Leary v. United States - 253 U.S. 94 (1920)
U.S. Supreme Court
Leary v. United States, 253 U.S. 94 (1920)
Leary v. United States
Argued April 30, 1920
Decided May 17, 1920
253 U.S. 94
L went bail for G in a federal prosecution upon an understanding that a fund standing in certain securities should be held for his indemnification, and not knowing that it represented moneys of which G had defrauded the United States through the crimes charged in the indictment, and, upon G's default, suffered judgment on the bond, which was paid by his estate. (See s.c. 224 U. S. 224 U.S. 567; 245 U. S. 245 U.S. 1.)
(1) That since the duty to pay the judgment was absolute, L's estate was not entitled to be reimbursed out of the fund for the expense of defending against proceedings by the United States in the Surrogate Court to secure payment of its judgment. P. 253 U. S. 95.
(2) That, since the upholding of L's claim of indemnity against the United States could not have been contemplated in L's agreement and he have the status of bona fide purchaser upon which his paramount equity depended, the expense of establishing and protecting the claim in the suit by which the government impounded the fund could be charged against the fund only as costs, which would be inadmissible, the United States not being liable to costs directly or indirectly. P. 253 U. S. 97.
(3) That, in allowing L's estate the amount paid on the judgment on the bail bond, with interest, the district court properly deducted the clerk's poundage of 1 percent under Rev.Stats. § 828. P. 253 U. S. 95.
257 F. 246 affirmed.
The case is stated in the opinion.