Norris v. Crummey
Norris v. Crummey
Opinion of the Court
The Judges delivered their opinions.
On the 26th day of April, 1839, Brown, who resided in Rockingham, (and probably in the district of Ragan, a deputy Sheriff of that county,) bargained with the latter to assign to him certain bonds at a discount, and to give him a horse, and to pay him #800 in money; in consideration of which, Ragan was to satisfy an execution expected to issue, against Broion, and his sureties, Bird and Deary, from the Superior Court of Shenandoah, upon a suit then depending, against them, on behalf of the appellant. It was also agreed, that Ragan should have all the time for the payment of the debt, which could be procured by Brown’s giving and forfeiting a forthcoming bond. Brown accordingly, on the same day, assigned the bonds, delivered the horse, and paid the money to Ragan, according to their agreement.
A judgment was rendered in the suit of Norris v. Brown et ah, on the 26th of May, 1819, one month after this transaction between Brown and Ragan; upon which, an execution issued, which came to the hands of Ragan, a forthcoming bond was taken and returned by Hicks, (probably a sub-deputy Sheriff in the employment of Ragan. ) This bond was defective, and was quashed at the instance of Norris. On the 2d of November, 1819, a ca. sa. issued upon the judgment, directed by order of the plaintiff’s counsel, to the Sheriff of Rockingham, which Hoffman, a deputy Sheriff of Shenandoah, surreptitiously got possession of, in the expectation of finding Brown -and Bird, who resided in Rockingham, at Bushong’s sale, in that county, which was to take place in a few days; and to enable him to levy the execution upon all the defendants, he prevailed upon Deary, who lived in Frederick, to attend at Bushong’s sale, and to procure a prison-bounds bond to be executed; but, not finding Brown and Bird,
The attorney of Norris, having reclaimed the execution from the hands of Hoffman, sent it to Ragan to be executed; who, thereupon, executed himself a forthcoming bond, which has also the names of Brown and Bird to it. But, how Brown’s name came to be signed to this bond, does not appear; he seems to have been, at the date of this bond, in Kentucky. This bond was presented by Hicks, (who, as aforesaid, was probably a sub-deputy Sheriff in the employment of Ragan,) to John Ragan, the brother of the deputy Sheriff, who also executed it. This bond bears date the 33d of November, 1819, and the appointed day of sale was the 31st of December, 1819. The execution and bond wore returned by James M. Bush, another deputy Sheriff of Rockingham. But, whether the execution was put into his hands before or after the return-day, does not appear, ft is probable, that he had no agency in levying or managing the execution, further than to endorse the return, at the request of Ragan; and that, in fact, the execution was never executed. Up&n this bond, execution was awarded on the 32d day of May, 1820, and issued on the 30th of May, 1820, and sent by the plaintiff’s attorney to the said James M. Bush to bo levied, with directions to levy on the property of the Ragans, and not on Brown’s for the present; the attorney having,
“ The circumstance of the notice, should it be deemed necessary, is only to be viewed as a step of precaution, and not as a trap; for, if plighted words can bind, no execution shall issue ere the 1st of June, 1821.” “Get the execution from Crouse, and make the return.” Ragan accordingly made the return; and on the 24th of May, 1821, a judgment was rendered on that return against Ragan and his sureties.
Tt is not necessary to advert, particularly, to the circumstances under which this judgment was rendered, since, if the facts of the case would have enabled the sureties to defend themselves at law, they arc, notwithstanding they made no defence at law, clearly entitled to relief in equity, because they were not informed of the facts of the case in time to make their defence at law.
Upon this case, the Court of Chancery over-ruled a motion to dissolve an injunction which had been awarded upon the exhibition of the bill, upon the ground that Ragan was not liable as deputy Sheriff, to the payment of the amount of the execution to the plaintiff, he having made no money by virtue of the execution, which he returned “ money made and ready to render,” or of any other execution in the case; and that the return was false, and could not bind the sureties, it being made in consequence of a fraudulent combination between Ragan and the attorney for the plaintiff, to charge the sureties of Ragan with the debt. And, it is urged by the counsel of the appellees, that even if the return were true, the stipulation, on the part of the plaintiff, to give Ragan time for the payment of the money, would, in equity, discharge the sureties.
