150 Pa. 351 | Pa. | 1892
Opinion by
This case was here in 1891, and is reported in 143 Pa. 129. The question then presented was whether a formal re-election of the cashier each year was necessary in order to the liability of the surety on his official bond. The learned judge of the
A case might be presented in which the duties of an officer or employee might be so changed as to make it inequitable to hold his sureties for an act occurring after the change had taken place; but that would depend on the character of the change and not on the mere fact that a change had been made.
In this case it appears that Huggard was elected cashier and gave the bond now sued on as security for the faithful performance of the duties of his office. Subsequently he proposed to keep the individual ledger, in addition to doing his work as cashier, for an additional sum of five hundred dollars per annum. To this the directors agreed; and the extra work done by him as a book-keeper under this agreement is the basis of the allegation that a material alteration has been made in his duties as cashier that should relieve his sureties from liability.
The proofs show that as cashier Huggard embezzled and aided others to embezzle a large amount of the bank’s money. It is not denied that he is liable to the bank for his breach of duty. The sureties admit that their principal has broken the condition of the bond and that their liability would be fixed if the circumstances on which they rely to show their discharge from such liability did not exist.
The contention is that the fact that Huggard performed other services for the bank than those involved in, or belonging to, the office of cashier is, per se, a discharge of the sureties from their undertaking for his faithful performance of his official duties.
This does not support the position contended for in this case, Huggard’s appointment was to the office of cashier. The de
The remaining assignments relate to the effect of the death of the surety upon his liability under the facts of this case. The subject was discussed, on the trial in the court below, and the point was ruled against the defendant. As the defendant did not then appeal the question came only incidentally before us at that time; but the holding that notwithstanding the want of a formal re-election of the cashier the liability of the sureties-continued to the end of his term of service, might be properly regarded as covering the question now raised.
The surety had undertaken for himself, “his heirs, executors and administrators,” to be responsible for Haggard’s honesty in the office of cashier during the entire time of his employment as such whatever that time might be. Under Pleasonton’s Appeal, 75 Pa. 844, the obligation contained no stipulation authorizing the termination of the relation between the principal and the bank by notice. If the bank had refused to retain Huggard, and put some one else in his place, the surety would
The assignments relating to this question are not sustained and the judgment is affirmed.