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TheLawofSubrogation 10510024

This chapter introduces the concept of subrogation and defines its general nature. Subrogation is defined as the substitution of one person in the place of another with reference to a lawful claim or right. It is an equitable remedy that allows a party who satisfies another's debt or obligation to assume the rights and remedies of the original creditor. The chapter provides examples of parties that may be subrogated, such as a sheriff or one who advances money to pay off a mortgage. Subrogation follows the discharge of an obligation and adds nothing to the original creditor's rights.

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98 views

TheLawofSubrogation 10510024

This chapter introduces the concept of subrogation and defines its general nature. Subrogation is defined as the substitution of one person in the place of another with reference to a lawful claim or right. It is an equitable remedy that allows a party who satisfies another's debt or obligation to assume the rights and remedies of the original creditor. The chapter provides examples of parties that may be subrogated, such as a sheriff or one who advances money to pay off a mortgage. Subrogation follows the discharge of an obligation and adds nothing to the original creditor's rights.

Uploaded by

jurebie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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T H E L AW

S U B R O G A T I O N .

H ENRY N S HELDON .

S E C ON D E DI TI ON .

B OS TON
THE B OSTON B OOK C OMPANY .

1 8 93 .
C opyri ght, 1 8 82, 1 3 93 ,
Br H E N RY N Sum m on .

3 \ J 4 0 (o
PR EFA CE TO SECON D EDITION .

IN preparin g this n ew ed i tion I h ave care fully exam


,

i n e d th e la ter d e cis ion s , a nd


h ave al so gon e ove r th e
w h ol e s ubj e c t a n ew an d h a v e m ad e s uch a dd i ti on s a n d
,

s uch ch a n g e s a n d e m en da ti on s a s s e e m e d to b e ca ll e d

fo r. T h e n um be r of case s ci ted h a s b e e n con sid e ra bly


m o re th a n d o ubl ed an d th e te x t h as b e e n m uch e n la rg e d
, .

M a ny se c tion s h ave b een p ra ctically rew ri tte n ; an d


m a ny of m y fo rm e r sta te m e n ts h a ve b e e n m uch con

d e ns e d
. I h av e tri e d to sta te th e la w as briefl y a n d as
c orrec tly as w as wi thin m y po we r The un expe c ted
.

fa vor W i th whi ch thi s l i ttl e w o rk h as b een rec ei ve d h as


m a d e m e t h e m ore a nxi ous to sp a re n o p ai n s in its im

p rovem e n t
H . N S .

B OSTON , January 3 1 , 18 9 3 .
PR EFA CE TO FI R ST EDITION .

IT has b ee n
y m en posi ti on of th is
d eavor, in th e com

book to state the doctrines w hich h ave been laid down


,

by th e courts in apply ing the law of sub roga ti on with ,

o ut goi n g bey on d th e m os t lim i te d extent o utsi d e of


, ,

th e djud ica ti ons of this c ountry a nd of En gl a nd Re


a .

gard ing it as th e dis ting ui shin g feature of our system


of la w th a t it is establ i sh e d b y
j ud ici al d e c is i ons a
pos

teriori, an d n o t d educ e d from a W reason in g s , I h a ve

m ad e n o a tte m p t to o furth e r t h an th e c ourts h av e


g
gon e ; but I have de sire d to state , as correc tly as m igh t
be an d w i th sufficien t ful ness to be i n tell igi bl e th e
, ,

gene ral prin ciples which have b e en d ecl are d b y the


c ourts and the i m portan t app lica tion s whi ch ha ve b een
,

m ad e of th e se p ri n ci pl es .

Th e m ost l ogi ca l d i visio n whi c h could b e m a d e of


this subj e ct w ould be, as it se em s to m e, to d i vi de it in to
two h e ad s : first, th e sub roga tio n o f juni or c red i to rs of

a co m m on d e b to r, or of p arti e s hold in g sub ord i n a te in

te re sts in the sam e prop erty to th e righ ts and rem e d i es


,

of senior creditors, or of p e rsons h oldi n g p a ram oun t


vi PREFAC E .

cl aim s up on th e prop erty , ch jun i or parti es h ave


after su

for th e p ro te c tio n of th e ir own i n te rests satisfie d th e


s up e ri or c l a im s ; s ec on dl y the s ubroga ti on of on e of
,

se ve ral d e b to rs wh o has e i th e r un d e r c om p ul si on o r for


,

th e p rote c ti o n o f h is p ro p e rty sa tisfie d a com m on c re d


,

itor o r a c red i tor h old in g a ch a rge up on his p rop e rty as


w ell as up on th a t of o th e rs a g a i n st th ose d eb to rs by
,

w h om o r th e o w n ers of tha t p rop erty from w hich h e


, ,

o ugh t to ha ve b e e n inde m nifie d in w hole or in p a rt


, ,

aga in st th e b urd e n which h e has th us d isc h arg e d Th e .

firs t of the se cl asses wo ul d i n cl ud e th e s ubje c t m a tte r -

of m y se c on d c ha p te r on th e s ubroga ti on of p e rson s
,

h oldi ng successive cl aim s upon the sa m e p rop e rty m os t ,

of th e cas es o f th e sub rog a tion o f d e vis e es a n d l e gs .

tees an d p roba b ly th e sub rog ation of in sure rs


, Und er .

th e se c ond head wo uld be i n cl ud e d t he subnog a tion of

sure ti es of co s ure ties


,
-
of joi nt d e b tors of p a rti es to
, ,

bills an d n o tes a nd m os t c ases which arise in the ad


,

m in is tra tio n of trusts B ut it h as on the whol e se em ed


.

b est to m e for p rac tical con ve nience afte r defining


, ,

the subj e c t an d afte r a g e n e ral cha p te r up on th e sub


roga ti on of d i ffe re nt p arti es h avi n g succ essi ve cl aim s

up on th e s am e prop e rty by m ortg ag e l i e n or p urc h ase , , ,

to consid er se pa ra te ly s ub roga ti on in c a se s of s ure ty

shi p am on g jo in t d eb to rs
, a m o n g pa rti e s to b i ll s a n d
,

n ote s in the a d m i n i strati on of es ta tes un d e r co n trac ts


, ,

of in s uranc e an d in fa vo r of s tran g e rs
,
Al so fo r pur .

poses of pra ctical con ven ien ce and be ca use th e subjec ts ,

h e oft n e
a v e b e n d i s c uss e d t og e the r b y th e cou r ts I ,
PREFACE . vii

h av e treate d und e r th ese d iffe re nt h eads the substi


t utio n of a cred i tor to th e rem e di es a nd se c uri ti e s

w hic h are he ld by th e sure ty of h is d e b tor, or by h is


d eb tor against one who by ag reem e n t wi th th e d eb tor
, ,

h as ass um e d th e b urd e n of th e d e b t, alth ough I a m


a ware th a t thi s is not s tric tl y p art of th e law of s ubro

a tion , b e i n g rath e r the c on v e rs e of th a t d oc tri n e


g .

My subje c t b e in g a sm all one I h ave end eavore d to


,

m ak e a c c pio us c i ta ti on of a ut
hori ties, e ve n at the ri sk

of see m i n g n e edl essl t o m ul tip l y referen ce s for th e


y
supp ort som etim es of un d isp uted p roposi ti ons .

H . N S
. .

'
p l
B osron , A ri 1 1 , 1 88 2 .
AN ALY S IS OF C ONTENTS .

CHAPT ER I .

Dnrn u rxon '


AN D GENERA L NA T URE
De finiti on of S ubrogati on
2 Defi ni tion 11) th e ivil Law
. C
3 Wh o will b e subrogated
e
. .

4 It 13 a Mode of Equitable Reli f .

L
.

Doctrin e ad apte d m
. ouis ia na

6 Follows th e
. D
isc h arge of an O
bligation Adds Noth ing to .

th e Righ t
7 Instances
. Subrogation of a Sh erifl
.

8 Subrogation of one wh o h as advanced Money for th e Pay


.

m en t of an Inc um bran ce

9 Oi one who h as been com pelled to pay th e ebt of anoth er


. D
10 Of a a rrier C
e
.

100 Oi a onsign e or Agent


. C
1 1 General Doctrin e of S ubrogation
.

CH A PTER II .

S unn oo n -
xox m Ca s ns wm mn Dm n nn n r
'
Pa n rm '
s na n Suc
c ns s xvn Cna m s U PO N rm n s u m P R O PE R T Y , 3 1 MOR T G A G E,
L uau, o n Punc rn sn

5 12 . S ubm gation of a Jun ior Incum brancer upon aym ent of 9. P


Prior Inc nm brance
18 . S ubrogation will be m ad e to serve th e urposes of J ustico P
an d th e Intent of th e arties P
14 . S ubrogation upon Redem ption from 3 rior Incum brance P
15 . S ubrogation of Junior Inc um brancer com pelled to pay a rior P
16 . Duty of Prior to Ju n ior In c um
b ra uce r
17 . Jnn ior In cum brancer s Right of Re dem tion
’
p
18 . W b
h en Juni or Inc um rancer entitled to Su rogation b
ANALYSIS OF CONTENTS .

s 19 . S ubrogation of one ad van cing Money for th e Paym ent of an


b
In cum rance
20 . W h ere ne w Inc um brance given for old
21 . H ld
o er un d er a J udgm ent Lien s ubrogated upon pa ying Prior
Inc um bra nc e
22 . Whe re Inc um bered Lands sold un der a Junior Lien
23 . S ubroga tion of a n Ass ign ee m B ank ruptcy
24 . S ub rog tio n of a Mortga gor aga ins t a Purchas er of the
a

Eq uity wh o h as as s um ed th e Mortgage .

25 Righ ts of Mortg agor against Mortgage e and suc


. a Pur h
c ha se r

b
26 S u rog ation of the M ortgagor again st his
. ra ntee su ec t to G bj
th e Mo rtg age
27 Righ ts of C o m ortg agees agains t each other
.
-

b
28 S u roga tion of th e Purch ase r of an E uit of Rede m tio n on
.
.
q y p
h is Py
a m e n t of 11 P
ri or Inc um brance
.

29 Rig h ts of such a urch ase r


. P
30 P
urc h as er, if h is
. P
urc h as e avoid ed , s u rogated to b
ien wh ic h L
h e h as aid p
31 P
urc h aser under a Mortgage or
. C
h arge s u rogate d to its b
ien L
. P
3 2 Righ ts of such a urch as er 1n C aliforn ia
'

3 3 Instances of suc h S u rogation b


l
.

y b
34 Purch aser ordin ari l su rog ated to a l the R igh ts of h is
.

endorV
35 . W
h ere the P
urch as er ays p Db
e ts with which th e ro ert P p y
was oh argea ble
36 P p
urch aser c om elled to pay h is
. en dor s
’
V
e t su rogated to Db b
C
red itor s Righ ts aga ins t h is Ven dor
’

36 a P
urc h as e r s Sh h roga tion doe s not de en d u on th e
.
’
palidity p V
of his itle T
37 . L P
im ita tion of urch aser 9 R igh t of S u rogation
’
b .

b
3 8 S u roga tio n of the
. P
urch aser a t an Exec ution sale agains t -

th e De tor b
b
3 9 S u rog ation of such
. P
urch ase r wh ere th e Pm perty recovered
by
third a rti es P
40 R igh ts of a Purchas er wh ose
. P
urc h ase is voida le the b by
C re ditors of h is e n d or V
41 . W
a i ver of the R ig ht of S u rogati on b
42 . W
h a t is not a aiver W
43 Bi gh t lost
. by
Ne glige nce resulting i n re udi ce to oth em P j
44 Th e
. a rt P y b
see k ing S u rogation m us t n ot b e in h is own

45 . Wh e n one entitled to be b
su rogated to a Li en m ay dem an d

Assignm en t th ereo
an f
46 . Db
The Rea l e tor c an not be su rogated b
47 . Assign m ent to one wh o is oun d to pay the b Debt tanta
ANAL SIS os Y com am . xi

PM .

5 48 . Subroga tion of a Dowress wh o h as pa id a aram ount ien P L


on th e r P
o pe rty

49 . Widow a Righ t of ower against a urchaser wh o has p ai


’
D P d
a n In c um b ra nce to whic h h e r ower w as subj ect D .

Dower le t in if D
e bt pa id by one bound to pa
y it
51 . Th e W
id ow m ay re dee m H er Righ ts th ere upon
.

52 . Th e R ule in Massac h usetts


53 . Ass ig nm ent of a Mortgage to the wner of th e Equity of O
Rede m ption will n ot ne cessarily extinguish its Lien
54 . Tes ts by wh ich Me rge r 1s determ i n ed

55 . Inc um brance so ass igned , k ept ali ve only for a Good Purpose
and to protec t a Bone fic i al In te rest
56 . P
Mortga ge ass igned to th e rincipal ebtor 1s extinguish ed D
57 . Co nve yance of th e E uit q y to th e H older of 11 Pri or Inc um
bra nce will not ex tinguish it i n Favor of a Junior
58 . Conveyance of Equity 1 n Paym en t of Prio r w ill not ad vance ,

J um or In cum bra nce


, .

59 . When a Conve yance of the Equity to th e Mortgagee will be


m ga rded as a Paym ent of th e Mortg age — d e bt
60 . An i nte rven i ng Es tate will preven t a Merger
61 . D
Th e octrine of Two F un ds
62 . A C reditor wh ose Fund h as e en tak en to pay 11 b
rior e t P Db
subroga ted to th e
-
L
ie n o f th at e t on oth er Fun ds Db
63 . Doctrine of T w o F un ds n ot a pp
lied , if it would work Iu ua j
ti ce to S e n ior C reditor
64 . W
h ere one of the Two Fun ds is itself su ec t to rior bj P
Inc um rances b
65 . Doctrin e of Two F unds n ot a lied wh ere it would be 1 n1ur1 pp
66 . Where on e of th e Funds is pri m arily b
lia le for th e Pay
m en t o f both D bts e

66 (1 W R1gh t of Marsh alling As sets


ai ve r of

L b hd
.

67 . Jun ior C reditorca nn ot c la im the Be nefit of a ien esta lis e


b q
s u se uen tl to his own y
68 . C b y
reditor s u rogated on l to a Fun d wh ic h ough t to h ave di s
c h arged the Db
e t h is Fund h as aid p
68 (1 . W C L
h ere eac h reditor h as a ien u on th e S a m e One of th e p
Funds
d ppl
.

69 . Doctrin e of Two Fun s a ied on l if e tors are th e s am e y Db


70 Jun ior
. Credi t or can n ot be b
s u roga te d until Prior C redit or

71 . A pplication of th ese Principl to C a e es a s of Several Cr d i


e

to rs of Joint and Seve ral De bto rs


72 . P C
Re lease by rior reditor of Fund ri m aril lia le to h i m p y b
73 . P y
B ut Re lease of rim ar Fun d wi ll not re udice rior re di p j P C
G
tor if m ad e 1n ood Faith a nd with out N otice
74 . P urc h as e of a P
ortion of an Inc um ere d Estate Righ ts of b
ANALYSIS OF CONTENTS .

DAC

Order of Liability of S epa rate Parcels of Incum bered Estate


y
so ld s uc cess i vel

R ule in Io wa and Ken tuck y


N o Distin ction between Mortg age an d Judgm ent lien orother -

Inc nm bra nce


Release of Es ta te prim a iily
'
b
lia le di charges
s pro ta nto th at

Release p y b
Esta te rim aril lia le will not ex onera te Estate
of

y b
sec on d aril lia le, unless in J us tice it ough t to ha ve th at

80 Release of a ny Rem edy to wh ich the S ubs eque nt Gra ntee would
.

be subrogate d releases th e ien on th e latter s roperty


’
L P
P
rior Inc um brance r n ot afi ec ted by S ubseque nt Alie nations
of th e P
re m is es unless n otifi ed of th e m
Th e Mortgagor m ay by S tipulation va ry th e rder of Liab i it O ly
Exte nt of th e Righ t of 11 S ubseq ue nt urc h ase r P .

Ins tan c es of th e Applica ti on of these R ules


W
h en th e P
urch ase r of an Equity of Redem ption ass um es
P
the aym e nt of th e Mortgage

CH APTER III .

8 17113 00 1 7 101: 111 CA S E S or S un nrrs m r

5 86 S urety s Right of S u rogation


.
’
b
q b
8 7 It 18 a n E uita le As signm en t to th e S uret
.
'

y
y b
8 8 S ure t su roga ted to Priorit of red ito r
. y C
T b
8 9 S ure ties of a rus tee su rogated to the Righ ts of the rustee
. T
a n d of th e C a m i: qua Trm te nt

b
9 0 S ureties of a Sh erifi s u rogated to R igh ts wh ich th e h ave
. y
sa tisfie d for him
b
9 1 S u roga tion of a
.
’
Db
e tor s S ure t y
a g a i nst a S h e riff

9 2 S urety su roga ted to


. b C p
or oration s Lien u on th e S toc k of
’
p
its S h are h olders
9 3 S ure t e ntitled to be sub roga wd , th ough n ot in
. y rivit with P y
h is ri nci al P p
y
94 S ure t upon a Bon d entitled to the Ben efi t of 11
. rior Bo nd P
for th e sa m e e t Db
95 S .u re t s u y
b r o ga te d to t h e B e n e fi t o f a n A g ree m e n t m a d e by
h is C red itor
9 6 S u
. r e t o fy a u rc h a s P
e r s u b ro g a te d t o en d o r
’
V
s Rig h t o f

Resc iss ion


9 7 S u
. r e t o f ya u rc h aseP r s u r o g a te d bto a i t le o r i e T
n r e ta i L
n ed

by
th e Vendor

9 8 S u
. r e t f o ry V e n d or s u ro g a te b
d t o E u i ta b le R q
ig h t s o f e n d ee V
9 9 Ri.
g h t of V
e n d o r w h o e c o m es bS u re ty fo r V e n d e e .

100 S u r
. e t e n ty
it le d to F u n d s h e ld fo r t h e e t m t h eDb h a n d s of

his P
rinc i a l p
I
ANALYS S OF CONTENTS . xiii
21 “
S urety m ay ava il h im sel f of his Principal s Right of
’
Set ofi-

or Def e nc e

Th e S urety is a Creditor of th Principal e

his Cc sureties -

Po y
.

p
O ne wh o h as le dge d his r pert for th e ebt of another D
en titled to S u rogation b
Extent to which S u rogation will be c arriedb
y y
S uret of S ure t m ay be su rogated ; h ow far b
C
H ow far reditors of th e S uret m ay be su ro gated y b .

C redi tor c an n ot dis c h a rge S ec uri t for h is o wn Be nefi y t


f
a ter a m en tPy S uret by y
pp
I ns ta nces of th e A lication of th e Doctrine of S u ro ga tion b
P
for the rotec tion of S ureties
y
S ure t s Righ t of S u rogation m ay be ost
’
b h is aive r l by W
y b
S uret s Righ t of Su roga tion s u e ct to Credi tor s R igh ts
’ ’
bj
y b P
S uret in de ted to his rinci al not e ntitled to S u roga tionp b
ag ai nst h im

d oh C h
.

. y
S uret s Right confine t t e ontrac t for which e was
’

1 14 . S urety s Right to m arsh al Sec urities given to th e sam e


’

C redi tor for Se para te eb ts D .

1 15 . C
Surety c annot require th e redito r to reso rt first to Security
116 . Righ t of S ub rogation destroyed by A pplica tion of th e Se
c a rity upon th e e bt D
117 . C re dito r s Righ t to apply S ec urity as n eeded for h is own
’

Pr t o ection

1 18 . S urety for Part of a D bte c a n not be b


su roga ted , wh ile th e
oth e r Part r em a ins un paid i
1 19 . C
S urety disc h arged by red itor s gi v ng up Security to wh ich ’

h e would be sub roga te d


120 . C
red itor held to Res ponsibilities of rustee for S urety T
C
121 Lac hes of reditor res ulti ng in Loss of Sec uri ty m ay dis
.

c h a rge S urety .

122 C
redito r 8
.
’
D L
isch arge of e vy or Attac h m ent on th e roperty P
of th e P
rinc ip al, how fa r a isch a rge of the S urety D
123 C
red itor bound to re ta in M oney or ro perty of th e Princ ipal
. P
rightfully l n h is an ds H
t h P
.

124 N eglec t of a B an k to a pply


. epos i s of t e D
rinc ip al upon
h is N ote , h o w far a Re le as e of th e S urety
125 R ig hts o f a S ure ty wh o h a s paid the
. ebt in Ign ora n c e of D
th e C reditor s’
D
i sc h a rge of a Se c urity
126 1ns tances wh ere S urety d isc h arged by
. reditor s I nteri or
’
C
e nce with his righ t of S ubroga tio n

126 a S urety on Bon d not to be d isc h arged by Release of Sec u


.

rity caused by A ct agai n s t whic h Bo nd tak en


127 S ure ty n ot en titled to S ubrogation until the whole
. ebt 1s D
paid .
xiv ANALYSIS or com .

5 128 . Satisfaction is C reditor s’


Bigh t ; it need n ot com e y
wholl

129 . Cr ditor
e
’
s pp y
Righ t to a l S e curit h eld for S everal Debts y
un til all are satisfied
y
130 S uret m ay com e into E uit to com el
. q y
aym ent of the p P
e t D b by
the rinci pal P
q b
130 a E ui ta le Relie given to th e S uret
. f y
13 1 R igh ts of S uccess ive S ureties to S u rogation aga in st each
. b
13 2 . Righ ts of one wh o b ecom es S uret for th e aym en t of a y P
J ndg m ent
133 . W L y y
h e re ater S uret is Suret for riginal Sureties as well as O
13 4 . p
Ex ce tions to Us ual R ule of S u rogation b etween S ucces b
sive S ureties

W O
h eth e r rigin al Ob
ligation extinguished S urety s Pay
’
by
m en t th ereof R ule in England
.

13 6 . P y p
rese n t English R ule ge n era ll ad o te d in th e Un ited Sta tes
13 7 . y b
Righ t of S ure t to be s u s ti tuted to the Be nefit of th e Ori
gin a l liga ti Ob
on m ai ntain ed

In N e w am sh ire H p
b
In N e rask a
In N e w ork Y
P
In enns lvania y
In N ew Jersey
D
I n ela ware
I n M ar lan d y
In V irginia
In N orth arolin a C
In S outh arolin a C
G
In eorgia
In h ioO
In K
entuck y
T
I n en nessee
In Mississi i pp
In Ala am a b
In M ichigan

In In dia na
In W isc onsin
In M innesota
In K a nsas
In Illinois
In Missouri
In Ark ansas
In T e x as

In L ouis ia n a

In C alifornia
ANALYS IS OF CONTENTS . XV

5 1 8 8 . R igh t of the S urety to be subroga ted to th e Benefit of the


O
rigin al bligati on denied O
In M assach usetts
In M&ine s

In N evada

Li bility
a

Righ t of b
S u rogation am ong
C c sureties -

Cc sure ties en titled to the Ben efit of Sec urities h eld


-
each by
oth er .

A S ure ty ca nn ot h ave ontri ution from C


his Cc sureti es b -

wi th out accounting for such Securit y


A S ure ty holding Sec urit rega rd ed as a Trustee th ereo for y f
h is Cc snreties -

L
H is Righ ts and ia ilities to wards his Cc sureties b -

y
S uret m ay in E uit revent q yp
isch arge of Sec urit h eld D y by
h is Co s uret -
y
S ec urit h eld y on e wh o 1 8 by
oth a red itor and a S uret
'

b C y
y b
S uret m us t contri ute to ost of Sec urit of wh ich h e seeks C y
th e B en efi t a iver . W
y
Righ t of one Sure t to sti ulate, on becom ing such , for a p
p
Se arate Indem n it to h im se lf y
A Co— y
suret c alled u on for ontri ution p ec om es thereb C b b y
en t1 tled to S u rogation b
b q
S u se uent S ureties not entitled to In dem nit rovid ed for yp
P rior S ureti es
Ex te nt of th e Righ t of S u roga tion am ong Cc sure ties b -
.

Cre di to r s Inter ere nce with th e R igh t


’
f .

y
One S uret holdi n g Securit from th e rinci al holds it y P p
for the h ole W
e t Db
Cc sureties R igh t of Su rogation s u ect to egal Rights
-
’
b bj L
of T
h ird arti es P
C
Th e reditor m ay be su stitute to th e Benefit of Securit b d y
for the e t h eld Db a S uret by y .

Se c urit h eld y a S uret by


regarde d as a y
rust for th e Pay T
m e nt of th e e t Db .

C reditor s R igh t to Sec un t


’
y h e d a S ure t w h o 1 s also l by y
a C
reditor of the rinci al P p
b
.

C re d itors R igh t to S ec urit


’
held y S ure t easured y ym by
th at of S uret y .

y
Securit g ive n m erel to indem n f S ureties cann ot be y iy
e n forc ed after S ure ties d isc h arged

W y
h e n th e S ure t s T ran s er of h is In dem nity to the redi
’
f . C
to r does not e xting uish it
y
S uret s In dem n it not availa le to th e
’
y reditor unless b C
In solvenc intervenes y
X VI ANALYSIS OF CONTENTS .

5 162 . The Creditoris entitled t o th e Benefit of th e Surety s Indem ’

n ity wh en Insolvenc y inte rvenes


163 . S urety Indem nity som etixm s treated as a
’
s rust for th e T
Py
a m en t of th e De t b
1 64 . P artial S uret n ot to b e h ar ed y m by
th e S u s ti tution of the b
Creditor to his In de m n it y .

1 65 . C b
reditor ca nnot be s u s tituted to a Sec urity not created
again st h is e t Db
1 66 . C as es i n wh ich a C reditor h as sough t to b e s u stituted to b
S ec urities h eld a S ure t or by
one unde r a S econ da ryy by
Lia ilit b y
167 . C reditor S u s titute to th e b lai m of hisd e tor for Reim C Db
bursem e n t upon th e a rt ultim atel lia le P y y b
1 67 a . b
B on dh olde r su s tituted to Be nefit of Sec urit given y by
P y
art ul tim atel lia le y b
1 68 . b
S u stitution to the Sec uri ties h eld the S ureties in a rim i by C
n al Reoognizance

C H APTER IV .

8 03 3 00 117 1011 AM ON G Jom r Da nroa s

5 1 69 . Right of Joint Debt ors b


to S u rogation as

170 . Wh e re on e Joi nt Debtor h as ass um ed th e15111111 3 10 Lia


bility
e
rh
. .

171 In ases of artn


. C P ip
s

17 1 a S u stitution of
. b a Part nersh i p
Cred1 tor to Agreem en t or
S ec urit tak en y by a Re tiring P
artner aga inst Firm

Debts
172 . Wh r Se e belonging
e curi ties to Difl eren t Owners are h eld
for th e S a m e Deb t
173 . Wh er e L an d of two or m ore Own ers is su bjec t to one Mort
hn i
g e

174 . T i r nc iple a pplied agains t one claim ing un der a Jow t


P urch aser
17 5 A pplied to M ortgagees whose Estate w as su bj ect to 11 Prior
.

Li
.

en

1 76 . N ot applied where Lien upon one Security extingui sh ed


177 .
Wh ere th e Ultim ate Liability 1s upon one of Several Owners
of S ecuriti es h eld for th e S am e De bt

178 .
Th ese Principles applied to Jom t Mortgagors and to th e
Grantees of a Mortgagor
179 . Exte n t of th e Righ t of S ub rog ati on

1 80 .
Wh ether Origin al Obligation disc harged as to all th e
Debtors upon Paym ent by one
ANA LY SIS OF CONTENTS . ii
xv

CH APTER V .

S unnoe x n on 1 11 0110 Ps nrm s ro


'
Bu ms A N D N o rns
'

5 18 1 . An In dorser u pon Paym ent e11m to Righ ts of H older


182 Th e Mak er of a Note not entitled to th e Benefit of Pay
.

m ents m ade In dorsers thereon by


182 a In d orser or Accom m oda ti on Mak er of Note regarded as
.

S uret m erel y y .

183 T f
rans eree of B ona Fid e
. older su s tituted to his Ri h ts ,
g H b
thoug h h im self cha rgea le with E uities b q
p
1 84 Acce to r of B ill supra protest su s tituted to Righ ts of older
. b H
f
rom who m h e tak es it
i
.

185 T
ransferees of N otes or B ills nt tled to t e Be nefi t of Sec u
. h h
y
rit h eld for th eir a m e nt Py
186 Righ ts of a S tranger upon taking up a N ote
.

187 H b
older of N ote su s titute d to Be n efi t of Sec urit given
.
one y by
P y
to a noth er art to th e N ote to sec ure its a m ent Py
b
188 Su s titution of the
. H
older to th e Be nefit of In dem nit h el y d
by
an In d orser

C
189 Bill drawn aga inst a onsign m ent of Merch an disc an d m ad e
.

a ien u on it L p
189 a Righ t of I ndorsee of Bill of Exch ange with fraudulent Bill
.

of L
ad ing attached
190 Securities h eld
. by
a B ank e r agains t his Acce tances avails p
ble to their olders H
191 T P p
his rinci le ex te nds to all a rties to th e Bill
. P
192 P p
ro e rty 1n Sec urities de osited
. ra wer with Acce tor p by D p
193 H b
older not su stituted to Sec urity h eld by one un d er no
.

L b y
ia ili t , un less ac tuall a ro riated y pp p
H
194 Righ t of olders to Sec uriti es held
. Acce tor n ot a ara by p p
m ount on e

195 . H old er s
’
Righ t to t l Securities
c on ro given by Drawer to
Acce tor no p e e gr a t r th an Dr w rs a e
’

19 6 . H older s Righ t to A
’
lica tion pp of Sec urity .
perish es with th at
197 . Taking Bill on th e C r dit of th e Fu
e n ds is not enough

19 8Exte nt of
. H
older s Right of S u stitution to Acce tor s
’
b p ’

Se curities
p
199 Rights of an Acce tor to Securities held against the B ill
. by
P
rior arties th ereto P .

p
Acce tors Sec urities to be a lied u on all A cce tances alike
’
pp p p
b H
200a S u ro gation of older of h eck to Ri ghts of rawer
. C D
201 W
h ether S uits or J udgm ents extingui sh ed u on a m ent by
. p Py
xv iii m u rals or com

CH APTER VI .

S on noe u xon 111 1 1111 Anun us ru '


n ox o r Esn rns
'

s 202 . Subrog ation of


Executor or Adm inis trator to Debts an d
Legacies which h e has paid

203 . S uch S ubroga tion m us t be season ably claim ed Its im ita . L


tion s
204 . Subrogation 111 Favor of re i tors of Deceased C
Marsh all d .

ing of Assets
205 . Creditors s ubroga ed to a t
harge u on Property purchased C p
f ro m Funds of th e eceased De to r D b
206 . b
C reditors s u rogated to Rights of Exec utors to Reim urse b
m e nt
207 . Whe r e the Credi tor e nti tle d to h old Two Funds
207 a . Su b rog a tion e t wee n bena n t for T
ife and Rem ainder L
m an
208 Subrogati on i n Favor of egatees
.
'
L
P
209 In Favor of a urch aser ro m the ers on al Re resenta ti ve f P p
L
.

210 . W
h ere egatees h ave paid Judgm en ts against th e Es tate
b
21 1 S u rogation in Favor of S pecific De visees a nd egatees
. L
D
212 S ub rogation of e visees to s u s e uentl ac ui red Assets
. b q y q
H D
213 Rights of e irs, e visees , or ega tees against each ot her
. L
L
214 Specifi c Devise 01 e gacy ch argea le with Expense inc urred
. b
for its rom otion P
Rights of Purch as r fr e om Hei r or De vi ee s

C r ditors subr ga ted to th e Righ ts of Le gatees


e o .

. S ubroga tion of Devisee or Lgte a ee who 13 dis appointed


the Election of a noth er
Exten t of th is Righ t o f S u bstitution
Th is does not extend to a Devis e m erely upon Condition

CH APTER V II .

85 3 3 00 11 1 1 011 111111 1111 Con n A c rs or


-
INS U RA NC E

5 221 . S nb m gation of Marine Ins urers .

222 . S ubroga tion to the Rem ed for a ort causing the oss y T L
223 . L im ita ti ons of this S ub rogation
224 . D oes not arise u o n a p C
om prom is e of th e Ins urer s Lia ilit
’
b y
225 . Bfi ec t of an A an don m ent b
226 . p
Aba ndon m ent of Sh i and Freigh t se arate l ins ured p y
228 . Subrogation of Ins urers on Fre igh t again s t th e Insured .

229 . Subroga tion again st a arrier oi Insured Goods C


230 . 1ns urer against Fire subroga ted to Re m edy agains t Rai road l .

23 1 . Mod e of en forc ing this Rig ht


23 2 . S ubrogation again st oth er arties lia le for a oss by Fire P b L
ANALYEIB OF OONTENTS . xi x

S ubrogation of Mortgages to Insurance procured by Mort


8 8
5 0 ?

W C
h ere a redi tor obtains Insurance upon roperty on which P
h e h as a ien L
Righ ts of Mortgagor l n In surance obta ined by Mortgages
'

I n surance obtain ed by Mortgagor for B enefit of Mortgages


W h ere th e P
olicy stip ulates for th e S ubrogation of th e
Ins ure rs
L L
Between essor and essee or en dor and urch aser V P
S ubrogation of ife Ins urers L
CH APTER V III .

S nnnoe x rron or 8 1 1111 11 0s

5 240 . V
S trangers or olunteers not entitled to S ubrogation
241 . Th e V oluntary P
aym en t of a D
e bt by a S tranger extin

g u is h es it
242 . P
A pplica tion of this rinci ple to th e ase of on e wh o binds C
h im se lf for a Pre e xis ti ng ebt
-
D
243 . Applica tion of th is rinciple to th eP ase of one wh o loans C
D
Money to th e e btor for the aym en t of h is ebt P D
243 a . Applica tion of th is P
rinc iple to th e urch ase of oupons P C
on S ec ured Bonds

244 . C red itor not s ubs ti tuted to Re m edy of h s e btor against a iD


W gr o n -
d oer
245 . W P
h e n th e erson m akin g aym en t of th e P ebt of anoth er D
regard ed as a S tra nge r or olun teer V
246 . I nsta nces of th e S ubroga tion of a erson on his payi n
g thPe

247 . Su brogati on of one paying a Debt at th e Ins tance of th e

248 . Co ention al S ubrog tion


nv a o

249 . C nve tional S ubr gatio upon Pay ent of a Debt


o n o n m , and a
Re dy f r th Pay ent itself cannot coexist
m e o e m ,

Conventional Subrogation m L uisiana o

111111 :
TAB LE OF C A S ES .

E tna Ins Cc 0 Tyler . . . 284


A bbey 0 V an Cam pe n
.
k
A fton B an 11 T h om pson . 87
A bb ott 11 Ba ltim ore S team
. P k ac et Ag ne w r B ell . 141
Cc 11 C h arlotte B R Co
. . . . 57
k
.

v Kass on v Re n wic
. 55
k
.

v Pow ell .
A gric ultural B an 0 B ish op . 126
11 U nion Ins C o
. . .
A b ern v Freem an
. 17
A bercro m bie 0 C onnor .
k
A i en v B ruen
. 75
A c er 11 . H
otch iss k v Gale
. 172, 1 73
k
A c erm an s A ppeal
’
v Milw
. S t Paul R R Cc . . . . . 75
A cq uac k a nonk Watei Cc '
. 0
. Man A lab am a v S tanton . 77
h atta n Ins C c
. . .
A lab a m a B an v Godden k . 122
A da ir v B rim m er
.
Al aba m a Ins C c 11 A nderson . . . 15 4
11 Ca m pb e ll
. A lb a ny Ba n 0 K earney k .
7
A dam s 11 A n gel] . A lb any S a vings Institution v B ur .