In this view of the case, it is clear, that no money was made by Ragan, in his office of Sheriff, upon the first execution, which was quashed, or upon the second, upon which the forthcoming bond was given and forfeited, if the receipt, bearing date the 31st of December, 1819, was really executed by him' after the return-day of the execu- ' tion. For, the receipt of the consideration for which he . stipulated to pay Norris’s debt, imposed no obligation on him, in his official character, but only individually; and, in case of his failure to perform his contract, he was individually bound; and'his sureties, 'for the due execution of his office of Sheriff, could not, in that case, be responsible ■ either to Broum, or the plaintiff, until Ragan did some official act to bind himself, in respect to the funds placed in his hands by Brown, to account for them as Sheriff. He could not be bound as such, nor could his sureties, at the time he executed the receipt; there being no execution in the hands of any Sheriff of Rockingham, which gave
It is true, that a false return, produced by a fraudulent combination between the plaintiff and the deputy Sheriff, ought not to charge the high Sheriff, or the sureties of tho deputy. But, if a deputy Sheriff should, without fraud on the pari of the plaintiff, hut with fraudulent views of his own, malee a return which would preclude the plaintiff • from taking out another execution, he would violate the condition of his bond, which provides, that “ he shall, in all things, truly and faithfully execute and perform the said office of Sheriff,” and his sureties would he responsible. One of the duties of his office is, to make true returns; and if, in such case, the sureties were not responsible, then the plaintiff rriight lose his debt, by the default of the Sheriff without remedy„ It is, therefore, I presume, that the act of Assembly has made the Sheriff' and his sureties liable, not because of the fact of his having maxle the money upon an execution, hut because of his return that he has made it. Upon such a return, the high Sheriff would be bound to the creditor; for, it would be, in effect, his own return, by his deputy, which he could not controvert. He could not alledge the falsehood of the return, or tho fraud of his -deputy, in his defence, since that very fraud and falsehood had the effect of barring the remedy of the creditor against his original debtor. And If the high Sheriff be liable for any default of his deputy, the sureties are hound by the terms of their obligation to indemnify him. If, therefore, Ragan had made the return in question, without the knowledge or concurrence of the. plaintiff or his attorney (or, with their concurrence, and at their instance, if they believed it to be true, and were chargeable with no fraud,) for some fraudulent purpose of his own, even if it were confessedly false; it would have prevented the plaintiff from taking out any other ex
Before we come to the enquiry, whether Norris or his counsel are chargeable with any fraud in this transaction^ it is proper to ascertain whether, in fact, the return in question was true, or false and fraudulent.
As soon as Brown put funds in Ragan’s hands, in consideration of which Ragan promised to discharge Norris’s judgment, he became individually Brown’s debtor for that sum; and neither this, nor his subsequent failure to perform his contract, could have affected his sureties. But, as soon as he elected, acting in his office of Sheriff, to ap
But, if the return were false and fraudulent on the part aSalh was Norris or his counsel privy to the falsehood, or did they participate in the fraud ? Norris knew nothing of the transaction but from the information of his attorney, who assured him that the Sheriff and his sureties were already answerable for the debt; and in giving this assurance, the attorney acted conscientiously. He had delivered the execution of the 2d of November to Ragan. He had seen Ragan’s receipt for the amount of the execution, dated on the day the forthcoming bond would have been forfeited, if the money had not been paid, or the property produced. He might well have supposed, that the money, or some equivalent, was then duly paid, to a Sheriff authorised to receive it, although the execution was returned, and the forthcoming bond pui’ports to have been taken, by Bush. For, that might well have been done, and the execution been in the hands of Ragan, until the return-day; and, although the receipt states, that the forthcoming bond was not present when the receipt was given; yet, that might have happened, and the bond and execution might have been at Ragan’s house, or in the hands of his sub-deputy. This impression on Allen’s mind, was fortified by Ryan’s admission, that he had received the money officially, and was bound for it as Sheriff. If all this were false, it was the falsehood of Ragan; and if a deputy Sheriff, by false representations, induces a plaintiff to consent to a false return, which, if made without this concurrence of the latter, would bind the sureties of the former, the sureties cannot avail themselves of such assent, to discharge themselves from liability. If the fact had been as Ragan induced Allen to believe it was, and Ragan had duly received the money when authoriséd to do so, as Sheriff, Ragan’s sureties would have been bound, and, that even if the return on the subsequent
I, therefore, consider the return to be'neither false nor fraudulent; that if it were both, it would bind the sureties, unless the plaintiff or his attorney were privy to the falsehood, or participated in the fraud; that if the return was false and fraudulent, they were not privy to the one, nor participated in the other; and, that the injunction should be dissolved, unless the time given to the deputy Sheriff, for the payment of the money, absolved Ms sureties.
