Sayre v. McIntosh
Sayre v. McIntosh
Opinion of the Court
This is an action of debt on a bond of indemnity, the judgment in which, rendered by default, is before hs for review upon assignments of error which may be classified under three headings: first, the insufficiency of the proceedings at rules; second, surprise; and, third, insufficiency of the declaration to sustain the judgment.
The instrument on which plaintiff declares is an undertaking by the Citizens Trust & Guaranty Company of West Virginia as surety to reimburse the- Bank of Ravenswood in an amount not to exceed ten thousand dollars for any loss of money, securities or' other personal property owned by it or entrusted to it, sustained by or through the fraud or dishonesty of Charles L. McIntosh, the president of the bank and principal in the bond.
The declaration charges that, in addition to the usual duties incident to and inhering in the'office of president of a banking institution, McIntosh was to have the custody of the cash and notes of the bank, for and on its behalf to receive and safely keep deposits of money, make drafts and draw checks on the funds of the bank, and negotiate loans and discounts; that the bond of indemnity remained in full force and effect from September 1, 1911, until August 31, 1915, during which period McIntosh continued to be and remain president of the bank, and had the custody of and free access to its cash and notes, and for and on its behalf received large sums of money and deposits, drew drafts upon it, and made many loans and discounts; that the bank during that period continually kept on hand from five to six thousand dollars daily; and, in substance, that because of his embezzlement and unlawful appropriation of the money and securities aforesaid the bank became insolvent, and, as a result of the insolvency, plaintiff was appointed receiver for the bank. Specifically, the declaration further charges that within the Same period McIntosh did fraudulently and dishonestly abstract and appropriate from the funds of the bank so in his custody and under his control, without its knowledge or consent, and at divers times and in divers amounts, the sum of $14,200; by means whereof the defendant trust and guaranty company
Defendants rely more particularly upon alleged irregularities in the proceedings at rules, or rather upon the failure to enter of record any rules while the action was pending thereat in the clerk's office. The only entry appearing on the rule book as of the February rules, 1916, when the process was returnable, is the notation that the process was returned served on the defendants; at March rules, “declaration filed”; April rules, common order confirmed and order of inquiry. The last two entries were regular, if made at the time designated or seasonably thereafter; and the common order confirmed implies the timely entry of the common order or conditional judgment. Except as to the entries of the common order at March rules, and cause set for hearing at April rules, the endorsements on the declaration were the same as the entries on the rule docket. The default judgment of which complaint is made was entered on the first day of the ensuing April term. Two days thereafter, the Citizens Trust & Guaranty Company appeared and moved to set aside the judgment, and in support of the motion filed two affidavits, one by W. G. Peterkin, its president, the other by Walter Pendleton, one of its attorneys. While in his affidavit admitting the filing of the declaration at March rules, as indicated by the endorsement duly made thereon, Peterkin says the comon order was never entered, and that from his information and belief no rules whatever were taken at the March and April rules; and that, although there appear on the law rule docket the notations that at February rules the process was returned served on the defendants, at March rules the filing of the declaration, and at April rules the common order confirmed and order of inquiry, yet when examined by him on April 6th there was upon the docket no such entry; wherefore he concludes that the case was improperly upon the office judgment docket for hearing or trial at the April term. And it is contended that, because this statement in the affidavit is not controverted, the motion to set aside the judgment ought to have been sus
Thh| court has frequently had occasion to review proceedings at rules; yet none of the decisions present the same condition as is found in this ease. For the most part defendants, in support of the motion, rely upon the statements contained in the opinions by way of argument in Gallatin v. Davis, 44 W. Va. 109, and McDermitt v. Newman, 64 W. Va. 119. But in neither of these cases was the observation deemed of sufficient importance to become a point of the syllabus therein. , In the Gallatin case it is said by Judge BRannon that an endorsement on the bill and entries in the rule docket of the return of process served at April rules, and the further endorsement on the pleading that at May rules the bill was “taken for confessed and set for hearing”, will not do. “This suggestion revealed the error at rules. There was no entry in the rule docket. The court in- its decree ordered the bill taken for confessed; but the point is that never, at rules, was the case set for hearing. A defendant is bound to attend at rules when summoned; but I have yet to learn that a case can be entered on the hearing docket, and heard, without an entry at rules setting it for hearing, if the defendant do not appear and thereby waive the error. Proceedings at rules must end and the case go on the hearing docket before there can be decree. * * The entry setting the case for hearing- is indispensable. These proceedings at rules, especially the order to hear the case, are no empty formality.”