11 B rac ett
. k
v C ulver
.
A lb e rt v Upton
.

v Cnny A lb ion B a n v B um s k
D
. .

v. ra ek A lb righ t v Alb right .

B utton
11 . A lde n v C lar
. k
11 Fla na gan. Alderm an 0 Eas te rn R R Cc . . .

v Frie dla nder


. Aldric h 11 B la e . k
v Gillespie . 0. Coope r
v Glea ves . v . H pgood a

v K ee ler . v . Willis
v Pa ige . Al exander 0 By rd .

v S m ith . v E lli son .

v T a ta r . 0 Lew is .

Addison v B urck m yer . 17 Miller .

A derh olt v enry . H v . Welch 81


A done v S e li gson
. Alford v Cobb. 86
E tna B an 0. olliste r k H Al legheny R R Co v ickey . . . . D 201
E tna Ins Cc 0 B a er . . . k Allen, a: pa rts 202,
11 B uc . k 11 Allen
.

0 . Com 11 B ro wn
.

0. H a nnib al St. 11 Ce ntr


. e V alley 00 .

Joseph R R . . v Cla r
. k
Cc 280, 239
. 11 C ul ver
.

v. Middleport 167 a v De Groodt


.
xx ii TABLE 01? CASES .

Allen 11. Hu m an A nth ony 11 S k id


D
.

v. Henl y e A ntrobus 0 . a vidson

v . H ld n o e A ppers on v. Wilbourn
O Donald A g ui lar v Aq uila:
’
11 . .

v . Ogden A rbogast 0 R ay s .

v . Ph e lps A rb uthn ot, a : park

0 . Powell Arc ed e c kne , in re


11. R usse ll A rm entrout v Gibb ons .

11 . S m ith erm an A rm istea d v Da ngel fl eld .

11. T h om as Am ita ge 0 Ba ld win .

11. Wat rtown Ins e . Cc . Pulver


v . Willia m s v T oll .

0. Wood A m or v A m ie .

Woodard A m our 0 Mich igan Central B R . . .

A lliance Ins Co 11 Louisiana In . . . . Co . 189 11


00 . 6 , 223 Arm s trong 0 Cook 188 .

A llis 0 W m . 104, 13 0 0 o Fu m w .

A llison v A rm strong . 46 v Mc A lpin .

v Pa tt iso n . 180 v Poole .

v S utherlin A rm s trong s A ppeal


’
.86, 127
v T h om as . 126 Am v . H
oppin

Alsop v utc hings. H 78 Arnett v C lo ud .

A lston v Ba tc helor . 210 A rnold 11 Foot .

v M um ford . 61 11 . Green
A m azon Ins C c 11 Iron Mountain 229 . . . 0. R ich
!Am b le r v Leac h 1 21 0 . N ic h ols
A m erica , The Pride of 34 A rnot v . W oo db urn

A m e rica n B an 0 Ba er so, 1% k . k A rnott v . W ebb

A m eric a n Ea gle, T he 34 A rrington o A rrin gtofl


D
.

A m e ric an La nd Cc v Gra dy 95 . . A m be r v ouglass .

A m es v Mac lay . 101 A sc h e v A sch e .

v N e w Orleans R R Cc
. 20 . . . A sh b y v S m i th .

v R ic h ard son 238 A sh e 11 Moore


Di
. .

A m h erst C o llege 11 S m ith 66 . A sh le y v . xon


A m o ry v Lowell . 1, 207 a A s h ton 0 C la y ton .

A m os v H ea th e rb y
. A stley v Mille s .

A nderson v . Lith go A th ens B an 11 D am k .

0 . S harp A th e rton v T oney .

v .W t es k
A t ins v E m ison .

A ndre a s v . Hub bard k


A t inson v Angert . 49
A nd re ws 11 B ish op . v S te wart 5 0, 5 1
.

v Fis e . k A tla nta National B a n 0 D oug la s s 121 k .

Ma nn A tla ntic I ns C o v S torro w . . .

11 . Murphy A t torn ey Ge neral v C onfi nental


-
.

v . R ic h a rd son Ins C c
. .

v . V a m ell A twood v incent . V


A ngeli v B oner . A ub urn B an 0 Mars hall k .

A n glade v S t A v it . . 9 . T h roop
A nn Arb or B an v Webb k . A us ten v . Hal se y

A nn, T h e Sarah A venue , in re Ele n nth '

A n na , T he A verill v Louc s . k
A nthony , in re v . Tay lor
11 Percifull .
TABLE OF CAS E . xx h i

Bl an ca

A yers 0 A dam s . Ba nk of
A m erica 0 Sen ior 181 .

A yers s A ppea l B ank of A tla nta v Dougla s


’
121
D
.

11 ixon . B an k of C om m erce 0 Porter 101 .

0 os ted . H v Ku l ell 200 . a


B a nk of England v Tu ie ton 1 13 .

B B a nk of H am b urg 0 Ho ward 75
.
.

Es hm eh , re 23 , 130 Bank of Ke ntucky 0 Milton 6 .

B lu ebi rd v. v V ance 61 .

Bac h elder v Fis e . k Ba nk of Republic 0 Milla rd 200 . a


Ba c on 11 6 t!o . B a n k of S t Albans 0 Wood 120 . .

0 V an Sc h oonhom
. B an k of Sc otla nd v Dom inion .

Ba dge r 11 Ocean Ins 00. . . B a nk


B ee r 11 il i nson
. W k B a nk h ea d 0 Owen .

B ai ley 0 Gib bs . B an ner, ex pa r s t


v. W rner a 0 Joh ns ton .

v . Willard B an tu v Garm o .

Baily v . Brown field Barber 0 Lyo n .

v S m ith
. B a rbour 0 Exch ange Bank .

Bl in e v il lia m s
. W Barcla y v S tirling .

B a in es v Barnes . Burge r v B ucklm d .

B a ird 11 Jac son . k B a rh ydt v Perry .

k
B a er 11 B riggs . B aring v Moore .

v Firem an s Ins C
.
’
h . . B a rk er v B nel .

11 Marshall . v Flood .

11 N W Loan 00
. . . . 0 Ma tth e w. .

v Pierson . v Park er .

v Terr e ll
. Barlow v D e ibe rt .

11 ard . W v . My ers
Bald win v Merrill . 13 7, 180 B arnard v Wilson .

v Mofl ett B a rned s B a nking Hom in re


’
. e.
Ba rnes v Boa rda .

11. 0 Morris .

0 . S h ort v . M ott
0 . Th om pson Ru m or
v .

8 011 v S e wer
. B arnett v Grifi th .

Balla rd 0 R andall . 900a 0 Re ed .

Ba lle w v Roler . 97, 1 10 11 Riser .

Ba ltim ore 61 Ohio B B . . B ltner 101 Barney v C la rk .

11. T rim ble 163 0 Gr o ver .

11. W lker a 0 . Meyer.


0 . W ightm an B a m l b ack v Re iner .

v . Wilkins 18 9 a B arnw ell v W oflbrd .

Ba nco de Lim a 11 Anglo Pot uvh n . B arre tt v A m e m in


.

Ban k 0 D a vis .

Bancroft v Ab bott . 0 U nion Inn 00


. . .

Bu l ge v Flint . Barrow v S h ield .

Ban gs 0 S trong . Bu ry u
'
.

Bum v V ree la nd
.

0 . B uchanan 126 a Ba rtle tt v Mc Rae .

v. Clute Burton 0 B rent


D
.

11 . ouglas 0 . C roydon
0 . Harper 0 . Moore
Bank of Alabam a 11. Ba c on 0 . S m ith
xx iv TABLE 09 CAS ES .

Bu se tt 0 . Am
v . Wood wu d '

v. Mason B ella v Fs ge ly .

v. Mc D onnell Bellows c Allen .

v . Welch v Lo vell .

B ata vi a B a nk . v. Ego Be llune v W a llace .

v
. N Y R Co
. . . . Bende r 0 Ge orge .

B atc h eldér v Jenne n . e e


B ntl y 0 T o w nse nd .

e o
B a tc h ll r 0 La wre nce . Benedict v C h ase .

B ate s v B lonsk y
. B e nj a m in v S a n tos; Inn 00 . . .

v R ud dic k
. B enne v S c h n eck o.

B atione a Es ta te
’
Bennes on v S a vage .

B a thgate v B u kin . e
Benn tt v B a te s .

B a ts e ll 0 R ic h ard! . v
C old well
B a tt le v H m . 0 C ook .

B a um gurd ne r v Allen . v S olo m a n .

B a us m an C redit Guarantee Co . 1 28 Be nson v C h apm an .

B ay v Willia m s
. 0 G o tth e im er .

B ay a rd v Mc v . Ben tley v Ha rris .

Ba yles v H unte d . 0 Lon g .

B ea dle, in re 0 V an d erheyden .

Baal v S m ith pete r


. v W hitte m ore .

v S te ve n s
. B enton v B ailey .

B eale v Pa ris h . B e rksh ire Ins Cc v H atching. . . .

v T h e B ank
. B ernh ardt v Ly m bum er .

B e all v Barc la y
. Be n idge v Be n idge .

0 W a lk er Be rry 0 B row n
Boo
. .

B ea n v th by
. B erth old v B ert h old .

B ea rd v Arbuc kle . Bertram 0 C ook .

v Fitzge ra ld
. B ealey v Lawre nc e .

Be a rds ley v W a rner 1 16, 1 30 Ben t v Ha wt horn e


. e .

e e
B a tti v Dick in son . B everidge v N Y Elevated R . . .

B ea ubien v S toney . Co .

B ea ve r v B ea ver . Beverley 0 B rook e .

v Bla nk et . bb v Ma rtin Bi .

B ec h ervaise 0 Le wis 101, 119 B iddell v B rizzolm


. .

Beck 0 Gallag her . B ier v S m ith .

0 Ta m . ut Bigelow v C a n dy .

Bec k er v N orth way . 0 Prov os t .

B ec k with v Web ber B illings v S pra gue


. .

Be ddow 0 De itt . W
B inford 0 A da m .
B e d well v Ge phart . B inns v Nic h ole .

B egein v B re h m B insae v Paige


Y
. .

B eh n 0 oung
. B ird v Louis ian a B ank .

B eiae nth s l, in m B irdsall v Cro poey .

B e lch er v H artford B ank . v H e wlett .

0 Wic k e rs h a m . B irk e v A b bott .

B alding v Ma nley . B im ie v Ma in .

B elk nap v De nnison . B im ll v S c h e . i


B e ll 0 Hepworth
. B iacoe v B oynton .

v Ja sper
. B ish op v D ay .

v La m k in v O Connor
’
. .

v S underll nd B uilding Society 49


. 0 Ro we .
TABLE OF C AS ES . XXV

B issell 0 Lewis . B onh s m v Galloway .

B ittick v W ilkins . B onne r v Leu ley .

B itm er v Ha rtm an . Bonn ey v S eely .

B ixby v B arklie . B ook e r 0 A nderson .

B oone v C la rk .

B lack 0 . B lac k B oos 6 Morga n


.

B us h B oo th v . Conn Ins Cc . . .

’
v. Epperson v . Farm er s B ank
B lac k Ri ver Ba nk v Page . Bor 0 B a r
.

B la c k b urn 0 Clark e . Borne m 0 W ood .

B lac k b urn B uildin g S ocie ty B orland , A ppeal of


Ga n lifl 19 v Me nrer .

Bla c k m a n 0 Jo iner . 13 7 Bosc hert v B ro wn .

B la ck s tone Ba n v Hill k . 160 B osley v T ay lor .

B la c k w ood v Jones . 156 B ough ner v H ull .

B lair 0 W ard
. 78 , 8 1 Bough to n v Orlea ns B ank .

185 B ouligny v Fortier .

B la k e 0 A m en . 182 B oulware v H artsook .

v Cha m ber. ! m 5 B oundbrook In s Co 0 Nelson . . .

0 C ole . 150 B o urne v B ennett .

v K oo ns . 4 B o wden, ea: p r s at
v T u d era Bank 4, 89 , 106, 110 Bo w ditc h 0 Green
’
. .

v W illiam s
. 185 B o w en 0 B arh dale .

B lak ely v T w in in g . 16 6 Bec k .

B laloc k 0 Peak . 90 B ow ers v C obb .

B la nd v B o wie . 209 B ow k er 0 B ull .

B la rney v B la ney . 21 8 Bowler, in re


B lan ton v Lude lin g . 88 B owm a n 0 B lodge tt .

Blaze r v B a ndy . 122 0 Master .

B le c k e ley v B u nyan 67, 68 v M c Elroy

o
. .

B leds e v N ix on 110, 13 7 B owne v Lyn da


. .

B lig h t 0 B ank s 76, 77 B ox v B arre tt


o
. .

Blod ge tt v itt 86
. HB y ce 0 Hun t a .

B loo m er v H enderson 186 B y d v B oy d


. o .

oo
B l m in gda le v Ba rnard 18 v D e Ham
. .

B lo w v Maynard
. 106 v MCC ann 188 .

B ly de nb urg v Bingham 119 v Mc Donough


. 126, 241 .

B ly e r v Monh olla nd
. 24, 85 v Mye r: 89 .

Boa rd m a n v La m bee 25 , 6 7 . 0 Park er 29 , 166, 18 7 .

B obb it t v Flow ers 189, 141 B oyer v B olender


. 44 .

Boc k v Ga lla gh er
. 24 B oy kin v B nie 180 .

B oc k e o v Hath orn . 19 B rac k ett v W inslow 188 .

Bodk in v Me rit . 8 1 B ra dh a m Gt W estern B y Co 229 . . .

B ogg s v B u m va . 32 B ra de n v Gra ves 1, 16 .

o o
B h a n n n v C oom bl 40, 13 1 B radford 0 Marvin 97
Bo
. .

ne s v B eac h . 24 v Mooney 133 .

o
B lm a n v Loh m an . 8 B radley v Fuller 79 .

Bolto n 6 Balla rd . 52 0 Ge orge 76, 83 .

v La m be rt . 46 B ra dsh aw 0 H ouse 87 .

v S a lm on 104 B rae m v Me rch an t s Bank


’
. .

B oltz a Es ta te 8 8, 105 Bra gg 0 Pa tte rson


’
.

B ond v D orsey . 2 ) B ra inard 0 C ooper .

o
B nes v A iken . 18 7 B ram an v D m e . o
m TABLE 09 CAS E .

M a nl con fl ll m .
“ 16h :

S u ndan bnrg Flynn v.

v Th om dlb

“
.

B n nhsm 0 Sa n Jo .

B u m v Clark .

B rant s W ill
’

B ram v Ma itland B roug h ton 0 Ro b inson


“
. .

Dra ugh t u G . Dro v e r v Witm e yel


.
'

B la zer v Cla rk . 1 18 , 9 02 B ro wn, T h e J A . .

B ray v Ho ward
. B m wn, T he Sam
B re ck e nridge l App“!
’
B rown, a m m
B n e dlo ve v S tum p . a B lac k.

B ree !) v S e w ard
. 0 Bouncy .

Du ane v Bum . 0 B ro wn.

B neiden b eck er 0 Low‘ v Cn e tel

Y
. .

B re it v .ea ton 0 C h am bers


.

B rengle 0 R ic h ardson . 6 C ody .

Bre sele r v Martin . v Dec a tur


.

B l ower, A ppe al of 0 Ea t
“
.

0 F rank lin .ilk


v Nu ll . 1 , 10
0 S ta ple! . 6
B ales v Ws tk im
.
196
Drioe o Appeal
’
0 . Lung 1m
B rick 0 Dual . 0. Lapha m 49 , 5 0, 5 2
v F ree h old B l nfl m C o
. . 0. Long 18 7
Bridges v Nic h olson .
0. Powell S team 00 189 a .

B ridgm a n 0 J0110001! . 182 O v . R uthburl 128


e
B ri n v S m ith. 139 0. R ay 141 , 146
Brigde n v C hee ver . 8 , 213 v . B igg inl 122
B riggs 9 B st n . Le v el! B Ro o . . 0 . R oge r W illiam Co 286 .

Co . v . S im ona 12, 76, 78


v La ngford .
v . S m ith 81
v Pla n te ro Bank
'
.
v . S outh B a t n Su ing: o
B righ t 0 Boy d .
B ank 73 , 82
B righ th ope R y C c v Roget! . . . v . S tillm an 85
Briley v S ug g .
0. W inte r 85
B rill v Ta ttle
.
v . W oreel ter Bank 74
Brinc k erh ofi v Lancing . Browne v Da vin . 79
Brindle v Pa ge .
B m wm on v La v reno . 211
Bd nson v C unlifl .
Bruce 0 B onney
.

0 Gard en
.

Bruner a A pped
’

B ruce 0 Ne ls on
.

B ryan 0 He nderson
.

B ry t n B ro wn S hoe Co
-
. 0. Block
B ryant 0 S m ith .

Bryar s A ppe t l
’

Broc k m m v Blen d ing


. Bry son 0 Close .

Brook e 11. B ord on 0. M yers


B rook : 0. Bla c kb urn B uilding S o Buch ana n v C lark .

c iety B uck a le w v S m ith .

0. Carter B uc k in gh am 9 Wm .
B uc kin gm v m .

B uc kle y s A ppeal
’

B uck ne r 6 M orris .

B udd 0 Oliver
.

B uette l v H arm onnt .


v. Taylor
B nflhlo B a nk 0 W ood 1 15 , 18 8 .
B utle r County v l acuna .

M n gton v B erns rl .
B un d l 0 S till .

B ugbee v S argent .
B ye rly v Hum ph re y.

B n gden v B ign old .

B ull 0 G risw old


.
B y lei Ke llogg
v .

B a llard v Hinckley .
Byrd v B yrd
.

v Leac h .
0 Jones
.

B ulloc k v Cam pbell .


Bym e o H ibernia Bank
.

n
Bu c h v Gra ve .

B e nn 0 Linds ay
.
0
.

B untin g v Gilm ore . Cai ro B ank 0 Crack er .

6 Ric h . Cald we ll a PM .

B urc h ard 0 Fras er . C alkins v S te inbach . 1 72


0 Ph illipe . Ca llah a n s A ppeal
’
20
Calla way v People s Bank 63
’
B urden 0 Joh neon . .

B urde n 0 Clay . v S na pp . 126


B urge r v Greif . C alm es v McC rack en
. 20
B urge tt v Patton . Ca lvert v Peeb lee . 13 7
B e t h une v H utch eeon . Ca lvo 0 D a vi es
. 24
B urk v C hris m an
. C a m b ridge S a vings Bunk v Hyde . 119
B urk e 0 Lee . C a m eron v H olensh ade . 29
B urlin ga m e v Goodspeed . v T om e . 19
B um m d v Bo docu n chi 224, 232, 288
. C am m ack v Le wis .

C a m pa n 0 Miller .

B nrne t v D enn iston . 18, 1 7, 46, 69 Cam pbe ll 0 Ca m pbell .

B urnett v Lyford . 18 5 0 C arter .

B urns v H untington . Bank 98, 13 1, v Elliott .

132 v J e b ut ou .

Le db e tter
v . K nigh ts v .

B urns ide v Patzner . v Lac oc k .

B urr v B ee rs
. v M c Ale vy .

v B oy er
. 0 Pope .

v S m ith
. v S loan .

B urro ugh s v United S tates . v S m ith .

B urro w s v Mc W h ann . 0 T e x a s R R Co . . . .

Burton v Gibson . v T ro tter .

v H e nry . v V edd er .

v R utherf ord . C a m pbell Prin tin g Pm . Co . v


B urw e ll v Fa ub er . Po well
v M an de ville C anfie ld v Sh ear .

0 S now . C a nnon v Conn away .

B usc h v Hus ton . v Co pe la n d .

B us h v Foo te. 0 H udson . 69


v S ta m ps
. o K ne ip . 68
v W a d s wor
. th v Mc Dan iel . 15 4, 156
B us h o n g 0 T ay lor . C am ler v S a llie . 20
B us se y v Pa ge . C an ton B a nk v D nb uq ne R R Co 19 7 . . . .

B utler v B arnes . C a nton B a nk 0 Reynolds 12) .


n viil TABLE OF CAS ES .

6m :

246, 246 Ca n e Mnrittim e v Pham ix Ins Co 234 . . .

C a pe] v B utler
. 121 Cu aebee r v Ka lbfl eisch 18 1 .

C ape n v Ric h ards on


. 243 Cu tella in v Preston 282, 234, 238 .

C apital Sa vings B an k 0 Reed 182 C as tle v Floy d


. a
34 .

34
’
C arey 0 B oy le
. 78 , 243 C ath ce rt e A ppeal
Ce rith era 0 S te wa rt . C u es v T h ay er 122 .

C arley 0 Fo x . 85 , 104 C a ttel 0 W arwick 59 .

C a rlisle 0 W ilk ins . 166, 159 C andle v Murphy 247 .

Carlis le B a nk ing C o 0 Th om pson 20 C h affe v Lim o


. . 162 .

C arll v B utm a n
. 18, 49 0 Pa tte rson 19 .

C a rlton v Ja c k son . 46 119


v S im onton . 1 18 C hafi ee 6 Jone. 15 0 .

Gem ah an v T ousey . 86 0 Oliver 8 .

C am e o v Pla tt . 8 3 Ch a m n v C a m pbe ll 13 1 .

Carpenter 0 B owen 15 4, 166 C h a lm ers v Le n ion


. 18 3 .

v B nenba m 86, 67 C ha m berlain v N H Ins C c


. . . . . .

v C ontine ntal Ins Co . 23 5 v S t Pa ul R R Cc 167 ,


. . . . . . . a
v Fifl e ld . 7 Ch a m berlin v Mc D owell 202 .

v G lea son . 63 C ham b liss v Miller 3 7, 25 0 .

0 Kelly 148, 144 C h am plin v W illiam s


. 30, 36 . a
0 R oom . 22 C h a m pney v Coope 5 6, 66 .

v Longan . 186 C h a nd le r v Dye r 16 .

v Mi n te r . 86 v Higg ins 187 .

v Providence Ins C o . 234 C h apin v Liverm ore . . 120 .

v S tilwell . 7 C haplin 0 B a k e r 1 12 .

Carr v Ca ld well
. 20 v S ulliva n 213 .

v Gla u coc k
. 1 3 7 C h apm an v C oll ins 138 .

0 S ecurit
. B
y ank ”0 v Jenk ins a
13 9 .

v S te rlin g
. 1 22 v Leste r 64 .

C m a way, ex p r s 64 at v W est 75 .

C a rro ll 0 Ne w Orleans R R Co
. 229 C h arleston v R y an . . . 20 .

Carruthers v W est 183 Ch arles ton B a nk 0 Epetin


. 8 .

C a rson Ope ra H ous e A u n v M iller 126 C h arlotte B an k 0 Hom esley


’
. . 122 .

C m taira v Me chm ice Ins C o


’
. 229 C h a rlton s A ppe al
’
. .

Carte r v B la c k . 93 Ch ase v W elty 1 33 .

v Goodin . 29 v W illia m s 45 .

0 H al ifax
. 248 o W oo d b ury 74 .

v H oloh an
. 26 Cha th am Ba nk 0 S h ipm e n 86 .

0 Ne a l . 8, 69, 70 Gh ede l v M illard 46 .

v Pe n n . 173 C he ek v W aldrum 31 .

v R oc k e tt
. C h ee seborough v Mi llard 61, 73 , 74 .
,

0 S im s .

0 T a lor C h ee ver v Fa ir 74
y . .

C aruth e rs v H ull . C h elm s ford Cc v Dem a rest 1 13 . .

C ase v Bea ure gard


.
Ch e rry v Miller 120 .

v H a wk ins
. v M onro 45 , 1 70, 177, 1 78 .

v O B rien
'
.
C hes apeak e Ins Co v S tark 226 . . .

0 W oolley
. C h e sh e m , in re 218
Cas ey v B uttolph . C h esso n v C be s son .

C as hm an v Martin . Ch es ter 0 B rod erick 13 1 .

C u on 0 H ea th . v K ingston B an k 86, 1 26 .

v W es tfall
. C hes ter Ba nk v A tlanta B y 00 18 9 . . .

Can 0 Martin
. Chicago 0 Tebbetu 34 .
TABLE OF CAS ES . xx ix

189 Clark 0. McKee!


C hica go , S t Louis N 0 R Co . . . . . 0. Moore
v Pullm an C ar Co
. . 0. S ickle.
C h ichester 0 Mason . 0. Warren
C h ick erin g v Ful lerton v W illiam s
Y
. .

C hild 0 Ne w. ork New Eng


land B R Co 19, 127
Y
. . .

89 a. oung
C hild: v C hild: . 81
v S tod dard. 20
101
C hilton v Ch a pm an . 142, 143 C lason 0 Morris .

C h in nery 0 B lac kb urn .227 Cla y 6 Ba nks .

C hipm m v Mon ill . 169 C la y ton v S om erl .

0 T odd . 15 1 Cle m ens v Piv ot .

C hittenden 0 B arney 74 . C leveland 0 Fa rley .

C h olle r v Te m ple . 137 v Southzrd .

Cle vinger v M iller .

Gh oulet v . S m ith C le v e v B ondh olde rs .

C hrista Clifl ord 0 Cam pbell


'

n v Herm
. an .

0. Jones C lift 0 Wh ite .

0 . S tate Ins 00 . . C line v Upton .

C hristian 0. Newberry Clin efelte r v A ym .

C lin gm an v Hopk ie .

C hris m er v B rown . C lin ton v H ope Ins Co . . .

Chris ty 0 Fis h er . Clopton v S pra tt .

Clea v B oppe .

C hurch ill, in re C low v Derby Coal Co


. .

Ch ute v Em m erich
. Clov es v Dic k ins on .

Ciney 0 He re . C ln te v Em m e rich
.

Cincinna ti B ank 0 Cos ta. . C oe teo 0 Pennsy lvania Ins Co . . .

’
Cinc inna ti I ns Co v D nfi eld . . . C oa teo s A ppeal
Citizen o Ba nk 0 Carson
’
. Cobb v Dyer .

Citizem S vga B ank v Fos ter


’
. . C och ran v Goodall .

City B ank 0 Cross land . v S hield s .

Coc h ra n o Es ta te
’

v S m ie u on Cock erill v Dick ens


Y
. .

a. oung C oc h in 0 Arm strong .

City of Paris, T he C oc k m m v W est .

Ci ty of Salem , Th e Co e v New Jersey Mi dland B R


. . .

a 03 1m m . Co .

C ofi ee 0 T w in .

Ch pp v . Cla pp C om u 0 Adam s .

v. Mc Le an
Clark 0 . B lything
C offm an v . Hopkins

C ogges ha ll v R nggleo .

Cogge well v S tout .

Ce b u v H offm an .

Colby v. C a to
0. Plac e
xx: I A! “ 0! ca n .

3m m .

Cole 0 Ed gerley
.
8, 2 48 Qo nn In L Co a Tyh H

0 us ti ce
. J 101 Cc nucb l B uts o
v Malcolm
. 3, 40 Conner v H owe 87, 1 10 .

Coleby v Coleby . 215 v Welch 43 .

Cole. 0 A ppleby
. 66 v W elle 39 . .

v B ulm an
. 1, 10 Conw a yv Genom e 216 .

Oolm ve 0 l m an . 26, 1 71 Q uad 0 B uck 241 .

Collie, in n 1 71 6 a rrison 76, 77, 84 . H


Com er, in re 171 0 24
Collins 0 A dam . . 19 C onroy 6 W oods 1 71 a .

0 C arlisle . 169 Constant v Ma ns on m , 168 .

v Pron e! . 16 1 172
v S tocking . 60 Conven e 0 Cook 46 .

37 v Micki Dairy CD 186 “


“
. .

v T 011 7 . 50 0 Wm St ri p 75 .

Collinson v Owens . 202 Con way a S trong 87, 137 .

Colt v Ba rnea
. 167 a , 1 85 Con well v McCo wm 127, 171 .

Oolton v C olton . 173 Cook, in re 122


Colum bia Ins C c v, Lum en 283, 23 4 . 0 Arm s tron g
. 136 .

Colvin v O wem . 86 0 Berlin W oollen m m 00 m . .

Com egys v S ta te Ba nk . 141, 144 0 Fa rringto n 23 .

v V an e ” 1, 222
. 1 77
Ca nine v C ulver . v La rkin 1G .

M em e Be n]: v Bog, 197 0 Lis ter . .

7 Portal ? 101 Coo e, in re 4 k


Com m ercinl Au Co a Lin e: 232 0 C ooper
. . 81 .

Com m erc ial Bank 0 He nni ngel 124 0 Moor e . 6 .

v Le v i. 171 a . 22
u Pfeifl er . 169
v Western 3 0 v W a term an . 46 .

nervo Ba nk 76 Coolidge v Glam 1b 00. . .

Com m ercial Wereh om e Co a Coom bs 0 Parker . .

Grebe r 00011 0 S wa n .

Com m iss ioner. v Clark .

Com m onwed th v Ch esapeak e 85 .

Oh io Canal
00 19 127 v N e wh nd 1 . .

A Miller 86. 87 v Pepy s .

a 8m 91 v W ilcox
o
. .

C m m a v Oxendon . 1 8 C oma v Middleton .

Oom owck v D roha n . 24 Gorbelly v H ughes .

0 M ic h ae l . 86 Corb ett v W aterm an .

Concord v Pillsb ury . 101 C ercen a 0 A llen .

Concord Ins Cc v W oodb ury 23 6 C orda m an v Malone


. . . .

Gone v Donal ds on
. 77 Gorey 0 Leonard .

v Nia gara Int 00


. 26 4. 286 0 W h ite . .

Congre ga tional Society 0 Snow 166 Cornell v Hic h eno . .

Conn v C ob nrn. v Prescott .

Conn Ins Co v B ulb


. . 12 Corn wall 0 Gould
. . .

0 Erie M v 00 280 C ornwell s Appeal


’
. . .

v N Y 6 N H C orwin v C olle tt
. . . . . .

R R Co 289, 244 . . .

v S u m m on Center, in m
.
Cotton 0. S terling Cross Allen
0.

C ottre ll o Finney . a T ruesdale


.

C ottrell s A ppeal Crouch u Ed wards


’
.

C onc h v D ele ph ine


. Cl ow v Murphy.

Coa c h m an v Ma npin . Crowell v C urrier .

C oudert v Coudert .
36 a, 56 v S t B aruc h“B a n
. in l .

C o urte nay 0 W right . Crowley v H m der .

C onte nt 0 Servos: .

C o vey 0 Net . Cm ier v Grq yeoe .

Cm m lis h v R a ilroad Co
’

C ov en v D uncan . . .

C ram p v Mc Murtry .

C ow den s Et ta ’
“ Cullum v Em anuel .

C owgill 0 Li a . 0 Mobile B ank .

Cox 0 Earle
. C um berland v C oddrin gtm .

Cum m in gs 0 Little .

G H Y . Mid R Co
. . Cunningh am v A ndam a n .

0. B rown
Coy le v De vie . v . C larkson 118
v . E van sville R Co . . 282
v . Mott 103. 170 v . Mac on B R Co . .

16 7 a
v . S m ith 187
Care n v Colbert . 122
Cranm er v Mc S w orde . Cureier v Ph ila Ins Co. . . . 226
Crawford v Carver . Curry v Curry .

Ed wandl v . H ale
0.

v Go ulden . v Mack .

v Logm . Curtis v Go oding .

o R ich esol . v Tyler .

t b o m e v S w inb urne . Cas hing v Ayer .

Crease: v B ren gle . 0 T h om


pson .

Crea m v Cle aner . 34, 186 C ntb ush v C uth ueh .

Cl i nt!) v Cres t]; . Cutch eon v B l ob“ .

v S im n . Ca yler v Ensworth .

Creecy v Pearce .

Crescent Ci ty Ice CO 0 M . . ord so


Grim v Flem ing
. 112, 128
Cfi ppin v Ch a ppel .

Cfl l fl eld v Murdoc k . Da Cos ta 0 Com fort .

v S ta te Da igle s S uccess ion


’
.
126, 172
01 t v B rindle
. D a lby v Ind ia Lift Inn
. .

Oriw u v C h appel . Da le 0 Grant


.

Crocker 0 Gilbert . 0 Mc Evers


. 13
Croft v B nnster. Daley v Proe tz . 90
0 . Moore Da lt n n We h m
o A u eeh tion 117, l fi
.

0 . Willia m s Dan ville Poor Mo w e r


Crom pton v V e neer . County
Cronin v Hazle tino . D an e v C onant
.

Croone v. B iveu , D an torth 0 Robinson .

W hy 0. Chas e Da niel 0 B axte r .

0. Craft s 0 Hunt .

v Joyn er .

Darre n
X X I II TABLE 01" CAS ES .

Darling v Harm on . Dew itt v Judevine .

Da rrell v Tibbetts . Decatur 0 Walk er .

D en t v Bates . Dec k 0 Works


.

0 Th om as . Decker 0 He ll .

D art v S herw ood


.

D eich m l n vA rndt
.

D a uc hy o Ben ne tt . Deitzler v . Mil hler


Dave nport v Hard em an .

D a ve nport Plow Co v Me wis . . D ela we ne Hudson Canal C o . a.

Do videe n 0 C arroll . B onn ell


0 Case . De la ware Co) . Appea l
D avie. v Hum phrey. . Delu n re, Luc k W R R Co . . . . . 0.
Davis 0 B a rrett.
Gilb e rt
0 Clark .
189
0 C ook . D elp v B arth olom ay B rew in g Co
. . 86
0 Fla gg . Dem ing v Merc h a nt s C otton Preu
’
. -

v Mc C urdy . Co
v Perrine . D em psey v B ush .

0 Pierce . De a 0 W illia m s .
63
D e nie r v My ers .
18 1
D en m m v Ja y ne . 21
0 Nelso n .
12
Denn is v G illespie
.
161
v Rider .
188
Denny 0 Lincoln .
100
104
v Pa lm er
.
1 88
0. Winn Den t v W a ite
.
18 1
Davy v Halle tt . De nzler v O K eefe
’
.
66
D a wes v Ga n m ae . B e nton v Cole .
247
D a wson 0 Lee . v Nan ny . 51
a Pettw ay . B ering v W inc h elaea
. 136, 1 5 1
0 Rea l Ee u te B l nk . Deal e r 0 K ing .
18 8
D ay 0 Mooney
. De troit B ank a a ng 68 . H a
v R e m ey
. De troit Ins C c v A spinall . 19. .

Day hufi v D ayh ufl . D etroit S avings B a nk 0 Tm eodail 68 .

D ay ton v Ric e D enoter v Mc C am us 78


D
. .

De E nde v W ilkinson . a ve r, ex pom 196


D e Lisle 0 Herbs . Da re ! v Mc Intosh
. 1 71 a
D e Meu l S uccession Devere ux v Fa irba nk s 21
’
.

De Mott v S tock ton Paperwu re . D evin v Ea gleson


. 14
Cc . 187 D evin e v H at kh en . 13, 44
De Negro 0 Hum 64, 136 . D e wey v Inge rsoll .
81
De T u tet , ex pa r e 182 t v L iving. 1 13
De Wolf 0 C apital City Ins Co 285 . . . De whn u t, cx pa rt. 194
v Ga rdner 18 9
. De wth orpe , T h e 1 72
v Lin dse ll 185
. Din v B oucha nd
. 88
Dean 0 Hu t . 218 D ibre ll v Da ndridge . 1 82 a , 201
0 King . 189 a Dick 0 Fra nklin Ins Co
. 23 7 . .

v Toppin . 24 v Maury
. 186
D ee rborn v T aylor 49, 86 . 86
Del m e ley v Ch ase 31 . 162
Dearth 0 Hide Leather B ank
. 1 82 Dicku on 0 William w, 69
.
m m 0? c u m s . X xxiii

D ick enson 0 Jardine Douglass, Appeal of


o
.