The long settled rule of Courts of Equity, and which has been adopted to its full extent in the Courts of Law, in England, is, that if a creditor, by agreement or any other act, precludes himself at law from proceeding against the principal, after the debt is due, for a moment; or, if the
That the true ground upon which sureties are relieved in such cases is, that the creditor has impaired the remedies of the surety, by his act or agreement, appears decisively, from all the cases in England and Virginia, upon that subject; notwithstanding the loose and indefinite expressions sometimes used. Indeed, if this be not the true criterion, I can perceive none, but the arbitrary will of the Court in deciding each particular case.
Thus, in Nisbet v. Smith, 2 Bro. C. C. 579, the surety-called on the creditor to sue the principal, which he did, and took a confession of judgment, with a stay of execution for three years. This agreement was endorsed on the power of attorney to confess judgment. The original contract was merged in the judgment; so that, if the surety had paid the debt to the creditor, and he had ceded to the surety his rights, the latter could not have proceeded against the principal, until after three years; and so, if he had filed his bill quia timet, the principal could not have been compelled to pay, until after three years. The remedies, therefore, of the surety, were deeply impaired by this act of the creditor.
In Rees v. Barrington, 2 Ves. jun. 540, the creditor took new notes of the principal, giving further time for payment than that stipulated by the bond. The Chancellor said: “The surety has a right, the day after the bond is due, to come here, and insist upon its being put in suit. The obligee had suspended that till the time contained in the notes runs out. Therefore, he has disabled himself to do that equity to the surety, which he has a right to demand.
Skip v. Huey, &c. 3 Atk. 91, does not seem to come under this rule; for, there the principal professedly applied to the creditor, to give up the bond, and take new securities for the debt, for the purpose of discharging the surety; which was done. Some of the new securities proving of no value, the Court refused to subject the surety, the creditor being plaintiff.
In Peel v. Tatlock, 1 Bos. & Pull. 433, the whole Court concurred in refusing relief to the surety; and Bul= ier, Justice, said: “I do not see how the responsibility of the surety could be given up, since no favor shewn by the creditor to the principal, nor any thing done between them, which did not create an injury to the surety, could discharge the latter.”
In ex parte Gifford, 6 Ves. 809, and Boultbee v. Stubbs, 18 Ves. 20, it is admitted by the Chancellor, that if the creditor giving time, reserves his remedies against the principal or sureties, the latter are not discharged by giving time to the principal; for, in the latter case, it is equivalent to an agreement that the creditor may proceed at pleasure against the sureties, and thus throw them on the principal, notwithstanding the conditional indulgence given to him.
In Moore v. Bowmaker, 6 Taunton, 379, in an action of replevin; bond and security having been given by the plaintiff, for the return of the goods, the parties agreed to
These principles have been recognized here in Croughton v. Duval, 3 Call, 69. The surety sought relief, upon the ground, that the creditor had been requested by him to sue the principal, which he had refused to do. The Court denied the relief, whilst they recognized the authority of Rees v. Barrington, and Nisbet v. Smith.
In Ward v. Johnson, 6 Munf. 6, the majority of the Court inclined to think that the surety was discharged in equity; because, the act of the creditor “ had deprived him of his remedy, by bill quia timet. ”
In Hill v. Bull, Gilm. Rep. 149, the surety was relieved, because the act of the creditor had suspended the resort of the surety to his bill quia timet.
