34 Ind. App. 685 | Ind. Ct. App. | 1905
This is an action by appellant Demarest, as treasurer of the school city of Elkhart, against appellees, Holdeman, a former treasurer of Elkhart county, Neidig, Miller, Vail, Platter and Lowry, sureties on Holdeman’s bond, Berkey, as auditor, and Wood, as treasurer, of Elkhart county, the board of commissioners of the county of Elkhart, and the Elkhart National Bank. Appellant seeks to recover $6,900, and to set aside the cancelation of certain warrants issued by the county auditor payable to one Einn, appellant’s predecessor in office. Upon a former appeal the complaint was held sufficient as against the several demurrers of the appellees. Demarest v. Holdeman (1901), 157 Ind. 467. Upon issues formed the court made a special finding of facts with conclusions of law thereon. Appellant Demarest claims the court erred in each conclusion of law and in overruling his motion for a new trial.
The facts found are substantially as follows: In May, 1897, the county auditor made a distribution of moneys to the school city of Elkhart, amounting to $15,194.67‘, and on June 2, 1897, made out three orders on the county treasurer for $7,293.75, $7,583.22, and $317.70, payable to Edward Einn or bearer. Einn, who was the treasurer of the school city, “made an arrangement with Edmund R. Kerstetter, cashier of the Elkhart National Bank, in said bank,” that he should receive from the county treasurer, and receipt to him therefor, all moneys coming from him to the school city, “and to deposit said money in said bank and pay it out on the order of the school city,” and Einn, at the time, left his school city books with Kerstetter in the bank, which books Kerstetter was to keep. Afterward, on June 2, 1897, appellee Holdeman, then county treasurer, instructed his deputy, Charles Kolb, to get the three orders, which he did, giving to the auditor receipts therefor, signed “Ed. Einn, by William H. Holdeman.” Kerstetter authorized Holdeman to receipt for the orders in the name of Einn, and to send the money to Kerstetter. Prior to the time the above
It is further found that in May, 1897, Holdeman paid to Kerstetter $2,900, in the treasurer’s office, as an advancement to the school city, Holdeman, at the time, taking Kerstetter’s receipt signed “Ed Einn, per Kerstetter;” that Kerstetter received this $2,900 for Einn as school city treasurer under the above-mentioned arrangement; that Kerstetter never paid any part of the $2,900 into the bank, nor to the treasurer of the school city, but still retains the same*; that he was cashier of the bank from January 1, 1897, to January 1, 1899 ; that the $3,000 which Holdeman claimed he had paid Kerstetter sometime prior to the June apportionment was not among the moneys turned over by Holdeman to his successor in office and that Holdeman converted the same to his own use; that no part of the June apportionment of $15,194.67 was ever paid directly by Holdeman to the school city or its treasurer, but all payments that he did make upon this apportionment were paid to Kerstetter, and Holdeman paid to Kerstetter upon this apportionment $12,-194.67, and no more, all of which, except $2,900, Kerstetter paid into the bank; that the bank paid over to the school city, of the moneys it so received from Kerstetter to apply upon the June apportionment, the sum of $9,294.67, and
■ In June, 1900, appellant, as. Seiler’s successor, demanded of ap.pelle.e Berkey, county auditor, that-he sue Holdeman on fiis, bond, for tbe $5,900; that Holdeman failed to tarn .over tp Weavey,.his successor,,all moneys., he held .as such treasurer,.g,nd on May-5-9, .1898, pursuant,to- an-order made -by fié appellee board of commissioners on fie day previous, having . the report of an expert, an. action was brought against Holdeman and the, sureties on his bonds, the com- . plaint ..alleging that from the 9th day.'of January, 1897, to the 19th day of October, 1897,. Holdeman was county treasurer; that during that time he collected and received taxes and, other, moneys due Elkhart county in the sum of $25,- - 000,..for.the. use- of, the general revenue, of the county; that on fie,.19fi. day, of October, 1897, Holdeman was removed .from .office,, and had. in no way legally, accounted-for. this . amount, or. any part thereof, and had wholly converted, the
It is further found that on the 7th day of March, 1898, Knopf, school city treasurer, sued the county auditor, setting out the same transaction described in this complaint, asking a writ of mandamus requiring the county auditor to draw his warrant in favor of the school city for this $5,900; that subsequently on May 19, 1898, a suit was brought by the State, on the relation of the county auditor, against Holdeman and the sureties to recover $25,000, which it was alleged Holdeman had failed to pay over to his successor, being the same action hereinbefore referred to; that on October 4, 1898, the suit brought by the school city treasurer in March having failed, Cyrus Seiler, as school city
The court stated as conclusions of law: (1) That appellant is entitled to 'recover $3,142.60 from the board of ■commissioners; (2) that appellant is entitled to recover $926.90 from Holdeman; (3) that appellant is not entitled to recover against the other appellees. The judgment follows the conclusions of law, and renders all costs ag’ainst. appellant.
