Stockard v. Granberry
Stockard v. Granberry
Opinion of the Court
delivered the opinion of the court.
In 1860 Granberry recovered, before a justice of the peace of Maury county, fourteen judgments, aggregating something upward of six thousand dollars, against A. J., G. "W. and L. J. Polk. Complainant Stock-
The deed of L. J. Polk provided for one-half of the fourteen judgments, and that of G. W. for the other half. Upon closing said trusts the half secured by Lucius J.’s deed was fully paid. That half included in said G. W. Polk’s deed was not paid, nor any part thereof.
In 1872 Stockard filed his bill to enjoin the sale of his land, upon which Granberry had had pluries executions issued and levied, and returned for condemnation to the circuit court. He claims to be released from liability on said judgments on the ground that Granberry had not acted in good faith in ordering the return of the executions and procuring from the Polks a conveyance of all their property in trust to secure other debts, besides the fourteen judgments, due to him
As no question of practical importance arises upon •the deed executed by L. J. Polk, it is needless to -further consider its provisions, except to say it secured other debts than the half of said judgments.
In regard to the deed of G. ~W. Polk, it conveyed all his real estate except, as he stated on his exami•nation as a witness, a small tract of land of comparatively small value in- Dyer county, Tennessee, and a tract of land in Arkansas. It also conveyed, as we infer, all his personal estate, including knives and forks, ■etc. So that while he had a very valuable real and personal estate in Maury county up to the time of the execution of his trust deed, subject to execution •at law, after that he had no property in said county which could be reached by execution. The first debts secured are fourteen judgments due Granberry, and recovered in January, 1861, each for from $469 to $475. The next are notes and claims of the Bank of Tennessee, number and amounts not given, upon which his brother, Lucius J., is security. The next claim to be paid is a note to Andrew Erwin, guardian, fon $5,000; the next is a debt to Isaac H. Hilliard, in. the sum of $15,000; the next is a debt to James J. Bryant, of about $1,200; the next is a medical bill to complainant, Stockard, amount not given. Then follows, as the 7th in the order of payment to be añade, the one-half of the said fourteen judgments due
The deed provides that if said George W. shall pay the foregoing debts on the first of June, 1866, the trustee shall reconvey the same, and stipulates that the property shall remain in the grantor’s possession until it is necessary to sell the same, unless the trustee should think it best for those interested that he should take possession of the same. The debts were to be paid in the order named, from which it will appear that a large amount was preferred to the half of the fourteen judgments therein mentioned.
Granberry filed a cross-bill seeking to have Stock-ard'’s land, consisting of a house and lot of several acres, sold for the satisfaction of the unpaid half of the said fourteen judgments. The pluries executions had been issued and levied upon said house and lot in 1870. The said executions had been returned to the circuit court for condemnation of the land, and the same were still pending when the original bill was filed in this case.
Stockard answered Granberry’s cross-bill, insisting h.e should not be held liable, avering, as he had done in his bill, that the executions in the hands of Rick-etts, deputy sheriff, had been placed there by Gran-berry with instructions to make the money; that he was so informed by Granberry while Ricketts had the
In 1874 Stockard died, having first made his will,, in which he devised said house and lot to his niece, Mrs. Beech, and made other devises and * bequests. Mrs. Beech and her husband, and the administrator of Stockard, were made parties to the suit, Beech and wife claiming that the personal estate of Stockard, if he should be held liable, should first be applied to pay the said judgments. And it appeared that the administrator of Stockard had suggested to the county-court the insolvency of his estate.
The chancellor decreed in favor of Granberry for-$6,302.32, to be paid first out of the personal estate, and next for any balance out of the house and lot, and lastly, to the extent of $5,000, the penalty of the bond against the surety of Stockard on his injunction bond for any balance. Stockard’s administrator and Beech and wife appealed.