In Bennet v. Maule, Gilm. Rep. 328, Judge Roane considered the surety as discharged, because the creditor had “ opposed an impediment to his obtaining relief, by means of a bill quia timetj” and, in that case, Judge Coaltjok. said, (in which Judge Cabell concurred,) the only principle on which a surety can get relief, agreeable to the case made in the bill, is, that he has been deprived of his bill quia timet, by a contract between the creditor and princi pal, by which the creditor has tied his haiids;” and, considering that the surety might, in that case, have relieved himself by such a bill, denied relief
Our statute, which authorises sureties to call upon the creditor in writing, to proceed against the principal, and discharges the surety in case of the failure of the creditor ' to do so, excepts the cases of sureties to bonds, with collateral conditions, and the bonds of guardians, executors, administrators, and public officers. It may be said, that this exception does not affect the common law remedies of the surety; and that, in the cases excepted by the statute, a surety might still avail himself of his bill quia timet. This may be so; yet, it may be seriously questioned, whether a bill quia timet would lie in some cases. If it would, the consequences would be very extensive; one, for instance, that if a creditor took a judgment, with stay of execution, against an executor, his sureties would thereby be absolved; unless the remedies provided for sureties in that case, by the statute, obviated that effect.
It might, also be a serious question in this case, whether, as between Ragan and Norris, a Court of Equity would have enforced the agreement between them, if the consequence would be to discharge the sureties; or, even without regard to that consequence; and whether, in fact, the remedy of Norris was delayed or suspended. And, it might be another question, whether Norris did not reserve his remedies unimpaired, against the high Sheriff, although the consequence of pursuing that remedy might be, to subject Ragan to be proceeded against by the high Sheriff, before the time of the stipulated indulgence had expired.
In general, the high Sheriff’ alone, and not the deputy, is responsible to persons injured by the official conduct of the latter. The deputy gives bond and security to the high Sheriff, for the performance of his duties, and for indemnifying his principal. Upon this bond, the party injured by the official misconduct of the deputy, has no remedy, unless expressly given by statute; and the remedy is then confined to the form prescribed by the statute. A remedy is so given in the case of a deputy Sheriff, returning that he has levied the debt, and in no other case. That remedy is by motion, and is given on the principle of substitution to the rights of the high Sheriff, arising out of the deputy’s bond to him. But, although this remedy is given, it does not take away the original remedy by action or motion against the high Sheriff. The party, therefore, retains an election to proceed against the one or the other, by motion. This is the construction given to the act of Assembly by the General Court, in Hogan v. Cottle, &c. (November, 1820,) and by this, in a case from Culpeper, not reported, and is the just construction. The words of the statute are, “if any Sheriff, under Sheriff, or other officer, shall make return, &c.” A return made by a deputy is the return of his principal, the Sheriff, and is made in his name; and such a return by the deputy, subjects his principal to the provisions of this statute. The 34th section of the act of 1819, provides that, “when any deputy sheriff now in office, or who may hereafter come into office, hath been, or shall be, found in arrears for any money, tobacco, or other thing received, or which ought to he received, by such deputy, by virtue of his office, and for which the principal, &c. is or may be chargeable, and shall not immediately pay or deliver the same to the person, &c. entitled thereto, the Sheriff may obtain such judgment, on motion, against the deputy, and his securities, as the principal» &c, might, by mo
I have not used the precise words, but have stated the substance of the statute. For, the words “maybe” do not refer to the possibility or right of the party to recover judgment on motion, against the deputy, before the mo - tion of the high Sheriff but to an actual judgment thereafter obtained, before the motion of the high Sheriff. In the case of a .deputy Sheriff returning on an execution money made,” and not coming within the exception above stated, nothing could excuse him upon the motion of the high Sheriff, but the immediate payment of the money to the party entitled. It would be in vain for him to say, either that he had not made the money, for his official return would preclude such an allegation, or that the plaintiff had agreed to give time for the payment of the money. He would be answered, that the plaintiff could not deprive the high Sheriff, by any act. or agreement of his, of his legal right to call for, and enforce the payment to him of all money made by his deputies in their official character; that, he being bound ultimately to pay, if the deputy did not, had an immediate right to secure himself, by taking the fund into his own hands, and either pay it immediately; or elaim the stipulated indulgence, at his pleasure; and that, in effect, the agreement to give time was an agreement to give time to the high Sheriff.