It is insisted that, as the interests of Demarest are adverse to the interests of Kerstetter and Einn, they can not join as appellants, and that the appeal should be dismissed. As neither Einn nor Kerstetter is a party to any judgment that will in any way be affected by this appeal, they are not proper parties to the appeal. The trial court rendered no judgment against either of them, nor did it give either of them a judgment against anyone. If they had rights or interests involved in the litigation which they desired to protect, the statute provides the manner in which it could be done. If the judgment of-the trial court on this appeal be reversed, they will not be relieved from the effects of any judgment against them, nor will they have any rights given them by any judgment secured by an affirmance of the judgment appealed from. As they are not properly either appellants or appellees, the fact that they are named as appellants can not prejudice the rights of Demarest as an appellant. As to Kerstetter and Einn, the appeal is dismissed.
The judgment follows the conclusions of law. The theory of appellant Demarest, as stated in the brief, is that Holdeman left the $5,900 in the county treasury, and that it was converted into the general fund and used by the county.
Kerstetter was cashier of the bank located at Elkhart. The $2,900, for which appellant seeks to hold the bank, was paid by Holdeman to Kerstetter in the county treasurer’s office at Goshen, taking a receipt signed “Ed. Einn, per Kerstetter.” The latter testified that in the arrangement between him and Einn nothing was said about getting money from the county treasurer; that he (Kerstetter) was simply to receipt for any money that came to the bank for his account. Conceding, without admitting, that the county treasurer might make this irregular advancement, the
If the bank was Einn’s agent, it could properly be concluded, from the evidence, that it was not required to- receive the money other than in the ordinary and usual way. If Finn had paid to Kerstetter at Goshen this amount of private funds to be by him carried to Elkhart and deposited to Finn’s credit, he may have paid it to him because he was cashier of the bank; but if it never reached the bank Finn could not hold the bank good for the amount. We think the same rule would apply in the case at bar that applies in the supposed case.
In 1 Morse, Banks and Banking (4th ed.), §168f, after-recognizing the right of a cashier to follow up a delinquent debtor of the bank and exact payment from him at any time and place when and where he may be able to do so, it is.
Upon the holding in Vigo Tp. v. Board, etc. (1887), 111 Ind. 170, the county is liable to the school city for the proportionate share of the $14,000 received upon the compromise made by the board and the county auditor. It is liable, not because the defaulting treasurer was the county’s agent when he received and converted the money, but because the city’s money received upon the compromise was paid into the general fund of the county.
The question then arises, what authority, if any, had the auditor and board, in compromising with the bondsmen, to adjust the defalcation as to the school money converted? The sureties were liable on the bond for this $3,000 converted by the treasurer to his own tise. Did the board and auditor have authority to compromise that claim with the sureties, and upon payment of'part.of the sum release the sureties as to the balance ? The trial court’s conclusions of law seem to be upon the theory that they had. Upon the authority of Vigo Tp. v. Board, etc., supra, the county treasurer was not the agent of the county in respect to this money of the school city. The board could occupy no relation of trust in respect of such funds, had no direction or control whatever of them, and had no authority whatever to interfere with the powers and duties of the auditor and treasurer in apportioning, collecting and disbursing such funds. However, the county is liable in this action for whatever of the school city’s moneys it received from the sureties and put into the general fund of the county.
The findings do not show in what sum Holdeman was a defaulter, unless it can be said that the sum was $14,000; nor is it shown to what funds the money that was converted
The conclusions of law should have been that appellant is entitled to a judgment against the board for the $3,000, with interest, instead of $2,470.60, with interest, and that appellant is not entitled to recover against the other appellees. Judgment reversed, with instructions to restate the conclusions of law.