Oregon National Bank v. Gardner
Oregon National Bank v. Gardner
Opinion of the Court
The opinion of the court was delivered by
This action is brought to recover on three promissory notes executed by appellants as sureties for defendant Wright and in favor of the respondents. .The defendants answered the complaint, to which answer the plaintiff’s interposed a demurrer, which. was sustained by the court. It seems after-wards, however, that the plaintiff replied to the second and third counts of the answer. The pleadings in this case are too long for reproduction here, but we were all of the opinion upon the presentation of the-appellants’ case that the court had not committed, error in sustaining the demurrer, at least to the first defense.
The first count of the answer alleges that the plaintiffs had commenced an action in the superior court of Pierce County against Wright for $6,000.00, that Wright was desirous for a continuance of the pending action, and that plaintiff was desirous of security for payment of the debt involved in that action, and agreed to continue the cause if appellants could be in
We are inclined to believe that even these allegations are put in issue by the reply of the plaintiffs which sets out the circumstances under which this contract of security was entered into, that it was at the special instance and request of the defendants themselves for the purpose of protecting their interests as stockholders of this corporation, i. e., the Puget Sound Dressed Beef and Packing Company, the corporation above referred to in which Wright was the owner of 200 shares of stock, and it was at their solicitation, and for no other cause, that these notes were executed and delivered to the bank, the plaintiff in this case, and that there was no solicitation on the part of the plaintiff or his agent whatever; and many other facts
The statement alleged to have been made by the plaintiffs, that their responsibility as sureties was merely nominal, amounts to nothing; that was, at most, a question of judgment. It might have been that that was the opinion of the plaintiffs at the time, or if it had not been, it was simply a statement of an opinion, on which no sensible business man would rely or should he allowed to rely. If matters such as this were pertinent to avoid responsibilities of sureties, it would be difficult to ever enforce a contract of this kind. All the information that was in the possession of the plaintiff, as far as the allegations of the answer are concerned, was in the possession of the defendants,
• Hoyt, C. J., and Scott, Anders and Gordon, JJ., concur.
Reference
- Full Case Name
- The Oregon National Bank of Portland v. John D. Gardner
- Status
- Published
- Syllabus
- PRINCIPAL AND SURETY — FRAUD OF OBLIGEE —DISCHARGE OF SURETY.. Sureties cannot escape liability because of the failure of theobligee to inform them of the existence of a judgment held by him against the principal, nor because of a representation by the obligeethat their responsibility as sureties would be merely nominal.