If, then, the agreement in question were such as would, in an ordinary case of principal and surety, discharge the latter, yet, in this case, it would not, since it did not defeat or impair any remedy to which the sureties might have resorted for their relief. ' If the sureties had, immediately after the return, filed their bill quia timet against Ragan and Norris, Norris could not have been compelled to proceed against Ragan; for, the law had given him an
One other enquiry remains. It is insisted, that the plaintiff, by releasing the property of John and Daniel Vagan, taken in execution, did an injury to the sureties of the latter, by surrendering one of the securities which the plaintiff held for his debt; and that, upon the principle that the release by a creditor of any other security which operated for the benefit of the sureties, they are thereby put in a worse condition, and are therefore discharged. The sureties had not, before the release of this property, any interest in the question, whether the property should be released or not They were not, according to their
Upon the whole, I think the order refusing to dissolve the injunction should be reversed, and the injunction dissolved.
The contract which was entered into between Daniel Ragan, the deputy Sheriff, and Brown, was one which I think ought to meet with the disapprobation of every Court; especially as it provided for a course of proceed
Had he stipulated with Brown, that in case the execution should come to the county of Rockingham, and be placed in his hands, that he would return it “satisfied;” and when it did come to his hands, he had refused to make such return, when the money really was in his hands, paid to him in dischaige of the execution, though not paid after it came to his hands; and, if he could have found no property of Brown or Bird to levy it on, his conscience must have been asleep indeed, could he have made any other return on it than “satisfied.” Suppose, in such case, the creditor had known that Brown, being about to leave the country, had thus provided for the indemnity of his sureties, Bird and Deary, by an actual payment of the debt to the Sheriff making this return; could he not have denied its truth, and would not the Court either have compelled the Sheriff to amend his return, or have given a judgment against him, in the same way as if he had received the money, after the execution had come to his hands, and returned “ no property found ?” Suppose he had returned the truth of the case, that he had received the money before the execution came to his hands, under a promise, that if it did, he would return it “satisfied,” and then had the money in his hands, but elected to violate his agreement and leave the parties to their remedies against him as an individual, inasmuch as he did not wish to make either his principal or his sureties liable; I am
The case under consideration, in regard to the point now discussed, only differs from the one supposed, in this; that the Sheriff was not to return the first execution “satisfied,” but was to have the delay of a forthcoming bond; that is to say, although the debt was in reality paid, the Sheriff was not to return the truth of the case, but to proceed to levy and take a bond- as aforesaid. It appears to me, that this cannot strengthen the argument for the sureties. The entering into such contract was undoubtedly wi’ong, as aforesaid; but, was probably not such a violation of his duty, as would have subjected his sureties, had the execution never come to his hands; but, when it was delivered to him, we then mount a step higher. • He has
But, be this as it may, had Ragan returned this execution, or the second one, “satisfied,” as probably he would have found himself bound to do, had he made the return on either, I think, for the reasons above stated, he and his sureties would have been bound to the creditor by that return. This wras not done; but, a new execution was issued, and put into his hand's, on which a forthcoming bond was taken, and another deputy returned it forfeited. The execution is issued on this forthcoming bond; it comes to the hands of Ragan, (no matter, at present, how;) and he being now bound by his contract, returns it “ satisfied in consequence of which return, a judgment was obtained against the sureties.
This was a just, and substantially a true return, as it regarded Norris, the creditor, and Brown, the debtoi\ It is an official act, and binds Raghn, and his sureties, to the creditor, unless he, or his attorney, in a way binding on him, has done something which, in equity, must discharge the sureties.
It is said that they have done acts, which, however intended, amount to a fraud on the sureties.
