Tousey v. Bishop
Tousey v. Bishop
Opinion of the Court
We may concede the fundamental proposition of law upon which the plaintiff’s ease is grounded, viz.: that, if there was, at and before the rendition of judgment, a valid and binding agreement by Boot, Giger & Bro., to stay the execution, and if this was made without the consent of the sureties, this would in law discharge them.
The plaintiffs’ proposition of law being granted, the remaining question in the case is this, viz.: whether the agreement to stay the execution was valid and binding upon Root, Giger & Bro. Upon the evidence, the court are of opinion that it was not.
The judgment in favor of Root, Giger & Bro. was absolute on its face, giving the right to issue an execution at once, or at any time. The agreement to stay it, was not made part of the judgment; nor was it intended that it should be. On the contrary it was intended that it should not be.
There are not wanting respectable authorities to the effect that, under such circumstances, the judgment and •its legal incidents cannot be affected by an antecedent or contemporaneous independent collateral agreement to stay execution; and that the remedy for the violation of such an agreement is not and cannot be, in equity, to stay or enjoin the judgment, but it is and must be by an action at law on the agreement, for damages. See on this
That is, had execution issued, and had Ladue applied to a court of equity to enjoin it upon the strength of his agreement, and had the same facts then been disclosed as have been disclosed in this case, we are quite confident that no court of equity would or should have enjoined the collection of this judgment.
If this is so, then Root, Giger & Bro. have never at any time been disabled from proceeding to collect their judgment; and had the sureties paid it, as they might, they would have been subrogated to the right, of Root, Giger & Bro., and could at once have enforced it, in spite of the agreement to stay the execution. If we are right in our conclusions upon the evidence, that Ladue could not effectually have used the agreement to stay the execution, then, in law, there was no valid extension of time, and
The disability of the creditor to proceed against the sureties must, in order to exonerate the latter, be not apparent only, but actual; not binding in honor simply, but in law. Such is the well settled doctrine, and the books abound in multiplied illustrations of its application. Davey v. Prendergrass, 5 B. & Ald., 187; Tudor v. Goodloe, 1 B. Mon., 322; and see cases collected 2 Am. Lead. Cases (3d ed.), 306, 310.
We have less hesitation in reaching the conclusion that it is our duty to reverse the decree below, because the testimony shows that Ladue was, and all the time has been, insolvent; and that, in fact, the sureties have not been prejudiced by the agreement of which they complain. While, on the other hand, to affirm the decree, would cause Boot, Giger & Bro. to lose their debt against Ladue, which had been fully secured to them by the property attached, and which was taken from them by the action of the plaintiff, in signing the replevin bond.
Let the decree of the District Court stand reversed, and the petition dismissed.
Beversed.
Reference
- Full Case Name
- Tousey, Floyd & Love v. Bishop
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