Henderson-Achert Lithographic Co. v. John Shillito Co.

Decision Date12 March 1901
Citation64 Ohio St. 236,60 N.E. 295
PartiesHENDERSON-ACHERT LIGHOGRAPHIC CO. v. JOHN SHILLITO CO.
CourtOhio Supreme Court

Error to superior court of Cincinnati.

Action by the Henderson-Achert Lithographic Company against the John Shillito Company. Judgment for plaintiff was reversed by the general term, and it brings error. Affirmed.

The original action was brought by the Henderson-Achert Lithographic Company against the John Shillito Company in the superior court of Cincinnati, February 27, 1897, on the following petition: Plaintiff says that it and the defendant are and were, at the times named, corporations by the laws of the state of Ohio; that on the 24th day of September, 1889, Belford, Clarke & Co., an Illinois corporation, was indebted to it in the sum of $2,988, and on that day the plaintiff brought suit against said Belford Clarke & Co., in cause No. 44,303 of this court, and duly levied an attachment on a large stock of books and other merchandise belonging to said Belford, Clarke & Co., which were in the possession of the defendant, and the same were thereupon taken possession of by Leo Schott, the then sheriff of Hamilton county, by virtue of the writ of attachment then issued to him in said cause; that another Illinois corporation, the Book & Stationery Department Supply Company claimed to be the owner of said attached property, and, in order to replevin the same, it requested one George B. Fox to become its surety on a replevin bond, and to procure a co-surety for such bond, and to this end the Book &amp Stationery Department Supply Company, on or about November 1 1889, authorized the defendant, the John Shillito Company, when the said stock of goods and merchandise which had been attached by the plaintiff as aforesaid should be recovered by replevin, to appropriate the same, or so much thereof as would be necessary, to protect and indemnify said George B. Fox, and whomsoever he might cause to sign said bond, from any loss by reason of such suretyship, and the said defendant, the John Shillito Company, then agreed and promised the said George B. Fox to hold said stock of books and other merchandise, or the proceeds arising from its sale, or so much thereof as would be necessary to indemnify and protect the said Fox, and whomsoever he might secure to sign said bond with him, against any loss by reason of his or their said suretyship, and thereupon, on the 7th day of November, 1889, the said the Book & Stationery Department Supply Company brought an action in replevin in this court (No. 44,378), in which action the said Leo Schott, sheriff, with the defendant, the John Shillito Company, and this plaintiff, were made defendants, and the said stock of books and other merchandise were duly seized and taken possession of by the coroner of Hamilton county, to whom the writ of replevin was issued in said action, and were by him taken from the possession of the sheriff, who held them by the writ of attachment for the use of the plaintiff as aforesaid; that subsequently a replevin bond, according to law, was duly given in said cause, and executed on behalf of the plaintiff in said cause, by the said George B. Fox and one George Fox, who signed said bond at the instance and request of his nephew, the said George B. Fox, who, in signing said bond himself and in procuring the said George Fox so to sign the same, relied upon the agreement of the defendant as aforesaid to hold said stock of books and other merchandise, or sufficient of the proceeds thereof to protect and indemnify him and his co-surety; that upon the execution of said bond by said sureties the said coroner delivered said books and other merchandise to the John Shillito Company, the defendant herein, who took possession of the said property for the said Book & Stationery Department Supply Company, the plaintiff in replevin, and, in pursuance of its agreement as aforesaid with the said George B. Fox, the said John Shillito Company held said stock of books and other merchandise, and has since sold all or the greater part thereof; that in said attachment suit (cause No. 44,303 of this court), on July 12, 1890, final judgment was entered sustaining said attachment, and rendering judgment in favor of this plaintiff against the said Belford, Clarke & Co. for $3,129.02 and the costs of this plaintiff in said cause, taxed at $140.35; that in said replevin suit (cause No. 44,378) a judgment was duly rendered on January 22, 1897, in favor of this plaintiff against the said Book & Stationery Department Supply Company, for $4,365.56, on which judgment there has been paid the sum of $948.92, being the amount in the hands of the garnishee in said cause No. 44,303, which credit was first applied to the payment of $140.35, costs in said cause No. 44,303, and the sum of $808.57 was credited upon the judgment in cause No. 44,378, leaving a balance due the plaintiff herein on the said judgment of $3,556.99, with interest thereon from January 4, 1897, and the costs of said suit, taxed at $91.14, which judgment for the balance due thereon is in full force and effect. And the plaintiff further says that the defendant, the John Shillito Company, has realized from the sale of said stock of books and other merchandise more than sufficient to pay the said judgment and interest and costs in cause No. 44,378, but, though duly requested, refuses to pay to or for the plaintiff he balance due upon said judgment, or to satisfy said judgment; that the said George Fox has died intestate; that his estate and the surviving surety are unable to respond to the obligation arising on said bond, so that the amount due thereon, or any part thereof, cannot be collected from the said surviving surety, or from the estate of said George B. Fox, by legal process. Wherefore the plaintiff prays that the defendant may be decreed to pay to the plaintiff the sum of $3,556.99, with interest thereon from January 4, 1897, and the costs of said cause No. 44,378, taxed at $91.14, and for all other and proper relief.’