D ick ey v Th m . v. Coc k ney


0. F3 33
0 . Fe rris
C onnifi v. v. Reynolds
D ic k son v C h om . 0 . S atterlee
D ilger v Palm er . 0. Wells
D illin gh am v B lood . Dover, ex pa rte
D illon v B ennett . Dow 0 Clarke
.

0 B yrne . D o wb iggln v B onn ie '


.

0 Cook . Do wdy 0 B lake .

0 H un t . Downer 0 Fox .

0 Ka ufl m m
. 0 M ille r .

0 R ussell. v S outh Boyd ton Bunk


.

0 8 006 016
.

D illo w v Warfel . Do wning v Linville .

B ills v Ce cil
. D om v Jac ks on
.

Do wn 0 Con gdon
.

D ingo v t .3 11 0 E xc h an ge Bank
.

D ink gm ve o S uc cession Dovn e v Gorton


’
.

D ink ins v B ailey . D ozier v Lewis .

B irc h v Log sdon . Dra k e v Coltrane


.

v Paige .

Dixon 0 E wing . Dre fahl v T a ttle .

D obb ins v W ilt on . Dre w 6 Loc k ett


.

Dob eon 0 Ch a m bers .

Doby ns v B a wley .

Dodd v D rey fus


. B iscoe Drury v.

v H olden .

v Win n
. v Trem ont Im provem ent .

M d. 0 S nyder . 22. 64 Co . 26
Dodg e 0 C ole . Dryed d e v Pigg ott .

0 Freedm an l Saving! 00
’
. 186 D uc k e r v Ra pp . .

v Fuller . 15 D udley v Cad well .

v im m er . Z D uflleld v Cooper .

Dolla r Se vga B ank v B urns D ufl y v Mc Guinneu


. . .

Dolph in v Aylwdrd . D ufour v Cnm fran c .

Dom estic S e wing Ma chine Co v Dufourcet v B ish Op


. . .

A rthurhultz Dugan v B om ne .

Dom estic Se wing M ine 00 9 D a gger v Tay loe. . .

Baylor D uluth v Hen ey .

Donald v Sac k ling . D uncan v Ba k er .

D onk 0 A lexander
.

D onn ell v Cook e . v Ga iney .

D ona h ue 0 Daniel . 0 Le wis .

Dorr v Peters
. 0 North S outh W ain .

v S ha w
.

Dote n v H air . 0 S m ith .

Daug herty v Deeny D nnford v Wea ve


. .

v Mac k enzie D nngan v D olm en


. .

0 Rich ar d son Dunlap v Clem ents


. .

v Mc Ne il .

Dough ty v Bacot v O Bannon


’
. .
x xx iv TABLE OF CAS ES .

Dunlap, in re Ed wards v. Clem ent


11 . D avenport
D unn v. Olney 0 . Frank
6 . Helm
D unnin g Fish er 0 . 0 . T ho m
v Les vi tt . v. W est
D unphy v Ridd le .

D upuy v Mc Millan . Eggem a n v Eggem an .

D un c v Ferra ri
. Eise nb urg 0 Albert .

Duran d v T m eedell . Elam v Ra woon .

D ura nt 0 D avis . Elder v C o m m o n wealth .

D urb in v K nny . Eldridge 0 W right .

D urh am 0 Craig . Eleventh A ven ue , in n


0 R hodes 207 a, 210
. Eliu on v Eliu on .

D um be rr v R un . Ellerh orst, in re
D uru ll v Feb iger . Ellicott u Ellicott .

D utc h er 0 Hobby . Ellis 0 Fish er 101 .

B utton 0 I ve. . 0 Joh nson 82 .

v Mc Reynoldo . v Lin dley 20 .

D wigh t v Scranton Lum ber Co


. v Rosc oe . 97 .

Dye v Mann
. Elliaon v Pec a re 76 .

Ellswo rth v Loc k wood 8, 6, 45 .

Elwell v Quu h .

Elwood v Deifendorf 77, 102, 106, 141 .

Ely v Ely .

Eagle Beneficial S oc ie ty s Appeal v Mc Nigh t


’
47
.

Ea g le Ins Co v Pell . . v S ta nnard


. 25
.

Eagle, Th e Am erica n Em igra nt S a vgs Ban a C lnte 8 , 12 . k .

Eakin v K nox . E m ley 0 Mount .

Eas t R iver Bank 0 Roger. Em m ons v B rad ley


. .

Eas terly v A uburn B ank . Em ory v B altz .

Eas tm an v Crosby . Endera v B rune .

v Foste r 15 6, 164 Engle v He ines


. .

v Plum er . En glee 0 Ea gles .

Ea ton v George . Englis h A m erican Ban , ex pom k


0 H as ty
.

Ennis 11 Harm ony Ins Co . . .

r S im onds
. Ent wistle , in re 1 95
Eh elm e sse r v Ebelm e l l er Eppes v Randolph
. 13 7 .

’
Ebenhardt s Appeal
’
Erb s A ppea l 107, 1 3 7
Ebert v Gerd ing
. Erie S a vings Bank v Boop 104, 114 .

Ec h ols 0 Head . Erwin v Ack er 12 .

Eddy v T raver
. Essex County B a n 0 B ank of k .

Ed ge v Goulerd
. Montreal 200a
Edge rly v Em erson Eotabrook v S m ith 26
Y
. .

Edg erton v oung . Esty 0 Grah a m 186 .

Edge w orth Co v W eth erbee 186 Evans 0 B illingsley


. . 7 .

Ed inb urg Mortgage Co 0 19 v B rem ridge


. . 161 .

Edm ond: v S heehlm . v B urnt 54 .

Edm und: v H arper . v Duncan 212 .

6 V enable . 0 E va ns .

Edward Oliver, T he 0 Ha llec k .

Ed w a rds v A pplega te . v Kim ball .


TABLE OF C Aans . XX I V

Su m o:

En ns v . Kneeh nd Fanrott v Nefi . 3


9 . Moore Fa wce tts v Kim m ey 86 .

R e per
0 . Fey 0 Fay . 241
v Ro ber
. tson Fay erwea th er v t h iz Ins Cc 229 . . .

0 Saun ders
. Feaxm ter v W ithrow 7, 106 .

E vann ille Gas Co v S tate . . Fea rs v Albee . 19


E v an s 0 Hy de . Fee m ste r 0 Good .

E vem tt v B eebe . Fe gley v Mc D onald .

E verley 0 R ice . Fe lla we 0 Do w .

E versto n v Ce ntral B ank . Felton 0 Dim ] .

v Ka nsas B an k . Fenaille v C oudert .

0 Mc Mulle n . Ferguson v Glau fond .

E vertaon v B oo th . Fe rre v A m erican B oa rd


.

v T a ppe r! . Ferre r v B arre tt .

E w art v La tte
. . Ferris v C rawford .

E xe ll v Pa rtridge
. 0 V an V ech ten .

E xcelsior I ns C c 0 R oyal In s 00 . . . . . Ferry v Laible .

Feed e r v Hic k em ell .

Exchange Ba nk 0. Jones Fia cre v C h apm an .

0 . Ric e k
Fic ett, in re
v . S illim a n fi delity Ins Co v S outhern V a . . . .

v . S tone R R Cc 20 . . .

v West Penn . .

R y Co 243 . . a
Fide lity T itle Co v People s Gas
’
. .

00 .

Field v C ra w ford.

v Ha m ilton
.

Fa ir 0 B rown
.
Fielder o V m er .

Fairc loug h v Pa via .


Fie lding v W a te rh ouee .

Fairfi e ld v Mc Arth ur .
F ie lds 0 S h errill .

Fa irm a n 0 H ea th .
Fi e ve l v ub e r . Z
Fa lls : 0 Pierce
.
Fi nc h 0 S ha w .

Fa lley v Grih ling.


fi ndlay o Trigg .

Fu ebro ther v W odeh ouse .


v U nited S tate: B ank. 62, 188
Fink v Mah e fly 4, 1 10
'
Fargo v A m e: .
.

Fa rley 0 C le vela nd
.
Finn v S tra tu m
. 7
Farm ers B ank v Erie R R Co
’
. . . .
Fires to ne v S ta te 3 .

v Gra nth a m .
Firs t C ongre ga tional S ociety 0 .

v K ing sley .
S now 1 66
v S h erley .
First Na tional B a n k v Cm b tree 189 .

v T ee te rs 0 R ogers 101 .

a
.

Farm ers In s Cc v Germ an In a


’
. . . .
v W h itm an 200 .

Firs t Na tion al B ank of Madis on v .

Farm e rsLoa n Co 0 Carroll


’
. . 42, 44 S c hlm ser
Fa m r v K ram er .
F irst Na ti onal ba nk of Marq ue tte
v Pa rk e r
.
v W eed
.

Farre ll v Le wis . 14, 186 F irth v Denny .

Farwell v B ec k e r .
Pi t c h er v Hope Ins Co . . .

v E ns ig n .
Fish v French .

v 1m porters B ank
’
.
Fis h beck v B od m an .

Fm e tt v Mnloc k .
v . W ea ver
Fa nlka v D im ock . Fish er v D illon .
x xxvi TAFLE OF c31 a

Fieber 0 Joh nson . Fom r v Eq uitable 1m c c . . .

v S t illm a n . 0 Gasto n .

Fish kill Ban k v S peight v S trong


. .

Fisk e v McGre gory


. 24 0 U ni on Ri nk .

v Tolm an
. 0 V a n Reed .

Fi tc h v Co the al
. 104 Pouch v Wilson .

Fitchb urg S a vin gs Bank 6 Torrey 1 19 Fouche v S wain . .

Fitzgerald 17 B a rk er 86 Fourth City B uilding Society 0


. .

Fitzpa tric k v H ill 13 1 Willia m s


. 90
84 Fourth Nation al Bank s AM
’
Fi tzs im m on s e A ppeal
'
1 66
Fla c h s v K e lly . 12 F owle v T orre y 171 . a
Fla gs 0 Ge ltm ech er
. 24 Fowler 0 Barkedl le 77 .

a Ma s on . 1 72 v Fay 6 7, G) .

v Th urbe r
. 24 0 Ga te Ci ty Ba nk 199 .

t ige u v Sa b le .67 0 Pe rs on. 9, 36 a .

Fla nna ry v U tley 8. 1M


m eit ch a uer v Doellnew 8 6 Fowler, The Frank G
. .

F leiahel v House . 79 Fox, in re


Flem ing v Bea ver 137, 140
. v Ale xander .

v Pa rry . 41 9 H udson .

Fletch er 0 C h ase . 74 Foye , in re


v Gro ver . 16 1 Francis 0 Herre n .

6 a c h on . 149 J v S m ith .

v Me nk e n 1 32 Fra nc isc o v S h e lton


. .

Flint v 0069 a
. 86 Fra nklin 0 Arm fl eld .

Florida Internal Im provem ent C o Fra nk lin C oun ty B ank 0 Green . .

v Gr
. ee nough 214 field Ba nk
Floy d v Good win . 13 7 Frank lin S avings Bank a T hylor 6 .

v Ort . 171 Frank lin S a vings Inl fl tution 6 a .

Fluk er v 8 060 . 13 7 Ce ntral Ins C o . .

Flyn n v North A m erican Ins C o 236 Fra nklyn v Ha


. . . .
w
Pook oo v Wein h ee h er . 19 Frank . 0 Morris .

Fogartles v S ta te B a nk 200 a Frery v B ooth


. .

Foley v R oh a rd s
. 1 13 Frazee v Inslee .

Follansbee U Johns on 86 Frazier v 14c


Y
. .

Folsom v C arli . 201 Frean or v ingling .

Fe lts v Ferguson
. Frederick v Gra y .

F orm er v S m it h . 200 0 Moor e a .

Foot, in re 6 1 , 171 Free m n v B uc k in gham .

Forb es 0 Jac k s on .86, 8 7, 129 v Mc G aw .

v Mofi a tt . 18 , 54 v Me ba ne .

Ford v Ge a uga C ounty


. 78 0 Paul .

Fordy ce v Hic k s . 40 0 T om pkins .

Fore v Ma nlove
. 39 M ob v De B ow .

Fore s t Oil Co s A ppeal 4, 46 0 Ed ward!


’
. .

Forrest v L uddington . 167 v Gre ne t a .

Fo rt v Union B a nk
. 1 v S h eplor .

Fort W orth B ank v D augh erty 13 7, v Turner . .

180 F re tland v Mack .

F03 8 0 Chicago
. 1 19 Fre vert 0 Henry .

Foster, S uccess ion of


v A th ene um . 1 8 7 F riberg v D onovan .

v Crens h aw . 218 Friedlander v Texu By 00 . . .


Friem am dorf v. W ah rtown
Co .
a

M anda S ociety 0 Heine; .

F rie s v Ennis
.

F rink v Ha m pden Ins Co


. . . Garrison 0 Me m phis Ins Co . . .

Friec h e o Kram er . Ga rrow v Maxwell .

F ri th v Forb es
. Garth v M cC e m pbell
.

Frost v Facet Garvin v Ga rvin


Y
. .

v onk ers Bank


. v . Mob ley
S ta te Bank
v .

m Garwood v Eldridge
’
a Esta te .

Fry 0 He m m er
. Ga ry v Bank of S ta te
.

Fry e 0 Ba nk of Illinois
. v C ann on
.

F ulc her 0 D an ie l . v Hign utt


.

Fa lke n on v B ro wnlee . Gu m v S ine .

Fuller 0, H ollis
v Lem a r . 67
v Lo rin g . 1 15
Fulton v H ughes . 171 a

v N ich olson . 4 v . W he ts tone


F unk v M c B eynolds
. 22 Ga te wood v Ga te wood .

Furim an v Mc Millian . 1 72 Geultney v Nola n .

Fum es v D urgin . 24 Ge nasen v Unite d S taten .

Fum old 0 Missouri Bank . 1, 18 7, 140 Ga utgert v Hoge .

h qelier v B e binea u . 15 1 Ge w v Hufi m m


.

Guy v B lan ch ard


.
26
Gau be rt v Jordan 172, .
180
Ge ddis v Ha wk .
115
Gedye v Ma non .
128
Gee 0 Pack
.
100
Ga b le 0, S carlett Ge gner v W arfleld . 69
Gadsd en 0 B rown .
Geib v Reynolds
.
20
Ga ge 0 Ward.
Ge lle r v Hoy t . 61
Ga h n v Neim ce wicz
.
Ge ne ral Ins Co v U S Ins Co . . . . . . . 63
General Rolling S to ck in re 196
Ga len v B a ilm an
.
General South A m erican ex
Galla gh er, A ppeal of pa rte
v R ed m ond .
Ge og he gan 0 itto . D
Ga llih er v Gd lih er .
George 0 A ndre ws .

Gu nm e n r Mulford .
0 C oope r .

Ga nna way v Tarpley .


0 K ent .

Gm net t v Blod gett .


0 W ood .

Ga n. v Th ie m e
.
Ge orge to wn 0 S m ith .

Gent: 0 T olee .
Georgia Ba nk 0 auncey . J
Garden 0 Ingram .
Geo rgie C h em ica l W ork s 0 Cart .

v . Morro w le dge 15
Garde n ville A u n 0 Walker
’
.
G g
e o r i a Int 0 0 v D a wson 221 , 229 . . .

Gu de re 6 Co lum bia!) Ins Co . . . Georgia Pacific R R Cc v W alk er 76 . . . .

Ga rdin er v S m i th .
Gerber v S h arp . 93
Ga rdner 0 Actor . Ge rd ine v Menage 26 , 36
. a
0 Em er son . Gard on e v Gerd one .1 13
v Jam es .
Ge rm an A m eric an Sa vings B ank
0. M t:
xxxviii TABLE 0? 01 3 m .

Germ an B ank Forem an0 . 124 Gods l ll v B oldero .

v Fonrh a w . 182 a Goe m bel v A rne tt .

Ge rm an S a vings Ins titution 0. Gold m a n v B iddle .

A da e 200 a Golds m ith v Holm es .

Ge rm a nia B uildin g Assoc v Neill 69 . . Gom ez, ex pa rte

Germ a nic Ins Co 6 Me m phis . . . . La zarus


0.

R R Co . . . Goodac ne v S k inner .

Gerrish v B rag g . Gooda ll v Polhill .

Ge m ig v S h etterly . v W e n tworth
.

Ge tty s burg B ank v Th om pson 121 . Goodb ar v Daniel .

Gh ise lin v Ferg u son 8 7, 97, 109


. 0 D un .

Gibb e s 0 Green ville C olum b ia


. Good body v Goodbody .

R Co . . 20, 16 7 a Go odb um 0 S te ve ns .

Gibbons v H oes .
Goode v C um m ings
.

Gibson v C re hore . Goodeno w v Jones .

v Mc C orm ic k .
Goodloe 0 C lay .

v S ea grim .
Good m an v Lin k er .

Giflord, a : p r s
'

at 0 . W hi te
0 Co rrigan .
Goodwin v K eny .

Gilbert v C ooley .
Goodyear v Goodyea r .

v Gilbe rt . vW a tson
.

0 H a ire .
Gorda n v . Wansey
v H ofi m e n .
Gord on 0 . Be ll
v Nee ly .
0 . Englis h
v Port .
0 . Moore
0 S a nderson .
v . 1111 t
Gill 0 Do wning
.
Gore v T o wnsen d
.

i
G ll v Morris .
Gorh am , in re
Gillespie v C am pb ell 1 82 . a Gorin g v S hre ve
.

v C reu we ll . Go rto n, in re
0 D arw in . Gou in v B rown .

v T o rranc e Gos w ile r s Es ta te


’
.

Gillett v No Am Ins Co . . . . . Gotleih v C runc h .

v W ile y . 126 a Gotts c h alk 0 Neal .

Gille tte 0 H ill . Gould v Centra l Trust Cc


. .

127, 130 0 C itiz en s In s Co


’
Gillia m v Esselm e n . . . .

G illia m v McC orm ack . v F ulle r


.

Gillm a n v Henry . 0 Ha y den


.

Gilm an v Gilm an . v . Mars h


Gipson v Ogde n . 0 . W inthrop
G irard Ins C o 0 S te wart . . . Goulding v Eua ster .

Gist v C ock ey . Gouverne ur v Ly nc h


v Pre ssley . Gove rnor v B a y ley .

Giveam v Mc Murtry . Grabenh e im e r v Bindsk opf .

Giv en v Mart Gm fl s E sta te


'
.

Given s v Ne ls on . Graham 0 D ickinson .

Glas s v Pullen . v Dunnigan .

Glas se ll v C ole m an . v Fi re m e n a Ins Co


’
. . .

Glazier v Do ug lass . v Jo nes .

Gle as o n v D yk e . v Ledda . 225


Glide v D wye r . v Lon do nderry . 104
Globe Ins C c v S he rlock . . . Ne w m an v .
1 85
Goddard v W hy te . Gra nd Trunk Ry C o . . v
. Jennings 239
TABLE OF CA SES . xxx ix

G ranite B an k v. Fitch 1, 182 Grifllth v T ownley .

Grigg v B an k s .

Grim e A ppeal
’

Ludlow
v . 7, 169 Grim es o Kim ba ll .

v Lym an .

0 Pa rs ons . Grisa rd v Hins on .

Gm pe n ge th e r v Fej e rve ry . Grissom v Co m m ercial Bank .

Gris wold v Jac k son .

G ra ve v B unc h . v Ma rs hm an .

G raves 0 A m Live Stoc k Ins


. . . Co 236 Groe sbec k v Ma tteeon
.
.

v Gra ves . 84, 213 Gros ve nor 0 A tlantic Ins 00 . . .

v H a m pd en Ins 00
. . . Gro ve v B rie n .

Gro ver v T h a tc her .

G ray B os ton Gas Co


v . . Groves 0 S tee l .

v Ne ls on. Grow v
Ga rlock
Gra y don v C h urch . Grub be v W is ors .

Green v C roc k e tt . Gruh n v R ic h ardson .

o C urrier . Guc k enh eim er v An ge vine .

0 Dod ge . Guck ia n v R iley .

0 Giv e n . Gue rn sey v K enda ll .

v H art . Gne ana rd v Louisv Nu h v B y . . . .

K im ble Co . 10
0. Ma nn Guggenh eim v R osen feld 101 .

0 . Millbank Guie r v Kelly . 3, 213


v. Ram a ge Guild 0 B utler . 86, 119 , 182 a
v. Tann er Guion v Kn app . 75 , 78 , 8 1
v. Wynn Gulf, C ol and S anta F6 R Co v . . . .

Greenha um A ustrian v . Zim m erm an

G reen e 0 Fe rrie . Gundry 11 He nry .

Gre e nfi e ld Sa vin gs Bank v


. S towell 15 1 Gun n 0 Ge m .

Green la w v Pe ttit . Gnnnin v W eigley .

Gree nle af v L udington . Gunte r v Gun te r .

Greenlee v Mc Do well . Gus dorf v Ik e lh e im . er


Greeno ug h v Littler . Gusson v H inso n .

Gre en well 0 H eritage . Guy v B lanc h ard


.

Greer 0 B us h . 12 D u Upr ey
.

0 Ch e ster . Guy ton v Flac k .

W intersm ith 130 a


G win v S elby .

G winn v S m ith .

Greine r, Es ta te of 180, 203 . 245

Ore llet v H eih h orn .

Gres ha m v W are .

Gre tton v Ha ward . Ha be rton v Benne tt .

Griefl v S te a m b oat S tacy H ac k ens ac k S a vings B ank 0 Ter


'
. .

Grifl v S tea m boa t Stac y


. h une Mfg C o . .

Grim o 0 Ha m pton . H e dj i, Th e
0 Om an . Hadley v N H Ins Co . . . . .

H a gem a n n a Appeal
’

Grifi th v . Bu k c Ha germ an 0 S utton .

v. Depe w Ha g erstown Bank v A dam s Ex .

v. Lovell press Go .
x] m m or cm

Hange r 0 S tate . 22
v. 11 c Han lon v D oherty . 2)
Ha hn v B ehrm an . W a Guy . 13 6
Hs ine v T am e : . He nna] v Pell . 13 )
Hait 0 Ensign
. 61
H alcom be v Louderm ilk . Hm ner v . Do uch e. 187
Hall 0 Cre u well
. 1 17
v C uah m an
. Ha nse n 0. Han son W7
1 17
v . Hall 127, 169 Ew ood v . Cornwell 1 71 a
0. Ho ward 169 1 10
v . Hon ey 86 116 , Ha rdc u tle v Com . m erc ial Bank 128
0. M orge n 82 Hu din, ex p r s at 46
0 . Nas h ville Ch “ 3 R . v C lark .

Cc . 1, 6, 229 0 Em m a .

0. Rob ert! 171 a v . Me lton


0 . Robins on 141, 142, 148 Herd ing v . T ifl t
v . S m ith 106 Towns hend
v .

v . South wick 46 52 , Hn d m a n v B re tt .

B ards v B urton .

0. T aylor Hard ware C o v D eere . .

Halsey v Reed . Ha rdy v Overm an .

v W o rden . Hu ger v Mc C ullough .

Ha h teod v W es tervelt . Ha rg thorpe 0 Milli on!) .

H am blen v Fe lts . Ha rla n 0 Jones . 36a


Ham b urg B ank 6 Ho ward . v S weeney . 11 5 , 127
Ham ilton 6 De bbi . Harla nd 0 Person . 218
0 H am ilton H a rlem Sa vga B u l v M . k . b w gh 82
0 Lnb uk ee . 187
v Sch web t . Harne r e A ppea l
’
20
H am ilton B an k v He lm . Ham eberger v Yancey . 1, 160
H a m m e tt v W ym a n . Ha rper 0 Ely . 16
He m m el v Quee n s In s C o 121
’
. . . v . K ean
Ha m m e r v Joh m on l ll e C u
’
. n e 104
H am m ock 0 B a k er . 6
Ha nm ond v B a rc lay . v . Ward 91
0 B ark er . Ha rris , ex po m 182
v Ess e x In a ( b . . . v . Fly 21
0 H a m m ond . v .
Frank 13 7
0 Lea vitt . so
v. Myers 6. Je x 26
Haulpton Le vy v . 0 R iver. . 101
0 Nic h olson . v W arner . 1 38
v Ph ipps . 0 W h ite . 218
Hanby v Henritl e . v Wynne . 137
H ancock 0 Fle m ing . arris, T h e illia m A H W .

0 H olbm ok . Ha rrisburg Ba n 0 Gem k . “ N


v Mino t .202, 213 B art h el: u B is h nd . 1, 5 , 241 , 260
En d v K ennedy
. v Courtauld . 182 a
0 S a va nna h and Chu m v Gnerin 75 , 78, 82
’

. .

R R 00 167 a . 0 H a rrison
. . . 1 72
Hs nford 0 M 00 . 104 101
TABLE OF CAS E . xli

B u l li on v.llg ner Hey . v Dalton


.

v Lane
.

H arrison Machine Wa h v. M
platen
B arrow v Jc huec h . 49, 61

v. S m ith
a. Weste rn R B 00 . . . 1, 6, 230
H arte 0 B rown
. Irwin v .

H a rtford N Y Tru m p. Co 0 . . . . Hazleton v Leanne .

Hartford B ank 187, 188 Hea rt v B ry an .

H a rtford Ins C o 0 GM . . . Heath 6 Gris wold.

v Fennel! . En d
Hartwell v S m ith . v . W es t
v W hi tm an .
3 05 m Doum n
H arvey v H urlb nrt . l it 0 S ha r
p .

a . Ste p“ Haiti 0 V re eland


.

v . W arren Heig he v Fa rm ers Bunk


’
.

He ilig v Lum ley.

Heilner 0 Ch ina Ins Co . . .

S ta te0 . Heim v V oge l


.

H aslett v Glenn . Heinle n 0 Martin .

Hu m v Wilko . Heinrich Bj orn, The


H asti ngs v S tevens .

B a tch 0 Kim b all 1, 68 , 64 He m enway v B u sett


Y
. .

v Norrie
. Hem phill v erk es .

v Palm er
. Hem sue et v B urd ick
'
.

He nderson H uey v .

H a tc he tt v Pom . v Mc D ufl ee . 169
H ath a way 0 Haynes 1 89 ” S te wart 74
3
.

B a u er 0 K ing . 87, 101, 169 He ndrick so n v Hutchinson . 180


139 Henkle v Allste dt . 77
Grand Junction
a. By C o . 19 . Henley v S te m m om . 1 10
B evel). v Fondl y . 124
v W illis . Henry Com pton
v. 97
B everly v Be ck er . v Daley . 101
Ha whe v Snydnker . v K aye . 38
Hawk v Ged dis
. Henah a w v W ells . 61
H a k Eye W oolh n Mi lli v Cank 218
z
.

h B enson 6 R eed . 8
He rbert 0 Mechanicl B uilding
’
H a wkinl v Bid e . .

A ssoc ia tion 66
Here ford 6 C has e .

Ha wk ] v . 3 3 610 6 Herita ge 0 Pa ine . 245


0 . Jam en Herm ann v Fan ning .26
m , ”S ta r In, 00
0 . Herrick 0 Ora nge County Bank. 122
6 W as h 6: Ale x B R 00
. . . . . . Herrim an v S kilm an 68 .

Hay den 0 A ub urn Fruen Heat s Estate 128 , 140


'
’
.

B oth 0 Le wis
. 88
v . S m i th H eth erlngton 0 Mobile B ank 1 22 .

H evener 0 Berry . 87
0. Ward B owen 0 Dehon . 211
x lii TABLE op cu ms .

Hewitt , in 1 , 10 6
re H od ge. v Hickey .

v A dm . 15 1 v H igh to wer .

R oy der v Excelsior Big Au n 20


’
. . .

B eym a n v Dnboie 8 6, 114.

Hib ernia Ins Co v S t Louis . . . .

Trans pn Co .
H ofl m an v B utler
. .

k
Ric ie, case of Hogan v Moore .

v Rodocan ac hi .
0 Rey nold .

Hick m an v Mc dy Hogne 0 D e vil


.
-
.

Hic k s v . Bailey
0 . B in gh a m H olbroo k , in re

v . M Garry
’
0 . Am Ins Co . . .

v . Ne w po rt Ry Co . . v . Uni ted S ta te s
v . W ya tt H olcom be v . B ichm D an v R R. . . .

o
H igd n v B ailey . Co .

H ig gins v Glas s . Holden 0 Pik e . 5 7, 76


W rig h t Holla nd 0 Citizenn S avings B ank 46
’
11 . .

R ig gs v La n drum
. 0 Joh nson . 12)
H ig h v B ro wn
. Holliday v B rown 8 7, 129
.

Hi g h a m 0 Ha rris . o
H llim an v R ogers 18 1
.

H ig hland 0 Highla nd . Hollin gaworth v Floy d 128, 137 .

H ig h to wer v Rigaby . 0 Pears on 13 7, .

H iles v Coult. v Tanne r 122, 123 .

H ill 0 B ee be
. Holliste r v S te wart . 19
v B illingsley
. Holm an v Bailey . 69
v B o urc ier
. v Norfolk M . 81
v H us ton
. Holm es 0 B acon . 155
v . Me nse r 189
v . 11c 0 Day . 1 1, 184
v. Mellon v Ge rm an S ecurity B m k
. 18 9
v . B yd ! o v Mc Gin ty . 185
v . Se well 20
v. V oorhies v B odey
. 86, 1 3
v . West v Man ie r
. 122
H illegas v S te venson . v Pe naeook S avings Bank
. 165
o
H ilt n v Oriat . H olte n 0 Lak e C oun ty
. 28
H im es 0 Keller . H olwa y v G ilm an . 185
H im rod v B a ugh . H o m e Ins C o 0 Ore gon R N. . . .

Hinc h m a n v Em a ne . Co .

Hi nckley v K reitz . H om Ins C o v W estern Trans


e . . .

H i nds v B a llou.
portation Co 221 .

H iner v Ne wton . H om er v New Haven S avings .

H ines v Dres h er. B ank 160


v Potts . Hom este a d Co v V a lley R R Co 241 . . . . .

H ins dill v Murray . Hom e opa thic Ins C c v Marshall 20 . . .

H inton v Od enh eim er . H onak er v S hough 31 .

Hiscoc k v Jay co x . H onore v L e m ar Ins Co . . .

H oa re v Cazenove . H ood v H a y ward


.

H obbs v H arvey . 0 Ph illips


.

H obeon v B a n . v S pe nce r
.

0 Ed werds . Hook 0 Rich s rdeon


.

H ock er s A ppea l
’
v Rich el on
.

Hodges v A rm strong . H ooper 0 Henry .


TABLE OF C ASE . xl iii

H oover v Epler 1, 8, 240, 246


. H uds on C arm ic hae l
0 .

H ope u W ilkinson
. 0 Gre y .

H ope well v Cum berland B e a k 167, 160


. Huebech v S c heel .

H opkins 0 B eebe . H uey v Pinney .

Hufl v Farwell
‘

v F a rwell . .

v W olley . H nfi m ond v B enee .

Hopkins Mfg Co 0 A urora In a . . . . H ug hes v Com m onwealth .

v L it tlefle ld .

Ho pk ins on v Fors te r 200 . a


H opkins v ille B a n k v Rudy 7, 13 1 .

H opk irk v Mc C onieo . 120


Ho ppe r v C onyers .

H oppee o H oppes . v. S h erwood


H oppock v Ram sa y . Hum e v S cruggs
.

H om by v C ram er H um phre y v A ra bin


o in
. .

H m v Hayes 1 2)
’
g s A ppea l .

o
H u tm a n v Ge rker . v . Hitt 122
H orton 17 K elly . Hum phreys v . A llen 19
H ook in g v S m ith . 120
Hos m er 0 Ca m pbell . Hum phries v S h a w 213
.

H os tette r 0 A lexander . H ungerford 0 Scott 241 .

B ough v E tna Ins Co . 241, 246 . . Hunn ic utt v S um ney . 11


H o use 0 T h om pson
. Hn nnnck er v S m ith 61
.

H ousto n 0 H unts ville Bank . H unt 0 Ewing . 77


H ous to n Ba nk v A c k e rm an . v Hask ell
. 10
H ous ton B y 00 v B nem o nd . . . 0 H unt. 53
H oward , in re v Ms nsfleld
. 76, 77, 84
6 Gresh a m . v Misc Ce ntral R B Co
. 189 . . . . a
v Nort h . v T ow nse nd
. 61
H o wa rd Ins C o v Halsey . . . Hun ter 0 B eac h . 62
Howe v Fraze r . 0 B os worth .

v Fr e idh e im
. v Cla rk .

0 La wre nce
. 0 De n nis .

11 Pe a bo d y
. 0 R ic h a rdson
.

v W oodrufl
'
. 0 Unite d S tate s
.

H owe Ma c hine Cc v W oolley . . B uh lt en v Pa tten .

H owell 0 B ush . H a rd v Ea te n.

v C ob b . 130 0 Li ttle
.

v C rane . 183 0 S pe nce r


.

v Rea m ; . 1 8 7, 140 H urley v Hurley .

B oy 11 B ra m h all
. 78 , 8 1, 82 Hart 0 R eeves
.

B oyle o C e za ba t
. 5 , 260 o Rifl e
.

B oys 0 Pen n
. 69 , 170 0 W ilson
.

H oyam d t v Holla nd 24, 47


. K urtin v t nix Ins Co
. . .

Hoyt v D ough ty
. 1 71 a H use v A m e!
.

H oy t v W ilkinson
. 106 v De n .

H ubba rd v Ascutney Mill Dam Co 46,. . H ustisford Ins Co v 016 03 3 0 R] . . . .

178, 176 Co .

0 Ensign Huston e A ppeal


'
.

v Ogden . H utc h ins v Mc Ca uley .

H utc hina v C arle ton .

H ubb ell v . Cs rpe nter v Nic h ole .

Hudginl v. H udgino H utchinson v S wartl weller .


xliv n ew or cu l l

Ha tchin g !) v . Wells
0 . Woodwell o. S um m ervilb
B a tm u v Sa ddle r Je n na Ins Co Boyh ton l n
a
.
. . v. .

B utton 0 C am pbell .
0 .

Huyler v A t wood :
Hy m an v Dovetail ! .

Idah o, The 18 9
H e 0 C h urchill
. 16 1
Ig leh art v C m e 75 , 78, 8 1
.

H e m e v Ga ith er .
166 Je rm on v W iawe ll .

India na Bank v A ndem n 186 .


Ja rre tt 0 Ma rtin .

India na Co unty B m k e A ppeal


’
107 Jarvis v Frink .

Inge lls 0 Morgan .


6 1, 72, 77, 78 Jayc ox, in re
Inge rsoll v Jefi ord. 9 , 36
. a Jefi en on v Edfi ngton .

l ng le v Culbertson.
81 Je fi riee 0 Allen .

Ing les v W alk er .


168, 1 71 a Jelliso n v Ha llow .

19 m m 0 8 0 C ar By Co . . . . . Je m iaon v Governor .

Ins C o v El s ton
. . .
Jem m ison 0 Gu y .

v Fideli ty Title C o. . Jenkin s 0 Continental Ins Cc


. . . 18. 45
v S tinson . v Frey e r . 77, 216
v U pdeg n fl v Ha wkins
‘
. . 186
International B a nk v Wilthire 67 . v. McNeeee 86, 122
Interna tional Life An !a m 68 . Je nnen 0 Robinson . 3 , 216
In tern a tional Trus t Co v Board . . Je nnings v Jennings . 218
m an 74, 185
Iowa County 0 Foster . Jennieon 0 Pa rk er . 121
l ows Loan C o v Holde rba um . . Je phso n v Ma unaell . 121
v Mo wery . Jerauld v Trippett .

