Steele v. Sawyer
Steele v. Sawyer
Opinion of the Court
delivered the opinion of the .court;
1st. Whether the acceptor of a hill of exchange and the maker of a promissory note are liable to an indorser for the costs which he may have incurred in consequence of default of payment by them.
2nd. If they are not, whether the maker of the note in this case, is liable in consequence of any special promise or undertaking by him.
1st. I believe the prevailing , opinion has been, in thiinstate, that they were liable for the costs in all the actions brought against the endorsers,' though I do not know that the question has ever been directly made before. In the cases of Smith vs. McDow, and of Haig vs. Newton, (1 Con. Rep. 277-422, j it appears to have been assumed as a conceded point, that they were so liable, but the point was not contested. In the case of Richardson vs. Presnal, (1 McCord’s Rep. 192,) the reasoning of the court would seem to lead to a different conclusion, though the question was not necessary to the decision of the case. In Bailey on Bills, it is said that it had been the prevailing opinion, that where an action had been brought against several indorsers, that the action would not be stayed against one, upon paying the debt and costs in the action against himself, unless he would also pay the costs in all the actions against the subsequent indorsers, against whom judgments had not been obtained. But that jt had been lately held that none but the acceptor who had made the original default was liable for the costs in all the actions. The sanie doctrine is laid down in an early edition of Chitty On Bills, 290 ; and both rely on the case of Smith vs. Woodrock, (4 Term Rep. 691,) in support of that position. From these authorities, it would seem inferrible that the acceptor of a bill, and the maker of a note, are responsible for the costs of all the actions against the endorsers. And in Maxwell On Bills, 73, the law is so expressly laid down. But in the case of Simpson vs. Griffin, (9 Johnson, 131,) it is directly
The reason therefore why the court will not stay proceedings against the acceptor of a bill or the drawer of a note, without the payment of the costs of all the actions against the indorsers, against whom judgments have not been obtained, is not because they (the acceptor and the drawer of a note) are liable for those costs, but because it would thereby throw the costs of all those actions on the plaintiff. And as they have committed the first fault, and thereby occasioned-all those costs, the court will give-no relief unless they will pay them, but will let the plaintiff proceed to judgment against all the parties, to enable him to recover his costs in all the actions. It may be said, that although the holder cannot tax the costs of the other ..actions against the acceptor, yet the endorsers may main
2d. With regard to the promise of the defendant, it was nothing more than that he would settle the debt with the plaintiff; it was a promise that he would do what the law required him to do, and no more. There was no such undertaking as would make him liable on the ground of a ■special promise. I am of opinion, therefore, that a new trial should be granted, unless the plaintiff will release-that part of the verdict which embraces the costs of the action against the indorser.
Reference
- Full Case Name
- John Steele ads. Sawyer & Steele
- Status
- Published