Pintard v. Davis
Pintard v. Davis
Opinion of the Court
The opinion of the court was delivered by
Whether a surety is discharged or not may be a legal question, but in the case of a sealed contract it must be when the suretyship appears on the face of the instrument. The solemnity of such instruments forecloses in general all inquiry into the consideration. If bound, as principal, a defendant cannot aver at law in an action upon the instrument, that he is only a surety, though in equity parol evidence is admissible to show who is principal-and who surety. In this state this clear rule of the common law has never been infringed. In Manning v. Shotwell, 2 South. 584, the creditor who had been called upon to sue the principal discontinued the suit, and gave him further time. The court held that this did not form any defence at law to a suit against the makers of a sealed bill.
But independent of this technical objection, which howmver is fatal to the legality of the plea, the defence cannot be maintained. The undertaking of such surety is absolute; It is his business to see whether the principal pays, and not that of the creditor. If he lies by, and the insolvency of the principal intervenes, he must abide by the loss, and cannot throw it on the creditor. Mere delay to require payment, without any binding contract for that purpose, and without fraud, will not discharge a surety ; and upon the facts of this plea there could be no relief éven in Chancery. Supposing the surety can call upon the creditor to do the most he can for his benefit, it must be upon terms that will secure the creditor from all the consequences of risk, delay or expense. Wright v. Simpson, 6 Ves. 734; 2 Story Eq. J. § 849. But no sanction has ever been given in this state to the present attempt to invert the natural order of the obligations created by the contract of surety. The cases of Pain v. Packard, (13 John. 174,) and King v. Baldwin, (17 Ib. 384) are not generally recognized as authority, and have introduced into the state in which decided a new rule between creditor and surety, which we think unnecessary and inexpedient.
Randolph, J. I am not prepared to say that a surety may plead no matter in pais, without first going into a court of equity, or that the fact of suretyship must appear upon the face of the instrument itself in all cases, to be made available as a defence in a court of law ; nor do I consider it necessary for the decision of this case to settle either of these points. Could the defendants ask the aid of a court of equity upon the facts presented in their plea ? If not, then it is pretty clear that this court can grant them no relief. In JSden on Injunction, p. 31, the rule is said to be well settled that whenever the creditor, by virtue of some agreement, (not by merely remaining inactive) gives time to the principal debtor, he thereby discharges the surety, and to this extent the rule is sustained by many cases referred to by the author. In Samuel v. Howarth, 3. Merival 277, Lord Elden says the rule is this : that if the creditor, without the consent of the surety, gives time to the principal debtor, by so doing he discharges the surety ; that is, if time is given by virtue of a positive contract between the creditor and the principal, not where the creditor is merely inactive. And the reason given is because he thereby changes the character of the surety.
And the same doctrine is held in Rees v. Barrington, 2 Ves. Jr. 540, and sustained by the numerous cases collected in the note. There must be an agreement or act of the creditor by which the terms of the original agreement are enlarged, or the risk of the surety increased. The defendant’s plea in this case sets up no agreement, no enlargement of time, no act of the creditor by which rights of sureties have been put in jeopardy.
The Court, consisting of the Chancellor, and Judges Whitehead, Carpenter, Randolph, Speer, Spencer, Porter, Schenck, Robertson and Sinnickson unanimously, affirmed the judgment of the Supreme Court.
Cited in Paulin v. Kaighn, 3 Dutch. 508; Paulin v, Kaighn, 5 Dutch. 501.
Reference
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- PINTARD, IMPLEADED &c. v. DAVIS
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