Irby v Livings to n
. Je rom e v Sey m our .

Ire la nd v Milla .
'
Jersey City , The
Iric k 0 B lac k.
.
Jan ie v S m ith.

Ives v Me rc h antx Ba nk
.
’
Je wett v B a ily .

Ives, Th e Frederick E Jobe v O B rien


’
. .

Joh n v Jones
.

Johm v B eardon .

Joh m on, A ppeal of


Johnl on, in re
Jac k v.Harrison v A m m o Lo dge .

Jech on v B lodgett . 0 B arre tt .

0 B owe n . 0 . B a rtlett
0 B oly nton Ins Cc . . . 0. B ell
0 De vil .

v E vm .

0 Farm e rs Ins Cc
’
. . .

0 Patrick .

0 Rolf .

v. Bum
TABLE OF CASE . xl v

44, 244
111 Judah v Judd .

v . North B ritish 1m . 00 .23 6 Judge v V ogel .

36 Judson v De d e .

14 Julia n v B ed .

78 Ja m el v Ja m el .

1 92 a. Marine 1m . 00
.

8 1 , 86 a
Junk er 6 R us h .

31
142, 143
82 K .

60
v W illia m s 78 Ks hnweiler v A ndem n .

Y
.

v . oung 119 Kaise r v Ifi m beck .

v . Zi nk se, 45 Ka lech e ner v U pton .

Johnatoh v . B e lden 18 7 Ka ne 0 Hibernia Ins Co


. . .

Joliet 6: Chi cago R . R . Co . v S ta te .

v H ealy
.
Ku s ing v In ternational Ban k .

Jones v Bla nton


.
K a ttengell, in re
v B ra dford
.
Ka t: v Moe ss inger
.

0 B roed hnret
. Keed le v F lack .

v C ovin gton
. Ke el v Lark in
.

0 David.
.
v Levy
.

0 Dow. K eely v Cm idy .

v. K ee ne 0 Man n .

0 . Frenc h Keim v Rob eson


.

0. Gib son K eirete d v A ve ry .

0. Gilbe rt K eith v H udson .

K elc h ne r v Fom ey .

Ken" 0 W illiam s .

Ke ller v As h ford .

0 H annah .

Kellogg v A m os .

v N Y Central B . . . . R
.

Co .

0 B a nd 76, 79
.

My rick Kelly 0 A la and Cin Ry Co


. 167 . . . . a
v D 03 . 36 a
3 Park s v Herrick . 16 2, 164
8 Phela n 0 Jenneu .

0 Quinniph c Bank v. K elly


0 S m ith Longsh ore
0 .

3 Tinch er v Page .

0. W alk er 0 Wh itn ey.

v. Wilson 7 Ke m m e ner, A ppeal of


0 . W oodstock Iron 00 .

v. Z ollic ofi er 63 K em p v Kem p .

Jordan v A dam s
. 105 , 15 1 K enda ll, ex pa rte
0 Ham ilton Ban
. k 72 6 B ro wn .

v Hudson
. 18 7 o Nieb uhr .

Joslyn 0 Gra nd Trunk B 0 v W oodm fl


'
.
y 0 1 89 . . .

10 Kendig v Landie .

24, 100 Kendrick v Fom ey .


xln mm or CASES .

K ennedy v. B altim ore Ins Co . . K in naird 0 Wm . .

v . B rou iere Kinnear v Lowe ll .

v . Pick enl Kinney 0 Ens ig n .

K enny v Gage . 0 Harvey .

K en tucky B ank v. Milton v Knoebel .

v . V ance K insey v McD eem on .

Ken tuck y Ins Co v Weste rn R . . . K insley v D avis .

R Co Kip v Mutual Ins Co


Y
. . . . .

K e n worthy v Sawyer . v Ne w
. ork Bank

K e ny on v S e gar . K irb y v S tudeb ak er .

K eoha ne v S m ith . K irk h a m v S m ith .

K eok uk 9 Lo ve . k
Kir land, in re
K er v Wa uc h ope
. K irk m a n v B a nk of A m erica .

Ke m och an v N Y Ins Co . . . . . Kirk pa tric k v Ho wk .

K e rne v C ha m ber:
. Kistler v Mouse r .

Ke rr 0 Ham ilton
. K itc he n 0 Mudgett .

K esler v Link er . Kla pworth v Dresaler .

K ewh um v Crippen . K la uc k e, Ma tte r of


v S ha w . Kleim ann v Ge iae lm a nn .

K ey v Grim n
. Kle in Ragla nd
v .

K ay e. v B rus h . 0 Un ion Ins Co


. . .

0 W ood . Kleiner 0 S c ott . 87, 97, 109


K idder v Page . K lin gensm ith v Klingem . m i th 161
K iese r v B a ld win
. K lippel v S h ields . 187
K ien ig v A llspa ugh . K loc k v Cronk h ite . 59
K ilbom v Robb ins . K lopp 0 Le b a n on B ank . 8 7, 92
K ilpa trick v Dem . Klous v Hen neu y .

v Dy e . K napp v S turge s .

Kim ba ll v Noy es . K nee la nd v Moore .

K im b le v a orthy . Knigh t v C harte r .

K im m el v Lo we . v . Morril on
K ina rd v Ba ird . Kn igh ton v C urry .

K ind t s A ppea l
’
Knob la uch v Fogels ong .

King v A ugh trey K no uf s A ppee l


’
.

v . B a ld w in K nowles v La wton .

0 . B lac k m ore v Ra blin .

v . B ro wn K nox v E a t n . o
v . C ush m an 0 McC ain .

v . D wig h t 0 T urn er .

e Harm an K ohb e , T h e A ugustine


K oe h ler v Farm ers B a nk
'
0 . K ing .

0. Mc vick er K onig v B ay ard .

v . Morris K e nt 0 B ende r
.

0 . Nic h ole K os ten b ader v Spotta .

v . Pre sto n K ra ft: v C re igh ton .

0 . S ta te Ins Co . . K ra ll v Ca m pb ell Printing Pre ss


.

v . S te ts on Co .

v . W h ite ley Kra m er v C arter .

K ingm an v . S o ule v S a ndford .

K in gsh ury o Westfall Kra m er s A ppe al


'
.

K inley 0 Hill . K reide r v Ise nb ice .

K inna ird v T rollope . K rue ger v Ferry .

v Web l ter . Kuhn v. North


TABLE OF CASES . xlv ii

K uh n: v B ank en. Las selle v B arnett .

Lath rop n Appeal


’
K unkel v F itzh ugh .

La tiole io 0 C itizens Bank


'
K yner v K yner
. .

La trobe v fi erm an .

La urence v T owle .

Le nsm an v D rah oa .

Le ve l 0 Rowley
.

La Fargo v Ha lsey . La w 0 Eas t I ndia Co


. .

La Fa rgo Ins C o v Bell . . . Le wes v B ennett .

L a Grange v Merrill . La wrence v Fo x .

L abea um e v S weeny . v. M ontgom ery


L aboy tea u v S wigert . Laylin v K nox .

Lac y v R ollin s
. Lazarus v He nrietta Ba nk .

La ck ey 0 S te am . Le B la ne, Matter of
Lafayette B ank H ill Le N oir v W inn .

La fa ye tte County v Hixon . Lo Page v Mc .

Lea k 0 Ga y
.

Lah m ers v S c h m idt . Leak e v Ferguson . 86, 106,


La ible v Ferry . Le ary v C heshire.

L a in; v B yrne
. Lea th am v T erry .

L a k e v B rutton
. Lea thers, T he T P . .

Le ll v Matth ews
. Le a v en worth 0 Cooney .

Lam b v D onovan
. Le a vitt v Pratt . .

0 . Ma son
v . Monta gue 6, 45 , 49 0. B uck
v . Ric h ards v Gre gory
.

0 . S m ith v Grim n
.

v . S tone v Sal ter


.

v . Tuck er v S tone
.

0 . West v S w epson
.

Lam bert, carpa rts Le e C ounty v Fa lk en on .

Ghiselin 0 . Lee ds v Chs th am.

v H ob l on . Lee rs , ex pa rte
v Leland . Le fi ingwell v Fry er .

La m berton v Windom . Le ggett v H um ph rey: .

I a m bton, ex pa rte v McC le lla nd .

h m port v B ee m m . Leh m an 0 C e ntral R R Co . . . .

Le m son v Dra k e . Le h ow v S im onton .

La ncas ter 0 E7 011 . Le ib v S tribling


.

L a ncas ter Mills 0 Merch m te C ot Le ith a m er v B anm eil ter


’
. .

Le nnig s Es ta te
’
to n Press C o .

L a ncefield v Iggulden . Le no x v Levere tt .

Lancey v Clark . Le port 0 T odd .

L and ry 0 V ic tor . Le ppo 0 Gilbert .

Lane 0 Hallum
. Leslie 0 Fre nc h .

v S piller
. Le ster v Given .

0 S tac ey
. Le tt v Gua rd ia n Ins Cc
. . .

h ug v B neu rd
. Levi, Case of
h ng ford v Perrln .

La ngley v Ch apin . Levy v Be er .

Lane y v A thol . 6 1, 219


Le wis 0 Arm strong .

0 Be er .
xlviii TABLE OF CAS E .

Lewi v . Caperton Legm v Taylor . 84


o. C hittick Loga nsport 0 C ase . 81
v . Faber London Ase C o v . . . W h en 6, 282
v . Furgereon 31
v . H inm m Long Jc plin Mining Co
v . .

a. L ew is 0 Ka iser
.

0 . Mc Millen l o nge r: 0 Carpenter .

v . Mott Lo n gfellow, in re
Nic hols
v .

v Overby . 216 Loom i o, A ppeal of


v Pa lm er . 1, 86 , 104
v S a wyer . 8 6, 160 v. K nox
Lib by 0 T u! “ . 79 Loos v
. W ilkinson
Lib e rty , T he 229 Loring v B aco n .

Lidderda le v R obinson 186 , 18 7 . Loud 0 Lane .

Ligge tt v H im le . 20 Londo n 0 Cole m an .

0 Pe nns y lva nia B an


. 18 2 k a Lo ugh ridge v Do wund .

Ligh tbro wn v Mc My n 18 6 . Lo uis iana National B a nk 0 .

L ig h tfoo t v Ligh tfoot . v eille 189 5


Lilford v K eck . Lo ve lace v Webb .

Dilla rd v Puck ett . Lovell v Ne l-on .

L illy v Palm er
. Lovet in v Hum boldt S ufi Dep . .

Lily v D unn
. Co . 46
Lin e R oc , Th e k Lo w 0 B lodgett
. 86, 137
in n
L col 0 B as sett . 6 S m a rt
. 141
L in ds ay , in re Lowe v R a wlin s . 31
Lingle 0 C ook . Lowell 0 Frenc h . 132
Linscott v La m art . Lower v B uc han B ank . 161
Lintz v Th om pson. Lo wery v B yers 178
.

Live rpo ol Gt Western Baup . . Lowndes v C his holm 87 .

Co v t
. h iz 1m
. Co . . v Pinck ne y 1 10 .

Livingston v An de rson 88 . Low ry v Mc Ki nney . 76


v Colum b ia n Ins Co 226 . . . v S m ith . 24
v Free la nd 78 , 216 . Lucas Coun ty 0 R obert. 126 .

v Livin gston 218 . Luc h t v B eh rens . m


v Ne wk irk 202, 207 . La ck ing v Wen ou 12 .

0 Peru Ir on 00 37 . . Luk e v Lyde . 227


0 V an Renu e h er 144 . a ley v Gy e .

Lloy d v Ga lb ra ith . 1, 66, 6 9 Lum pkin 0 Mill. .

Loc h e nm y er v Fogt rty 87 . Lum oden 6 Leonard .

Loc k 0 Fulford
. 76 Luck v Hopper .

Loc k e 0 H om er . 24 Lydec k e r v B ogart .

Loc k e tt v Jam en . 40 Lyles v Lyles .

Lo c k hart v Re illy . 136 Lym a n v Little .

Loc k wood v Du sett 20 . 0 Ly m an .

v M a reh 8, 19 , 247 . Lync h 0 B ra g g .

v S turden nt 13 , 5 7 . 0 H a nc ock .

Loder s C u e 16 2
’

Loeh r v C olhnrn . 15 4 K itch en


0.

Loe wenth al v Mc Corm ick v Pfeifler


'

19 , 248 . .

Logan 0 A nders on . 63 Lynn 6 R ic h a rd son


.

0 Mitc h el . 1 60 Lyon 0 B olling


.

v T alb ot . 141 0 H un ting ton Bank


.
TABLE OF C AS ES . xlix

Lyon 0
. Lea vitt Marim n ttu 0 De Boyce .

v . McIlvaine Marine B a nk v Wrigh t .

R ob bins
v . Marine B ank 01 Georgia 0 . Jenn
v Ta llm a dge
. 09 ?

Lyons, Appeal of Ma rine Ins Co S t Louis Ry . . v . . .

0. Murray Co .

v United Ins Co . . . 226


Marion County v Mofi ett . 121
Ma rk 0 Speck . 81
Ma rkell v Eich elbe rger . 166
M ace 0 W ells
. 102 Ma rk h a m v Calvit . 69
M ack ay 0 C om m erc ial B ank
. a 189 Marq uette Bank v Weed . 19 6
Mac k in tos h v Fa tm an 1 71 a . Mart 0. J oh nson 18 8
M ack ne tt v Mac k nett 218
. Le wis
0 . 64
M adde n v K em ps ter . 190 Marsh 0 B ennett . 171 a
M adison B ank 0 S chluu er 166 . v Marsh . 207
M a dison Sq uare Bank v Pierce 18 1, 182 . 24
Ma gde burg I ns Co v Panlnon 228 . . Ri ce
0. 18
Mng ee v Leggett . 8 7, 127, 128 Marsh all m D avies 24, 25
Ma gill v D e witt County B ank
. 36 a 0 Dixon . 116, 126
M aginn v Dollar Su in g. B ank 200 a
. v Rnddick . 12
Mng ilton r Holbert . 14 v W ood .

M agnet 0 Hibernia Ins Co . 46 . . Marten v Fra nk lin Ins Co. . .

Ma h a iwe Ba nk 0 Pack 124 . Ma cd u, Appea l Of


Ma h urin v Pearson . 101 0 A ult m an .

M a in gay 0 Le wis . 25 0 B a ld win .

Maj ury v Putnam . 21 0 B ank .

Malco lm 0 Sc ott . 85 v Ga le .

M allett v Pa ge . 20 v Gowdy .

M a llory v D a uber . 21 v Jac k son .

H itc h cock
v . 84 0 Kelly .

v Horan . 40 v Ma rs h all .

Malone B a nk 0 Shields . 182a 0 Martin .

Me lo ny v H orn . 40 v Mc Rey nolde .

M anch es ter Ba n , carpa rts k 171a v Mech a nice B ank


’
.

0 B artlett . v Parsons .

Mandigo v M and igo . v .


Qui nn
M anford v Firth . v . Tay lor
Men ice v D uncan . Martindale v . B rook
Manis tee , T he 0. B urch
M a nley v Ayers . Ma rvin v V e dder .

Ma nn ex pa rte
, Ma ry E Fenev , T he
.

Ma nn in g v Gu he rie . Mask ell v Goodall .

S pooner v . M ason 0 B e rnard .

v T uth ill . 0 Mason .

Man sfie ld v Dyer .

M a ntz v B uc h ana n
. Pom eroy
v .

Ma n w aring v Powell . v S ainsb ury.

Ma pps v S h arpe . Mason s A ppea l


’

Maq uok eta v W illey . Mu sic v W ils on .

Ma rbury v Eh len . Mast v R oper


.

Ma rc h a nd v Fl elleen .
'
Math er v Jensv old .

l i m h m a n v Roberteon . Mattes on v Th om as .
T ABLE OF CAS E .

Me m phil Liula B oob B B Co . . .

McLa ug hli n v. McDaniel 0.Do w


c e an v Cad n h der
.
Menderbs ck 0 H opk ins .

o Lafa ye tte B ank


.
Menom inie, The
9 Martin .
Merca ntile Ins Co 0 Celeb. . . .

0 Tom pkin .
v Clark 221, 222 .

v T owle .
u Coreon n 223
MoLewis v Fnrgen on .
186
Mc g 0 Beirne .
Merc hanta B ank a Cordevoille
’
120 .

W W : 0 A llen .
v McL aughlin 61 .

a Fe w eett .
v Sta te B ank 34 .

Merch an u Ins C o v a 238


’
v R usse ll . ge . . .

McMilla n v B ull s Head Bank


’
.
Meriden B ank 0 S to ne In s Cc 236 . . .

Merria m v Rs uen . 81
M cMah on v . C a thel rt Merre ll v Johnson . 40
Met rik en v Godwin 137, 18 1
.

v . Nea l Merrill 0 Green . 85 , 171 , 171 a


M c m ullin 0 . B rown Merrim an 0 Social Mfg Co 1 13
. . . .

M c Myn m re
,
Merritt v Hoom er . 14
M c Nairy v Eastla nd . v R ich ey . 74
M cNally v W e ld . Merry m n v Sta te 91 .

M eNeale v Reed . Me rtens 0 W ilm ington . 184


M cNeil v Miller. Messe r v S we n . 148
v Morro w
. Men en ey v B arelll 61 .

M cNeil] v McNeil! . 97, Metropolita n Trust Co v N Y B . . . .

M c Neilly v Coc k ney . 1 10 R Co . . 86


Pa tc h in
v. 188 Me xa ll v Dearb om . 67
M cPherson v Mee k . 98 Meyer v B urritt . 7
v T albot . 160 v Le th rop. 25
Mc Pik e 0 W ells . 218 v Lo well . 171 a
M c ie v Peay . 186 v Min tonye. 1
M c Ra dy 17 T hom as . 156 v Peck . 189 a
McSh a ne r Howard Bank . 123 , 126 a Mic h igan B ank 0 Gard ner 189 .

M c Sorley v Larissa . 84 Mic k ie v Ra m bo . 78


M cveig h v S herwood . 78 Mick lee v D illa ge . 47, 66
M c W ho rte r v W righ t . 1 62 v T o wnsend . 47
M c william s v B one. . 19 , 42 Mic k ley v Tom linson . 76
N ew h am 0 S teele . 5 7, 88 Miee n v A l h nu t. 25
M ead, A ppeal of 19 Midd a ugh v B a tc helder 26 .

.v Eng: 18 3 M iddle ton v Marahalltown B an .86 k


Me m m 1116 CO . . Middletown B an v Midd leto wn k .

M ea dor v Meador . 86 A cadem y


M ec h a nics B ank v Hau rd’
. 201 Midla nd B a nk ing Co 0 Che m . .

v S eitz . 186 be rs 1 10
M ec h a n ics Edg A ss n v Conover 65 Mitfl in Coun ty Ba nk s Appeal
’
18 7
’’
. .

M ec ha nic e Sa vings Bank 0 Gofl 85 Mila m v Ra g la nd


'
. .

M edley v Elliott . 46 Mile n v B acon.

M edske r 9 Pa rk er . 104 Milh olland v Tiffany .

M eec h 0 Ens ign


. 85 Millard 0 B ald win .

M e he r r C ole
. 88
M eier v Meier
. 81 Miller A ppea l o f
,

M ellon v W hipple
. 85 v . A ld rich
M ellendy v Am fin . 119 v. B ird so ng
lii TABLE OF CAS E .

102 Monm outh Ins Co . . v . Hutchinoon 230 ,

0 . Co ok 69, 8 3 $1
v. D e Pey ste r Monroe Ba nk a Glfl ord . 86
v . D yer Monson v Drak eley . 1 33 , 160
v . Fu ler Montana, Th e
v. Hnll Montg om ery , Success ion of 166
v. Ha nnibal S t Jo B R
. . . . v V ick ery 46 .

Co . Montgom ery Bank 0 Albany Bu nk 1 86 .

v . H ollnnd Montice llo v Mollis on .

v . How ry Mon tpelier Bank v Dixo n .

v. Hoy le Moody v Moody .

0 . Ja c obs Moon 0 Jennings


.

0. La ncas ter Moore 0 Beu om


.

9 . Mi lle r 0 B ond.

Mon tgom ery 0 B ray


.

O K ain
’
3.

v. Pendle ton
0. Ro gers
6 . S a wyer
v . S tout
Th om pson
0 .

0 W eek .

6 W h ite .

v W hittier
. v. S ta te
v W i nc he ll
. v T a plifl
.

v W ood fs ll
. v T rim m ier
.

v Wood wa rd
. 0 Wr . i gh t
Mi llard v T horn . Moore s A ppea l
’

M illiga n s A ppea l
’
Moorhead s A pped
’

Mills v C om stock
. Moorm an v W ood .

Millee pa 0 B ond . Mora n 0 A bbey


.

M illspa ugh v McB ride . More h ead 0 D uncan .

Mi lte nbe rge r v B e acon: . Morga n 0 D avis .

Mineh ouse v S ca ife . 0 D odd .

Min . Mex Gt 8 Canal 00 . . . v . v a ck lyn.

Noyes v Ha m m ett .

Missouri B a nk 0 Ma no n . v S m ith .

Mitch ell 0 B ase . Morgan s C o 0 Tom


'
. . Ce ntral
0 B la in . R R Co
. . . 248 a
v B urton . Morla nd 0 Isaac .

0 B utt . Morley v Dic k inson .

v D e w itt . v . Metam ora


v M itc h ell . S te vens
v .

Mitc h elson v S m ith . Mom y er v Cooper .

Mix .v H o tc hk in
. Me rrill v Me rrill
.

Mob ile B an k v Hun t . Morris, a p r s at


Mobile Ins Co v B m m e . . . v B eech er
.

v H uder . 0 Evan!
.

Mob ile R R C o v Jut ey . . . . 0 Lak e .

Mom t v Roc h e . 0 Mo watt.

Mogan e Esta te
’
v Oak ford
.

Mohle v T ach irc h .

Molla n v Grim m . Canal 00 . 0. V an V en t


TABLE OF CASES . liii

M orrison 0 . Beck with Murphy Adam v .

Citizen s B ank
’
v .
v Gh ee .

a . K nrtz Murray 0 C a tlett .

0 . Marvin v Fox .

0 Mars hall .

Mnrrell v Scott .

v. Poyntz Ma rtha 0 C arley .

v . Tenn Ins Co
. . . Musca tine v Miss R R Co . . . . .

Morro w v . Morro w Mutua l Ins Cc v B rig George . . .

0 C argo .

0 E as ton R R . . .

Co .

v . B roc ke tt Myers 0 B rownell .

v. S m ith 0 Haza rd
v
.

W illiam s v S tate

Y
.

M oreen 0 Caroline .
Myre s v aple .

M om v Gleason
.

M orton v Gram in .

v . Lo well
11 . W elborn

Nelly 0 Long . .

Nanz v Oa kley .

M ooely v Ma rs hall . Nash v B urch ard


.

M oses 0 D allas Distric t Court


. v T aylor .

v. E la Nassau B an k v Ca m pbell .

0 . Murgatroyd National Ban k v Porter .

M osher v H otc hk in . Na tional E xc h a n ge B ank


M od e r 0 Norto n . 129
M osier a A ppe al
'
1, 3, 12, 86 Na tiona l Ins C o 0 Crane . . . 286
M ose, Esta te of Na tiona l S a vings B a nk a C resswell 77 .

v C ra ft
. Nea l v Nu h. 1 37
v Petten gill
.

1 10, 128 Nebe rgall v T yree .

v . Mannfactnrere Ins ’
. C o 28 6
. k
Nec , ex pa rtc
M oulton v B es ucha m p . 101 Nee l v Cm on
.

M ount 0 Potts . 76 Neely v Be e . 141, 142


S uyda m
v. 45 , 206 0 J0000 . 248
M owe r a Trus ts, in re
’
61 Nefl v M iller
. 86 , 107, 1 10
M ow ry v C h arles to wn Ins
. . Co . 226 Nefl s A ppeal
’
86, 1 15
M oy e v Alb ritton
. 203 Ne id ig v Whiteford . 20
M ueller 0 Dob sc hnetz . 12) Neilson 0 m 7 . 13 7, 180
M uir v B e rksh ire
. 30, 33, 36 a Neim ee wicz v Gehn 61, 86, . 104, 114
0 Craig
. 39 Nellons 0 True : . 77, 216
M uirh ead v Kirk pa trick . 121 Ne lson, in re 23
M uldoon v C ra wford . 89 v B o nndbrook Ins Co
. . . 284
Ma lford v Eetudillo . 122 v D unn . 61
v Pete m n . 67 v Ferris . 1 86
M uller v W ad lington
. 126, 186 v First Na tional B ank
. 86
M nm per 0 Kelly . 86 v H arring ton . 1 13
M unroe v Cre m e . 46 v Loder . 14, 46
M urd ock v C hapm an . 34 v Munc h . 120
M urph ree v Count!” . 86
TA BLE OF CAS ES .

El m o!

Ne lson v William s
. 8 7, 1 19, 122, l w Nic h ols v. B urch
Neptune Ins C o v Dou ey . 127
. . v. Dunn
Nette rville v B arbe r .

Ne w Bedford S avings B ank 0 . v. Wads worth


Ha th aw ay 138 , 140, 16 1
v U nion m m
. 1 16 Niles v
. Ha rm on
New Bedford S a ving: Instituti n o v Nye
.

0 Fairha v en B ank
. 162 Nippert v The J B William : . . .

Ne w England In Co v Dunh em 223 . . . Noble v M urphy . 113 , 129


v R a ndall 126 . v T urner
. 1 10
New England Je welry Cc v Mer . . Nols nd v C left . 1 21
riam Nolte v Creditors
. 241
Ne w Hg m p-hire Savings Ba nk Nordyk e 4: Harm on Co v Gory 233 . .

v Colcord
. 86 Norri v Morrison. 5 0, 6 1
Ne w Ha ven S a vings Bank 0 Me . No rth A m er Inn 00 v Handy 1 61 . . . .

P&rtla nd v S t Louis . .

Ne w Jersey Ins Co v Mee ke r . . . Ry Cc 221 . .

New Jersey Midland R R Cc v . . . North B ritish Ins Co v Felu th 236 . . .

W orte ndy k e 128 , 248 No rth Ca ro lina R R Co 0 Drew 16 7 . . . . . a


New Jersey Sinking Fund 0 Wood . North of England Insurance Ass o
ward c ia tion 0 Arm stro ng 221, 222
.

Ne w Lo ndon B ank v Lee . North Na tional Bank 0 Ham lin 18 1, .

Ne w Orle ans 0 B a ltim ore .


182
Ne w Orleans B ank 0 Eag le Co tton . North R iver Construc tion in
Cc . 2 TB

Ne w Orlea ns Canal 00 v Eocoffi e 1 16 North cra n 0 Oliver 38


Y
. .
.

New ork B a n k 0 Fletc her 106 , 137 Northe rn D is pensary v H em m


'

n 26
Y
.
.

Ne w ork Exohm g e B a nk v . Northrup 0 Meta l! . 75


Jone. North weste rn Co v Randolph 82
Y
. .

New ork Ins C c v Aik in . . . Norto n 0 Coons .


160
v R oule t .
v Highley m m .
241
0. L ewis 76
Newborn v Da w son .
Le xington Ins Co
0 . . .

Ne wbo ld v Ne wbold .
v Phelps .

0 S m art .
0 Plum b .

Ne wburg B an k v S m ith .
v Re id .

New com b v B os ton 85 Lowell B


. .
v 8 00 10 .

R Co . .
Norwich Ins Co v B oom er . . .

0 C incinna ti Ins Cc
. . .
Norwood 0 De Hu t .

R a yn or v .
Noyes v Rey .

Ne wm an v Gree n ville Bonk


.
Nngent v Potter .

v K irk .

Na wa m v F inch .
Nunn v Berger
.

Ne waon v Mc Le ndon.
Nurre v Chittenden
.

Ne wton 0 C h arlton.

0 C ook .

v Field .
0 .

0 Ne wton .

v S ly .
Oak eley v Pas h e seller .

Nia gara Ins C c v Fidelity Ins


. . . Oa k ey v S h eriff .

Cc O Ba nn on 0 Miller
’
. .

v . Su m m on O B le m ie v K a ring
’
.

Nich ols v. B axte r O Brien 0 Harrison


’
.
n ew 0? c ases . Iv

Owen v Mc Gehee
. 142, 15 1, 169
v. K renz Owem w Bed ell .

O B ryan v Nee l
’
. 0. Joh neon
O Co nner v O Connor
’ ’
.

O H ara v Ba um
’
. Owings 0. Owing.
0 B an .

0 S c h wab .

Ohio Ins Cc v Ledyenl . . .

v Ree der .

v
.Winn Pa cific B ank 0 Mitc hell 18 1, 186 .

Ohio L ife Ins . Co v Winn


. . Pad uca h Lum be r Co v Paduca h . .

207 a Wate r S upply Co 86 .

Okie 0 S pencer. 1 82 a
Old 0 Ch a m bliss
.

Old Dom inion Bank 0. Allen


Olds v C um m ings
.

Oli ver 0 B ra gg .

0 . Montgom ery v . W aite


13 . Moore Pale n v S h ut tlefl
.

Oliver T h e Edward
, Pa llen v A gricnltnn l B ank
.

Palm e r 11 Fowley .

Olym pic T hea tre , Th e 0 S tacy .

O Neal v Deeee
'
.
Palm e te r v C are y .

Oneida B ank 0 Ontario Bank . Pa ncoast v Duval .

Pardee v Lin dley .

Onge v Truelock . v Tre a t .

Onta ri Ba nk 0 W ith
o . 0 V a n Ank en
.

Opp 0 W ard. Parham v C obb .

Ore gon T rus t Co 0 Sh aw . . v Green .

O R e illy v olt
'
. H Paris H ule tt
Ore m v Wrigh tson . Paris, T h e City of
Orien tal B an , in re k Pa rk e v H ush
.

Orm oby v Fortune . Parke r v A le xa nder


.

Orric k v D urh am . 0 De nnie .

Orvi e v Nowell . v Goddard .

0 Powell . v. Mercer
Osborn v B ryce . v. S a nbom
v C unningham . Park m an v We lch.

v . Noble Park s 0 Watson


.

Pe rry 0 W righ t
.

0 . Taylor Pars ons v Clark .

v . Unite d S tates Partridge v Partridge .

Otis Gregory
v . Pa tterson , Estate of
v V on S ta rc h
. v B irdsall .

Ottawa B ank 0 Dudgeon . v B ooth .

Ottm an v Monk . 0 B rook .

Onry v S anders . 0 Gibcon .

Overend, in re v Mills .

0 Oriental Financial Cor . 0 Pope .

pon tion v T rium ph Int 00 . . .

Pattison v H ull .

Pa tton v A dk ins .

Patty v Peace.
In TABLE OF C AS E .

Perrlne 6 . Mobile Ins 00 . . ao, 92, 123


143, 148 Perrott v. S h ea rer
Pauleen v. Man ake
76, 78 v . William s

v . S terne Perseverance Iron Work: 0. Ollie!

v . A very Person 0 Perry .

v . B um h am Pe rs ona 0 S h ee fl er .

v. Com m erc ial Bank 120, 126 Pe ter 0 B e verly


.

v . 19, 36 a , 245 v S m ith


.

Pe w“ 0 Boon e .

Peacoc k v. William s v C lem en ts


. 34
v Flom n ee
. 19
v Mc W illinm .
. 18 7
v . Cla rk Peterl b nrg Sa vga Co v Lum oden 22 . . .

H ervey
0. Pe ten on v W illi ng . 188
Pearl S t Soc iety 0 In la y 8 7, 119, 123 Petitt v Firs t Nat l Bank 189
'
. . .

Pen m an v Go uld . 236 Pettao v Peppa rd . 86


Pa rs e 0 Quebe c S anp Cc
. . . Pe tte ngill e Pe tte nglll .179
Pearson v Cm . Pettibone 0 S te ven . 61
Peace v Egan . 86 a, 179, 246 Pe ttillo, in re 97, 180 a
v ac k son
. J Pe ttit v Bla ck
. 34
v T ilt . Pe ttua v Mc Kinney.

Peck Gle n Pe tty 0 Cook .

Peck h am v Ha d wen . Ph a res v B arbour .

Peoples v H orton . Ph e lan v Olney .

Pee t v Beers
. Ph elpl v C om b er .

Peets v Wils on
. v M c Nee ly .

Peirce 0 Ocean Ins Co. . . 6 Pope .

Peltz v Clark e
. Phils . Reading B R C o 0 . . .

Pe nce v A rm strong . Li ttle


Pen derg ru a v Pe nde rgru s . Philbrick 6 S h aw .

Pendle to n v E lli ott . Ph ilbrook s v M c E wen .

Pennock v H oover . Phillipe v B la tc h ford .

Pennsy lvania B a nk 0 Potiuc 9 1, 127 . v C ham b erlain .

Pennsy lvan ia R R Co v Pem . . . . . v Le w is tow n B ank.

be rton R R Co . . . 6 Me r rim a ck Ins C c


. . .

Pentz 0 m m ; Ins 00
. . . v S t Loui s In s Co
. . . .

People v B ra ndreth . 0 T h om ps on .

v B us te r . Ph illipsb urg B uilding Au och fi on


v Ononda g a . v Ha wk .

v S k idm ore . Ph ilpot v Brim t .

’
People s B a nk v B allowe Ph inney a Es ta te
’
.

’
People s Gas C o v Fidelity Ph ipps v Ph ippe . . .

Cc . Phe nix Ins Cc v Ch a dboum e . . .

People s Ins Co v Stu c h le


’
. . .

Peoria Ins Co v Fl oat . . . ta tion C o 229 .

Pere w, T he M a ry E v Firs t Nationa l. .

B a nk
Perkins v Ha ll . 0 Floy d .

v K ersh e w . 6 H ollo w ay .

v N olan . v Li verpool S tm p . .

Perrin v K ellogg . Co .
TABLE OF CASES . lv u

t lx Inn 00 0 Persons . . . 2 2, 236 Porter v Laflerty .


‘

t n ix Mfg Cc v Fuller . . . 120 v V an derlin .

Piano Mfg Cc v B urrow. . . . Pos t 0 Mackall


.

v . Y arb orough Potom ac , T he


Pic ken gill v Rodger . Pott v Ns th anl
. 1 8 1 , 132
Pick e tt v B a tes . Po tta wa tta m ie County v. T aylor 121
Po tter v S teve ns . 1 86
Pierc e, in re 12
0. All en Potvin v Myers . 18 7
Pon de r v Ritzinger . 20
Powell 0 Hay es . 81
0 Jonel . 89
v Pow ell .

v Riley .

Pik e 0. B rown v S m ith .

0.(300611017 Powers v Go lden Lum ber .

Pillow v Helm . Powles v Ha rgreaves .

P ink h u n 0 Grant . Prae d v Ga rdiner.

Pink s ton v T and em . Pra ther 0 Joh naon .

Pin w d v D a vie . Pra tt La w


Pipkin 0 B ond . v Pu tt
.

Pitk in v Pitkin . 0 Ra dfor


. d
Pittm an s A ppeal
’
v Sk olfl eld
.

Pi tts b urg R R Co v T hom pcon . . . . v T h orn ton


.

Pla ce 0 Old ha m. Pra tt s Succ ess ion


’

Plain v Roth . Pray v Maine


.

Pla nter, T h e Prentice v B rim h a ll .

Ph utera Bank v D ods on


’
. v . Z an e
0 D oug la s. . Pre nlar v S tallworth .

Pres ton v Pres to n .

