Town Of Belton v. Am. Employers Ins. Co. Of Boston

Decision Date03 February 1942
Docket NumberNo. 15366.,15366.
Citation18 S.E.2d 612
CourtSouth Carolina Supreme Court
PartiesTOWN OF BELTON . v. AMERICAN EMPLOYERS INS. CO. OF BOSTON,MASS. SAME . v. GLENS FALLS INDEMNITY CO. OF NEW YORK.

Appeal from Common Pleas Court of Anderson County; W. B. McGowan, Special Judge.

Actions by the Town of Belton against the American Employers Insurance Company of Boston, Massachusetts, and against the Glens Falls Indemnity Company of New York, on bonds of the town's clerk and treasurer. From judgments for plaintiff, defendants appeal.

Affirmed.

J. M. Nickles, of Abbeville, and Watkins & Prince, of Anderson, for appellants.

Leon L. Rice, of Anderson, for respondent.

FISHBURNE, Justice.

Dr. R. L. Parker, deceased, was city clerk and treasurer of the town of Belton from 1930 until March 15, 1939. The appellant, American Employers Insurance Company, was surety on the bond of the clerk and treasurer for the years 1930-1934, inclusive; and the appellant, Glens Falls Indemnity Company, was surety on his bond for the years 1935-1939, inclusive.

These actions were brought separately by the town of Belton against the sureties on the bonds of the clerk and treasurer, the complaint in each case alleging that an audit of the books kept by him showed that the town had lost revenue due to his failure to well and truly perform the duties of his office, as required by the ordinances of the town and the laws of the State. Judgment was prayed against each surety for losses accruing during the periods covered by the respective bonds. By consent the cases were heard together, and, after they were referred to a special referee to take and report the testimony, resulted in a judgment of the Circuit Court in favor of the plaintiff against American Employers Insurance Company for $795.37, and against Glens Falls Indemnity Company for $1,-645.59. From these judgments this appeal is taken.

The appellants contend that there can be no recovery under the pleadings in this case, because the plaintiff failed to offer testimony of some ordinance of the town prescribing and defining the functions and duties imposed by law upon the office of the clerk and treasurer. Before passing upon this question a recital of some of the evidence should be given.

The loss of revenue suffered by the town of Belton was shown by the audit to have resulted from the alleged negligent failure of the clerk and treasurer to collect from water subscribers each month the proper amounts charged against them, and his failure to collect from certain businesses the full amount of license fees required. A bill of particulars, the items of which were summarized from the audit made by a certified public accountant, was served upon the defendants prior to the taking of the testimony, and was later introduced in evi dence. The total alleged loss in revenue to the town of Belton is thus shown therefrom:

                ------------------------------------------------------------
                |"1930|Paving Assessment L. D. Blake in dispute..|$ 197.96 |
                |-----|------------------------------------------|---------|
                |"1931|License taxes errone-ously billed         |100.00   |
                |-----|------------------------------------------|---------|
                |"1932|License taxes errone-ously billed         |100.00   |
                |-----|------------------------------------------|---------|
                |"1933|License taxes errone-ously billed         |112.50   |
                |-----|------------------------------------------|---------|
                |     |Erroneous water billings...............   |131.02   |
                |-----|------------------------------------------|---------|
                |"1934|License taxes errone-ously billed         |100.00   |
                |-----|------------------------------------------|---------|
                |     |Erroneous water bill-ings                 |131.02   |
                |-----|------------------------------------------|---------|
                |     |$ 993.33                                  |         |
                |-----|------------------------------------------|---------|
                |"1935|License taxes errone-ously billed         |100.00   |
                |-----|------------------------------------------|---------|
                |     |Erroneous water bill-ings                 |179.05   |
                |-----|------------------------------------------|---------|
                |"1936|License taxes errone-ously billed         |200.00   |
                |-----|------------------------------------------|---------|
                |     |Erroneous water billings...............   |117.66   |
                |-----|------------------------------------------|---------|
                |"1937|License taxes errone-ously billed         |210.40   |
                |-----|------------------------------------------|---------|
                |     |Erroneous water billings.............     |164.44   |
                |-----|------------------------------------------|---------|
                |     |Overpayment salary water supt.            |56.25    |
                |-----|------------------------------------------|---------|
                |     |Fines uncollected                         |80.50    |
                |-----|------------------------------------------|---------|
                |     |Errors in water receipts                  |15.25    |
                |-----|------------------------------------------|---------|
                |     |Errors in tax receipts                    |18.00    |
                |-----|------------------------------------------|---------|
                |"1938|License taxes errone-ously billed         |150.00   |
                |-----|------------------------------------------|---------|
                |     |Erroneous water bill-ings                 |222.04   |
                |-----|------------------------------------------|---------|
                |     |Overpayment salary water supt.            |93.75    |
                |-----|------------------------------------------|---------|
                |     |Fines uncollected                         |200.00   |
                |-----|------------------------------------------|---------|
                |     |Errors in water receipts                  |1.20     |
                |-----|------------------------------------------|---------|
                |     |Rent unaccounted for                      |12.50    |
                |-----|------------------------------------------|---------|
                |     |(January 1st through                      |         |
                |     |                                          |         |
                |"1939|March 15th):                              |15.75    |
                |     |                                          |         |
                |     |Erroneous water bill-ings                 |         |
                |-----|------------------------------------------|---------|
                |     |Rent unaccounted for                      |12.50    |
                |-----|------------------------------------------|---------|
                |     |Errors in water receipts                  |1.30     |
                |-----|------------------------------------------|---------|
                |     |Allowance for overage in cash             |$ 9.65   |
                |-----|------------------------------------------|---------|
                |     |Net shortage                              |19.90    |
                |-----|------------------------------------------|---------|
                |     |                                          |$1,840.94|
                ------------------------------------------------------------
                

One or more of the foregoing items wa disallowed by the Circuit Court, but as tothese items no appeal has been taken by the town of Belton.

The appellants took the same position before the Circuit Court that they now take, that is, that there was no testimony fixing and determining the duties of the clerk and treasurer, and for that reason the actions for the breach of the bond should fail. On this question the Circuit Judge held:

"I am of the opinion that upon executing the bonds the defendants and their principal should be held to the faithful performance of such duties as were within the reasonable contemplation of the parties, that is, such duties as are usually incident to and within the scope of the duties of said office, such as collection of water bills, license fees, etc. Otherwise, in respect to the matters complained of, the town would have been without protection and the surety permitted to collect its premiums from year to year without incurring any responsibility at all."

But appellants submit that the error in...

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