First; that this last execution was levied on property, from which the money might have been made, even out of Daniel Ragan himself; which property was released by the agreement, that Ragan might take the execution, and make this return.
Second; that, on this agreement, delay was stipulated for, and granted to Ragan; so that, had the sureties brought their bill quia timet, the hands of the creditor would have been tied.
The question then recurs; was the assent of the creditor, that Crouse, if he thought proper, might deliver the execution to Hagan, that .he might return it “ satisfied,” either in fact or in law, a fraud on the sureties ? The execution on which the forthcoming bond had been taken, was, in the first instance, placed in the hands of Ragan. Ho had given a receipt, on the day that bond is ¿Hedged to have been forfeited, to the debtor Brown, for the amount of the money due. Daniel Ragan, and his brother, John Ragan, were sureties for Broion in this bond. The latter knew not of this fact, and so made no defence. The former did not, for reasons too manifest. An execution then was out against Brown, and John Ragan, (as to Daniel lie could not complain of it,) on a bond, which the creditor had a right to believe had not been forfeited; and the Sheriff who had received the money, and who ought to have returned the execution “ satisfied,” is now willing to do justice, and having the money in his hands, is desirous to return “satisfied,” as in substance was the truth of the case, on the execution in question. The creditor asserts that Crouse may place the execution in the hands of Ragan, in order that this return may be made. Suppose that he had known nothing about it, or, having
But, admitting for the present, that the doctrines do apply in this case, I nevertheless think, first, that after the return was made by Ragan, the creditor, if his rights stood in the same condition, as if he had been totally ignorant of all these transactions, except what appeared on the record, and are not changed by his assent to the return, could not have been compelled to litigate the question, how far Brown, or John Ragan, were bound to pay this money, in exoneration of Daniel Ragan’s sureties. Those sureties would have an equal, or better right to litigate this matter, than the creditor. Nor would he have been bound to move to have his execution and this return quashed, so as to exonerate Ragan’s sureties, and re-issue his execution, unless, indeed, his rights, under that return, were impaired as aforesaid; but, if this be the case, the sureties have now a right to repel his claim against them, on that ground, independent of that now under consideration.
Secondly. They could only file their bill then, to compel him to proceed by motion, &c. against Ragan, so as to get judgment as soon as possible, in order to levy the execution on his property, or to give them a speedy recourse against him.
As to this; there was, in the first place, no stipulation which could prevent this, unless Ragan had paid the >> 2,000. But, if there was not time, and the $ 2,000 were not paid, this agreement to stay was without consideration.
As well on this ground, therefore, as because, viewing the whole tissue of misconduct now detailed in this case, of which the creditor was ignorant, as.well as the sureties, Ragan could not have opened his mouth, to say that the creditor was bound not to proceed, and that he must, consequently, lose his remedy against the sureties. The decree must be' reversed.
There can be but one opinion as to the conduct of Daniel Ragan in the early stages of the transactions, disclosed ■ by this record. But, the fairness or' unfairness of his conduct, is an enquiry unimportant to the decision of the present case; nor is it material to ascertain whether he actually had an execution in his hands, at the time he gave the receipt bearing date the 31st December, 1819; nor whether the money for which, that receipt purports to have been given, was paid at that time, or at any antecedent period; nor even whether his sureties could, in any manner, be bound by that receipt. The execution which is the subject of the present controversy, was put into his hands, after that period; it being clearly proved that he had previously received, from the debtor, funds more than sufficient to discharge it. This execution he returned “money made and ready to render;” and the question now is, whether he and his sureties are liable for the amount of the execution, in consequence of that return.
As to the pretension that the sureties are discharged by the time promised to Ragan, for payment, I have only to observe, that even if there was a sufficient consideration to support the agreement, yet the agreement to grant indulgence was a conditional one. It depended on a condition, which was to be performed before the creditor could make any motion against Ragan or his sureties; and, as that condition was not performed, the party was left to his
I am of opinion to reverse the order of the Chancellor, and to dissolve the injunction.
Judge Brooke, absent
Reference
- Full Case Name
- Norris v. Crummey and others
- Status
- Published