Ph tt B rick
0.

v Potts.

v R ich m ond R R Co
. . . . v . Courtne y
Pled g e v B un . v. D im e Sa vinn ank
Plim pton v Fuller .

Plum m et , in re 0. Ph e n ix 1m . 00
.

Ply m pton v Plym pton . v. S anders


Poe v D orrah
.
v . Tru de “
Polk v Ga llant
. Pride, in re
0 Rey nolds
.

Polla rd v Ogd en . Pride of A m erica , The


0 V in ton . 189 a
Prin gle v Sizer .

Pool 0 Doster
. 160 Printup v B arre tt .

0 Ellis .
0 Joh nson .

v H a thaway
.
Pritc h ett v Jones .

Poole 0 A dam s .

0 1 71 a
Professional Life Inn in re .

H unte r
a. Prout v Lom er .

Popkin v B m m teed . Provincial Ins Co v B een t . . .

126 Pruden v Willia m s .

1 88 Puller v S h niforth
.
lviii n ew or cm

Boy 0. De toh on
P ull ifer, in n

v. W aterm an v.S m ith


Raym ond v Holh om .

0 Raym ond .

Pun i v C utaph an
. Reynal 0 Preston .

Putnam v Colh m ore . Raynor e Raynor .

v S c h uy ler . Ret rdin v Walpole .

100, 1 13 Red Bank B uilding Association


Pyncheon v. Le s te r Patterson
Redeh h eim er v Miller .

Bedington v Cornwell .

Q
.
Badm a n v T urner .

Red m ond v B nm nghl .

k O Hs re
’
enb us h v .

Q uu rie r v Q arrier
u .

Que u e Al l 00 v 8 6 b . . . . ut.
0P‘ nl
Q ueen v O c- lh shs n I
'

” Pruyn
.

Quinn 0 Wallace .
Roe. v Eam e
.

Reeoe 0 B radford .

Reeve v Ree ve .

Reeves v Pullil m .

B uc kley 0 S cott .

Ra dcliffe, in re v . S ycks
3 013 10 0 M W .

Reilly 0 Me y er .

Ra ilroa d Co v S outte r . . Re inhm v Joh nson .

Ra ilroad Cos v S eh ntte . . R einste in v S m ith .

Railway Cc 0 Fire Au ocietion . . Re fit: 0 People .

v Mm chel ter Mill! Rolfe v B ibb


J
. .

Ra inbow 0 ugg inc Renick v Ludington


‘

. .

B e insburg B oro ugh v Fys n . Reno: v Mc K enzie .

143 Ray b urn v Mi tc h ell .

v . Wes tm oreh nd B ank 122 Reyna rd v Arnol d .

Reynolds , in re
B a nd 0 Barre tt
. 0 D e chl m .

Randall 0 B radley . v T ook er .

0 Coc hran . Rhi n e 0 Lewis .

v . M000 R hee v Greer .

S weet 6 Preston .

Ra ndolph v Ra ndolph . B head v Houneon .

Ren ken v Ali n e Rheeling a A ppe al


'
.

Rankin 17 Con e . Rhoa ds s Es te te


’

v . R hoda v C rock ett .

Ricard v San derson .

Ranney v Mc Mullen . Rice 0 B arnard


.

Rapp 0 S tone:
. v Cob b
.

B a um v Ks ltwm er
. v D e wey
.

Ru m v Reynolds
. v D owning
.

B e wiu er v Hm fl to n . v He rb el on
.

Re wlings v Ba rh l m . 0 B u rn
.
TABLE 04 9 m .

Roberts Jefi rieo


0.

0 Lane .

0 S ayer .

v T h e H untsville
.

’
v Tra dere Ins Co
. . .

Robertson 0 B ak er .

Ric hards v. Com m onwealth v D ea therage .

v. Grifi th v H owell .

R ic hardson, as pa r s t Roberts on, The


Richa rdson, in re R obeson v R obe rta .

0 C ity Bank Robes on s A ppeal


’
.

Robey v O llier.

Hock enh ull 0


. Rob ins v S wain .

0 H om e In3 Co» . . Robinson v B rooks .

v S k olfl eld .

v T ob ey .
1 1, 13 , 45 , 215
v . Leavitt
v Tre vor . 0 . Mem ph is
Charlen
v W allis . ton B R Co 189 a . . .

0 W a shington Ba nk . 129 v Rey nolds . 188


Rich elieu Navi ga ti on 00 v . . 0 Robinson .

T h a m es Ins C o . . v Sam ps on . 20
Ric h es on v C ra wford . v S he rm a n . 81, 105
Ric hey v Merritt . v Tre vor . 20
Ric h m ond v Mars ton . B ockingh am Ban k 0 Claggett 187 .

R ic h te r v Cum m ing:
. Rockingh a m In s Co v B oeher 232 . . .

R ic k m a n v Miller Roddy s A ppeal


’
1 77
“
.

R iddle v C ob urn . Rodenh arger v B ram ble 100


.

Riem er v Sc h li tz . Rod gers v Mc C luer . 77, 134, 18 7


Rifl e s A ppee l
’
B a dm an v S an ders . 247
Rigney v Lovej oy . 218
R iley v S c h a weck er
. R ogers v B enton. 81
Rin dge v Coleraine . v B lum . 63
v S a nford .
v B ert on
. 57
R ine ha rt 6 Lon g . v H olyok e
. 63
B in go v Wing . 0 B on d. 221
B in to ul v N Y C entra l B R Co
. . . . . . v Ja m el . 185
Ripley v A s tor Ins Co
. . . v ones . J 219
R is k 0 H ofi m an
. v . 22, 64
R itc h ie v Mc fie. v N utta ll . 7
R itenour v Matth e wl . 130 v Om a h a H otel 00
. 84 . .

Ritten h onse v Le vering 87, IN , . 110 v Ro gers


. 207, 211
Bi tter 0 C ost. v Sc h ool Trustee s
. 86, 11 1
0 Ph illips
. Rolfe 17 Flow er
. 1 71
Roac h v Hack er . Rollins 0 Henry . 39
Robb v Mudge
. B ook er v B en son
. 86 , 128
Robb s A ppea l
’
oo
R t v S tow
. 1 17
Roh enaon v Urq uhart . 85 Roeborough v 14c . 1 17
Robe rs on v Tow ne . Rose 0 S c h afi ner
.

Roberts 0 A ustin . Roae nb a um v Goodm a n .

v B ruce .

0 C a lvin .

t H ughes .
lx m ew or 01 5 m .

B o“ v S t nh bury
. S aint Jooeph Mfg Co v Deggett GB a, 76 . . .

0. Wilson 155 , 156 S a in t Joseph s Int


’
Hs uck 126 .

v. Woodville S ai nt La wre nce, The


Rou iter v Cou it . Sa in t Louis 9 Priest .

B oth v Ha rh on
. 1, 3, 241 S aint Loni: B uilding Au ocis fi on
Roun dtree v W eaver . v C la rk
.

Rourke v Colto n . 8 3 10: Loni. Cod Mi ning Co v . .

Rom ean a S noeeu ion S ando va l 004 1 CO 30, 246


’
.

Rowe v W illia m s
. S a int Louis B R Co v Com m er . . . .

Rowley v B igelo w . cia l Ins C o 232 . .

v To wsley . v Lerned 1 89 . a
Royal Ba n k
, a pa t rs 182, 182 a S d nt Pe n! Ins Co 0 Joh nson 23 6 . . .

v . Com m ercis l B ank 190, S aint Peters Literary Associa tion


194
Royal ton B ank 0 t . ing 8 3 1m m v R e lf .

R ubens v Prin dle . Sa le m 0 Ed gerley


.

R ub le 0 Norm a n
. 8 7, 1 19 S alem Bank 6 S alem Mills .

B uck et v Dono van . Sal e m , T he C ity of


R uck. a T aylor . Se lina Ba nk 0 A bbott
. .

R uddell 0 C hildren . S a line C ounty v 3 6 10 .

B uggies v Ba rton . Sa lk eld v A b bott .

R um pp v Gerk e nl . S alte r v Creditor.


.

R a pe v Hadley
. S aly ers 0 Ron .

B us h 0 S u m
. S am ple 0 Coc hran .

R us hforth , ex pom 127, 130 S am uel 0 Z ack en y .

B uu ell, in re
0 A us tin . Se nder. 0 Ch . en
0 H ester .

a Hous to n .

0 H owa rd .

0 H udl on
.

o LA M ae. S andidge v Gra vel .

0 Pinte r Se ndoe 3 A ppeal


’
.

v S onth u d .
'
Se nd. Ale B re wing in re
v Weinberg
. Sanford v B uck ley .

R ush worth 0 Moon . 0 MeLee n .

R us t 11 C hi colm
. 0 V an Arodall
.

Ruthe rford v B ra nch Bunk . S angster v Cochran .

R utland v Pippin . Sa nta Ma rin. v Connolly .

R yan v A da m o!)
. S m h Ann, T he
v . Morton S a rah J . W
eed , The
B yer 0 Gu n
.
Se rge ant v F uller .

k
Rys wic , cx pa rts

0 Be rle.
Y
.

8 43 016 v Wade .
S au cer 0 oun g .

S ager v T upper
.
S a nlet v T re pe gnier
.

S ain t v Le dy a rd
.
S aunde v C ook .

Sa in t Album Bm k 6 Wood .

S a in t Alb ans Trus t Co 6 Farm . . :


Sain t Franc is Mill Co v Sugg . .
TABLE OF CAS E . 1x1

S a unders, the B B . . Scott 9 Webster .

Scott s A ppea l
’
S l uth ofi , in re
S avage 0 He ll . S c ottis h I ns Co v Turner . . .

6 Mc Corkle
. S c re ven v Joy ner .

v . Putnam S cribner v A de m l .

v . W inc hel te r S c ri vner 0 Die t: .

Savingl Ba nk 0 Creu well . S e a In s Co v Had den


. . .

S a wye r v Ly on . 173, 179


S a w ye n v B ak er . S et t in g 0 B erry .

S t y le s 0 S im s
. Searles 0 Ja ch onville B R . . .

Se ylon v S ay lora . Cc .

See n la nd v S e ttle .

S c h aefer v C a nn y . S edan 0 Willia m s .

S ch nefl er v B nd . o S e ibert v Th om peon .

S c h a ller, i n re 0 T rue .

Sch e pple m a n v Fnerth . Seig h m an v Marshall .

Sc he re r v S c h utz
. S ein e v Gonsoulin .

S c hiu el v D ick son . Se lb v Montague


.

S c h la tre v Greand . S e lby v Selby .

Sc hleiu m an v K allenberg . S e lfridge v Gill .

S ch luu ner v Knllenberg . Se ligm an 0 Wells .

Sc h m id t 0 Conlter . S e llec k v Ph elps .

v United Ins Co
. . . S e llers 0 Jones .

Sc hm id tapp v Currie 1 71, 171 a , 172 . S e ll s v H ub bell


.

Sch m uck er v S eibert . S e m e m v Ha rvey .

S c h ni tze l s A ppeal
’
Se m m es v B oykin .

Sc h oene w a ld v Dieden . v N ay lor .

Sc hofl eld v B a yard . S e rgeant v Ro woey .

17 C ox . Serviu v Mc D ond d .

Sch ool T rustees v Anderson . Sess ions v K ent .

Schoolfield v B udd . 9 Pin tard .

Sc h ooner Freem an v B uckingham . Se wall v Ho ward .

189 a S e ward 0 H untington .

Sc h oonover v A llen . S e we ll 0 H o ward .

Sc h roede r 0 C entral B ank . Se xton v Pic k e tt .

S c hroeppe l 0 S h aw . S ey m our 0 M ay .

S c h ryver v Fuller . S h ac k ell v Colnett .

Sc h ultz 0 C a rter. 86 , 137 S h a ck leford v S toc kton .

Sc h nr v S c h wartz S hae fl er v Clendennin


'

. 86, 13 1 .

S cotla nd Ba nk v D om inion Bank 10 . a S he ll 0 B iocoe


.

Sc otland C ounty 0 Hill 183 . S ha m burg v Ab bott .

Sc ott 0 D unn
. 86 a S ham p v Meyer .

. v Fe a th erston 86, 86 S h a nnon 6 H e y .

. v Henry S h a rk ey v B a n h ton .

0 Hille nbnr S h aron 0 S h aron


.
g .

v. Morrison S harp v B arker .

0. Nich ole 0 Ca ldwell


.

6 Collins
.
lxii TABLE

S ha ve r v Sh oem ak er . 8 4 S idener v Ha wee . 1, 8 6


Shaw 0 Footer . v Pa vey . 2)
0Grant
. S ide n er v Ha ven: . 1
0 H olm es
. Sh ger a Second National Bank 182
. a
v T hom pson
. S igler 17 Knox County B an
. 171 k
S haw, th e Joh n K . l w a S ilk o Eyre
. 3 179 ,

S ha n na Ba nk 0 Koeppen . 40 S ilver h k e B an 0 North 2, 12, 18 , 245 k .

S hoddy v Gem n . 46 S ilvey v Dowel! . 143


S h eeh an v Taft . 145 S im m ons v Cam p . 143
S h ee n v Hogan . 36 0 v C i tes IN , 129
.

S hefi eld B ank in g 00 v Ch yton . . 160 v Good rich . 169


S h efl y s A ppea l 26
’
v Lyle . 48
S h eidle v We il hlee . 104 v T ongue . 121
S helby 0 Mars ha ll . 86 0 Wa lk er . 241
S heldon 0 Ed wa rd s . 67 S im m ons Ha rd ware Co v . .

v Hofi ne g le . 49 S im onde v Un ion Ins Co . . .

v Welles 142 S im onton 0 Gre y


Y
. .

S he ll 0 . oun g 64 S im pson 0 Del H oyo .

S h epherd 0 Bro wn .
78 v Eggin g ton .

v B urk h e lter . 81
0 . May 26
0 . Mc Clain 0 M c Phd l .

v. Mc Intyre 0 Peace .

S h e rlock v Allin g . 0 Th om son .

S h e rm an v S h a ver . S im s 0 Lester
.

S h em de e n 0 Park er . S im eon 0 B rown .

S h erw ood v C ollier . S inc lair v Redington .

S hields v Kim b rough . S lugizer l A ppeal


’

v . W hitta ker S ioux C ity R C o 0 Frem ont Bank . . .

S h im er 0 Ha m m ond .
189 0
S him : v B udd .
74, 76, 84
0 Fred eric k!
.
a C ross
. 90
v S h im :
.
S hilla 0 Te eple . lw
v S m ith.
S kinner v Te rhune . 86 , 180 a
S h ipley v F ox .
S ky rm e v Oc c iden tal H ill 00
. .

S h ippen , A ppe al of Black 0 Kirk .

v C la pp .

S h irley 0 S hirle y .
0. V an V ec h ten
S h oc k v Miller .
S la ter v B reeae.

S h ofl ner v F oglem m .
S ledge v Obench ain .

S hort v C urrier
.
S le vin v Morrow .

0 Porter
.
S loan v Se well
.

0 S e a rs
.
S loc um v Ca tlin .

S hrack v S h iner .
S m e ll v S tegg
.

S hre ve v H a nk inson .
S m art, c: pom
S h rewsb ury v S h re wchnry .
S m ith , A ppeal of
S h river v Lo vej oy .
Sm ith , in re
S h ropshire 0 Creditors . 0 A len n der
.

S h ula 0 Finge r .
0 A nderson
.

S h o tel v W oodard .
0 Arden .

S ibley v B a k er .
v A ye r.

v Park er .
v Bing .

Sickle Fla na gan 0 B la k e


.
n ew 0? 01 8 m . lx iii

Ge m “ . 0 T m ntha m. 202
v. B rnnk Bothere n 0 Reed . 1 87
8 011116 0 B rown
. 3, 6
S outh 0 B lon m
. 1 17
South C a rolin a Bank 0 A dger 13 7 .

S o uth S citua te 0 H anover 241 .

So uth a ll v Fet ish . 105


12
S outh er, in re 18 2
So ut hern Michigan Bank 0 Byles 68 a , .

182
So uth worth v Sch ofl eld 12, 22
.

S palding 0 B a nk of S usq ueh anna 128


.

S pa ngler v Sh efi er . 122
S parh a wk v B a gg . 46
v B uell . 202
S pa uldin g 0 Crane 28 , 128
.

v Ha rvey . 36 a
S pear 0 W ard
. 104
S peer v W h itefield
. 26
S pe igh t 6 Porter . 1 16
S pe iglem eyer 17 C ra wford .

6 Me rr
. ill Spencer 6 A yn ult . 67
6 W ord . 59
v Pettigrew
. S piller v Creditors . 2, 188
v Provin
. S plidt v B owle . 227
0 Rob ert!
. S pong v S pon g . 218
6 Rob ertson
. S pott v Com m onwm lth
. 39
9 a. oey S pon le 6 S a m ue l . 1 90
v S ch neider
. S pu gn e v Gra h am . 186
9 S h eldon
. Spra tt v Pie rson . 19, 44
v S m ith
. S pray 0 R od m nn . 3
v S ta te
. Spring 0 C hipm a n . 97
v S wain
. 0 Ge orge . 122
v S wan
. S pringer 0 D wyer . 101
0 . v Springe r 1, 137, 161
.

v T ownse nd
. v T ooth ak er 86, 1 19 , 122
.

v U nite d S tate.
. S prin gfield Ins Co 0 Allen 28 7 . . .

0 Wait
. S prin gs 0 Han an .

0 Wileon
. S proul v Prior .

v Wy ck ofl
'
. S purgin v A dam son . 68
Sm ok ey v Peters Cl lh onn Co
.
-
101 Sq uier v S h eph erd
.
~
. 37
Bnem ng v Mc Intyre. 8 S tack pole 0 Robin. 81
.

Snow v Callum
. 213 S ta ck ville B ank 0 Meyer 189 .

v S tevens
. 13, 62 S w ord 0 8 4 1100 . 20
Snowdon, ex pom 16 1 0 Mon tgom ery . 180 a
Sny der v Crawford
. 81 v Ne w Bedfor d St fl ngl
.

v S nyder
. 49, 5 1 B ank 1 16
Boh ier v Loring
. 120, 182 183
Som ers worth S a vingl Ban v k S talling v A m erica . Bank
. . 86
Worc es ter 122 S ta m ford Ba nk 0 Benedict 117, 127 .

122 S ta nc liflt 17 Norton . 14


Su m Bank a Gove . 183 S ta nford v Connery . 106
lxiv TA BLE OF CAS E .

sa m e ! 0. Nutter S tevens 0. C ooper


74, 78
1, 82, 170
T h om pson
0 . 0 H u m an . 201
S tan wood v C h m pitt . 1 , 85 , 39 , 247
S taples 0 Fox . v Lo uil ville B R Co
. 16 7 a . . .

S ta rr v Elli:
. v M id Ha ntl Rl ilwt y Co
. 19 -
.

S tate v . E tn a Ins Co . S tevenson 0 A ustin 19 1


.

v . A th e rton S te wart 0 Da vis . es


0 Fe llows . 36 a
0 . Be l l v Gree nock Inn 00
. 225 , 227 . .

v . Be rnin g 0 Le wis . 101


v. B h k em ore v Mc Ma han . 78
0. B ro wn v Rob ineon .

v. C ordon S tic k ney v Ma hle r .

v. Ferre t S tie we ll v B urden .

v. He m in g way S tiger v B ent


.

v . Hosh a w v Ma h one
.

v. Man on S tiles v Eastm an


.

v . McA leer S ti llm an v S tillm an .

v . Miller S tillwe ll v H ow .

v. R ipley S tim peon 0 PM .

vTitus
. S tinc h fl eld v Millik en .

V an Pelt S tinne tt v Crook ahank .

S tate B an k 0 Da vis . S tin son v Anders on .

0 E dward. . 0 Ric h a rdson


.

S tire wa lt v Martin .

0 . W ils on S tirling v Forrester .

S ta te Ins C o , in . . re S toc kard v Gm berry .

0. Mu c k em k
S to es , ex parte
S tayn er v B ower . 0 Le w is
.

S te a m b oa t V irginia v Kraft . S toller v Cos te.

S te e m b oa t Wh ite v Levy . S tone 0 Darne ll


.

S te am : 0 Godfrey v Seym our


.

v Qu cy Ins Cc
. in . . S to ppelbe in v S h nlte .

S tebbin s v Hall . 26 S ta rc h 0 Mc C a in
.

247 S to rm s 0 S to rm ..

S teel v Dix on
. 141, 16 1 0 Th orn .

S teele , in re S torm 0 Engel


.

B rown 144 S to tt s Esta te


’
v.

v H ea li ng
. 141 S tout v D ilto
.

S te ere 0 Ch ild.. 75 .v Fen no

S te ine r 8 Erie S avings 00


. . 124 S to ve: v Wood .

S ten h o use v D a vis . 97 S tra igh t v B a rri! .

S teph ens v C asbac ker . 86 S tran ge v Fooks .

v Mononga heh Bank


. 122 S tra ton C om m onwealth
S teph enson v T e veneu . 180 S tree t v Dea l
.

S terlin g v B rig h tb ill


. 69 v Old T own Bank
.

S te wa rt
v. 169, 180 S tre ver 0 Earl .

S tem be rg v V alentine . 61 S trick la nd v S im ona .

S tem berger v Hanna . . 76 Strong 0 Bla nch ard


.

S te rn e v V inc ennea Bank


. 122 v B urd ick
.

S te ts on v Moulton . 89 . 202 0 Con verse


.

S tevens 0 Ch urch . 26, 29 S mother v Ha m burg .


TABLE OF CAS ES . [ xv

8 m m 0 McDougald
. 160 T .

S tude ba k er Mfg Co 0 1106 0 3 6 ! . . . 18 6


S ta ll v Hanna
. 1 1 8 T P Lea thers , T h e
. . 105
S tults 0 B ro wn
. Tain tor v Hem m ingway . 24
S tum p v Findlay . Talbot 0 Wilki ns . 1
0.R o gers Talburt v Berks hire Ins Co. 85
. .

S u rge. 0 T ay lor . T alc ott, ex pa ne 182


S t ut ten n t v B o wker . T alty v M . m e n s S a vi ng Co
’
34 .

S tuy vesa nt v Hone . Tan gier, T h e 248


S uhlett v Mc Kin ney . Ta nk e n ly 0 A nders on . 180
S ufl olk Inn Q0 6 Boyden . . . T appen v H unt . 38
S n fi olk Su in g: Ban k 0 Boston . 188 T a ppenbec k , in t e 195
S ulli va n v T ink er . 40 T arbell v Dura nt . 12
S um m e rhfll v Tapp . 122 1 16
S um ner v B ac helde r . 168 Ta rdy 0 Alle n . 1 18 , 13 7
e R h ode s . 169 Tarr v Ra ve nocroft
. 161
v W a ug h . 1 85 Ta tum v Ta tum . 96
S un Ins Co v Hall
. . . 221 T ay lor, A ppeal of 70
v K oo ntz Line . 18 2
0 Mil l V alley Co . . . v A g ric ultural A n ociation
. 81
S upe rio r, Th e v B au ett . 13, 41
S uppiger v Ga rrell 0 Farm ers
’
. . 15 7
S urgnor v Beauc ham p . 17 H a rdin . 7
S W , a t re 190, 195 v R egg ie . 14
Bun s : Ins Co v Woodrufl . . . v Je ter . 123 , 126
S uth erla nd v B rus h . 77 8 1
S utton v Button . 18 7 v M a y er . 26
S wain v Perrine . 13 v Morris on . 143
v S tock to n Savings S ociety
. 88 0 Nelson . 84
184 v Pa ge . 1 85
Em erson
v . 3 0 Pr eston . 24
v Putten e n
. 127, 222, 242 v S a vage . 1 50
v S m ith . 137, 177 v S c ott . 120
v S w an . 28 9 0 S hort . 76, 78
a U 8 Bank . . . 1 v S ta te . 120
S wan s Es ta te 140 6 Taylor 202, 213
’
.

S warth out 0 C h icago E R Cc . . . . 230 17 T urner . 1 89


S we yne , Ma tte r of 17 1 Teafl 0 Ron . 121
S w eany v Ma lony . 60 T ea gne v C orb iu . 6
S wee t v Jam i e.
. 90 226
188 Tee ter v Piem e . 144
v Red he ad
. 63 Tee van v S m ith . 16
S weetzer v Jone. .

S we tt v S herm a n
. 59 T em ple 0 Nelso n .

S wift 0 Conboy
. 61 Te m pleton v S h ak ley .

v Kram e r
. 20 Te n Eyck v H elm et .

S wigert 0 Ban of Kentucky . k ,


70 Ten an t v T enan t .

S wire v Bad m an
. 26, 126 Te nison v S weeney .

S wope v L em ng well
. 186 Terre ll v Ro wla nd .

0 Townsend .

v . Roeell
lxvi TABLE or 01 8 3 8 .

Teutonia B ank v Wa gner . Tif any 0 . Kent


T e xas S t Lo uis B R Co v . . . . . Tilford v. Ja m es 15 7, 162
McC a ug hey m
Th alheim er 6 Cre w . Tim berla k e 0 Pariah . 218
Tharp, in re Tinaley 0 Oliver . 137
T hay e r 0 Danie l:
. Ti tcom b v M cA llister . 1 48
v Finnega n
. T obey 0 Ellis . 120
T heatre, the Oly m pic T olm an v S m ith . 19
T he ha ud v Holli ston . Tom v Goodrich
. 11 3
T hirlwell 0 Cam pbell .
Tom linaon v B ury . 213
T h om as, in re Tom pkins 0 Fifth Na tional B ank .

0 B ridges v Hals tead 46


.

0 C le vela nd
. 0 Li ttle Rock B R Co 16 7 0 . . . .

0 Ha m m er
.
0 Mitc h ell 169
.

v Mon ta uk Ins C o
. . . v S ee ley 3 4, 86 . a
v Mora via Foundry Co
. . 75 v S prout 40
.

v Ric h m on d
. 183 Tongue v Nutwell .

v S te wart
. 1 10 T oom e r v D ic k erson . 121
v V onk a pfl
.
'
Topp v Bra nch Ba nk
. 201
T hom ason v Wa de . Toronto B a nk 0 Hunter 199 .

Th om pson 0 Adam s . Torp v Guls e th


. 87
0 An dre w s . T orre gan o v S eguira 96 .

6 Ber tram . Torre y v Cook . 79


v B oy d . v Orle ans Bank . 82
6 C h andler . T oulm in v Ham ilton 190, 19 1
.

v Hey w ood . T owe v Fe lto n. 18 7


0 H uds on . v Ne wbold
. 86, 130, 13 7
v H um phrey . To wer 0 D ivine . 57
v Kenyon . T owle v H oit . 14
0 L ac k . T o wne v A m m idown . 1 13 , 202
v Pa lm er . T ownsend v Case Thresh in g Ma .

6 R ob inson . chine Co 14 .

v Ro w croft . 0 W a rd 3 , 26 .

0 T aylor . 0 Whitney 18 7 .

0 T h om ps on . T ow naen d Sa vin gs Ba nk v Munaon 26 .

v W h ite . Trac y 0 Lincoln . 20


0 S im pson . v Pom eroy . 13 1
T h om son v S m ith T ra der. Ins Co v Propeller Ma n
’
. . . .

T horington v Mon tgom ery . 77 iste e 221


Th orn to n v Enterpris e Ins Co
. . . 237 0 Race 287, 241 .

0 Exc h ange Ba nk Tradesm en u B uilding A n od a tion


'
. 16 8
v Mc Ke w an . 87 v T hom pao n
.

Th orp v Keok uk Coal C o


. . 86 T rapne ll v Ric h a rdson . 63
T hra ll v S penc e r
. 167, 160 T rack v Hartford 8; N H R R
. . . . .

T hyatira , T h e 221, 228 Co .

Tibbe tts v La ngley Ma nufg Co


. . . 49 h vellerl I ns Co v California . . .

T ice 6 A nnie
. 22 Ins Co
. . 85 , 236
v De rb y
. 172 T rem ont Na il C o a: p rts 19 7 a
Tic h enor v Dod d . 26 T re nt v C alderwood
. 113
Tic h out v Harm on. 22 Tren t Nav igation 00 v Hurley 120 . .

Tied e m an v Knox . 189 T rentm a n v Eldrid ge 1 30 . a


T ierna n v R ola nd
. 219 T rent on B a nk ing 00 r W oodrnfl so . .

v Wood m fl
. 126 T rib le v N ic h oll . 42
TABLE OF CASE . lxvii

Trim ble v . City Bank Union Ins Co v Slee . . .

v. H un te r Un ion T rus t Co v Morrison . .

U niontow n B uildin g A ssocia tion s


’
T ri m m ier 0 V ice .

Trooet 0 Da vis . A ppea l


T rot aer v C rock e tt . United Ins Co v R ob inson . 226 . .

v H ughes . 0 Sc ott 221 .

T roy 0 S m ith
. United S tate. 0 D uncan 68 .

T rue 0 C o ngdon 88
“ “
.

n u de 0 C alla way . v K e e h ler 241 .

T rus tee s 6 A nderson . 0 Pre s ton 88 , 138 .

T uc k v C a lvert
. v Ry der 168 .

v H artford Ins Co
. . . v S t urges 15 4, 165 .

T uc ker v Cro wley . v V erm ilye 10 .

v Daley . Uni ted S tate. Ban k v Pa tten 136 .

T unnard 0 Hill . v Pe te rs 41 .

T unne l! v Jefferl on . v S te wa rt .

T urm a n 0 Be ll . 0 Winston 132, 241

a nh ull 0 T hom as . U ph a m v Em erson . 219


Turner 0 Fa ucett . Urq uhart v B rayto n . 85
Un e ll v Mack . 97
v . 61c
0 .
Qu in cy Ins Co . .

v . S hnfi er
7 V ail v Foeter
.

v . Wilk ins V alieri v Boy land.

k alooea B a nk 0 . Kennedy V a lle 11 Fle m ing


.

Ta ttle v B rown . V an De uaen v Frink .

v . Howe V an H om e 0 Eve raon .

Tw ic h ell v Meat s . v Fon da .

T w o R ivers Mfg Co v B oyer . . . V an M ater v Ele y .

T wom bly v C m idy . V an Ord e n v D urh a m .

Ty le r v B uaey
. 17 Jo h nson .

v E tna In s Co
. . . V an S ly k e 6 V an Loan .

V an V ronk er v Eas tm a n .

. V a n W agonen v B ro wn .

Ty ne v
. De Jam e tte V an W in k le v W illiam s .

V ance Monroe
v .

V an de graa fl v Medloc k
'

U .
V an de rc oo k v . C oh oea S avings In
Ullm an v B a rnard . 189 s titution

Ulric h v D riec h ell


. 31 V a nd e ve r v W a re .

U ls te r Ins Co v Le ak e .
23 7 V a nnice v B ergen
. . .

Uls te r S a v ings Ins titution 0 Lea ke 237 V an acoyoc v K im ler . .

U n de rw oo d v Me t n B a nk
’
46 V am ey v Ha w ea
. .

U n ge r v Le ite r
. V artie v U nde rw ood .

v S m ith
. V a aon v B e a ll
.

U ni on Ba nk v C ooley . V a s tine v Din a h .

Edw a rds 6 .
V a t tier v Ly tle.

v Oc ea na Bank . V a ug h a n Ha llida y v
U n ion C olle ge v W hee ler . V a ug h n C la rkv .

U nion In s C c v B urrell . . . v Po well


v Ha nford . V e ac h v W ic k ers h am
.

v Kirch ofl . V e ntreso v Creditors .


lxvm TABLE OF C AS ES .

V ert v V on
. 127 Wallace 9 . Greenla w
V ilas v McB ride
. 82 v . Mc B ride
V ile. v Mo ulton
. 26 Nic h ols v .

V irg in s S uccession 5 , 260 0 S te ven.


’
.

V irginia , Com m onwealth of, v. Wallace s A ppe al


’

C hes a pea ke Oh io Canal Co . 19 , 1 27 Waller 0 Ha rris . 137


V irp nia Ba nk a B o iaaea n v Og lesby 166
’

.
188 .

V irginia S tea m boa t v Kraft .


10 v T a te . 34
V oorh ea v Gm . .
80 Wallis v W oodyear . 68
V ose v Ha n dy
. 1 86 Wals h 9 Colq uitt . 123
V on v Germ an B an k
.
124 v M c Bride. 86
V ree la nd v V an Dlam m .
85 0 W ilson . 46
V room an 17 T urner .
85 W alter v Ja m es . 186
W alte n v De fenha ng h . 67
Waplel v Ha ys . 31
Wa rd , A ppeal of 87
v H a g ue
. 81
Wack erhath ex part. , v Ne w
. ea land Bank Z 161
Waddle v C ureton . v S ey m o ur
. 12
Wade 0 B eldm eir . v S ta b ]
. 1 13
C oope
v . Ty le r 182
0 Green . W a re , ex
p 86
a rk , 1 87
0 H o wa rd. W a rin g, ex p r e 190 at
W ads worth v B la ke . v Loder . 235
v . Ly ons Warner v B la kem an . 17
0 . William v C h a ppe l . 18 6
W a ggener v Lyle . v De W itt C ounty Bank
. 78
W aggo ner v W alra th .
v Morris on . 150
W a gner, A ppea l of W arren v Co gs well . 87
v . Ellio tt v For e m an . 76
W ah rm und v Merritt . v H ay zlett . 28
W a ldo v R ic h m ond. v Je nn is on . 19
W ald rip 0 . B lac k 0 W a rr en . 21, 6 1
Walk er, in re v W illia m s . 19
0. B irc h W a rren B a nk v Park er 201
Y
.

v B radb ury
. W a rtm a n v os t . 101
0 C o llins
. W urtz v H art . 61
13 C o v e r
. W arwick v Ely . 66
0 C row de r
. W as h b urn v B a nk of B ellows Falls 17 1a
.

v D e m en t
. 0 H a m m ond 6 1, 63 .

v D ick s
. Wa sh ington v T ait 130 .

v Dea ne
. Wa ahingt on B uilding A ssoc ia tion
0 Gilbert
. Be ag h en 72
Q K in g W ashin gt on C o un ty v S la ugh te r . 2)
Q La wle r W a s h in g ton I ns C o v K elly . . . 238
Q Ma c k ay W a s h in g to n , Ohio Wes te rn R .

Q M unic ipa lity no


. One C c v C a ze nore
. . 167 a
v S to ne
. v Le w is
. 112
v V a udry
. W e sson v H odah ire . 121
0 W a lk er
. W a te r Po wer Co 0 B ro wn 103 . .

W a ll v Mas on
. W a te rloo Ba n k 0 Elm ore 67 .

Wa llace v B la ir . W a term an v C la rk 101


.

v . Conrad 0 H unt 171, 171 . a


TABLE OF CASE .
lx ix

W ate rs 0 Hubbard . Welton v B ull . 26


W ate n on v De voe . Wende ll v H ig hatone . 121
W a te rtown Ina Co 0 . . S im m ons 120 Wenloc k v Ri ver Dee C o . . 19
W atk ins v Ea ton . W ernec k e v K enyon .
97, 1 10
v Wining. . Wesley C h urc h v Moore . 1 10
Wes t , A ppeal of 41, 18 6
v. D ick ens 102 v
. B e lc he s 141
v . D un dee Mortgage Co . 64 B riao n
v . 130 a
11. Gardne r v C re ditors
. 88
9. Grand R a pids Co . v R ntla nd Ban k
. 1 10
0. Reed W es t B ra nc h B a nk v Arm strong 18 1 .

Rose v .
W es t Mic h iga n B ank v Howard 189 .

6 W ilc ox .
W eewhes te r Ins Co v Footer 236 . . .

W a tson s A ppea l
’
W es tern T ra ns porta tion C o v . .

