47-1808. Bonding of livestock dealers; exceptions; amount of bond; who bond benefits; additional bond may be required; attorney fees assessed as costs in certain actions; penalties.
47-1808
47-1808. Bonding of livestock dealers; exceptions; amount of bond; whobond benefits; additional bond may be required; attorney fees assessed as costsin certain actions; penalties.(a) Except if bonded under the packers and stockyardsact, 1921, as amended andsupplemented, 7 U.S.C. 181 et seq.,every livestock dealer required to be registeredpursuant to K.S.A. 47-1805, and amendments thereto, upon notification bythe livestock commissioner of the amount of bond required, shall file withthe livestock commissioner a bond with good corporate surety qualifiedunder the laws of the state of Kansas in a sum computed bydividing the dollar value oflivestock sold during the preceding business year, or the substantial partof that business year, in which the livestock dealer did business, by theactual number of days on which livestock was sold. The divisor, the numberof days on which livestock was sold, shall not exceed 130. The amount ofbond coverage must be the next multiple of $5,000 above the amount sodetermined. When the computation exceeds $75,000, the amount of bondcoverage need not exceed $75,000 plus 10% of the excess over $75,000,raised to the next $5,000 multiple.In cases where a businessoperation is being commenced, an estimated amount of business to betransacted during the next 12 months may be used subject to adjustmentlater, if indicated. In no event shall the bond be for an amount less than $10,000.
(b) The bond shall be in favor of the state of Kansas for the benefit ofall persons interested, their legal representatives, attorneys or assignsand shall be conditioned on the faithful performance of all theregistrant's duties as a livestock dealer.Any person injured by the breach of anyobligation of the livestock dealer may commence suit on the bond in any courtof competent jurisdiction to recover damages that the person has sustained,but any suit commenced shall either be a class action or shall join asparties plaintiff or parties defendant or other persons who may be affectedby such suit on the bond. No bond shall be cancelled by the surety on lessthan 30 days' notice by mail to the livestock commissioner and the principal except thatno such notice shall be required for cancellation of any bond by reason ofnonpayment of the premium thereon. The liability of the surety on the bondmay continue for each successive registration period the bondcovers. The total liability of the surety shall be limited to the amountstated on the current bond or on an appropriate rider or endorsement tothe current bond. It is the intent of this statute that the bonds benonaccumulative, that stacking of bonds not occur in excess of the facevalue of the current bond.
(c) Whenever the livestock commissioner determines that any bond given by anylivestock dealer is inadequate and insufficient security against any loss thatmight arise under the terms of the bond, the livestock commissioner shall require anyadditional bond that the livestock commissioner considers necessary to provide adequatesecurity. If the livestock commissioner considers the financial condition of the suretyupon any livestock dealer and the livestock dealer's bond to be impaired, thelivestock commissioner shall require any substituted or additional bondthat the livestock commissionerconsiders necessary except this act shall not apply to those who buylivestock for others incidentally to their own farming operation.
(d) In all actions hereafter commenced in which judgment is renderedagainst any surety company on any surety bond furnished under theprovisions of this section, if it appears from the evidence that the suretycompany has refused without just cause to pay the loss upon demand, thecourt shall allow the plaintiff a reasonable sum as attorney feesto be recovered and collected as a part of the costs. When a tender is madeby the surety company before the commencement of the action in whichjudgment is rendered and the amount recovered is not in excess of thetender, no such costs shall be allowed.
(e) Any person violating or failing to comply with the provisions ofthis section shall be deemed guilty of a class A misdemeanor.
(f) This section shall be part of and supplemental to article 18 ofchapter 47 of the Kansas Statutes Annotated.
History: L. 1990, ch. 193, § 1; July 1.