The liability of Stockard’s estate, depends upon the question whether Granberry’s interference with the officer having the executions, and his taking a deed of trust for the judgments and other debts, was an act of bad faith, and prejudiced the rights of Stockard. Although there was no express stipulation in the deeds for delay, Ricketts, the deputy sheriff, and George W. Polk, testify that it was understood between the par
But while it is well settled that mere indulgence or delay on the part of the creditor to collect his debt off of his principal debtor will not release the surety or stayor, because such delay or indulgence is not regarded as doing the surety or stayor any injury, yet the utmost good faith and fair dealing by the creditor toward the surety is required, and if he does any act injurious to him, or omits to do what his duty to him requires he should do, whereby he is injured, he will be discharged from his liability.
"While the simple return of the executions without levy would not discharge the surety, , we are of opinion that Granberry, by taking the trust deed and consenting that these debts or judgments should be postponed to numerous other large debts of Polk’s (after promising not to press the collection of the said judgments), whereby the whole of the property was exhausted, and said judgments left unprovided for, did not act with that perfect good faith toward Stockard which the law required of him, and so misled him as to prevent his taking measures for his own protection. The officer had the executions, and was about to levy them on property ample for their satisfaction. Stock-ard knew this, and had a right to rely upon the consummation which Granberry had promised. But the officer was ordered to return the executions, and at the same time the creditor accepts deeds of trust from
Granberry says he notified Stockard that he was going to take a deed of trust to secure said judgments, a few days before it was done, and that when said deeds were taken he endeavored to have said fourteen judgments placed in the first class, as his other claims were. But Stockard denies that Gran-berry gave him any such notice, and neither G. W. Polk nor the officer knew of any such notice, and it does not appear that he had notice until sometime after the deeds were executed. And G. W. Polk
In an unreported case, of Bryant v. Killough, decided at Brownsville, April term, 1868, it was held, Judge Smith delivering the opinion, that when the stayor urged the officer having the execution to make the money out of the principal debtor, and the principal debtor, on his applying to him for property, .showed him a tract of land of value sufficient to pay the debt, and the creditor told the officer not to levy on the land, and the debtor afterward became insolvent, that the stayor was discharged. This case is not in accord with previous or subsequent decisions of this court.
The stayor there might have obtained his judgment against his principal, and thus have protected himself. The distinction between that case and others in which relief has been refused to stayors and sureties after judgment and this case is, that the creditor did no injury to the surety by simply refusing to levy, whereas by refusing to levy himself, and by aiding in placing the property of his debtor out of the reach of the surety and for the benefit of third persons, he renders unavailing any measures the surety might adopt for his protection. ITe has, by his active interposition
In Freeman on Judgments, see. 226, it is said that the preponderance of authorities is decidedly in favor of the rule that the creditor, after judgment, can give the principal debtor no preference, nor do any act by which the liability of the surety is increased, and that such acts as discharge the surety before judgment will discharge him after judgment. But in Tennessee the rnle is different, for %vhile a valid contract for delay between creditor and his principal debtor before judgment will discharge a surety, such a contract after judgment will not. 3 Sneed, 541; 10 Yer., 111, 362; 10 Hum., 447; 3 Hum., 412, 553; 5 Hum., 320; 9 Hum., 493; 5 Hum., 249. The reason given for the discharge before judgment is that the surety could only have the same equities against the principal that the creditor has, and if the creditor had bound himself for delay by a valid contract, the surety would be bound also, whereas after judgment the surety may obtain judgment against his principal, notwithstanding the contract between creditor and principal (3 Hum., 412, 545), and for this reason it is supposed the agreement to delay does the surety no harm (10 Yer., Ill), and because it does him no harm he is not discharged. It is said, 3 Hum., 413, the surety’s remedies against his principal were not
We are, therefore, of opinion, from the facts disclosed in this record, that Granberry’s acts in placing Polk’s property beyond tbe reach of executions, and
The Chancellor’s decree will be reversed, and the injunction against the collection of the said fourteen judgments, or any part thereof, from the estate of Stockard, will be made perpetual. The cross-bill is dismissed.
Reference
- Full Case Name
- W. P. Stockard v. J. M. Granberry and J. M. Granberry v. W. P. Stockard
- Status
- Published