Bd. of Com'rs of St. Louis Cnty. v. Am. Loan & Trust Co.

• Decision Date: 04 January 1897
• Citation: 67 Minn. 112,69 N.W. 704
• Parties: BOARD OF COM'RS OF ST. LOUIS COUNTY v AMERICAN LOAN & TRUST CO. ET AL.
• Court: Minnesota Supreme Court

67 Minn. 112

69 N.W. 704

BOARD OF COM'RS OF ST. LOUIS COUNTYvAMERICAN LOAN & TRUST CO. ET AL.

Supreme Court of Minnesota.

Jan. 4, 1897.

(Syllabus by the Court.)

1. Section 730, Gen. St. 1894, provides that the bond of a depositary of county funds shall be made payable to the county. The bond in question was made payable to the “board of county commissioners.” Held a mere irregularity, which did not invalidate the bond.

2. In an action on such a bond, the complaint does not allege that the principal in the bond had ever been designated as such a depositary, except as this can be inferred from a recital in a copy of the bond set out as an exhibit, by which it appears that the bond was approved by the board of county commissioners 18 days after its date. Held, in view of said section 730, which requires the bond be approved and deposited with the county treasurer before the depositary is designated, the complaint does not sufficiently allege that any designation of the depositary had ever been made before the bond was so approved, and, as the complaint does not state that any county funds were deposited with such depositary after the approval of the bond, no cause of action is stated, and the complaint is demurrable.

Appeal from district court, St. Louis county; S. H. Moer, Judge.

Action by the board of county commissioners of St. Louis county against the American Loan & Trust Company and others. From an order overruling a demurrer to the complaint, George A. Elder and others appeal. Reversed.

R. R. Briggs, Washburn, Lewis & Judson, Cash, Williams & Chester, A. A. Harris & Son, and W. W. Sanford, for appellants.

George E. Arbury, for respondent.

CANTY, J.

This is an action on a bond executed to “the board of county commissioners of St. Louis county and state of Minnesota,” by the defendant trust company as principal and the other defendants as sureties. It recites that the trust company “has been duly designated a depositary of the funds of said county of St. Louis for the term of two years from the date hereof,” and is conditioned that the trust company “shall well and truly pay over on demand, according to law, all of said funds which shall be deposited,” and interest thereon. The defendant sureties demurred to the complaint on the ground that it does not state facts sufficient to constitute a cause of action, and appeal from an order overruling the demurrer.

1. Section 730, Gen. St. 1894, provides that the bond of a depositary of county funds shall be payable to the county, and appellants contend that, as this bond is payable to the “board of county commisioners,” it is void. We cannot so hold. The intention to indemnify the county is plain, and the defendants cannot escape liability on their voluntary obligation on any such a technicality. Any one would understand, from the bond, that it was given for the benefit of the county.

2. It is contended by appellants that it does not appear from the complaint that any county funds were delivered to the trust company after this bond was approved by the board of county commissioners, as provided by said section 730, and that, therefore, the complaint does not state a cause of action. The bond is dated April 18, 1892; the sureties acknowledged it on April 23d; and it appears, by the indorsement on the back of the bond, as the same is set out as an exhibit to the complaint, that the board of county commissioners approved the bond May 6, 1892. The complaint alleges that the bond was executed and delivered on April 18th. It further alleges: “That at the time of the execution and delivery of said bond as aforesaid, the said E. J. Crossett, as such county treasurer, had deposited with, and did thereafter deposit with, the said American Loan & Trust Company aforesaid large sums of money, which were then and there the moneys of the said county of St. Louis aforesaid, and...