Thrasher v. Ely
Thrasher v. Ely
Opinion of the Court
delivered the opinion of the court.
This was an action of assumpsit, brought against the plaintiff in error, upon a guaranty of a promissory note, payable to him, and transferred by him to Ely, in the following words : “ I do assign the within note to D. J. Ely, for value received, and guaranty the punctual payment of the same, at maturity.”
The first question arising upon the record is, whether a demand of the maker, and notice of nonpayment were necessary to hold the guarantor liable. The circuit court charged the jury, that no such demand and notice were necessary, and this charge is assigned as the first error.
Upon this point there is a want of harmony in the authorities, calculated to produce some perplexity. The weight of reasoning and authority, however, we think, is in favor of the conclusion, that no such demand or notice is necessary, in a case of the guaranty of a promissory note. We lay out of view those cases which have grown out of a guaranty by letter of credit, and cases which have been construed to create a continuing guaranty. In'both of these classes, the American cases, at least, hold a notice to be necessary in order to charge the guarantor. See 10 Peters, 496. But, in the same case, after the principle, in reference to cases of these classes, has been stated, the court proceeds to draw the distinction, where the guaranty is of the payment of a promissory note, and holds the following language : “There are many cases where the.guaranty is of a specific existing demand by a promissory note, or other evidence of a debt; and such guaranty is given upon the note itself, or with reference to it, and recognition of it; when no notice would be necessary. The guarantor, in such cases, knows precisely what he guarantees, and the extent of his responsibility, and any further notice would be useless.” Chancellor Kent, in his Commentaries, vol. 3, 123, takes the same view of the law. After a notice of the different kinds of guaranties, he concludes the review of the doctrines, in these words : “ In the case of the absolute guaranty of a note, no demand or notice is necessary to fix the guarantor.” In Norton v. Eastman, 4 Green. 526, the court says,'that when a guaranty is
In Tennessee the same course of decision prevails. Upon a guaranty in these words, “ we bind ourselves to see the within note paid,” it was holden that no demand and notice were necessary. 3 Yer. 335. So in Bell v. Johnson & Hicks, 4 Yerg. 196. In this case, besides the ordinary assignment, these words were used, “ and'guaranty the solvency of the drawer.” The court asks, “What is meant by these latter words?” Do they express an intention to restrict the liability ? We think not. On the contrary, they were intended to enlarge it, and give the assignees more ample means of holding him responsible. If they failed to make demand, and give notice so as to fix his responsibility upon the indorsement, still, they might recover against him upon this guaranty, provided they could show, by suit or otherwise, the insolvency of the maker.” The same principle, here unfolded, is adverted to in the case of King v. Murray, 5 Barn. & Ald. 165. 7 Eng. C. L. R. 57. That was the case of a guaranty in the shape of a bond. The court say, “ it is insisted, however, that we are to engraft upon this bond, those limitations which the law imposes upon holders of bills of exchange, namely, a due presentment, and notice of dishonor. I am of opinion that we ought not to do so.”
In the case before us, if there had been a simple assignment without more, demand and notice would have bedn necessary;.
The cases of Green v. Dodge, 2 Ham. 430, the Oxford Bank v. Haynes, 8 Pick., Sager v. Wilcox, 6 Conn. and perhaps a few others, point to a different conclusion. From the best consideration we have been able to give them, we think that, so far as they depart from the principles of the cases, before adverted to, they cannot be supported. Upon the weight of authority, and upon principle, we are of opinion, that, in this case, no demand and notice were necessary.
If the defendant had proven that there had been negligence or delay on the part of the holder, and that he had been prejudiced thereby, he would have been entitled to a discharge, at any rate, to the extent of the damage sustained. Ch. on Bills, 474. Van Wart v. Wooley, 3 Barn. & Cres. 439. 12 Peters, 503.
The nextjerror assigned and relied on, is, that the plaintiff, having averred notice in his declaration, was bound to prove it. The declaration, after stating the making of the note, the guaranty and delivery to the plaintiff, without alleging any demand, as in case of indorsements, avers the nonpayment at maturity, and says, “ of all which several premises the said defendant had notice.” The cases, on the subject of the agreement between the pleadings and the proof, are by no means uniform. A late writer has attempted to extract the true principle which should govern. “ Some averments he calls impertinent, and others immaterial. The former are mere surplusage,
We incline to the opinion that the allegation of notice in this case was mere surplusage, and might be stricken out without prejudice to the plaintiff’s action; but whether impertinent or immaterial, we think'it was unnecessary to prove it.
The reasoning, in regard to the assignment of these two alleged errors, will comprehend all the others. No error is perceived in the judgment of the court below, and it is therefore affirmed. - ■
Reference
- Full Case Name
- John B. Thrasher v. David J. Ely, Use of Israel Loring
- Status
- Published