An amendment to the petition, filed February 8, 1898, added the following allegation: ‘ And the said Book & Stationery Department Supply Company is a nonresident of Ohio and is also wholly insolvent, and has no property in this state, and the judgment against it cannot, nor can any part of it, hereafter be collected, by execution or otherwise, at law.’ Issue was joined by the following answer: The defendant admits that it is a corporation, as alleged; that the plaintiff commenced and prosecuted to final judgment an action against Belford, Clarke & Co., numbered 44,303 on the dockets of this court, and levied an attachment upon a stock of books and other merchandise, at that time located upon the property of this defendant; that the Book & Stationery Department Supply Company instituted an action in replevin, numbered 44,378, upon the dockets of this court, executing a replevin bond, with George Fox and George B. Fox as sureties, and that final judgment has been rendered in favor of this plaintiff and against said the Book & Stationery Department Supply Company in said last-named action. For want of knowledge, the defendant denies that said George Fox has died intestate, and that his estate and the surviving surety are unable to respond to the obligations on said bond, and it denies each and every other allegation in the petition not herein expressly admitted to be true. Defendant prays to be hence dismissed, with its costs.’

At the May term, 1898, the cause was tried to a jury, whose verdict was for the plaintiff for the amount claimed, and judgment followed the verdict. A bill of exceptions, duly taken, shows that evidence was given by both parties in support of the issues on their respective parts, and that the court instructed the jury, among other things, in substance, that it was not necessary the sureties on the replevin bond should have sustained any loss to entitle the plaintiff to the verdict, but that the verdict should be for the plaintiff for the amount claimed, if the jury should find the defendant, through an authorized agent, entered into the agreement alleged in the petition, and the sureties on the replevin bond relied on that agreement. The general term reversed the judgment, on the ground that the verdict was contrary to law and unsupported by any evidence, and for error in the foregoing charge of the court. Error is prosecuted here to obtain the reversal of the general term. Other facts deemed important in the disposition of the case will be found in the opinion.

Minshall C. J., dissenting.

Syllabus by the Court

1. A court of equity cannot compel the performance of a covenant of indemnity in advance of the happening of the event or contingency upon which, by its terms, it is to be performed.

2. Sureties on an undertaking in replevin have no remedy at law or in equity upon a contract to indemnify them against loss on account of their suretyship until such loss has occurred; nor has the defendant in the replevin suit who recovered a judgment against the plaintiff therein, though the sureties and judgment debtor be insolvent, and the judgment be etherwise uncollectible.

Gustavus H. Wald and Charles B. Wilby, for plaintiff in error.

Robert Ramsey, Kramer & Kramer, and Maxwell & Ramsey, for defendant in error.

WILLIAMS, J. (after stating the facts).

There appears to have been at the trial but one substantial controversy of fact, which was whether Mr. Dawson, the superintendent of the defendant's store, had authority to, and did, enter into the agreement set forth in the petition in behalf of the defendant. The jury's determination of that controversy adversely to the defendant, though justified by the evidence, is not necessarily decisive of the case, which, as...

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