for the Appelhurts, and indeed it Could not be denied, that the acts of Frayser^ producing the losses stated in the 12th, I 3th and 3.4th findúígs of the Jury a-nd amounting hi $3,115 33. arc violations
But the great question is, whether the Appellant is liable for any part of the losses sustained by the Bank, as set forth in the 4th, 5th, 6th, 7th and 8th findings of the Jury; which losses, as stated, amount to $ 22,500; or, in other words, whether the acts of Frayser, set forth in these findings, as producing the losses therein men tioned, are violations of the condition of the bond.
The condition of the bond is, that Frayser “ shall faithfully perform the duties assigned to, or trust reposed in, him, as Accountant, and shall be of good behaviour in office, so long as he shall continue therein. ” As this bond was thus entered into solely for the purpose of making Frayser and his sureties responsible for the faithful discharge of his duties as Accountant, and for his good behaviour in that office, it is obvious that even Frayser himself would not be responsible on this bond, for any act of his whatever, that did not pertain to the duties of his office as Accountant. If, therefore, he had forcibly, or fraudulently, or feloniously, taken from the Bank, and converted to his own use, money belonging to the Bank, with the possession, safe-keeping, receipt or disbursement of which, he was not entrusted as Accountant, even Frayser himself would not be liable for it, in an action on this bond; because the act complained of, not pertaining to the duties of his office, as Accountant, is entirely out of the condition of the bond.
This principle, applied to the facts in the 4th, 5th, 6th, 7th and 8th findings, will be decisive of the question as to the liability of the Appellants, for the various losses therein set forth. These findings show that Frayser took fraudulently, improperly, and without the consent or knowledge of any other officer of the Bank, from the Teller’s cash-drawer, divers sums of money belonging to the Bank; and thej7 show the means by which he contrived to conceal such taking. These means of concealment consisted partly of the improper use of checks confided to his care, as Accountant; and partly, of fraudulent entries and omissions in the books kept by him, as Accountant. But, the Jury, in their 9th finding, say expressly, that all the ssms of money mentioned in the 4th, 5th, Cth, 7th and 8th findings, “ were wholly lost to the said Bank, by reason of the said Frayser obtaining the same from the Teller's cash-t ¡rawer;" and in their 10th finding, they also-say expressly, that Frayser “ was not, at any time, while he was Accountant, nor in anywise by virtue of his said office of Accountant, entrusted with, or put in possession of, the monies kept in the Teller’s cash-drawer, nr of any other money of the Bank, or entrusted with the safe
But, it is contended by the Appellees, that the Jury, in their 5th finding, suy, that Frayser took from the Teller’s drawer, the sums mentioned in that finding, “ by the fraudulent use of checks which had been previously paid in the regular way, and been confided to him as Accountant;” and that in the 9th finding, the Jury farther say, as to ail the sums of money mentioned in the 4th, 5th, 6th, 7th, and 8th findings, that “ the said Frayser was enabled to obtain the same, by the fraudulent and improper use of checks in his possession as Accountant.” It must be admitted, that it is difficult to say with certainty, what the Jury meant by the use of these expressions. A reference to the 4th, 5th, Oth, 7lh, and.8th findings themselves, will Show that all the sums of money therein mentioned, are found by the Jury to have been fraudulently and improperly taken by Frayser from the Teller’s cash-drawer, without the consent or of any other officer of the Bank; and the 10th finding shows, that such taking was theft. It is most manifest from the facts stated by the Jury themselves, that the use of the checks was not necessary to accomplish the taking, the stealing, of the money from the Teller’s cash-drawer; and it is very remarkable, that as to the monies stated in the 6th 7th, and‘Sth findings, no use whatever was made of any check, either as the means of taking the money, or of concealing the taking. In those cases, the taking was absolute, direct stealing, without any use of checks; and it was concealed Solely by false entries and omissions in the books; and it is also manifest, that the Jury in the 4th finding, do not refer to the use of checks as a means of effecting the taking, but only as a means of concealment. And even in the 5th finding, the Jury, referring to the 4th finding, speak of the “ like fraudulent use of checks.” The whole verdict must be taken together; and taking it in this way, I think it probable, that the Jury meant no more by the expressions quoted in the 5th and 9th findings, than that the first improper use of a check, prevented a discovery of the first theft; and that that improper use was the remote and indirect cause of his being enabled to commit subsequent thefts; since, if the first theft had been discovered, it would have led to Frayser’s removal from office, and would consequently have deprived him of the opportunity of com.mitting the others.
It cannot be denied, that Frayser’s fraudulent use of checks entrusted to him as. Accountant, and that his fraudulent entries and orriissii. In the hook’s kent. by him as Accountant, were violations of ihe condition of h.is official bond. This was admitted, even by the Counsel for the Appellant; arid if the Jury had said, that the sums of money mentioned in the 4tli, 5th, 6th, 7th and 8th findings, were lost to the Bank by such fraudulent use of checks, or such fraudulent entries and omissions, there -would be no doubt that tho Appellant would be liable for them, to the amount of the penalty of the bond. But, the Jury have not said so. On the contrary, they have said that they were lost by his theft of monies, with which, as Accountant, he had nothing to do.
If it be said, that these violations of duty, in the improper use of checks, would justify at least nominal damages, I reply, that where breaches arc assigned, and real damages arc given for them, thei’e is no room for the application of the Common Law principle as to nominal damages.
1 am of opinion to reverse the Judgment, and to enter It for ihe debt in tho Declaration mentioned, to be discharged by the payment of $3,115 32 cents, with’ interest 1 hereon frorrv’the 1st of January, ISIS, till paid, &c.
The foregoing remarks of .Twlge Guf.fn apply to the case of Caldwell v. The Bank.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.