Judge BRannon also wrote the opinion in Darnell v. Flynn, 69 W. Va. 146, in which he says: “The argument is that the case was not set for hearing at rules, and an opinion drawn by me is cited from Gallatin v. Davis, 44 W.
The irregularity noted by Judge Robinson in the McDer-mitt case was that, although the cause was remanded to rules to afford an opportunity to bring in a nonresident as an additional party by an amended bill, the only thing done at rules was to direct publication as to him; and as to the party so introduced, the court directed the clerk to enter the rules that should have been entered, which he, although so directed, omitted to do. True it is said in the opinion, “the
But, because a court has control over all proceedings in the office of the clerk during the preceding vacation, it may reinstate any cause discontinued within the vacation, set aside any of the proceedings, or correct any mistake therein, and make such order concerning the same as may be just. §60, ch. 125, Code. And an authority binding on us says “an office judgment improperly entered without an order for inquiry of damages may be corrected”. Shelton v. Welch, 7 Leigh 175. Such a writ should have been awarded, the court said, but the omission was a clerical error and amendable. And in a still earlier case, Digges v. Dunn, 1 Munf. 56, involving debt on a judgment alleged to have been obtained at a quarterly session court in August, 3788, the plea was no such record. The transcript, introduced to prove the cause of action, showed entry of the judgment at rules in July, 1788. The trial court found there was no such record as that averred, and gave judgment for defendant. This finding was reversed and the case remanded for further proceedings, the judgment being treated as valid. The principle is applicable here, although the question raised was a variance between the allegata and probata.
In Southern Express Co. v. Jacobs, 109 Va. 27, the court, in construing a statute of which our section 60 is an exact counterpart, overruled defendant’s motion to remand the case to rules on the ground that there Was no entry by the clerk showing any. proceedings thereat, and directed the proper entries to be made; holding'that “where plaintiff has done all that was required to entitle him to an office judg
In Riggs v. Lockwood, 12 W. Va. 133, the objection was that the record did not show the bill was filed at rules, or that any rules were taken in the cause, or that the bill was taken for confessed at rules, or declared to be taken for confessed in court. This court in affirming the decree said: “It is true that neither of the decrees entered show how the cause was matured for hearing. The better practice certainly is for the decree to show on its face that the cause was regularly matured for hearing, but it is not error to enter a decree in a cause not showing this, if the cause was in fact matured for hearing. * * Here the record does not show the cause was set for hearing”; but it did appear that the summons was returned executed, the bill filed, and that defendants appeared and made defense. “It results from this that, in the absence of anything to the contrary appearing upon the record, it must be presumed that the case was regularly matured for hearing when the decrees were entered”.
In Telegraph Co. v. Railroad Co., 76 W. Va. 120, this court, in recognition of the right to CQrrect proceedings at rules, said: “The final decree recites service was had as to both the original and amended bills upon all the defendants except Jack Hamilton. This must be taken as supplying the omission and correcting the error in the rules. The court has such authority by virtue of statute, §60, ch. 125, Code 1913. * * Defendant-is not prejudiced because the correction was not expressly and formally made. * * Every reasonable presumption must be indulged in favor of the correctness of the decree”.
A default judgment rendered in term, where the clerk erroneously awarded a writ of inquiry, was sustained in Anderson v. Doolittle, 38 W. Va. 629, because the entry of “the judgment in court, disregarding the writ of inquiry, was a sufficient correction of the mistake”.