W a tts 0 E nfa la Bank


. H oy t
0 K inney
. W estfa ll v H intze .

v S h ut tle worth
. We th ere ll v Joy .

0 By m es
. W e tzel v S pe ngler .

v. W a t ts W eya nt v Murphy .

W eam V a n Meter
v . W h e n v Irw in .

W ea ver v Norwood W ha rton v Dun ca n


v
. .

T oogood W h e atley v Calh o un .

v W h ite . 1 71 a W heate n v W hee ler .

W eb b 0 Cole
. Wheeler, Esta te of
0 Ha zle ton v F a c to r s 1m Co
’
. . . .

v Me loy
. Ha w k ins v 89
v S m ith
. v . Wa te rto wn Ins . Co . 235
v Webb
. v . W he e ler 202, 209
0 W illi a m !
. 80, 83 v . Willa rd 22
W ebe r v Morris 4 Esse x R C o
. 23 2 . . W heelwrig h t v D e Peyster .
8 1, 126
W ebs ter s Appeal
’
3 , 240 W hela n v Mc Cre a ry .

W e d ge 0 Mo ore . W h ipple v B rigg s . 141


W ee d, The S a rah J 84, 246 W h itc o m b v W hitm ore .
86
W hite v B a nk s .
147
v. Ga rvey v . B ro w n 137, 236
W eidner 0 T h om pson . v . B utler 21
W e ih l 0 A tla nta Furniture C o
. . v . C annon 247
W e i! v Ente rprise Ginne ry C o
. .
v C a rlton
. 144
W eim er v Porter .
v C urd . 24 7
W e iss 0 G ue rin ea u
.
v D a ug he rty
. 66
W elby v Welby . v Fulgh um
.
64
W elch 0 B ee r .
v H a m pton
.
12, 14
0 Jam e n . 75 , 77, 88 v K na pp . 8 , 20
v Parra n
.
v L ife A ssoc of Am eric a
. 123 .

v N e w h a ll
. 19
Welling v Ry erson .
v Polley s . 64
Wellin g to n v S m a ll .
v S c h ure r
. 130
Wells v . Lin c oln Co un ty v S ta te . 7
v. Mace v S uth e rla nd
. 18 6
v. Miller v T rotter
. 44
Gre g Ry
0 . Na v Co . . . . v V a nn. 10
0 T h o m as
. 10 v W h ite
. 74
Wem b nrg Bank 0 K im berlandl . 19 7 White ( S tea m boa t ) v 140V] 246 .
lxx TA BLE OF C AS E .

Whitehea d v Gibbons . 207 Willia m s v . S tra tton


W hite h ead s S uccess ion ’
169 v . T h urlo w
W hite ho use v Ed ward. . 1 10 v . Tipto n
W hitem a n v H u rim an . 141
W h ithe d v Pills b ury . 8 , 24 v. W illia m
W h it ing v Beebe 136 Wfllia m oon v
Good wyn
“
. .

133 v R un e .

W hitney v . Elio t B ank 1 9 7 W illiam son s A ppea l


’

S alter v. 2 17 aWillis v Ca ld well


.

W hitridge v D urkee . 13 0 v Da vin.

W h itta c re v Fulle r . 17
W hit taker v W righ t . 9 v S h a rp
.

W hitte n v S a under . 77 Willoughby v Middle.“ Go . .

W hittier v H em inway . Willaon v B urto n .

W hitting v Ge a rty . v Phillipa .

W ick erm an v 110a . W ilm a v B arker


.

Wick en ham v Ree ve. .


v B ode n
.

W iggin v Dorr .
v B row n .

W ig gins v Mc Donald .
v B ry a n t
.

W igton v Bo wley .
v B a rney .

W ilbanks v W ilb anh . v Da weon


.

W ilb ur v Willia m . v D octor .

Wilcox v Ca m pbell . v. M a
0 Fa irha ven B ank
.
0 . Fride nberg
v Lo ga n .
0. H ill
v . T odd 0 . K im ball
W ild v Dean
.
v. K ing
W ilder v Keeler. v . Mec hanic s B a nk
’

W ilde: v Ch apm an
. v . Murray
W ild m an, ex p rk
a Pa tton v.

Wiley , in re v Ra fl ’
a lo vi tc h .

v B oy d
. v Rid ge ly .

v E win g
. v S en ier .

v K nig h t
. v Sope r .

W ilhe lm i v Le onard . v S tilwe ll .

W ilk e l v Harpe r . v W hite .

W ilkinson v Ba bb it . v W righ t .

v D en t . Winana v W ilk ie .

v Pa ddock . W inch ester v Beardin .

W illard v W ors ham W inde r v Difi e nderfler


’

. .

W illcox 0 Fos ter 20, 43 Windett v Un ion Ins 00 . . .

W il les v Gre en h ill


. 100 Windsor v E va ns .

W illia m Ma ry C ollege v Po well 86 W in ne v Niagara Ins Co


. . . .

William . v A ylesbury R ailway Co 4 W inslow v Otis


. . .

v B oy d 1 71 W inston v Mc A lpin e
Y
. .

v B ro wn . 79 v earg in .

v B us h . 1 71 W ise v S heph erd .

v Ge rm a ine . W itherington v Mason .

v Hay s . Wohner v Ha ndy .

v Ja m es . Wolbe rt v L ucas .

v Ma tth e ws . W olc ott v W inc h este r .

v O wen . Wolf v Ferg us on .

v Perry . v Lowry .
TABLE OF CAS ES .
lx x 1

Su m
W olf v S m ith
.
Wrigh t v . Gro ver B ak er 8 M
o:

W olfe v Banning
. .

.
00 .
1 3 7, 140
Cra wford
v .
v K ne pper 126
W olfi v Walte r
.

.
243, 247 v . Oro ville Mining Co 86 a , 246
W olf e v Nall
.

.
v Pa tte rson 47
W ood 0 Guarante e Trust Co
.

.
.
v . W alter 20
v H ub b ard
.
W ulfi v Jay .
1 19, 121
0 La k e
.
W y c k ofl v Noy es .
18
v Morga n Wy ldm a n ex pa rts 18 2
.

,
v . Moria rty Wy ley v S tanford .
122
vNort h wes tern Ins C o
. . .
Wy m an v H ooper .
84
v S m ith
.

Wynne in re 20
v Wa llac e
,
.

v Willis 86
v W ood
.

W oodb ury v S wan


Wy om ing, T he 243
.

W ood h ull v Reid .

W ood la nd , The
W oodm an v C he nchill Y pla e v S tephe ns
Y
. .

W oodrufi v S ta te . a tes v . J oy ce

W ood s v Gilaon .
241, 243 v . Mead

Y g ea e r s
’
A ppeal
W ood ward Da vis v . Yl e verton v . S heldon
v Pe ll Y gl i es aa, in re

Yd
.

v S e vera nce o er v B riggs


Y k
.
.

W oodworth v H untoon .
or v. Landia
W oolcock s v H art .

W ooldridge v Norris 86 130 .

v S c o tt .

W oollen v Hille n e rta 17


Y
.

W oolley v Pem b erton .


oung v . Ha wk ma 24
W ools te ncroft v Woolstencroft . v . H ill 58
W ooster v C a vend er . v Miller 186
W orce s te r, Es ta te of v Montgom ery R Co . . 167 a
W orc ester Ba nk v Ch eeney 42, 5 8 .
v Morgan 29
W arm er v A gric ultural Soc iety
. v S c hool Trus tee. 85
W ork s v S h a re r 20
W om e n v W illia m s .
v S h unk 160
W e rner v Wa te rloo Society
.
v T wigg
W orra ll, e: p r s at v V ough
v Gray .

v H ill .

Wright , m re
v . A tkinson
v . A us tin 130 Z bri ki
a s e v Sa lter
.

v . B rigg. Z ll App
e
’
a ea l
v . C rum p Z k Cl
oo v. em m er
v . F itzgera ld Z wic k ey v .Hainey
v. Garlingh onee Zyl trs a v . Ke ith
TH E LAW OF S UBROGATION .

CH A P ER I T .

DEFINITION A ND GEN ERAL NATURE .

El m o:

Defin ition of S uBrogation S ubrogation of on e wh o has ed


Defin ition in th e Civil La w ve n ced Money for the Paym ent

W h o will be subrogated of an in cum bra nc e

l a a M od e of Eq uita ble Relief Of one com pelled to pay th e Debt


Doctrin e ad opted in Lo uis iana of an ot her . 5 .

Follows th e Disch arge of a Legal Of a Ca rrier .

Obliga ti on Adds N oth ing to . Oi a Con signee or Age nt


the Righ t Gen eral Doctrin e of S ubrogation
S ubrogation of S herifl
'

Instances .

1 . D e fi n i ti o n doctrine of S ub ro ga t i o n . Sub rogatio n is a

prim arily of equity j urisp rudence al th ough its principles are


1
,

n ow often a ppl ie d in c o urts of c o m m o n la w e spec ially in


2
,

th o se S tate s in which equitable rem ed ies a re a dm inistered


th ro ugh th e fo rm s of law 8 It is a sub stitution o rd in arily .
,

1
Brown, 5 36 ;ex ing, 84 Mai ne, 29 1 ; Hatch 0 Kim
pa rte, 5 8 Al a . K .

Meyer v Mintonye, 1 06 Ills 414 ; ball , 1 6 Maine, 1 46 ; ars t 0 Thom as ,


. . D .

Talbot v Wi1kins , 3 1 Ark 41 1 ; Eaton 8 7 Ills 222 ; Croft v Moore , 9 Watts


. . . .

v. Ha sty, 6 Nebraska, 41 9 ; Gadsden v 45 1 . .

B rown, 1 Speers Eq ( So Car ) 41 ; A good illustration of this exte n .

J
. .

H ewitt, in re, 25 N Eq 210 sion is found in the inc neasin i lin


.
g n c a. .

9
See Coles v Bulm an, 6 C B 1 84 ; tion to hold that the paym ent of a debt
. . .

B rown v . H
odgs on, 4 Taunt 1 8 9 ; by one entitled to subm gation does not .

Grani te Bank v Fitc h, 1 45 Mass 5 6 7 ; extinguis h it as against the prim ary


. .

H art 17 Western R R C o , 1 3 Met de btor, but that the right m ay be en


. . . . .

9 9 ; Mason v Sainsbur , 3 oug 6 1 ; forced, n ot only by bill in e uit , or


. y D . q y
H all v Nas hville
. Chatt R R Co , by retaining independent colla te ral . . . .

13 W
allace, 3 6 7 ; B urr v B ee rs, 24 sec urities, but also b
y action at .law
N Y 1 78 ; Union Ins Co v Bnrrell, directly upon the original obligation,
. . . . .

Anth Cas ( N Y ) 1 28 ; Edgerly v which has thus been paid See posted ,
. . . . .

Em erson, 23 N H 666 ; S tevens 0 45 , 1 35 et say” 180


. . . .
2 TH E L AW OF S UBROGATION .

th e b
s u stituti n o of
oth er person in th e pl ace of a c red ito an r l
,

so th at th e person
in w h o s e fa vor it is e x e rc ised s uc c ee d s to
th e righ ts of th e c red ito r in rel ation t o th e d e bt ” Mo re .

b roadly it is th e sub stitutio n of one pe rs on in th e pla ce of


,

a n oth e r wh eth er a s a c re d ito r or a s th e o s se o r f


, p ss o an
y
w T h e s ub s titute is put in a ll res pe c ts

in th e pl ac e o f th e p a rty to wh o s e righ ts h e is s ub roga te d ‘


.

It h a s b ee n ad o pte d from th e c ivil la w by c o urts of e q uity ls


.

I n this c o un try un d e r th e in itial guid an c e of C h a nce llo r K en t


, ,

its p rin cipl es h av e bee n m o re wide ly d ev el oped a nd its d oc ,

trine s m ore ge ne ra lly a ppl ie d th a n in E n gl a n d 6


It is tre a t e d , .

as th e c re a ture of eq ui ty 7 a n d is s o a d m in is te re d as to s e c ure ,

rea l a n d e s se n tia l j ustice w ith out rega rd to fo rm 8


in d e pe n ,

dently of a ny c on tra ctual rel a tion s b et ween th e p a rties to be


a fl ec ted by “
v t is b ro a d en ough to in clud e eve ry in sta n ce
’ P

in wh ich on e p a rty p ay s a d ebt for wh ic h a n oth e r is p rim a rily


an s w erabl e a nd wh ic h in e q uity a n d good c on s c ien c e s h o uld
, , ,

h a v e been d isch a rged by th e l atte but it is n ot to be a p

2 Bouvie r s Law Dic , verb oil Clowes v D icke nson, 5 Johns Oh


7
’
.

K
. . . . .

ing v D wig ht, 3 Rob ( La ) 2


. . . .
( N Y.
) 23 6 ; s. c , 9 C o w ( N Y ) . . . . .

Devens, J , in Jackson v Boyls . . 403 ; Scott v Patc hin, 5 4 V t 25 3 ; . .

ton I ns Cc , 13 9 Mas s 5 08, 5 10 ; Mosier s Appeal, 6 6 Penn St 76 ;


’
. . . . .

Gans v Thie m e 93 N Y 225 ;


.
,
. . Citapm a n, J , in Am ory v Lo well, 1 . .

Acer v Hotchkiss 9 7 N Y 3 9 5 402 ;


.
, . .
,
Allen 5 04 ; Meyer v Mi n .

S idener v H a wes 3 7 Ohio S t 5 3 2 ;


.
,
. tonye, 106 1113 41 4 ; Terry v Wooding, . .

S m ith v Foran 43 Co nn 244 ; Stiger


.
,
. 2 Patton H ( V a ) 1 78 ; S m ith v . .

v B en t, 1 1 1 Ills
. 3 28 ; Brade n v . . Harrison, 3 3 Ala 706 . .

Graves 8 5 Ind 9 2
, . .
3
Acer v Hotchkiss, 9 7 N Y 39 5 . . .

Ohio I ns Co v Winn, 4 Md . . . . 402 ; H ewitt in re 25 N J Eq 21 0 , , . . .

Ch Dec 25 3 ; H odges v H ighto wer


. . .
,
Furnold v Missouri Bank . 44 Mo 3 3 8
. .

6 8 Ga 281. . S wan v U S Bank, 2 Mars hall, 29 3


. . . .

9 Matthews v Aikin 1 N Y 5 9 5
5 Shinn v
Budd, 1 4 N J Eq 23 4 ; . . . .
, . . .

S pringer v S ringer, 43 Penn St p Hoo ver v Ep1er, 6 2 Penn St 622 ; .

Ky
. . . . .

6 1 8 ; Easterly v Auburn Bank , 3 . ner v . Kyner , 6 Watts


Thom p .C ( N Y ) 3 66 ; Furnold . . . 221 ; Eaton v . Hasty, 6 Nebras ka,
v Mis so uri Bank, 44 Mo 3 3 8
. . . 419 .

Enders v Bruno, 4 Ba nd ( V a ) . . Ham sberger v Yancey, 3 3 Gratt


1° . .

43 8, 447 ; D ouglas s v Fagg, 8 Leigh .


( V a ) 6 27 ; M ille r v W in chell , 70 .

6 8 8 5 9 8 ; Fat uold v Missouri


, . N Y 43 7 S tevens v Goodenough ,
. . .

Bank, 44 Mo 3 3 8 . . 26 V t 6 76 Lewis . Palm er, 28 N Y . .


DEFINITION AND GENERAL NAT RE U . 3

plied in favor of one wh o h as ofliciously an d as a m ere volun ,

t ee r p a id th e d ebt of an oth er for wh ic h n eith er h e n or h is


, ,

p roperty was answerable an d it is n ot allowed wh ere it w ould


l
,

wo rk any inj ustice to th e righ ts of oth ers 2


.

g 2 D e fi i t
.i o n i n t h e ow
n n L w — In th e civ il la w th e a .
,

d efin ition s of wh ich h ave in th e m ain been follo we d by our


c ourts s ub ro ga tion h a s been d e fin ed as th a t ch an ge by w h ich
,

a noth e r pe rs o n is put into th e pl a ce of a c red ito r s o th at th e ,

righ ts a n d sec urities of th e c red ito r pas s to th e pe rs o n wh o ,

by being subrogate d to h im ente rs in to h is righ t It is a 3


,
.

l egal fiction by fo rce of wh ich a n obligation ex tinguish e d by


,

a p ay m e nt m a d e by a th ird pe rs o n is treate d as s till s ubs is t


4

in g fo r th e bene fit of th is third pe rs o n wh o is th us s ubs tituted ,

to th e righ ts rem ed ies an d s e c urities of an oth er


, ,
6
Th e pa rty .

w h o is s ub rogated is rega rd ed as en titl ed to th e s a m e righ ts ,

a nd in d eed a s c o n stitutin g on e an d th e sam e pers on w ith th e

c red itor w h o m h e succ ee d s It ta k es place for th e ben efit of


°
.

a p e rs on wh o being h im se lf a c red ito r p ay s an oth e r c red ito r


, ,

wh os e deb t is p referred to h is by reas on of p rivileges or m o rt


a
g g es 7 be in g , obl ig e d to m a k e th e p a y m e n t e ith e r a s st an d in g ,

i n th e s ituation of a surety or th at h e m ay rem ove a prior ,

271 ; S m ith v Foran, 43 Conn 244 ; . K eely vCassidy, 93 Penn St 3 1 8 ;


K
. . . .

Durst v Thom as , 8 7 1118 222 ; Green


. . H atch v i m ball, 1 6 Maine 146 ;
.
,

w ell 0 H eritage , 71 Mo 45 9
. Re d Re illy v Mayer, 1 2 N J Eq 5 5 ;
.

K K
. . . .

ington v Cornwall, 90 Calif 49


. . . elly 0 elly, 64 Mich
. 3 0 ; Lo ng .

1
H a rrison 0 Bisland, 6 Rob ( La ) . . fellow, in re 1 7 N B R 27 ,
. . . .

204 ; Fort 0 U nion Bank, 1 1 La Ann


. . Dom at Civ Law pt I l TIL, . . . .

K
.
, .
,

708 ; B oth v Ha rkson, 1 8 La Ann . . . t l 5 6;


.
, ing 0 D wight, 3 R ob . .

705 S tiewell v Bnrdell, 18 La Ann . . . L


( )a 2 .

1 7 ; B rice v Watkins 30La Ann 21 ;


.
, . . New Orleans Bank 0 Eagle Cot .

Gadsden 0 Brown, 1 Speers Eq (So


. . . ton Cc , 43 La Ann 8 14
. . . .

Car ) 41 ; S hinn v Budd, 14 N J Eq


. . . . .
5
Guyot, Répertoire Universelk .

23 4 ; Grima v Proctor, 14 3 118 1) ( Ky ),


. S ubrog a lion, 2 ; Merlin, I nd do .

5 71 Draft, S ubrog a h o
’

. .

Knouf s Appeal, 91 Penn St 78 ; Massé , Draft Com m ercial, Pay


’
. .

Bender 0 George , 92 Penn St 3 6 ; m ent in subrogation


. . . .

Lloyd 0 Galbraith, 3 2 Penn St 103 ;


.
7
Spiller v Creditors, 1 6 La Ann
. . . . .

McGinniss s Appeal, 16 Penn St 445


’
29 2 . . .
4 TH E LAW o s s us noou l on .

in cum b rance from th e prope rty on wh ich he re lies to s ec ure


l
h is paym ent .

3 W ho . w ill b e s ub ro ga te d . S ub roga tion , as a m atte r

of righ t, in d epe nd en tlypl ace for th e of a greem en t, tak e s


ben efit of in sure rs 7
of on e wh o be in g h im s elf a c red itor h as , ,

s atis fied th e l ien of a p rior c re d ito r of a purc h aser wh o h as


3

e x tinguis h ed a n in c um b rance upon th e e state w hich h e h as

purch a se d
Q
a c o obl igo r or s urety wh o h as p a id th e d ebt
‘ -

wh ich ough t i n wh ole or in part to h ave been m et by, ,

a n o th e r of a n h eir wh o h as pa id th e deb ts of th e s ucc es


6

s ion of on e wh o h a s p a id h is own d eb t th e b urd en of w h ich ,

h as for a v a l uabl e c on s id eration been a s s um e d b y an oth er ;


,
7
,

or of a c re d itor wh o is th e reby en a bl ed to s ubj ec t to th e pay


,

m en t of h is d e m a n d se c uritie s or re m e d ies h eld fo r its pay

m e n t by th ose wh o a re un d e r m e rely a s ub s id iary l iab ility to

him s elf 8
A n d th ere w ill be n o s ub roga tion un les s th e p ay m en t
.

was m ad e eith e r un d e r c o m p ul s ion or for th e p rotec tio n of ,

s o m e in te res t of th e p a rty m ak in g th e p ay m en t an d in dis ,

c h a rge of a n e x is tin g l iab il ity Th e d em an d of a c re d ito r


9 .

wh ich is p aid with th e m on ey of a third pe rson w ith out any ,

a gree m en t th at th e sec urity s h a ll be a ss ign ed or k ept on foot

1
Grifi n v 9 .F la 2 2
O m an ,; O h 2 3 5 .
; B ri g d e n v C h ee ve r.
, .

S hi nn v B u d d 1 4 N J E q 23 4 ; 1 0 M a s s 4 5 0 .
; M i tc h e ll 0 M it c h ell ,
. .

J
. .
,
.

S ilver Lak e Bank v N orth, 4 ohns 8 Hum ph ( Tenn ) 3 5 9 ; Tilg hm n, .

K
. .

Oh ( N Y ) 3 7 0 C J i n G u i e r 0 e lly 2 Bi n n e y
J
.
. . . . , , . .

P t ,
o s ea 2 2 1 , e t se q .
2 9 4 2 99 ; c u n c as 0 R o bin , .

l
E ls w o r t h v L o c k w o o d, 42 N
. Y so n , 1 0 N H 2 1 5 . .
. . .

8 9 ; Mos ie r
’
s A p pe a l , 5 6 P e nn S t 7 6 ;
7
K inn e a r.b L o w e.l l, 3 4 M a i n e , 2 9 9 ; .

Miller v W hi t ie ,
t . r 3 6 M a in e , 5 7 7 H e n s o n v R e e d , 7 1 T e
.
x 7 26 . . .

Kirkland in re , 1 4 N B R 1 3 9 ; ,
P os ted N 8 5 , 1 5 4 cl seq
. . . , .

Co rb ally v H u g h e s
. , 5 9 G a 4 9 3 ; A r W e.
b s te r
’
s A p p e a l , 86 P e n n S t . .

m e tr
n o n t v G ib bo n s ,
. 3 0 G ra tt ( V a ) 4 0 9 ; M os ie r
’
s A
.
p p e a l, 5 6 P .
e nn S t 7 6 ; . .

6 3 2 ; B ay s 0 a lt o n , 6. L ea D ( T e n n ), S a n fo r d v M ’
L e a n , 3 P a ig e ( N Y . .

556 .
1 1 7 ; G a d s d e n 0 B rown , S ears E
p q . .

5
Cottrell s
’
A pp , e a l 2 3 P e n n S t ( 5 0 C a r ) 3 7 ; F a u. r o t v .
N 0 3 . 3 2 . . .

29 4 ; Y u n v V o n g ,h 2 3 N J E q O h io S t 4 4 ; S r
p ya 0 R o d m a n 4 3
o g ,
. o .
. . .

3 25 ; S ilk v E r
y , e I r .is h R e p 9 E q
I n d 2 2 5 ; B.
u nn 0 L in d s a y
. , 9 5 M o . . .

39 3 2 5 0 ; B o t h v H a rk so n 1 8 L a A nn

J
. , . . .

Clov es v ickens on, 6 ohna 706 . D . .


DEFINITI ON AND GENERAL NAT RE U . 6

for th e benefit of
pe rson is abs olutely extin
s uc h th ird ,

gu is h e d ;
1
b ut th e d oc tr i n e o f s ub rog a ti o n w ill b e a ppl ie d t o

reim burs e on e wh o h as been c om p ell ed to pay th e deb t of a

th ird pe rs on in o rde r to protec t his own righ ts or to s ave h is


own prOpe rty
2 It will not be us ed to reim burse a fath er for
.

th e expen se of s uppo rt in g an d ed uc atin g h is own ch ild re n 3


.

And it w ill be appl ied only in fa vor of on e wh o h as ac tually


perform ed th e obl igations of an oth e r an d th ereby en titled
‘
,

h im self to th e righ ts an d a dv antages in c ide n t to th e d isc h a rge


of such obligations The m ere ex tinguish m en t of an other s .
’

righ t by l egal m ean s is n ot en oug h 6


C on seq uen tly a p rior .
,

m ortgagee a cq uires n o righ t by th e fo rec l os ure of h is m o rt ,

g g
a e t
, o r e d ee m f ro m a l ie n s ub se q ue nt to h is o wn
6
o r to h old ,

the surpl us p ro cee d s on th e fo rec l osure of a j un ior m o rtgage 7 .

4 It i. M o d of E q ui t b l e R li f
s a S ub rogation is an
e a e e .

ex erc ise of th e eq uitabl e powe rs of th e c ourt to rel ieve a ,

m erito rious c red itor wh o m igh t oth erwise be s ubj ec te d to ,

los s by h is funds being appl ied to pay anoth er s debt! or by ? ’

the operation of proc eed in gs at law a ga ins t th e estate or


fun ds of on e wh o is indebted both to h im a n d to oth ers 9
.

This rem edy is allowed only wh en it does not c on flict with


the le g al or eq uitable righ ts of oth er c red itors of th e c o m m o n
debtor ; and th e p rin ciple is one of equity m erely and will be ,

ca rried out in th e ex e rc is e of a prope r eq uitabl e d isc retion l o


,

1
Budd, 14 N J Eq 23 4 ;
S hinn v. . . .
5 As in Parke v H ush, 29 Minn e . .

Webs ter s Appeal, 8 6 Penn St 409 ;


’
. . 43 4 ; S wan 9 Em ers on, 129 Mass
. .

McClure v Andrews, 68 Ind 9 7 ; Guy


. . 289 ; and Lewis a Cape rton, 8 Gratt . .

0 Dn U pre , 16 Calif 19 5 V
.
y . .
( a ) 1 48 .

3
Co le 0 Ma lcolm , 66 N Y 363 ;
. . . Goodm an 0 White 26 Conn .
, .

Ellswort h v Lockwood, 42 N Y 89 ;
. . . 3 1 7 ; Townsend 0 Ward, 27 Conn . .

6 10 ; Morris 0 Oaklord, 9 Penn St


’
Bishop v O Connor, 69 Ills 43 1 ;
'

. . . . .

Snppige r v Garrels, 20 Ill Ap 625 ;


. . . 49 8 .

Whithed v Pillsbury, 13 N B R 241


. . . . .
7
Firesto ne v State, 100 Ind 226 . .

N n nn v Berger, 76 Ou 706 . . .
3
Evans 0 Ro be rts on, 5 4 Miss
. .

So ulie 0 Brown, 1 3 La Ann . 6 8 3 ; Cam pan v Miller, 46 Mich 1 48 ;


J
. . . .

5 21 ; udah v Judd, 1 Conn 3 09 ; . . Fulto n v Nic holson , 7 Md 104


. . .

Hoover v Epler, 62 Penn St 622 ;


. . . Pa tea , 55 1 2, 61 .

Carte r 0 Neal, 24 Ga 346 Lee 0


. . .
1°
Crawford 0 Ri cheson, 101 Ills . .

Swepson, 76 V a 1 73 . . 3 5 1 ; Greer 0 Bus h, 67 Miss 5 75 ;


. .
6 THE LAW OF s uss oou xou .

with a due re ga r d
legal and equita ble rights of oth ers
to th e .
l

On e w h o c laim s th is eq uity m us t be governed by th e c om m on


m ax im Be ing a doc t rine
’
S ic u tere two a t a li en a m n on lwd as
,
.

of m ere equity an d ben evolence it will n ever be e nforced at ,

th e e xpen se of a legal righ t 8


Th us where th e cl aim of a .
,

s urety for m o ney p a id by him on a j ud gm ent aga ins t h is prin

c ipa l h as b ee n d e fe ated at la w the s urety c an n ot in eq uity be ,

s ubs titute d to th e righ ts of the c re d ito r in th e o rigin a l jud g

m en t
4
as wo uld oth erwise b e th e cas e
,
6
Nor can one by s ub .

roga tion a c q uire th e righ t to a l ter th e d is pos itio n o f a fun d


“
wh ich h as al ready been fixed by la w A n d s ince n o one ca n .

res t a c l a im to e quitabl e red res s upo n h is o wn w ron g 7 a c ol ,

lec to r of in tern al reven ue wh o h as contrary to la w depos ite d , ,

ta x e s c oll ec ted by him in a s avin gs ba n k wh ich h as s in c e


failed an d w h o h as th e reupon pa id th e am ount d ue to the
,

U n ited S tates from h is o wn fun d s will n t be sub rogated to , o

th e righ ts of th e Un ited S tates a s a p referred c re d ito r of th e


b ank B ut upon m akin g good to the govern m e nt in pur
8
.
,

s ua n c e of h is obl ig atio n s o to d o th e a m o unt of a ch e c k la w ,

fully rec eiv ed from a govern m ent d eb tor an d subsequently


d ish on o red h e m ay be s ubrogated to th e righ ts of th e gove rn
,

m en t a ga in s t th a t d eb to r
°
.

5 D o t rin e d pt e d in L ui i n
. c In Louisian a s ub t o
a o o s a a .
,

i h righ ts of a c red itor in fa vo r of a th ird pers o n


’

g a t o n to t e

wh o pay s h im is eith er c o n ven tio n al or by operation of law 10


.

Bitter 0 Cost, 99 1nd 0 ;. 8 F or s


e t O il .
F in k v 8 W att s .

Co s Appeal, 1 1 8 Penn S t 1 3 8 Blake 3 84


’
.
. . .

v. Traders B ank, 1 49 M
’
as s 2 5 0 ;
7
P o s ted , 55 1
.
3 5 1 3 7 -
.

D rake v Paige, 1 27 N Y 5 6 2
.
W .
illi a
.
m s v A y le s
.
b ur y R a ilw . .

Wagner 0 Elliott, 9 5 Penn St L R 9 C h 63 4 See Cooke, in re,


. . .
. . . .

48 7 ; R ankin v Conre, 46 N J. E q 1 9 F ed R e p 8
.
8 . .
. . .

6 66 ; illow D v Warfe , 71
l I o w a , 1 0 6 ;
7
P o s ted , 4 4 M a rti n o P arso ns, . .

J
.

o e
n s v Co ving.to n , 8 4 V a 77 8 5 0 C a li f 4.
9 8 .
. .

Cfia m bera, I , in Mc Ginniss Ap


’
s W ilk in s o n 9 B a b b itt , 4 illo n, . D
] 1 6 Penn S t 445 , 4 7 4 c c 2 0 7
p e a . . .
.

K
. .
,

7
Bla ke 0 oons, 71 Io. w a, 3 5 7 M c B rid e , ill re , 1 9 N B.
R 45 2 . . . .

1° See N u ent v Potter 21 La


Pat ten 63 65 79
, , , . g , .

Ann 746 . .
DEFINITI ON AND GENERA L NAT RE U . 7

C on ven tion al b ogation wh ich is equivalent to an abs olute


su r ,

tra nsfer or a ss ignm ent of th e d eb t w ith its acc es sories ta k es


l
,

pl ace wh en the c red itor upon receivin g p ay m ent from a th ird ,

person sub rogates h im to h is own rights an d rem edies again st


,

th e de btor 2
this s ub rogation will n ot be im pl ied but m us t be ,

fo rm ally expresse d at th e sam e tim e as th e paym en t Legal 8


.

s ubroga tion o r s ub roga tion by Opera tio n of la w ta k e s pl a c e


, ,

o nly for th e ben efit of one wh o be ing him self a c red ito r pays , ,

a n oth er c red itor w h o s e c l a im is p referable to his own by


reas on of p rivil eges or m o rtgages ; of a p urch aser of im m ov

a bl e property wh o em ploy s th e purch as e m o ney in pay ing -

m ortgages upo n th e p rope rty ; of on e w h o b eing bo un d with ,

o th e rs or for o th ers for th e p ay m e nt of a deb t h a d a n in te re s t ,

in d is c h a rging it ; a n d of th e bene fic ia ry h e ir wh o h as p aid


4

w ith h is own fun d s th e deb ts of th e s ucc es s ion 5


Th us an .
,

a gent wh o h as p aid over to h is prin c ipal from h is own fun ds

th e am oun t due upo n a m ortgage n ote in trus te d to h im no -

e xp res s sub rogation h av ing been m a d e b ec a us e th e p rin c ipa l

s up po sed th at th e m on ey c a m e fro m th e debto r a cq h ire s n o ,

i n te re st in th e n ote b ut b oth th at an d th e m ortga ge are


,

e x tin guish e d if th e age nt s p ay m en t h a d b een m ade in c on


’

seq ue n ce of a l egal obl ig ation sub roga tio n m igh t h a ve been ,

a llowed A n d full p ay m e nt of th e a m o un t ag reed upo n is


7 .

a c on d ition p re cedent of c on ve ntio na l a s w ell as of l egal ,

a
s nb roga tion .

6 . F o ll o w s t h e D is c h arg e of a n O b li g a ti o n . A d d s N o t h in g t o

t h e R ig h t .
-
S ubrogation to th e righ ts of a c re d itor d iffers
from an as s ign m en t of th e d e bt , in th at th e l atter a s sum es
Lynch 0 Kitchen, 2 La Ann 8 43 ; 43 8 ; B rice v Watkins , 30 La Ann
1
.

J
. . . .

ack 0 Harris on, 3 4 La Ann


.
73 6 ; 21 . . .

Oakey v Sheriff, 1 3 La Ann 273


.
Miss .
Mex G 8 Canal Co v
. . . . . . . .

V irgin s Succes sion, 18 La Ann


’
N oyes , 25 La Ann 62 . . . . .

Harrison 0 Bish nd, 5 Rob . .


(La ) B rice v . Watkins , 3 0La Ann 21. . .

204 ; Sewall v H oward, 15 La . . Ann .


7 P os ted , 10a .

400 ; V irgin s S uccess ion , 1 8 La


’
. Ann . Sonlié 9 . B ro wn, 13 La . Ann .

42; Hoyle v Cazabat, 25 La . . Ann . 6 21 .


8 TH E LAW 01? 8 03 3 00411 1031 .

he o d ex is tence of the d ebt while the fo rm er follo ws


c n tinue ,

uly upo n its paym ent l Before th e right of subroga tion ao .

c rue s th e l ega l obl igati on res tin g upon th e ul tim ate deb to r
,

m us t be d isch arged But th e s ubrogatio n of an ins urer to


7
.

th e m m e dies T
J
o E Ee ins ured for th e des truc tion of th e in s ured
property p roceed s rath er upon an im plied ass ignm ent than
upon a s atis fa c tio n of th e ca use of a ctio n 3
An d th e pa rty .

for wh ose ben efit the doctrine of s ub rogation is exercis ed ca n


ac q uire n o g reater righ ts th a n th o s e of th e pa rty for w h o m

h e is s ubstitute d if th e l atter h ad n ot a righ t of rec overy;


th e form er can acq uire n on e ls
.

