Cecil v. Laughlin
Cecil v. Laughlin
Opinion of the Court
delivered the opinion of the Court.
This action of covenant is founded on a bond executed by David Laughlin, Samuel Laughlin and John Gretsinger, to Cecil and seven others, the last of whom named is Samuel Laughlin. The condition recites that David Laughlin had obtained an order for attaching the steamboat Robert Emmett, until the hearing, or the further order of the Court; and provides that if the above bound David Laughlin or Samuel Laughlin and John Gretsinger, or either of them, shall well and truly pay and satisfy to the said Cecil, &c. (naming all the obligees,) or either of them, all damages which may result from said order, if found wrongful, then the obligation to be void, otherwise to remain in full force. The action is in the name of all the obligees except Samuel Laughlin, and against all the obligors including him. The declaration in both counts, avers that the plaintiffs, at the time of obtaining the said order, and also, when it was discharged, were the sole owners of said boat, and that they had sustained damages by its detention and in obtaining its discharge, and in defending the attachment, the non-payment of which damages is the breach of covenant complained of. The second count avers that Samuel Laughlin, obligor in said bond, and Samuel Laughlin obligee, is the same person, and each count shows, in effect, that the order of attachment was found to be wrongful. A general demurrer to the declaration, craving oyer of the bond and condition, and setting them out, was sustained, and the only question presented for our consideration is, whether upon the bond and condition, and the averments of the declaration, the action can be maintained by the present plain, tiffs against the present defendants.
It is objected to the declaration, that as Samuel Laughlin is an obligee in the bond, the failure to join him as a plaintiff, is a fatal defect, apparent on the face of the
The same man cannot, it is true, be obligor to himself as obligee, but it is equally true that he cannot be obligee to himself as obligor. An instrument in which he appeared as sole obligee and also as sole obligor, would, of course, be a nullity. If he were sole obligee and appeared to be a co-obligor with others, then the effect of .the instrument would be, that the others were alone bound to him, and that he was not bound as obligor at all, as was decided in the cases of Allen vs Shadburn, (1 Dana, 68,) and Morrison vs Stockwell, (9 Dana, 172.) In such a case, in order to sustain the instrument to any extent, he must be regarded as obligee, and because he cannot be obligor to himself, he is not, in fact, an obligor at all. But suppose he appears as sole obligor and as co-obligee with others, can it be said that because he is obligee and cannot be bound to himself, therefore, he is not bound at all? May it not, with more reason, be said that because he is obligor, as he must be to give the instrument any effect, and as he may be to the other persons named as obligees, and because he cannot be bound to himself, therefore, he is bound to the others alone? And as there would be no obligation to himself, why might not the instrument be regarded as if he was not named as an obligee? A sufficient reason, perhaps, for not going to this extent in all cases, may be found in the presumption that in an instrument framed by parties to secure their own interests, the name of the sole obligor would not be inserted as a co-obligee, unless to secure or to evidence some joint interest in the subject. And this may also be
But however this may be, it cannot he doubted that even in case of a private instrument, though one or more persons who stood as obligors, should also be named as obligees: yet if the instrument provided for the performance of several duties in which the obligees might have various interests, the obligor or obligors would be liable to an action at law upon the bond, in which one or more of the other obligees should, according to their several interests, be sole plaintiff or plaintiffs, as in the case of Daniel vs Crooks, (3 Dana, 64.) In that case Daniel and McGowan, the obligors, were also named, with many others, of whom Crooks was one, as obligees in the bond, all being stockholders of the Bank of Mountsterling, and one of the stipulations of the bond being for the redemption of the stock at par, without saying to whom it was to be paid ; this stipulation was construed distributively, as implying that the payment was to be made to the several stockholders, that is, according to the respective interests of the obligees in the act or acts to be done. Crooks being the sole owner of ten shares, it was decided that he might sue alone, in covenant, as having, in regard to the stipulation for paying those shares, a sole and separate interest with respect to which he might be considered as the sole covenantee. On the same principle, if Crooks and another obligee had been the joint owners of the same shares, their inteiest in the act or duty, the non-performance of which was complained of, being joint as between themselves, but distinct and separate as regarded the other obligees, they might be considered, with respect to the stipulation for the performance of that duty as sole joint covenantees, and might have sued jointly, omitting all the other obligees. This seems to be a necessary consequence, and indeed the true meaning of the rule as recognized in the cases of Daniel vs Crooks, supra, and Burks vs Pointer, (1 B. Monroe, 65,) and the authorities therein cited. And if Daniel had been the sole obligor, or if other persons, not named as obligees, had been co-ob-
The single fact then, that Samuel Laughlin appears both as an obligor and an obligee in the bond, cannot decide either that this action is brought by too few or against too many persons. Although he cannot contract with himself, he and his co-obligors may contract with the other persons named as obligees. Such contract maybe evidenced by an instrument in which his name appears as a co-obligee; and in virtue of the rule which allows covenantees to sue separately, when the interest and cause of action is several, though the covenant be in terms joint, such a contract, evidenced by such an instrument, may be enforced by action at law, by such of the apparent obligees as have a joint interest, distinct and separate from that of the others. The question then is, does the instrument before us evidence a contract between all the obligors and the plaintiffs, as obligees? If this question be decided in the affirmative, the identity of Samuel Laughlin, as obligor and obligee, is immaterial. But it may be entitled to some weight in determining the question stated; for regarding the character of the instrument as one not framed by the parties themselves, nor evidencing a private contract made personally between them, but framed in the routine of business, by. a public officer, ignorant of the parties and their interests, and relative attitudes, and subject, moreover, to mistakes, inadvertence and imposition, it is much more easy to suppose that the Clerk may improperly insert the name of a wrong person among several obligees, than that any one should actually execute the bond, who did not intend and ought not to be bound by it, or that any one who was really interested in the performance of the condition, or at least one jointly interested with others named as obligees, should either be properly a principal obligor or should unite as surety in the bond, to enable the principal obligor to do the very act against which the bond is
But again, does the instrument before us evidence such a contract? The statute, in virtue of which the boat was seized and the bond taken, (3 Stat. Law, 13,) requires the bond to be taken to the defendants, who were owners
The condition of the bond is, that the obligation should be void if the obligors, or either of them, pay and satisfy to the obligees, or either of them, ail such damages as may result from the order if found wrongful. If the words of this clause are to have effect according to their literal meaning, then the payment of the damages to any one of the obligees, though he have no interest whatever in the boat, or may be an interest wholly opposed to the owners, would discharge the obligation and deprive the owners of their indemnity. To avoid this consequence, which might often arise from the liability of the Clerk to err in inserting the names of the obligees, the words, ‘or either of them,’ following the names of the obligees should not be understood in their literal sense. Indeed, if the duty stipulated to be performed be one and entire, those words have, in point of law, no effect in the con* struction of the stipulation, which would still be regarded as a joint one to all the obligees, because the duty could not be severed. If, therefore, these words are entitled to any effect as they stand in the instrument, it may be-
Wherefore, being of opinion that the Court erred in sustaining the demurrer to the declaration., the judgment is reversed and the cause remanded, with directions to overrule the demurrer and for further proceedings.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.