Section 60 has been construed also in other cases as a grant of plenary power on the court to correct any omissions, errors or mistakes made by the clerk when the case is pending
In the Wohlford case, the court in stating the facts said: “The proceedings before the cause was put upon the court docket was certainly very irregular. Indeed, it is hard-to imagine a greater state of confusion in a clerk’s office than the evidence showed existed in the clerk’s office of the court below when and for some time before the present suit was commenced. There is no trace of this case to be found either on the process book or on the rule book, although there are endorsements on the bill as if rules had been taken. But no objection as to the irregularity of the proceedings was taken until the appellee filed her petition for a rehearing after there had been an adjudication of the merits of the case; that is to say, until after a sale of the land had been ordered and confirmed. * * Foster, who was clerk of both the county and circuit courts, but who was chiefly engaged in the clerks’ office of the county court, testified as to the very loose and careless way in which the business in the clerk’s office’of the circuit court was conducted by his deputies before the present suit was instituted. He says important papers were often lost or misplaced, and that he had been unable after making search to find any process in the present case. He admits, however, that he himself made the endorsement on the bill, ‘August rules, 1887, bill filed; O. P. executed, and D. N. as to adults .upon whom process has been executed’. The last endorsement, he says, was intended to be decree nisi confirmed. He says further he made these endorsements in that particular manner because he did not know of 'his own knowledge that process had been served, though he supposed it had been from the memorandum made by the deputy and the statements to him. of the plaintiff’s attorney. The law applicable to a case of this sort is so well settled that we need only refer without comment to Hill v. Woodward, 78 Va. 765; Ferguson v. Teel, 82 Va. 690; and Moore v. Green, 17 S. E. 872”, stating the doctrine of presumption of regularity in such proceedings in the absence of evidence to the contrary. “The point was
The facts in the Southall case, as gathered from the opinion, were that at August rules, 1852, the declaration was filed and the common order taken. At the September rules the defendant in the action appeared and filed a plea of payment' of $8800, part of the debt in the declaration mentioned, and gave a rule for replication; and at the same rules the plaintiff filed a replication to the plea, and issue was made upon it by the clerk. At the ensuing term the defendant moved the court to correct the error alleged to have béen committed by the clerk in failing to enter a discontinuance of the cause upon the plaintiff’s filing a general replication to the plea, and thereupon on motion of the plaintiff he had leave to withdraw his replication, and the cause was sent to rules for further proceedings. This was upon the 20th of September, 1852. At the October rules, 1852, the record states that on motion of the plaintiff the common order entered against the defendant at August rules was confirmed. At the November and December rules, 1852, and at the January and February rules, 1853, the entry was that the cause was continued for replication on motion of the plaintiff. At the March rules, 1853, plaintiff filed a general replication to the plea and took a confirmation of the common order for the part of the debt not answered by the plea, At the following term the defendant moved the court to send the cause back to rules because the clerk had improperly entered a confirmation of the common .'order at the October rules, and because he had improperly received the replication to the plea at the March rules and given judgment for that part of the debt not con
It is difficult to perceive in what respect defendants were surprised, misled or prejudiced by any omission or irregularity in the proceedings at rules of which they complain. For evidently not until after the entry of the judgment in term were they aware of any omission of the clerk to make entries on the rule docket or endorse them on the pleading in "the regular and usual manner. The affidavits are silent upon this phase of the inquiry, except remotely inferentially; for according to the statements therein contained it is apparent defendants, as they themselves admit, did not know and did not suspect the existence of any irregularities in such proceedings, or omissions by the clerk at rules, until after they discovered that the judgment had been entered.- And it is permissible to assume that but for the entry of the judgment they would never have .discovered these irregularities. Neither of them appeared for any purpose at rules while the
Besides, defendants can not have relief from the judgment of which they complain, for the additional reason, in itself sufficient, that they failed to tender a plea supported by counter affidavit denying liability in whole or in part upon the bond in suit. As held in Citizens Trust & Guaranty Co. v. Young, 75 W. Va. 241, an office judgment actually entered in court, after inquiry of damages is executed, can not be set aside at the term at which it was entered except upon the tender of such plea and affidavit. This defendants did not do, although it is contended upon the strength of the affidavit by Peterkin they did show good cause for vacating the judgment. But, conceding the sufficiency of the affidavit' for that purpose, the filing of it alone does not constitute compliance with §47, ch. 125, Code. To avail a plea ought to have been filed also.
For the reasons stated, we are constrained to affirm the judgment.
Affirmed.
Reference
- Full Case Name
- Sayre, Receiver v. McIntosh
- Status
- Published