7 . In s t a n ce s . S ub ro ga uon of a s ha m . Whe re a sh e riff

u pon a void ex ecution collected th e a m oun t due upo n a v a l id


j ud gm ent and paid it over to th e j udgm ent c red ito r the she riff -

, ,

upo n th e j ud gm ent d eb to r s rec ove ring a j udg m en t a ga in s t


’
-

h im fo r th e a m o unt s o c oll ected was sub roga te d for h is pro ,

tec tion to th e righ ts of th e o rigina l j ud gm e nt c red itor a nd ‘ -

aIs o to th e righ ts of th e o rigin al d efen d a n t agains t th e o rig in al

"
pla in tiff If a sh eriff at th e req uest of th e d efend ant in ,
.

an e x ec utio n wh ic h h as b een c o m m itted to h im for c ollec tio n ,

negle c ts to m ak e a l evy an d c ollec t th e m o ney a n d return th e

exe c ution acc ord ing to its c om m and thus m a king h im self ,

pers on ally liable for th e am oun t of the j udgm ent a n d th en , ,

7 S uth rla ud, J , in Ellsworth 0 . . Ba nk v S m esson, 73 Ga 422 ; Tongue


. .

Lockwood, 42 N Y 8 9 , 9 7 ; Colt J , . .
,
. o Corbitt, 5 7 A13
. 5 29 ; Cam pbell 0 .

in Lam b v Montague, 1 1 2 Mass . . Elliott, 5 2 Tex 16 1 . .

35 3.
7
Brown v Houck, 41 H un ( N Y ). . .

S im all, I , in Staples v Fox, . 16 ; Miller v Stout, 5 Del Oh 25 9 ;


. . .

46 Miss 667, 6 80 P os tea , 5 45


. . . H arrington v Fulton, Id 49 2 ; Frank
. .

Mason 0 Sainsbury, 3 Dong 6 1 . . li n Savings Bank 0 Taylo r, 131 1113 . .

London Ass Co v S ai nsbury, 3 Doug . . 3 76 ; Alliance Ins Co 0 Louis iana . . .

K
. .

246 Yates v Whyte, 4 Bing N C . . . I ns . 8 1m 1 1 ; Bank of e ntuc ky


272 ; H all 0 Nashv Chatt R R
. . . . . 0 Milton, 1 2 B
. Mon ( Ky ) 340; . . .

1 3 Wallace, 3 67 Hart 0 West . Sim pson 0 Thom son, 3 App Cu


. . .

em R R. 1 3 Met 9 9 ; Peoria
. . 279 .

Ins Co 0 Frost, 3 7 Ills 3 3 3


. . . . . Gillette a Hill, 102 Ind 5 3 1 .

K
. .

4 napp v Sturges, 3 6 V t 721 ; . .


7 S
haw 0 H olm es, 4 Heisk (Tenn )
. .

Cooke v Moons, 2 So Car 62 ; City


. . . 69 2 .
nns mm on A ND GENERAL m a m as . 9

on c m o puls ion of th e c redito r pays th e j udgm en t h e m ay be , ,

s ub rogate d to all th e righ ts of th e j udgm en t c red ito r aga in st -

th e d efen d ant 1
es pecially if h e took an as s ign m ent of th e
,

j ud gm ent H e will be s ub rogated to all th e rights of his


2
.

deputy for wh ose default h e h as been m ade liable th ough


,
8
,

th e de puty s righ t to s ubrogation res ts on a d ifi e ren t footin g ‘


’
.

A nd if after h e h as by h is n egl ect to c oll ec t th e e x ec ution


, , ,

becom e h im self liable to pay it he takes out an alia s for h is ,

own us e h e ha s be en sub roga ted to th e rights of th e c re d itor


5 .
,

So if h e h as been co m pell ed to pay a j ud gm en t in con se


,

q u e n c e of h a vi n g n e g l ec te d t o a s s ig n a b a il bo n d to th e c re d i -

tor h e m ay be s ub ro gate d to th e rights of th e c re d ito r in th is


,

bail bon d H e m ay be sub rogated to th e benefit of a jud g


-
5
.

m e n t w h ic h h e h as p aid un d er a m is ta k e n b el ief of h is legal

liabil ity th erefo r if h e c ann ot rec over back h is pay m ent at ,

law 7 B ut th is righ t of s ub rogation wh ere n o ass ign m en t of


.
,

th e j ud gm ent h as bee n tak en c an not as a m atter of c ourse ,

be en fo rced at law A n d th e b are pay m en t by a s h erifl with


5 ’
.

h is o wn funds of an ex ecution put in to h is h a nds w ill n ot s ub


roga te h im to th e l ien of th e j udgm ent as agains t s ub se quent

cred ito rs of th e sa m e d efen d a nt H is b are p ay m ent of th e


9 .

am oun t of an e x ec t o u i n to he j d g e
t u m n t—c re d itor w ith out any

7S taples 0 Fox, 45 Miss 66 7 ; . . 5 Downer v . South Royalton Bank,


Bello ws 0 Allen, 23 V t 169 ; Allen . . 39 V t 26 . .

a. H old en, 9 Mas s 1 3 3 ; People v . .


5 Lee Count
y v F ulkerson,
21 .

Onondaga, 19 Wend ( N Y ) 79 ; . . . Gratt ( V a ) 1 8 2


. .

Re es v Eam es, 20 Ills 282 ; B ray 0


. . .
5
Evarts v Hyde, 5 1 V t 183 ; . .

Howard, 7 B Mon ( Ky ) 46 7 Tay . . Beard v Arbuckle 1 9 W V a 1 3 5


.
, . . .

lor v H ardin, 4 B Mon ( Ky )


. . .
5
Higgins 0 Glass, 2 ones Law . J
3 63 .
( N o r .Ca n ) ’
, 3 5 3 .

H eilig v Lem ley, 74 Nor Car . . .


7
Farm ers Bank 0 Grantham , 3 .

95 0 S ee also Grant 0 Ludlow, 8


. . Han (DeL) 28 9
. .

Ohio St 1 Sm ith v Miller, 25 N Y


. . . .
5 Stout v D ilts
,
. l Southard ( N .

6 19 ; R hea 0 Preston, 75 V a 75 7 . . 21 8 ; Walker 0 B radbury, 6 7 .

Hall 0 Taylor 1 8 W V a 5 44 ; Gar . . Mo 66 .

J
.
, .

row 0 Maxwell, 6 . ones Law Nor . Clevinger v Miller, 27 Gratt . .

Car) 5 29 ; L intz 0 Thom pson, 1


. . V
( ) a 7 40 ; M a rtin 0 Gowdy, 1 Hill .

Head 466 ; P00 v Dorrah, .


( 8 0. Can ), 4 1 7 H a r w ell v Worsham , .

20 Ala 28 8 . . 2 Hum ph ( Tenn ) 6 24 . .


10 TH E LAW os sus noou xon .

p l
s ti u ati n o kept al ive for h is benefit will give
th at it s h al l be
h im n o righ t of s ub rogation ; n or w ill h is pay m en t m ad e by
1

a rran gem en t w ith th e debto r upon oth er sec urity ta k en for

h is protec tio n 7
A nd th is sub rogatio n th ough a llowed a ga in st
.
,

th e j ud gm e nt c re dito r h as be en l im ite d s o as n ot to o ve rrid e


-

j un ior lien s of oth e r cred ito rs n owis e in fa ult If th e liab il ity


5
.

of th e sh eriff is for n ot pay in g over to th e c red itor th e a va ils


of th e defend an t s prope rty which h e h as s old on the e xecu ’

tion th en h e c a n n o t be s ub rogated
,
4
Nor c an th e s h eriff be .

s ub ro gated befo re h e h as m ad e f ull p ay m e nt or h ad j ud gm ent ,

re n d e red a g a in s t h im A nd h is righ t of s ub rogation h as


5
.

bee n d en ied 5
A j ud gm en t d ebtor wh o h as in con seq uen ce
.
-

of th e s h e riff s m is con d uct been c om pelled to pay th e judg


’
,

m en t t wic e m ay be s ub ro ga te d for h is rem edy to the c re d i


,

tor s righ ts aga in st th e sh erifl f ’


A tax collector m ay be
’
-

s ub rogated l ik e a sh erifl
5 ’
.

8 . S ub ro g a ti o n of on e w ho h as a d v an c e d M o n ey fo r th e

pa y m en t of a n
@ o n ey h a s b ee n lo an e d
I n c um b ra n o e .
— Vh e re m

upon a d efe c tive m ortgage for th e p urpo se of d isc h a rgin g a

prior val id inc um b ran ce an d h as actually been so applied , ,

th e m o rtgagee m ay be s ub rogated to the righ ts of th e p rio r


inc um b ran ce r wh om h e h as th us s atis fied °
th e re being n o ,

7
B igelow v Provost 5 H ill (N .
5
J ones (N0. Wilson 3 Jh
o ns

K
.
, , .

6 66 ; Albany Bank 0 ea rney, 9 H a n . 43 4 ; Menderback v H opkins , 8 .

( N 5 3 5 A m ett v Cloud, 2 Ga . . J ohns (N Y ) 43 6 ; Carpente r v S til


. .

J
. . .

6 3 ; Finn v Stratto n, 6 J . Mars h . . well, 11 N Y 6 1 ; Whittier v H em. . .

( y)
K 3 6 4 ; G a rth v M c C a m pb e ll 1 0 inway, 22 Maine , 23 8 ; Albany Bank
K
.
, .

Mo 1 5 4 ; Bailey 0 Gibbs, 9 Mo 45 ;
. . .
v. earney, 9 H a n ( N 63 5 ; .

R utland v Pippin, 7 Ala 46 9


. . . Carpente r o Fifield, 14 R I 73 ; . .

7
Rogers v Nuttall, 10 I red Law . . Evans v B illingsley, 3 2 Ala 3 95 ;
. .

( N o r C a.n ) 3 4 7 R e ed 6
,
P ruyn , 7 . R oundtree v W eave r, 8 Ala 3 1 4 . . .

J ohna ( N Y ) 426
. . . .
7 H arve
y v W arren, 3 1 Neb 1 5 5 . . .

5
Fea m ste r v W ithrow, 1 2 W V a . . .

612 ; S herm an v S haver 75 V a 1 .


,
. .
5
Meyer 0 B nrritt 60 Co nn 1 1 7
.
,
.

5
B ellows 5 Allen, 23 V t 1 69 ; . . H ook 0 Ri chardson, 1 1 5 Ills 43 1 ,
. .

W gr i ht 0 F itz g e
. ra ld, 1 7 O h io S t 6 3 5 . . White v State 5 1 Ga 25 2 ; Thom as
.
,
.

5 Beal v S m ithpeter, 6 Baxter


.
v. H am m er, 1 3 Lea ( Tenn ) 6 20; ,

(Tenm ), 3 66 ; Pool v H unter, 4 . Turner v Teague, 73 Ala 6 5 4


. . .

J ones Law ( Nor Ca n ), 1 44 . . Lockwood v Marsh, 3 Nevada, .


DEFINI TI ON A ND GENERAL NATURE . 11

in te rven ing in cum bran c es .


l
y both th at the
B ut it is n ec e ss a r

money sh o uld h ave been a dvanced for th e purpo se of dis


c h a rging th e p rior in cum b ran ce a n d th at it s h o uld ac tua lly
,

h ave been so a ppl ied wh ere a husban d an d wife ga ve a


m ortgage for m on ey th em for th e p urpose of dis c h a r
i
g gn a p rio r in c um b ra n c e w h i ch w a s a c
, c o r d in g ly do n e a n d ,

th e w ife t urn e d out to h ave b een an in fan t at th e tim e of th e


n e w m o rtga ge th e m o rtgagee was s ub rogated to th e rights of
,

the p rior in c um b ra nc e r as aga in st th e wife 5


A n d if it is .

e xp ressly a g ree d th at th e old in c um b ra nce s h all be k e p t a l iv e

as s ec urity for th e n ew a dvan ce b ut th e d ebtor in f ra ud of h is


,

a greem e n t p roc ure s it to be d isc h a rge d th e pe rs on m a k ing ,

th e a dvan c e m ay be s ubrogate d to th e ben e fit of th e p rio r l ien ,

e ven aga in st oth e r in c um bra nc ers prio r to h im self wh o se righ ts ,

h a ve n ot been ac q uired on the fa ith of th e appa rent d isch a rge 5


.

One wh o h ad le nt his n otes to th e purch as er of l an d to pay


t h e p ric e th e reof wa s allow ed upon p ay m en t of th e n ote s to

b e s ub rogate d to th e benefit of a m o rtga ge given by th e

p ur c h ase r to th e v e n do r to s ec ure t h e ir p a y m e n t 5
S o o n e .
,

w h o h as at th e req ues t of th e ow n er of good s adva nced th e


, ,

m o n ey to d isc h a rg e a l ie n th ereon m a r t i n p io n of
y e a o s s e ss

t h e g o od s un til h e sh all be reim b urs ed 5


B ut th ese are ex .

1 3 8 ; C lark 0 Cla rk, 5 8 Miss 6 8 ; and in Le vy 0 Martin , 48 Wis e 19 8,


. . . .

E m igra nt Savings Bank 0 Clute, 3 3 but is not universally adopte d


. Fry .

H un ( N . 8 2 ; s c affirm ed in v Ham m er, 60 Ala 5 2 ; E tna Ins


. . . .

2 Silvem ail, N Y Ct Appea ls , 3 40; Cc 0 B uc k, 108 Ind 1 74


. . . . . . .

B olm a n v . Lohm an, 74 Ala 5 07 ; 7. Kitchell v Mudgett, 3 7 Mich 8 2 . . .

Eve rs ton 0 . K
ansas Bank, 3 3 ans
5
K
Barber v Lyon, 1 5 Iowa, 3 7 ; .

K
.

3 5 2 ; Gritten v C happel, 3 5. ans Flanne ry v Utley, 6 S W R ep 8 78


. . . . . .

49 6 ; Gilbert Gilbe rt, 3 9 Iowa, 65 7 5 Sne lin


l g v McIntyre, 6 Abbott,
. .

In the las t case, a m ortgage executed N Y Gas 469 . . . .

b y a trustee who had the power to give owne r v Miller, 15 Wis e 6 1 2


D
5 . .

K
.

m ortgages for the disc har e of a


g p rio r Se e a lso W hite v n a pp, 8 Pa ige Oh . .

incum brance, was invalid for lack of ( N Y ) 1 73 ; Cole v Edge rley, 48 . .

r
p po er ex ec utio n, a nd t he plain t ifi M a i ne , 108 .

would have had no redress on his as 5


Chonler v S m ith, 3 Desaus Eq
.
. . .

c nrity but for the eq uita ble doc trine of ( S o Car ) 1 2 . . .

s ubrogation The sam e rule was ap


.
5
Edwards 0 Frank, 40Mich 616 . . .

li d h fl
'

p e in C a ee 0 Oliver, 3 9 Ark 63 1,
. .
12 THE La w or sus a oeu l on
'
.

trem e cas es 1 . If th e titl e to


land conveyed and acc epted in
disch arge of a m ortgage upon o ther property afterwards turns
out to be d efec tive th is d efec t th o ugh it m ay be th e s ubj ec t
, ,

of a n ew dem and c ann ot Operate to revive the o riginal m o rt


,

g g
a e e v e n w
,
it h t h e m o rtg g
a o r s c o n s e n t to th e p rej ud ice of
’
,

righ ts acq uired by oth e rs in th e m ea n tim e A n d wh e re a


7 .

m o rtgage h as be en c a n c elled an d d isch a rged a n d a n ew se c ur ,

ity upon th e sam e l a n d h as been ta k en for th e debt th e m ort ,

g g
a e w ill u n le s s th ere a re c o un te rva il in g eq uities be rega rd e d
,
5
,

as if it h a d n e ve r e x is ted a n d in te rven in g in c um b ra n c es or ,

at ta c h m e n ts w i ll b e let i n
4
.

§ 9 . Of on e w h o h as b ee n c om p e ll e d to pa y th e D eb t 0!

a n oth er — A th ird pe rs on
pay s off a m ortgage d ebt for who -

h is own p rotect ion m ay be s ub rogate d to th e pl a ce of th e m o rt ~

g ga es a n d m ay r
,e ta i n th e m o rt g g
a e f or h is re im b urs e m e nt 5 .

O ne wh o pay s ta x es wh ich a re a l ien upon l a n d to wh ich h e


m us t lo ok for th e p ay m en t of h is d eb t o r in wh ich h e h a s a n
5
,

app a ren t inte res t in o rd e r to p rese rve th e p rope rty fro m th e


7
,

l ien will be entitl ed by sub rogation to reim bursem ent out of


,

th e p roperty its elf Wh ere a t a n auction s al e of a deb to r s


.
’

prope rty th e debtor h a s fraud ul ently procured a sh am b id to


,

be m ad e by a n i rres po n s ible p ers on an d h as th e reby c a use d ,

th e l an d of a n oth e r to be afte rw a rd s s old for th e satis fa c tion


of th e debt wh ich ough t to h ave been d isch arged out of h is
o wn p rope rty th e p a rty th us inj ure d m ay by s ub roga tion to
, ,

th e righ ts of th e orig in a l c re d ito r hold th e p rim a ry d eb to r ,

for th e a m ount of his On e wh o in good faith believin g ,

5
5
P osted , n 240 et seq q n e t 0 S t
.e rlin g , 5 6 I ow a ,
.

5
Lasselle v B arnett, 1 Blackf 35 7 Waterson v
. evoe , 1 8 Km .
°
. D .

( In d ) 1 6 0
. . 2 23 ; W hitt a k er 9 W rig h t, 3 5 A rk . .

5 Charle ston Ba k 0
n Epstin, 44 5 11 .

K
.

Fed Re p 403 P osted , 5 20


. . .
7
Am a H oppen, 25 . ans 707 ; . .

5
S tearns v Godfrey, 1 6 Maine, Weim er 0 Porte r, 42 Mich 6 69 ; In
. . .

1 6 8 ; Woollen v H illen, 9 Gill ll fl d M i 7


'

g ers o. v J e or s , 5 5 ss 3 . . .

18 5 .
5
arst 0 Thom as, 8 7 Ills 222 D . . .

5 Coster in re 2
, ,
o hn s Oh ( N J . .

Y ) 5 03
. Pm k a , 5 12 et seq
. .
ns rm m ou AND GENERAL NAT RE U . 13

h im self to h ave an interes t in property which is subj ect to a


lien pay s off th e l ien to p rotec t th at in te res t will in eq uity
, ,

be s ubroga ted fo r h is reim b ursem en t to th e p ro te c tio n of th a t


l ien as aga inst th e real own er of th e property wh o h as stood
, ,

by in silen ce wh ile th e pay m en t was m ad e 1


S e a gran tee .
,

o f l an d wh o th rough n egl ec t to re c o rd h is d ee d h a s h a d th e
, ,

l an d taken from h im upon a j udgm e n t rec overed again st h is


g ra n to r m a y ,
by s u b rog a tio n in eq uity c l a im th e b e n efit of a

m o rt ga ge h eld by th e j ud g m e n t c red ito r to sec ure th e d eb t -

u p on wh ich th e j ud gm en t w as re nd ere d so fa r a s th e s a m e ,

is n ot required for th e full s atis faction of th e debt an d to ,

t h e e x te n t of h is los s by th e le vy upo n his l an d Th e .

s aid Mr J us tic o C h a p m a n h as pa id his grantor s


’
.
,

d ebt which h is gra n tor o ugh t to h av e p aid h im self ; a nd it


,

is but j us t th at h e sh ould h a ve th e ben efit of th e s ec urity


w h ich his gra ntor h ad p reviously giv en to th e creditor for
”
th e d ebt 2 .

1 0 or C rrie r
.
— A carrier wh o h a s paid th e ch arges of
a a .

a n te c ed en t c a rriers for th e tra n s po rta tion of good s se n t ov e r

s uccess ive l ine s w ill be s ub rogate d to th e ir righ ts e ven th ough


5
,

h e aft e rward s fails to perfo rm his own c o ntract ; but th is 4

rig ht w ill e xte n d o n ly to n ecessa ry c h a rge s for ac tual tran s

p o rt a tio n
5
A n d if
. p rop e rty i n a c a rrie r s po ss es s io n is lo st
’

or d es troy ed by th e fa ul t of a no th e r th e c a rrier wi ll upo n , ,

sa isfyin g th e own ers for s uch lo s s be s ub rogated to th eir ,

righ ts
5
. Th us wh ere n otes iss ue d by a bank h ad been stol en
,

wh il e in th e c o urse of tran s po rtation by a n express c om pany ,

Fowler 0 Pars ons, 1 43 Mas s ) 70; Wells 0


5 . . H um ph ( Tenn . . . Thom as,
401 ; Cockrum v West, 1 22 Ind . . 27 Mo 1 7 . .

3 72.
5
Western Transportation Co v . .

5
Wall 0 Mas on, 102 Mass 313 ;
. H oyt, 69 N Y 23 0 . . .

K
.

Weiss 0 Gnerineau, 109 Ind 43 8


. . .
5
Ste am boat V irginia 0 raft, 26 .

5
Lee 0 Salter, Lalor a Sup to
’
. . MO 76. .

Hill Denio ( N 16 3 ; H un t v . .
5
U nited States v V erm ilye 10 .
,

Haskell, 24 Maine, 3 3 9 ; B riggs v . Blatchf C C 280; Pierce v Win


. . . .

Boston Lowell R R Cc 6 Allen . . ser, 2 S pr ague, 3 5 Brass 0 Mait .

246 ; White v V ann , 6 . land, 6 Ellis D] 470 . .


14 TH E LAW OF sus a ooh rr
ou .

b q
an d su se uent ly destroy ed and th e c o m pany bein g liable , ,

for th e l os s pa id th e a m oun t th e reof it w as h eld th a t upon


, , ,

s uc h p ay m e n t th e p rope rty in th e n ote s ve ste d in th e e xp ress


,

c om p a ny ; a n d up on proof of th eir des truc tion it w as


, ,

a ll owe d to rec ove r th e ir a m o un t from the ban k l


S o w h e re .
,

a c a rrier h as by m is ta k e d el ive re d to on e pe rs on o o d w h i h
g s c

h a d been s old a nd c on s igned to an oth e r an d th e form e r h as ,

a pp rop ria te d th e m for h is own use th e c a rrie r a fte r s a tis fy , ,

in g th e re al own e r fo r th e l os s m ay re c over th e v al ue of th e ,

g o o d s f rom th e p e rs on w h o h as th us re c e iv e d t h e m
5
Th e .

wh o m ade th e m ista k e wh ich c reated th e


’
c a rrie r s a gent ,

c a rrie r s l iab il ity m ay up on th e c a rrie r s s atis fy in g th e o wn er


’ ’
, ,

a n d s uch a ge n t s reim b urs in g th e c a rrie r be s ub ro gated in th e


’

sa m e way
5
Th e c a rrie r is s ub rogated to l ie n s for ch arge s
.

wh ich h e is co m pell ed to pay to obtain or to retain the


g oo d s
.
‘
A l r—
e te c a rrie r w h o h a ving d el ivere d to a h o te l
t , ,

c l e rk a va l uab le regis tered l ette r h a s b e e n h eld to pay for its ,

los s a ris in g from th e cl e rk s n egl ige nc e will be s ub rogated to ’

th e re m e dy a gain s t th e c l e rk th e p a rty ul tim ately l iabl e 5


,
.

10 a O f C o i g e e o r A g n t
. a Th e c on s ignee Of prop
ns n e .

erty wh o h as s old th e s a m e a n d d e po site d th e p roc ee d s in

b ank to th e cred it of th e c ons ign o r if afte rwa rds on th e fail ure ,

of th e b ank obliged to pay th e am ount of such p roc ee d s to the


c o n s ignor w ill b e s ub roga ted to th e righ ts of th e c o n s ig n o r
,

ag a in s t th e in s olven t b a nk a n d its a ss ign eef


’
‘
A n a gen t s
paym ent of th e deb t of a th ird pa rty to h is prin cipal m a de in ,

d isch arge of a l iab il ity as gua ra ntor or s urety or un der c om ,

p ul sion of a j ud gm e nt will sub rogate th e a gen t to th e ,

p rin cipal s rem edy against th e third party S o an attorney


’ 7 .
, ,

1 Hagersto wn Bank 0 Adam s Ex oslyn 0 ing, 27 Neb 3 8


.
5 J . K . .

pr es s C c ,
.45 Pe n n S t 41 9 .
5
S to ller
. v C oates ,
. 4 Wes t R ep . . .

5
Brown v Hodgson, 4 Taunt 1 89 ; 600
. . .

Coles v Bulm an , 6 C B 1 8 4
.
7
Bank of Scotlan d v Dom inion
. . . .

5
O Neal v D eese 23 Ga 477 Bank , ( 1 89 1) 1 App Gas 69 2 ; Nich
’
. . . .
.
,

Guesnard v Lo uis ville N ash 013 v Wadsworth, 40 Minne 5 47


. . . .

ville R R. . 76 Ala 463 . .


ns rm rrxos AND GENERAL NATURE . 16

h a ving bec om e personally liable to h is c l ient for th e am ount


of a j udgm ent by reason of h aving n eglected to com pel th e
s h e rifi to pay over th e am ount coll ec te d th ereo n is by pay , ,

m ent to h is clien t s ub rogated to h is c l ien t s righ ts a gains t


’
,

th e sh erifl a nd m ay for h is o wn ben efit en fo rce pay m en t


’
,

from th e\ atter l

.
l
1 1 G en er l D oc trin e o f S ub r g ti o
a
.

In sh o rt th e doc o a n .
,

trin e of s ub roga tion is th at on e w h o h as bee n c o m pelle d to

p ya a d e b t w h ic h o ugh t t o h a v e b ee n p a id by a n o th e r is

en titl e d to ex erc ise all th e re m e d ies wh ich th e c red itor pos

s ess e d aga ins t th at o th er a n d to ind em n ity f ro m th e fun d


5
,

out of w h ic h s h ould h av e been m a d e th e p ay m e n t w h ich h e

h as m ade 5
To the creditor they m ay h ave been both equally
.

l iable ; b ut if as b et ween th e m selves th ere is a supe rior


, ,

obl igatio n res tin g upon one to pay th e d ebt th e oth er after , ,

pay in g it m ay us e th e c red ito r s s ec urities to obta in reim


,
’

bursem en t Th e do ctrine does n ot d epe nd upon p riv ity n or


.
5
,

is it con fin ed to cases of s urety s h ip th ough in Ma s sach us etts ,

it h as b een refused at la w on th e gro und of a l ac k of p rivity 5


.

It is a m od e wh ich equity a dopts to c o m pel th e ul tim ate dis ,

ch a rge of a debt by h im wh o in eq uity a nd good c on sc ien c e

ough t to pay it an d to rel ieve h im wh om none but th e c redi


,

to r c o uld a s k to pay 5
Alth ough as between debtor and
.
,

c re d ito r th e d eb t m ay be e x tin uish ed t b t w t h


, g ye as e e e n e , ,

pers on wh o h a s paid th e d eb t and th e oth er parties th e d ebt ,

is k e pt a l ive s o far as m ay be n ece s sa ry to p res erve th e


,

securities
7
Th e pay m ent of th e m on ey d ue upon a debt w ill
.

Opera te as a d isch arge of th e in d eb te d nes s or a s s ub ro atin


g g ,

7
Governor v Raley, 3 4 Ga 1 73 . . . Beck 0 Gallagher, 1 14 Mass 28 ;
5 . .

5
City Bank 0 Crossland, 65 Ga . . Holm es 0 Day, 108 Mass 663
. . .

734 ; Thom as 0 Bridges, 73 Mo 6 30;. .


5
S trong, J , in McCorm ic k v I r
. .

Weiss 0 Ga st ineau 109 Ind 43 8


.
, . . win, 3 6 Penn S t 11 1, 1 17 H eart v
. . .

5
Allen 0 William s, 3 3 N J Eq
. . . . Bryan, 2 Dev Eq ( Nor Car ) 147 . . . . .

684 ; D arst 0 Thom as , 8 7 Ills 222


. . .
7
Cl apm as , J , in Wall 0 Mason. . .

5
Eldridge 0 Wright, 66 Calif 6 3 1
. . . 102 Mass 3 16 . .

pm , 9 93 .
16 run LAW or sns nooa rron .

h im pay s it to th e place of th e creditor as m ay bes t


wh o ,

serve th e p urpo ses of j ustice an d the j us t in ten t of th e

pa rti e s l
But t
.h e b urd en is al w a y s on o n e wh o c l a im s

eq uity to sh o w th at h e is en title d to it
5
.

J in Robinson v Lea v .
5
Wilkinson
Babbitt, 4 Dillon
0
.
,

itt, 7 N H 9 9 ; Bacon 0 Goodnow,


. . . C C 207 ; H unnicutt v Sa m m y 63
. .
. ,

. . D
5 9 N H 41 5 ; anville Poor istrict D Ga 6 86 ; Binford 0 Adam s, 1 04 Ind
. . .

v Montour Count 75 Pe St 3 5 41 Grifi th o To wnley, 69 Mo 1 3


.
y nn . . . . . .

H ouston Bank 0 Ack erm an, 70 Tex


. .

3 15 .
8 00033 8 17 13 CLAIMS . 17

CH A P TER II .

S UB ROGATION IN CAS ES WH ERE DIFFERENT PA RTIES H AV E S UC

C ES S IV E CLAIMS UPON TH E S A ME PROPERT Y


,
BY MORTGAGE,
LIEN , os PURCH AS E .

Su m o:

S ubrogation of J unior Iuea m


brancer upon Paym ent of Prior
In cum brance S ubrogation of Purchaser of an
S ubrogation will be m a de to serve Equity of Redem ption on Pay
J
th e Purposes of ustice and th e m en t of Prior In cum brance

Int en t of th e Parties Righ ts of s uch a Purch aser


S ubroga tion upon Red em ption of Purchase r, if his Purch ase avoided ,
Prior Incum bran ce s ubrogated to Lien which h e h as

Jnn ior Incum bra ncer com pelled to p aid


p y
a a Prio r C ha rge Purch aser at sale to en force a Mort
J
Duty of Prior to unior Iuea m a
g g e or C h arge s ubrogated to its
Lien
J unior Incum bran cers Righ t of Re Rig h ts o f such a Purch aser in Cali
'

dem ption fom ia


W h en Jun ior In cum bra cer enti n Ins tan ces of such Subrogation
tled to S ubroga tion .

S ubroga tion of one ad vancing Mon


ey for Paym ent of an Iuea m Wh ere Purchaser pays Debts with
bran ce . wh ich Pro perty c hargea ble
b
Wh ere N ew Incum ran ce given for Pur h aser com pelled to pay his
c

V en dor s Debt subrogated to


’
20
J
H old er undera udgm ent Lien sub Creditor s Righ ts against h is V en
’

rogs ted upon paying Prior In dor .

c um bra nce Purchasers S ubrogation does not de


’

Where Inc um bered Lands sold a n p d upon V alidi ty of h is Ti tle 3 6 a


e n

J
.

d er a um or Lien Lim itation of Purch asers R igh t of


’

Subroga tion of an Assignee i n Bank S ubroga tion


rupt cy . S ubroga tion of Purch aser at an Ex
S ub rogation of a Mortgagor against sentiou Sa le
a Purch aser of th e Eq uity wh o S ubroga tion of such Purchaser
h as assum ed the Mortgage w h e re Property recovered by
Righ ts of Mortgagor against Mort Th ird Parties 39
gages and such Purch aser Righ ts of a Purchaser w ose Pur h
S ubroga tion of Mortgagor against ch ase is voida ble b
y Creditors of
Purch ase r of th e Eq uity subject his vendor .

to th e Mortgngo .
g
Waiver of Ri ht of Subrogation
18 rns LAW or sm ooa n olv '
.

What 1s not a Wai ver rega ted to th eLien of that Debt


'

Right los t by Negl1ge nce res ul i ng t upon oth er Fun ds


in Prej udi ce t o Ot he rs . Doc trin e of Two Fun ds n ot app ie ld
Party seeking S ubroga t ion m ust not if it would work Inj ustice to
be 1n h is own Wrong S enior C reditor .

Wh en one entitled to be subro Wh ere one of th e t wo Fun ds is it


ga te d t o a Lie n m ay dem an d an self S ubj ec t to Prior Iuea m
Assign m e nt t h ereof b re nosa 64
Th e rea l D ebto r ca nn ot be sub ro Doc trine of Two Funds not app ie ld
ga t ed w h en it would be Inj urions to
Ass ign m en t to o ne wh o is bo im d Third Parti es .

to pay th e Debt ta nta m ount to a Wh ere on e of the Funds prim arily


Dis c h arge . li able for both Debts
S ubroga tion of Dowress w o h as h Waiver of Right of Marshalling As
a id a Para m oun t Lien on th e sets
p
Property J n a ierC red itor cannot cla im th e
Wid ow s Righ t of Dov er against a
’

Ben efit of a Lien esta bli sh ed sub


Purc haser who h as paid an In seq uen tly to h is ow n

c um branc e t o wh ic h h er Dower C red itor subrogated only to a Fun d


was s ubj ec t w hi ch ough t t o h ave di sch arged
Dower let ih , if Debt paid by one th e Debt his Fun d has paid 68
bound to pay it W here eac h Cred itor h as a Lien
Th e W idow m ay red eem H er . upon t h e S am e One of th e Fun ds 68 a
Righ ts th ereupon Doc trin e of Two Fun ds applied only
The Rule 1n Massac h usetts if Debtors are th e sam e
Assignm ent of a Mortgage to th e Junior C red itor ca n not be su ro b
Owner of th e Eq uity 11 111 not g a t ed u n til Prior C r edi tor sat is

n ece ssarily extinguish i ts Lie n fied .

Tests by wh ic h Merger is deter Applica tion of these Prin ciples to a


m ined Case of S everal C redi tors of o1n t J
Incum bran ce so assigned only k ept an d S everal Deb tors

Alive for a Good Purpose an d Release by Prior Creditor of Fun d


to protect a Ben efi c ia l Es tate r im ari ly liable to h im
p
Mortgage a ssigned to Princi pal Release of Prim ary Fund will not
Debtor is ish ed
e xting u pre j
ud icePrior C redi t or if m ad e

Conveyance of th e Eq ui ty to th e in Good Faith an d W ith out N o


H older of 11 Prior In cum b ra nce ti ce .

wi ll n ot extinguish it in favor o f Purch ase of a Portion of an Incum


a J
unior bered Esta te Rights of th e Pur
Conveyan ce of Equity in Paym ent c h aser

of Prior, will n ot ad vance unior J O rder of Liabili ty of Separate Par


In cum brance cels of an Incum bered Estate sold

W h en a Conveyan ce of th e Eq uity success ively

to th e Mortgages will be regarded R ule i n Iowa an d K entuc ry l .

as a Paym en t of th e Mortgage N o dist incti on betw een Mort gage


d ebt . an d J
udgm ent Lien or oth er In

An Intervenin g Estate will prevent cum bran ce

a Merger Release of Estate prim arily liable


Th e Doctrin e of Two Funds disch arges pro ta nto that second
A Creditor wh ose Fun d h as been arily liable

taken to pay 11 Prior Debt m b r


Re lease of Estate prim a ily liable
successw n cu m s . 19

Sum o! Sum o:

will Estate secon d


n ot exon erate Th e Mortgagor m ay by S tipulation
arily li able unless in ustice it J vary th e Order of Liability

ough t to h a ve that effect 79 Extent of t h e Righ t of a S ubse quen t


R eleas e of any R em edy to which 3
S ubseq uent Gran tee would be Instances of th e Appli cation of th ese
s nb roga ted releases th e Lien on

th e la tters Property
'
80 Wh en th e Purc haser of an Eq uity
P rior Incum brancer not affec ted by of Redem ption ass um es th e Pay
S ubs eq uent Alien ations of th e m ent of th e Mortgage

Property unl ess n otified of th em 81

12 . S ub ro g a t l o n of a J un i o r I n oum b ra n o e r upon P a y m ent

of 11 All pe rson s h a vin g an interes t in


P ri o r I n c um b ra n o e .

p rop e rt y s u bj ec t to a n i n c um b ra n c e by w hich th eir in terest

m ay be p rej ud iced or l os t h a ve a righ t to d isen ga ge th e

p r op e rty f ro m s uc h i n c u m b ra n ce by th e p ay m e n t of th e d eb t

o r ch a rge w h ic h c reates it ; a nd if s uch de bt be on e for


1

w h ich an oth e r p a rty is ul tim a tely l iabl e th ey w ill upon t h eir , ,

p a y m e n t b e s ub r o g a t
,e d to th e r ig h t of th e c re d it o r aga in st

t h e ul tim ate debtor a n d a ga in s t th e p rope rty upo n wh ic h th e


5
,

d eb t w as a ch a rge 8 A m ortgagee can m ak e no effectual re


.

s ista n c e to a c l a im for s ub roga tion by on e w h o ten d ers to h im

h is d eb t an d c osts a n d wh o h as a subord in ate interest in th e


,

p r op e rty w h ic h w o u ld, ei th e r b e l o s t o r s e riou s ly i n j ure d wi th


out th e propo s e d sub s titution So a s ec o n d m ortgagee wh o
4
.
, ,

5
Powers 0 Golden Lum ber Cc , . . 6 22 ; Page 0 Foster, 7 N H 39 2 ;
. . .

43 Mich 46 8 ; S m ith v Provin, 4


. . D owner 0 Fox, 20 V t 3 8 8 ; Youn
.
g .

