Mitchell v. De Witt
Mitchell v. De Witt
Opinion of the Court
—It is a just and salutary principle, which has been acted on by courts of equity, that a surety who pays the debt due. by his principal to his creditor shall have the benefit of the securities for the debt placed in the power of the creditor by the principal. This equitable doctrine was fully recognized by this court in the case of Sublett v. McKinney, 19 Tex., 438. “It seems
The same principle was acted on by that court in the case of Burns v. The Huntingdon Bank. (1 Penn. It., 395.) A judgment was obtained against the maker of a promissory note, who afterwards entered absolute security
The principle appears to have been first applied to such a ease in England, in Parsons v. Briddock, 2 Vern., 608, which was approved by Sir Wm. Grant, Master of the Polls, in Wright v. Morley, 11 Ves., 22. There, where the principal in a bond had been sued and gave bail, and judgment was obtained against the principal and also against the bail1 by the creditor, and afterwards the sureties on the original bonds were compelled to pay, and then brought their bill in equity to have the benefit of the judgment of the creditor against the bail by having it assigned to them, it was held that they were entitled to an assignment of the judgment against the bail, and it was decreed accordingly. “ So that (says Sir Wm. Grant) though the bail were themselves but sureties, as between them and the principal debtor, yet, coming in the room of the principal debtor as to the creditor, it was held that they likewise came in the room of the principal debtor as to the surety. Consequently, that decision established that the surety had precisely the same right that the creditor had, and was to stand in his place.” (Ib.) The authority of this decision is supposed to have been shaken in England by some of the more recent decisions; but it appears to have .maintained its authority in this country; and Judge Story, while he supposes it to have been much shaken in point of authority, appears to approve of its equity and justice. (1 Story’s Eq., § 499, a, et seq.) It was approved by Chief Justice Gibson, and adopted and acted on by the Supreme Court of Pennsylvania in Burns v. The Bank, (before cited;) was approved by President Tucker in Langford v. Perrin, 5 Leigh, 557; and appears to have been received
Reversed and the cause remanded.
Reference
- Full Case Name
- Eli Mitchell v. Columbus C. De Witt
- Cited By
- 7 cases
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- Syllabus
- It is a just and salutary principle, which has been acted on by courts of equity, that a surety, who pays the debt due by his principal to his creditor, shall have the benefit of the securities for the debt placed in the power of the creditor by the principal. It seems right that the creditor should transfer the means of indemnification, for which he has no longer occasion, to him, who, under a legal obligation to pay, in default of the principal debtor, has released these securities from the demand of the creditor, and paid the. debt for which they were furnished. Where, however, such means consist of the responsibility of an individual becoming a later surety or guaranty for the same debt of the principal, there arises a conflict of equities, which may give rise to new questions as to the priority between the former and latter surety. Such latter surety stipulating, at the instance of the principal, to pay the debt, suffers no absolute injustice in being obliged to do so, since he is compelled to perform no more than he undertook, and has no right to complain that he is not allowed to use, as a payment by himself, the money which proceeds from another person, whom his principal was previously bound to save harmless. How the equity would be, in a naked case of this kind, I give no opinion; it is sufficient that it is settled, that if the interposition of the second surety may have been the means of involving the first in the ultimate liability to pay, the equity of the first surety decidedly preponderates. Where the original principal in a debt prosecuted a writ of error, and the original surety or indorser of the note afterwards paid the debt, he is entitled to have the judgment against the original defendants and sureties on the supersedeas bond assigned to him, upon the general principle, that a surety is entitled to the assignment of all collaterals, and that the second surety may have put him in a worse condition. (For the authorities on principal and surety, see Paschal’s Dig., Arts. 4783 to 4789, Notes 1070 to 1072, pp. 802-3.)