Lowry v. Lumbermen's Bank
Lowry v. Lumbermen's Bank
Opinion of the Court
The opinion of the Court was delivered by
In the case of Irvine v. The Lumbermen’s Bank, decided at this term, there was no judgment and execution; but here a judgment was rendered, an execution issued, and a return of nulla bona. The defendant also gave in evidence a bill in chancery, filed by Benham, in whose favour the judgment was
Next, as to the Seward drafts. The bank entered into the following arrangement with William H. Seward:
“ The Lumbermen’s Bank at Warren, Pa., proffers to William H. Seward to give drafts on Philadelphia, payable four months from date, Ñith sixty days’ interest, on receipt of the usual notice, for all their office notes received by him in the regular course of business. This arrangement may be discontinued at the request of either party on notice.
“ Robert Falconer, President.
“ Warren, September 21 st, 1837.”
William H. Seward, who was the agent for the Holland Land Company, in the county of Chautauque, and who the bank was desirous should receive their notes in payment for lands, thereby creating a local currency in their notes, accepted the proposition, upon the following guaranty:
“We, the undersigned, guarantee the payment of all drafts which may be given in pursuance of the above arrangement.
“ Josiah Hall, Guy C. Irvine, N. A. Lowry.”
. Afterwards several drafts were drawn, amounting in the whole to upwards of $4000. These drafts were regularly protested for non-payment, and $3200 was paid by N. A. Lowry. This the defendant insists upon as a set-off to the plaintiff’s demand. For the purpose of explaining or rebutting this evidence of payment, the plaintiff proposed to prove that the drafts referred to as Seward’s drafts have been paid by the bank to Hall, Irvine, and Lowry, or either of them. The defendant objected to any evidence showing payments to Irvine and Hall; but the objection was overruled.
The plaintiff then proved that on a settlement between the bank and Irvine, Irvine represented that he was bound to pay the
The defendant then requested the court to instruct the jury that if the plaintiff gave Mr Irvine credit upon the books, as before testified by Mr Falconer, to the amount of $3200, for the purpose of paying the drafts in favour of Seward, and they were not paid by him, (Irvine,) it cannot prejudice the right of the defendant to his set-off in this suit for the amount paid by him to Seward upon presentation and demand of the draft as testified by Seward. The same point arises on the bill of exceptions, and the refusal of the court to charge as they were requested. The question is, whether a payment by one of two or inore joint guarantors or sureties enures to the benefit of the co-guarantors or sureties. In Gould v. Gould, (8 Cow. 168), it is ruled that joint sureties paying money for their principal should yet sue severally to recover the money paid. So if several persons become surety for another, and one surety pays the whole, he may recover against the others their aliquot shares. 2 Bos. & Pull. 268; 8 Term. Rep. 319. But where several sureties pay the debt, they cannot jointly sue the other sureties for reimbursement. 3 Bos. & Pull. 235; 2 Term. Rep. 282.
If there are several defendants in an action ex contractu, and the plaintiff recovers judgment against them, and one pays the whole demand, the law gives him an action for money paid against the others for contribution. The rule seems to- be otherwise in the case of a judgment against several in an action of tort. 8 Term, Rep. 186; 1 Camp. 343, 345. It would seem, that where money which two or more sureties pay for the principal, is raised on their joint credit, or paid from a joint fund, the proper remedy for a reimbursement is a joint action against the principal. 5 East 225; 3 N. Ham. Rep. 366; 3 Greenl. 107. The right to sue jointly does not arise from a joint liability, but from a joint payment, where the money is raised on a joint credit or paid out of a joint fund. But where the payment is several, each must bring suit to recover the amount he has paid, and when one has paid the whole debt, he alone can maintain suit, because he claims as the creditor of his principal, and of his co-sureties also. It would be obviously unjust to allow the principal to meet a claim arising from the payment of one, by proof of payment of it to another, who, although bound, had paid nothing. From these principles it results that the court erred in admitting proof of the payment to Irvine, and in so much of their charge as relates to this point. There is nothing in the case to bring it within the benefit of the exceptions. There is no allegation that the money paid by the defendant was raised on the. joint credit of Irvine and Lowry, or that it was paid out of a joint fund. If the money was paid by Lowry, as seems to be assumed by the court, although from some other testimony there may be doubt about it, he was entitled to
Judgment reversed, and a venire de novo awarded.
Reference
- Full Case Name
- Lowry against Lumbermen's Bank
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- 2 cases
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- Published