Delaney v. Tipton
Delaney v. Tipton
Opinion of the Court
Newton died intestate; the defendants obtained letters of administration of his estate, and gave bond with Delaney and one Davis, deceased, his sureties. Delaney charges a misapplication and waste of assets by his principals, the insolvency of one and the danger of insolvency of the other. He filed his bill against them before the expiration of two years from the date of the bond, that is to say, on the 23d day of March, 1813. The administrators have returned an inventory and an account of sales, which together with debts due at the time of the intestate’s decease, amount to $2700 or thereabouts; part of the moneys due by the sale have been collected by the administrator, and part of the debts due to the deceased. And there yet remains not paid away to creditors a considerable * sum. The defendants at the time of filing the bill were in the circumstances stated in it; that is to say, the feme defendant insolvent, and the other defendant embarrassed in his circumstances, but in the possession of property of more value than the above-mentioned sums. But it does not appear whether he has as much property as is equal both to his debts and the assets to be accounted for as administrator. An injunction issued when this bill was filed to stay the assets in the hands of divers persons, and to hinder the same from coming to the hands of the administrator, which has been continued to this time. It does not appear that there are any creditors of the intestate yet unsatisfied ; that is to say, it does not appear whether there are or not. The intestate left eight children, all under the age of 21. Two of them only have guardians. The question submitted to the consideration of the court is, can the administrator be ordered to give security to the complainant, or otherwise, that a receiver be appointed to take
The executor is appointed by the testator; until lately he was not bound by law to give security: but he held the assets for creditors and legatees. If poor and insolvent, and he has raised a just suspicion, by his conduct, that he will waste or withdraw the assets, a receiver may be appointed. 2 Atk. 126, 213. Their fund must be secured for them. The administrator is bound to ' give security. The law provides it. If letters are granted without, creditors and legatees could have the same remedy as against an executor. If given, but insufficient, the law would * look upon it as not given at all, so far as the insufficiency went. And for the benefit of creditors and legatees, the court would order it to be given again. But a surety is not allowed to stand in the place of creditors or legatees till he has paid them all that is due to them. 10 Ves. 410. The surety cannot act upon the principal in such a case as the present through the medium of the creditors and legatees. What then is his own equity against his principal ? The surety makes himself safe, either by a bond or covenant of indemnity, or the law raises a promise of indemnity on the part of the principal in his favor. If there be a covenant or bond for indemnity, equity will enforce it; but not add to it or alter it. Equity will not give damages before the law gives damages, and these arise only upon a breach, by non-payment on the part of the. principal when the debt becomes'payable. 1 Fonb. 38. So also in the case of an implied promise, it is not broken till a default in non-payment on the part of the principal. The court cannot make for them a third. contract, independent of those already mentioned, namely, that the principal shall give counter security to the surety when required. For he shall not be subjected to that for which he did not -stipulate, nor the surety be entitled to that which he did not originally require. Whoever wishes to see the cases upon the application of sureties against their principals, may see them in 6 Ves. junior, 734; 1 P. W. 683; 1 Atk. 185; Amb. 161; 2 Ves. junior,
See Wade v. Green, 3 Hum. 547; Williams v. Tipton, 5 Hum. 66; Floyds v. Goodwin, 8 Yer. 494; King’s Digest, 6561, 10,149, 10,150.
Reference
- Full Case Name
- Delaney v. Tipton and Newton
- Status
- Published