SUMNER ARONSON, APPELLANT,
v.
ROY AHRINGER ET AL., APPELLEES
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Aronson posted a receiver's bond with Travelers Indemnity Company conditioned on payment of costs and damages only if he improperly obtained the receiver's appointment. When the trial court ordered him and his surety to pay the receiver's fee without finding the appointment was improper, the appellate court reversed, holding that the bond's condition was not satisfied.
The surety is not liable. A surety's obligation is limited to the scope of the bond's engagement, which required a finding that the appointment was improper. Since the trial court made no such finding, the condition precedent was not met and the surety cannot be held liable for the receiver's fee.
[1] A surety is not bound beyond the scope of its engagement as limited by the instrument establishing its liability.
[2] A receiver's fee awarded after the discharge of the receiver cannot be recovered from the surety on a bond conditioned on damages sustained by the defendant as a conseque…
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Join FLexlaw to unlock all legal intelligence“THE CONDITION OF THIS BOND is that if Plaintiff shall pay all costs and damages that Defendant sustains in consequence of Plaintiff improperly obtaining appointment of a receiver in this action, then this bond is void; otherwise, it remains in force.”
The exact language of the receiver's bond establishing the condition precedent for the surety's liability
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Join FLexlaw to unlock all legal intelligenceAronson sued Ahringer and Metal Craft Awning to foreclose a chattel mortgage and sought appointment of a receiver. A receiver was appointed and Aronso…
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PER CURIAM.
Plaintiff takes this appeal to review an order directing him as principal and Travelers Indemnity Company as surety to pay a $4,000 receiver’s fee.
Sumner Aronson filed a complaint against the defendants Roy Ahringer and Metal Craft Awning and Shutter Company, Inc., to foreclose a chattel mortgage and prayed for an appointment of a receiver to take charge of the assets of the defendant company. A receiver was appointed and Aronson as principal and Travelers Indemnity Company as surety posted a $10,000 bond which reads in pertinent part:
“THE CONDITION OF THIS BOND is that if Plaintiff shall pay all costs and damages that Defendant sustains in consequence of Plaintiff improperly obtaining appointment of a receiver in this action, then this bond is void; otherwise, it remains in force.”
Having arrived at a tentative settlement of his dispute with the defendants, Aronson filed a motion to relieve the receiver of further duties. This motion was granted and the receiver was ordered to turn over the balance in his operating account to the defendants. After hearing the petition for final receivership fees, the trial judge awarded the receiver $4,000 and entered an amended order directing that the $4,000 receiver fee be paid from the assets of the defendant company or Aronson’s bond with Travelers Indemnity Company. Defendants and the receiver made demand upon Aronson for payment of the fee, but he refused. Defendants moved to order Aronson’s surety to pay the final receiver’s fee. After a hearing on this motion, the trial judge entered the appealed order directing Aronson and Travelers Indemnity Company to forthwith pay the final receiver’s fee. We reverse.
The general rule is that a surety is not bound beyond the scope of his engagement as limited by the instrument establishing his liability. See 30 Fla.Jur. Suretyship and Guaranty § 30 (1974).
The bond in the case at bar is conditioned very clearly upon all costs and damages that defendant sustains as a consequence of plaintiff improperly obtaining appointment of a receiver. In the order discharging the receiver and awarding final receivership fees, the trial judge made no finding that the obtaining of the appointment of a receiver by the plaintiff was improper. This condition of the bond not having been met, the trial judge erred in entering the order directing plaintiff as principal and Travelers Indemnity Company as surety to pay the $4,000 receiver’s fee.
Reversed.
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