Al len 6 16 Green 0 Tanner, v W illia m s , 1 7 Conn 3 9 3 ; Mosier s


’
. . .

8 411 ; Morse v S m ith, . Appeal, 66 Penn St 76 ; D arst v . . .

8 3 Ills 3 96 ; Willis 11 Jelineck , 27


. . Bates , 9 5 Ills 49 3 ; Goode 11 Cum
. .

Minn 1 8 ; Wiley v Ewing, 47 Ala


. . . m ings , 3 5 Iowa, 6 7 ; D arling v .

41 8 ; S cott 11 Hen ry 1 3 Ark 1 12 .


, . . H arm on, 47 Minn 1 66 ; W h ite v . .

‘
5
Southworth v Scofield, 5 1 N Y . . . Ham pton, 13 Iowa, 25 9 ; Carter 5 .

5 13 ; Gra ham 17 Dun nigan, 4 Abbott . Taylor, 3 Head 3 0 ; S ta ples


Pr ( N Y ) 426 ; Lucking v Wesson,
. . . . 11
. Fox, 45 Miss 6 6 7 Gris wold v . .

25 Mic h 443 ; Evans v S aunders, 3


. . Marsh m an, 2 Oh Gas 1 70 . . .

Les ( Tenn ), 734 ; Exall v Partridge , .


5
Davis 0 Cook, 6 5 Ala 617 Mc
. .

8 T R 308. . . Lean v Tom pkins , 1 8 Abbott Pr


. .

5
Denm an v N elson, 3 1 N J Eq ( N Y ) 24 ; Em igrant Savings Bank
.

J
. . . . .

45 2 ; Co ste r, in re, 2 o hn s Oh . . v Clute, 3 3 H un N


.
( 8 2 . .

5 03 ; D ings v Pars halL7 Hun ( N .


20 TH E L AW or s us nooa rxos .

is in d an ger of los in g his sec urity by the fo rec los ure of th e


fi rs t m o rtgage m ay redee m f rom th e fi rs t m ortga gee or pay ,

th e d eb t s ec ured by th e h t at m ortga ge a n d m ay th e reupo n ,

look to the m ortgaged property fo r h is reim burs em en t e ven l


,

a ga in s t in te rven in g in c um b ra n ces Ou th e s am e p rinc ipl e


5
,
.

t he l ien of a ple d gee will co ve r f re igh t p a id by h im upo n th e

g o od s pl e d g e d ;
5 a nd a s a
c a rr ie r s l ie n for th e ca r ri a g e o f
’

th e s pec ific goods is p rio r to th e ven d or s righ t of s to pp a ge


’

in tra ns itu a nd th e c a rrier m ay ins is t upo n reta in ing po s s es


,

sio n un til th es e c h arges a re p a id a n ofli ce r wh o p ay s th e s e


5
,

c h a rge s to th e c a rrie r in o rd e r to ob ta in th e good s for th e

ven d or is s ubs tituted to the ca rrier s right of poss es s ion un til ’

h e is re paid 5
Th e ge ne ral rule is th at a l ien c red ito r on
.
-

pay in g th e m ortgage or othe r l ie n wh ich is p rior to h is o wn ,

is s ubrogated by law to th e righ ts of th e c re d ito r wh ose d e b t


h e h as pa i d 5
A second m o rtgagee wh o to p reven t a fore
.
,

c lo s ure of th e firs t m ortgage re d eem s f rom it will be s ub ro ,

g a te d to it s l ie n a ga in s t a n i n te r ven in g o r s ub s e q ue n t

atta c h m en t
7 an d a n a s s ign m ent of th e m ortgage w ill n ot
,

be n ec essary fo r th is p urpo se 5
T h ough a s trange r c an not .

s e t up a n o utsta n d in g s atis fied m ortga ge a s a b as is of t itl e to

Bigelow v Cassedy, 26 N J Eq
5
. . . 6 14 ; Potts v . N Y . . N E R R
. . . .

5 5 7 ; Tarbell v D urant, 6 1 V t 5 16 ; 13 1 Mas s 45 5


K
. . . .

Wood v H ubbard, 5 0 V t 8 2 ; Weld


. .
5 R uc ker o Donovan 1 3
, an s 25 1 . . .

v Sabin 20 N H 5 3 3 ; State v 5
Silver Lake Bank 0 N orth, 4 .

J
. .
.
, .

B rown 73 Md 48 4 ; ,
B a ke r 0 Pier»
. . ohns Oh ( N Y ) 3 70; B raina rd v
. . . . .

s on , 6 Mic h 5 22 ; Flac hs 0 Kelly . .


, Cooper, 10 N Y 35 6 ; Brown 0 S i . . .

3 0 Ills 46 2 ; Ma rshall v Ruddick 28


. .
,
m ons, 44 N H 475 ; Arm stro ng 0. . .

I owa, 48 7 ; Abbott v U nion Life Ins . . Mc Al pin, 1 8 Ohio St 1 84 ; R ussell .

127 Ind 70 ; Arnold v Foot, 7 . . 0 H owa rd, 2 1:1c


. 0 C 489 ; . .

B Mon ( Ky ) 66
. . . Southa rd v Don i n gton , 10 Ne bras ka ,
.

5
Conn Ins Co v B ulbs , 45 Mich . . . . . 1 19 ; Grigg v Banks, 6 9 Ala . .

1 1 3 ; Erwin v Acker 1 26 Ind 1 3 3 ; .


,
. V en tres s v C reditors , 20 L a Ann
. . .

W alker v Stone 20 Md 19 5 ; Allen .


, . 35 9 .

0 Wood, 3 1 N J Eq 103 ; D illon v


. . . . .
7
Ward 0 Seym our, 5 1 V t 3 20; . .

Kauflm an , 5 8 Tex 69 6
'

. Downer 11 Fox, 20 V t 3 8 8 ; Flac hs


. .

K
.

5
C lark 0 Dearborn , 103 Mass .
. v . e lly, 3 0 Ills 46 2 . .

33 5 .
5
Moore 0 Bos som , 44 N H 21 5 ; . . .

5
See Wolfe 11 Crawford, 6 4 Miss . . Reyburn 5 Mitchell, 1 06 Mo 3 67. . .
succ essrvs cu m s . 21

th e property bl e owner of th e l an d wh ose debt


, ye t th e equita ,

it was n ot b ut wh o h as pa id it in o rd er to protect h is p rop


,

erty m ay do s o
,
l
B ut a rel ea se from a p rior to a s ub sequen t
.

m ortga gee n oth in g m o re a pe a rin g w ill op e rate m ere ly as


p , ,

a n e x tin guis h m e n t of th e m o rtgage 5


.

13 .
q ro g a t i o n w ill b e m ad e t o s e rv e t h e P urpo s e s o f J us

ti oe an d t h e I n t e n t o f t h e P a rti e s . Th e re a re c a se s ,
”
sa id
Mr Justice Pa rke
. in wh ic h a p a rty w h o h as p a id m r 8
,
o ney
due upon a m o rtga ge is entitl e d for th e p urpose of effec tin g ,

th e s ub s ta n tia l j ustice of th e case to be s ubs tituted in th e ,

place of th e in c um brancer and treated as as sign ee of th e ,

m ortga ge a nd is en able d to h old th e l a n d as if ass ign ee n ot


, ,

w ith sta nd in g th e m ortgage itself h as been can cell ed an d th e


debt d isch a rge d The true p rinc iple I a ppreh en d is th at
5
.
, , ,

wh e re m oney d ue upon a m o rtgage is pa id it sh all operate as ,

a d is c h a rge of th e m o rtga ge or in th e n ature of a n a ss ign m en t

of it as m ay best s erve th e p urposes of j ustic e a n d th e j ust in


,

te n t of th e p a rties 5
Many c ases s ta te the rul e in eq uity to .

be th at th e inc um b ra n c e sh all be k e pt on foo t or c on s idere d


ext in guish e d or m erge d ac c o rd in g to th e in te nt or th e in tere st ,

of t he party paying th e m on ey ; but th e decis ions th em selves ,

it i s believe d will gen e rally be fo un d in a cc ord an c e w ith th e


,

p rin cipl e above s ta ted Th e re is another cl ass of cases in


5
.

5
Peltz 0 Clarke, 6 Peters 481 ; Savings Bank 11 McPartlan, 40 Conn
.
, . .

Bacon 0 V an Sc hoonh oven, 1 9 H un 9 0 ; Devin e 0 Harknes s, 11 7 Ills


. . .

(N . 15 8 .1 46 .

5
H ill 0 West, 8 Ohio, 222
. 5
Citing Gardner v As tor 3 Johns .

J J
. .
,

5
R obinson v Lea vitt, 7 N H 99 Ch ( N Y 5 3 ; am es 0 ohnson, 6
) . . . .

J
. .

ohns Oh ( N Y ) 425 ; s c on . . . . . .

5
C iting Marsh v Rice, 1 N H error 2 Cow ( N Y ) 246 ; B um s t . . . . .

J
, .

1 67 Peltz v Clarke, 6 Pete rs 48 1 v D enniston , 5 oh ns Oh ( N Y )


J
. .
,

J
. . . .

Cos ter is re, 2 ohns Oh ( N Y ) 3 5 ; Mills 0 Com stock, 5 oh ns Oh


, . . . . . . .

5 03 ; S ilve r Lake Bank 0 North, 4 ( N Y 21 F P l 3


) 4 ; ree m an v a u
J
.
, . . .

oh n s Oh ( N Y ) 3 70; D ale 0 Greenl ( Me ) 260; Thom pson 0


. . . . . . .

McEvers, 2 Cow ( N Y ) 1 1 8 Chandler, 7 Greenl ( Me ) 3 77 ; B ar


. . . . .

5
Citing Starr 0 Ellis, 6 Johns Ch vey v H urlburt, 3 V t 5 6 1 ; Marshall
. . . . .

( N Y ) 3 9 3 See als o Hastings 11 Ste 0 Wood, 5 V t 260; Lockwood v


. .

K
. . . .

ven s , 29 N H 5 64, 6 73
; New Haven S turdevant, 6 Conn 3 74
. irkham v .
.
22 m s LAW or sus aooa rx
ou .

which paid m oney due upon a m ortgage of l an d


h e wh o h as
to which h e h ad so m e title which m igh t be afi ec ted or de
feated by th e m ortgage an d wh o was thus entitl ed to re dee m , ,

h as the righ t to c o nsider th e m ortg age as s ubsisting in h im


self and to h old th e l an d as if it s ubs iste d un til oth e rs in
, ,

te rested in th e redem ptio n or wh o h eld al so th e righ t to ,

redeem h a ve paid a c ontribution


,
l A nd it m ak es n o d iffe r .

en ce in either of th es e c l as s es as I c on c e ive wh eth e r th e , ,

p arty on pay m en t of th e m o ney took an as signm en t of th e


m ortgage or a rel eas e or wh ethe r a disch a r e was m ad e a n d
g ,

th e ev id en ce of th e debt c an c ell ed 5
Th e debt itself m ay be .

h eld s till to subs ist in h im wh o p aid th e m on ey as ass ign ee ,


‘

so fa r a s it o ugh t to subs ist in th e n a ture of a l ie n upo n t he ,

land an d th e m ortgage be c o nsidered in force for h is be n e fit


, ,

s o fa r as h e o ugh t in j us tice to h old th e l an d un d er it as if ,


” 5
it h ad been a ctua lly as signed to h im .

14 . S ub ro ga ti o n upon R e d e m pti o n fro m a P ri o r I n c a n

b ra n oe . One wh o h as pon a m ortga ge paid th e m on ey d ue u

of lan ds to which h e h ad a title that m igh t h ave been defeated


th ereby h a s th e righ t to h old th e l an d s a s if th e m ortgage
subsis ted a nd h a d been as s igne d to h im un til h e h as rec eive d
5
,

th e am ount d ue upon it from s o m e on e wh o h as th e righ t to


redeem wh eth er h e took a d is ch arge or an assignm en t of
,
5 5

th e m ortgage The m ortgage m ay for h is benefit be c on


.
, ,

side red as still s ub sisting th ough fo rm ally d is ch a rged so far , ,

S m ith, 1 V es Sen 25 8 ; Shrewsbury . . 278 ; B arker11 Parker, 4 .

v Sh rewsbury, l V es Jun 227 23 3 ;


. . .
, 606 ; Wade 0 H oward, 6 Pick (Mass ) . .

C om pton v Oxenden, 2 V es Jun 261 ,


. . . 49 2 .

264 ; Forbes v Moflatt, 1 8 V es 3 8 4 ; 5


Citing Pratt 11 Law, 9 Cranch,
'

. . .

Buckingham shire v H obart, 3 Swanst . . 45 6, 49 8 .

1 86 .
5
Twom bly 11 Cassidy, 8 2 N Y . . .

5
Citing Cas s 0 Martin, 6 N H . 1 6 5 ; Mix v Hotckiss , 1 4 Conn 3 2
. .

J
. .

25 ; S wain v Perine, 5 ohns Oh . . . Manwaring 0 Powell, 40 Mich 3 71 . .

( N .Y ) 48 2 49 1 ;
. C arll v Butm an -
. , Taylor v Heggie, 83 Nor Car 244
. . . .

7 Green] ( Me ) 102 ; Taylor v Bas


. .
5
Arnold 13 Green 1 16 N Y 5 6 6 ; .
, . .

sett, 3 N H 29 4 ; Russell 0 Austin,


. . . Farrell v Le wis 6 6 Conn 280 ; Towle
.
,
.

1 Paige ( N 19 2 . . o H oit 1 4 N H 6 1
. , . . .

5 W
5
Citing Snow 11 Stevens, 15 Mass . . hite 0 Ham pton, 13 Iowa, 26 9
. .
vn cu m s
successx . 23

as he ought
j ustice to h old th e property So an in cum
in .
1

br a n ce r m ay r e d ee m f ro m a p a r a m ou n t ta x t itl e a nd be s a b r o ,

ga te d to i t f o r h is p rotec tion
5
e ven a gain st a p rio r m ortgagee ,

until reim burse d for h is expen ditures A te n ant for life or


5 5
.

for y ears has th e righ t to redeem f rom a m o rtgag e wh ich is


prior to the c re ation of his ten anc y and upon redem ption ,

will be sub rogate d to th e rights of th e m ortgagee agains t th e


m ortga go r a nd th e revers io n er A n d in New J ereey h e w ill
5
.

ha v e th e righ t upo n redem ption to h a ve the bond a n d m o rt


, ,

g g
a e d el iv e r e d t o h i m un ca n c ell ed w h ic h i n eq uity will be ,

eq uiv a l en t to an as s ignm ent of th em to h im self A m ort


5
.

g g
a e e of a l e ase h old es ta te w i ll h a v e th e ri g h t of s ub ro g a t io n

upo n red em ption fro m a prio r in c um b ra n ce 7 But th e ten an t .

can n ot h old th e l an d agains t a p rio r in c um bra n cer by s im ply

pa y in g th e inte rest as it a cc rues ; n or can h e on p ay in g th e ,

debt require a form al assignm ent of th e incum bran ce He


,
5 .

ca n on ly re deem an d th en c la im h is s ub ro gatio n
,
5 A nd he .

m us t pay th e en tire am o unt of an inc um b ra nce w hich is s enio r

to h is own estate with wh ate ver c os ts h ave ac crued ,


10
.

5
Lewis 0 Chittick, 25 Fed Rep . . .
5
Crawford v Carver, 16 Phila 5 3 . . .

1 76 ; Cobb v Dyer, 69 Maine, 494 , 5 Av


erill 11 Taylor, 8 N Y 44 ;

J
. . . .

ohn son 0 Elliot, 26 N . . Loud 0 Lane, 8 Met ( Mas s 5 1 7


. . . .

Hea th v West 26 N . Schis , .


5
Ham ilton 0 Dobbs, 1 9 N J Eq . . . .

sel v D ickson, 1 29 I nd 1 3 9 ; Mc Clain


. . 227 .

v S ullivan, 8 5 In d 1 74 ; Lam b v
. . .
7
Cam pbell 11 McAle vy, 3 Dis ney, .

Ri c h ards, 43 Ills 3 12 . .
( O h io ) 74
, 5 .

5
Windett 11 Union Ins 1 44 . .
5
Magilton o Holbert, 5 2 H un .

U S 68 1 ; Sm ith 11 Roberts , 9 1 N Y
. . . . .
(N .
444 .

470 ; Athens Bank 0 Danforth, 80 .


5
La m son v Drake, 106 Mass 6 64 ; . .

Ga 5 5 Gwinn v S m ith, 6 6 Ga 146 ;


. . . Nelson 0 Lode r, 132 N Y 288 ; Bige~
.
. .

S tige r o Be nt, 11 1 Ills 3 28 ; Pratt 11


. . . low 0 C ass edy, 26 N J Eq 5 5 7
. . . . .

Pratt, 96 Ills 1 8 4 ; Johnson v Payne, 55


O R eilly v Holt, 4 Woods , 0 C
’
. . . . .

11 N ebras ka, 26 9 ; Townsend 0 Case . 645 ; Shutes v Woodard, 5 7 Mich .


.

Th re shing Machine Cc , 3 1 N eb 83 6 . . 21 3 ; U nion Ins Co v Kirc hofl 1 33 . . .


'

Devin v Eagleson, 79 Iowa, 269 ; Stan


.
Ills 36 8 ; Merritt v Hosm er, 1 1 Gray
K
. .

clifi 0 N orton, 1 1 . ans 218 ; S harp .


(Mass ), 276 ; Street 11 Beal, 16 Iowa
K
.
,

v B arker, 1 1
. ans 3 8 1 . . 68 ; Massie 0 Wilson, 16 Iowa 3 90
K
.
,
5
Fiacre v Chapm an, 3 2 N J Eq . . . nowles o Rablin, 20 Iowa, 101 . .

463 .
24 m s LA W or sm oou r
os .

15 . S ub ro ga ti o n of J un i o r I n oum b ran o e r c om pe ll ed t o pa y

3 P ri or C h arge . A
ortgagee wh o h a s been c om pelled in
m
,

order to protect his title to pay th e am o unt d ue upo n a prior ,

m o rtga ge w ill be s ub ro gate d to th e righ ts of th e p rio r m o rt


,

g g
a e e a n d ,
m ay h old th e l a n d for the s um s o p a id by h im

s elf e ven aga in s t one wh o s e titl e to th e prop e rty h a s a c c rue d


1
,

a fter th e d is c h a rge of th e p rio r m o rt age upon th e rec o rd if


g ,

th e wh ol e a m oun t cl aim e d upo n b oth m o rtgag es is n ot grea te r


th an appe ars t o be due by th e rec o rd 5
A n d h e m ay a l s o .

h old for th e pay m ent of the d eb t s ecure d by th e p rior m ort


a
g g e th e p ar tie s w h o w e re pe rs o n a lly l ia bl e th e re fo r 5
If h is .

pay m en t w as m ade to th e auth oriz ed atto rn ey of th e firs t


m o rtga gee a n d th a t a ttorn ey e m be zzl ed th e a m oun t a n d th en
, ,

t ran s fe rre d th e fi rs t m ortgage ove rd ue to a s tran ger yet th e ,

j un ior m o rtga gee will be s ubrogated for h is protec tion to th e


p rior l ien of the first m ortgage wh ich h e h as th us pai d Th e 5
.

pay m ent by a j un ior m ortgagee w ill n ot relieve th e real


debtor f rom h is obl iga tion A m ortga gee wh o purch as es at
5
.
,

th e req uest of th e d ebtor a para m o un t l ie n on th e m ortgaged ,

p rem ises with th e express un derstan d in g th a t it s h all be


,

ta c k e d to th e m o rtg age an d p a id out of th e f un d is en title d ,

to h ave it s o tac k ed to h is m ortg age and p aid out of th e


m ortgaged p re m is es Th e n ec ess a ry expen ses in curred by a
5
.

s ubs eq uen t m ortgagee to red ee m from a p rio r m ortgage wh ich

ough t to h ave been p aid by th e m ortgagor or to rem ove a ,

param oun t right of dower are j ustly ch a rgeable by h im upon ,

th e m o rtgaged es tate 7 A n d if a j un io r in cum b ran ce rta kes up


.

5
Citizens Savings Bank 0 Foster,
’
Ses sions 0 ent, 75 I owa, 601
.
5 . K .

22 Abbott New Case s ( N 425 ; 5


Chandler v Dyer, 3 7 V t 3 45 ,
. . .

Porte r0 V anderlin, 1 46 Penn S t 1 3 8


. 35 4 . . .

H ull 0 Godfrey 3 1 Neb 204


.
5
,Cullum v Mobile Bank, 23 Ala
. . . .

5
D avis 11 Winn, 2 Allen (Mass 79 7
. . .

Miller v Whittier, 3 6 Maine, .

eorgia Chem ical Works 11 C art 6 77 ; Pieroe v Fa1m ce, 63 Maine,


5 G . .

ledge. 77 Ga 647 ; Miller v Aldrich, 3 5 1


. . .

3 1 Mich 408 Mattison 0 Marks, 3 1


. .

Mich 421 . .
suc c essrvn cu m s . 25

a prior incum b rance which was also a l ien upon oth er property
th a n th a t to w hich h e h a d h im self a cl a im h e m ay reso rt to ,

th a t oth e r p roperty an d enfo rc e th e l ien th ereon for h is re im


,

b u rs em en t l
If th e d ebt s ec ured by th e in c um b ran ce whic h h e
.

h as th us pa id bo re a h igh er rate of in te res t th an h is own h e ,

w ill be allowed th e in crease d rate of interest on h is pay m en t 5


,

s ubj ec t to an y l egis l ative ch a nge in th e ra te of in te res t

a llow ed 8
This righ t of a j unior m ortgagee cann ot be defeated
.

by any arran gem ent between th e prior inc um b ran cer a nd th e


m o rtga go r or by a ny a dj ud ica tion of th eir res p e ctive rig h ts
,

to wh ich th e j un ior m o rtgagee w a s n ot a party 5


.

1 6 D uty o f P ri o r t o Jun i r I ou b r
. er In E ngl a n d o n m an o .

a m o rtga gee is re quired to con vey a n d h a n d over th e titl e

d ee ds to any person h aving an in terest in th e equity of re


d e m ption th ough only a partial on e by wh om he is paid
, ,

B ut th e c on vey an ce s h ould b e m a de subj ec t to th e righ t of


re d e m ptio n of all pers o ns wh o h old oth er in te res ts When .

th e pa rty redee m in g h as o n ly c on trac ted to p urc h ase an


in teres t in th e p re m ises the m o rtgagee n ee d n ot c o nvey until ,

th e purch as er h as accepte d th e titl e 5


Th e prio r m o rtgagee .

o ugh t with out j udicial proceed in gs to accept an ofl e r of pay


, ,
’

m en t m ad e to h im by a j un ior in cum brancer an d th ereupon ,

to c o n vey to h im th e m o rtgaged es tate with or with out th e ,

c o n c urren ce of th e m o rtga go r 7 A nd if h e refuses to do s o on .

d em and an d s ub sequently acquires from th e m ortgago r th e


,

e q uity of redem ption wh ich was of suffi cien t val ue to pay th e ,

j unior in cum b ran ce h e will be h im self h eld for th e am ount ,

of th e latter 8
.

5 Peter v . 26 ; Blakely v Twining, 6 9 Wise


S m ith, 5 Cranch, C C . . . .

38 3 23 8
5 od e 0 Fuller, 2 Fli in, C C
.

g D pp .
5
S t 44 46 V ic , 1 5 T eevan . . . . .

603 ; Braden v Graves, 8 5 Ind 9 2 ; v Sm ith, 20 Oh D 724


. . . . . .

Harper 11 Ely 70 Ills 68 1 ; Mosier


.
,
5
Pearce 0 Morris , L R 5 Oh
. . . . .

0 N orton, 8 3 Ills 5 19
. 227 . . .

5
Mem phis Litt le Rock R R 7
S m ith 0 Green, 1 Coll C C . . . . . .

Co 11 Dow, 1 20 U S 28 7
. . 5 5 6 Mc Culloug h v S taver, 11 9 Pen
. . . . .

5
D
avis 0 Ro gers , 28 Iowa, 413 ; St 43 2
. . .

h ost 11 Yonkers Bank, 8 H an (N


.
5
Griswold v Ms rshm an , 2 Oh . .

Gas 1 70 . .
26 m s u w or BUBBOGA I ION '‘
.

17 . Juni or In o um b n n oe rs rig h t or R e d em
'
pti o n . A j unior
in c um b rancer or claim an t h as th e right to redeem from a prior
m o rtg age by pay ing the am oun t wh ic h is d ue accordin g to its

term s as rec ord e d 5


th e fac ts sh ow n by th e rec ord c an n ot be
c o n trad icted to his p rej ud ic e
5
Wh en h e ofi ers to redee m .
,

th e p rior m o rtgagee c an not tac k to h is d em an d an oth er d eb t


due to him fro m the m o rtg agor n ot a c h arge upo n th e ,

prem ises s ought to be redeem ed of w hich th e j unior incum


bran c er was b oun d to take n otice 5
A latent equity of s ub .

rogation can n ot be enforce d a gain s t a s ub seq uen t bon a fid e

p urch aser for value with out n otice E ven a m ortgagee s 5


.
’

righ t of s ub rogation to th e ben e fit of prio r l ien s d isc h a rged

by h im if n ot appea ring of rec ord c ann ot be enforced against


, ,

th os e wh o h a ve tak en in te res ts in rel ian ce upo n the rec o rd 5


,

to an a m o un t grea te r th an th e tota l sum which th e rec ord


sh ows to be due
5
A s again st th e j unior incum b ran cer n o
.
,

n e w term s ca n be in c orporated in to th e p rio r m o rtgage n o ,

new in d ebte d n es s c an be s ecure d by it


7 Thus wh ere th e .
,

parties to the m ortgage stipul ated for th e pay m ent of a


h igh er rate of interes t upon th e m ortga ge d ebt th an w as -

provided for by the te rm s of th e m ortgage as rec o rded it was ,

h eld th at th e ex c e ss of in teres t c ould n ot be m a de a lien


upon th e l an d to th e p rej udice of s ubs eq uent in cum branc ers
‘
,

or of p urch ase rs with out n otice Pay m e n ts m a de by th e


’
.

m o rtgago r upo n th e in d ebte dn ess s ec ured by th e fi rs t m o rt

5
Whittacre v
Fuller, 5 Min 5 08 . Davis 0 Winn , 2 Allen ( Mass ),
. .
5
.

5
Gibbons v H oag, 9 5 Ills 45 ; 1 1 1 . . .

Eagle Be neficial Society s Appeal, 75 7


Trim ble 0 H unter, 104 N or Car
’
. .

K
.

Penn St 226 . 1 29 ; istler v Mosse r, 1 40 Penn S t . .

J
. .
.

5 B urne t v D ennis ton 6 ohns Ch 36 7 . .


, . .

( N Y ) 3 5 L ee 0 S tone , 5 G ill & J .


5
Ga rdn e r v Em e rson , 4 0 I lls .

K
. .
.
, .

( M d ) ;1 . 1 1
:c 0 W ilkins o n , 72 2 9 6 ; P
. e rrin o ellogg , 38 Mi c h . .

Mo 199 . . 720 .

5
R icha rds v Grifi th , 9 2 Calif .
5
Bassett e McDonnel, 1 3 Wise
. . .

493 . 444 ; Burchard 0 Fraser, 23 Mic h . .

5
Wilson a Barker, 60Maine, 447 224. .

Ahem v Freem an, 46 Min ne 1 5 6 ;


. .

Pom ona o Shaefler, 65 Calif 79


'

. . .
suc cm srvs cu m s . 27

g g
a e c a nn ot afterward s be transferred to an other acc oun t to ,

t h e p rej udic e of a sec on d inc um b ran cer by th e m o rtga go r ,

a nd th e firs t m ortgagee
l Wh ere property was s ubj ect to the
.

lien of a j ud gm en t and th en to four success ive m ortgages


, ,

a n d th e h older of th e j ud gm ent a gree d with th e fourth m ort

g g
a ee t o po s tpo n e h is l ien to t h a t of t h e fo urth m o rtg g
a e e ,

a n d th en sold th e p rope rty un d er his j ud gm en t to th e fi rs t

m o rtgagee wh o h ad n o n otice of th is a greem en t it was h eld


, ,

th at th e fi rs t m ortgagee was by his p urc h ase s ub ro gate d to


th e l ien of th e j ud gm en t an d th a t th e fo urth m ortgagee c o uld
,

n ot re d ee m from h im wi th o ut pay in g th e c os t of buyin g in

th e prope rty un d e r th e j udgm e nt as well as th e am oun t wh ich


'

was d ue upo n th e firs t m o rtgage ; a nd th ough th is dec is ion


5

wa s revers ed on a ppeal th e ge neral p rin c ipl e was not doub te d


, ,

but it wa s d ec ided on th e groun d th at th e p urch as er of real


e s tate s old on e x ec utio n a c q uires n o o th er or b etter titl e th a n

would h ave ves ted in th e j udgm en t creditor h ad th e latter -

p urch ased th e property 8 .

18 . W h en J un i o r I n o um b ran o e r e n ti t l e d t o S ub rog a tl o n .

Al th ough a j unio r in cum b ran cer is entitl ed to redeem from a


prio r m o rtgage and alth ough if h e is n ot h im self th e prin
, ,

c ipa l d eb t o r but is c o m pell ed to red eem for th e p ro tec tion of


,

h is ow n l ien up on th e prem ises he w ill upon redem ption be ,

s ub rogate d for h is reim b urs em e nt to th e ri h ts of th e sen io r


g
m o rtgagee d b se c ured by h is own m ort a e is
5
yet if th e e t
, ,
g g
n ot yet d ue or p ay abl e h e c an n ot in sis t u o n h is ri h t to
p , g p y
a

03 th e fi rst m ortgage an d to be sub ro ate d to th e po s itio n of


g
th e prio r m ortgagee w ith o ut sh o win th at th is is n ec es sary for
g ,

5
York County Savings Bank v N J Eq 208 But see Sim s 11 Les . . . . . .

Roberts, 70 Maine , 3 8 4 ; Hayden v ter, 5 5 Ga 6 20 . . .

Auburn Prison, 1 Sandf ( N Y ) 195 5


Frost 11 Yonkers Bank, 8 H un
. . . .

Marvin v V edder, 6 Cow ( N Y ) ( N


.
26 . . . . .

671 ; Warner v Blakem an, 3 6 Barb .


5
Frost 11 Yonk ers Bank, 70 N Y
J
. .
. .

( N Y.
) 5 01 ;
. Gardne r v am es , 7 65 3 Posted , .39 . .

R I 3 96 ; Bowm an 0 Master 3 3
. .
5
M a, .
12 15 ,
-
.

N H 5 30; Large 11 Van Doren, 14


. .
.
28 rn s L AW or sum ou x
on .

h is protection or for th e preservation of h is own security


own .

S ub rogation in equity p roc ee ds upon th e gro un d th at it is


n ecess a ry fo r th e p ro te c tio n of th e p a rty wh o s ee k s it 5
an d

th is will be th e c a se wh en it is nec es s a ry for h im in o rd e r ,

to get th e ben efit of h is own s ec urity to d ise n ga ge th e p rop ,

e rty from th e p re vious in c um b ra nc e If his own m ortgage .

is pay able a nd h e c an n o t get h is p ay m ent with out c l ea ring


,

a w ay th e p re v io us inc um b ra n c e o r if th e p rio r m ortg agee is


5
,

h im se lf see king to forec lose th en h e m ay righ tfully ins ist ,

upon red e e m ing a n d upo n b ein g s ub rog ate d to th e righ ts of

th e p rio r m ortga ge e 5
Afte r a de c ree for th e forec l os ure of
.

a p rior m o rtga ge h as bee n re n d e red in pro c ee d ings to wh ich

th e j un ior in c um b ra n c e r w as a p a rty the l atte r c a nn ot th en ,

c l a im a d ec ree of sub ro gation or p re ve n t th e s a l e of th e ,

p rem is es un less h e c an sh o w th at th e p ay m en t of th e prio r


,

m o rtga ge or its en f orc em e n t by fo rec l os ure a n d sa l e would

work h im a n inj ustice ; h is a ppl ication com es too l ate ; as 5

m ere j uni o r m o rtga gee h is righ ts a re s uffi c ien tly prote cte d ,

by th e opportun ity to purch ase at th e sale or to pay 03 th e ,

p rior incum b ran ce before th e s al e 5


.

19 . S ub ro ga t i o n of o n e a d v a n c i ng M o n e y fo r t h e P a y m en t

of an In o um b ra n oe Wh ere a pe rs on a dva n ces


. o ney to pay m

011 a m o rtga ge d eb t fin der a n a g reem e n t with


-
th e o wn er of
th e eq uity of red e m ption or h is rep re sen tative th at h e s h a ll
h old th e m o rtgage as s ec urity for h is a dva n c e b ut th e m ort ,

g g
a e in,s te a d of b e in g as s i ne d to him
g is d is c h arge d in wh ol e ,

or in pa rt h e is yet e ntitl ed as a ga in st s ub s equen t p a rt ies in


,

interes t to be s ub rogate d to th e righ ts of th e m o rtgage e a n d


to en fo rce th e m o rtgage ; th ough if h e wa s not in te n de d to
5
,

5
Antea , 4 5
Bloom ingdale
B arnard, 7 H un o .

K K
.

5
elly 11 Longs hore , 78 A111 203 .
( N 4 5 9 ; etc h um v C ripp ,
en .

J
. . .

5
Jenkins 0 Continental Ins Cc ,
. . . 3 7 Calif 223 ; Sea rles 0 ac ksonville
. .

1 2 How Pr ( N Y ) 66 . R R . 2 Woods, C C 621 Se e .

J
. . . . . . .

5
Searles 11 Jacksonville R R Co ,
. . . . Wyckolf v Noyes, 36 N Eq 227
. . .

2 Woods, 0 C 6 21 See also Ge n .


5
Co ttrell v Finney, L R 9 Oh . . .

K
. . .

ris h o Bragg, 5 6 V t 3 29
. Phelps v . . 641 ; ing a McVickar, 3 Sandf Oh . . .

Pope, 63 Iowa, 691 .


( N Y )
. 1 9 2 ; D e
.tr oit Ins Co 11 A s . . .
succ e ss xvn c u m s . 29

h a ve th e ben efit form er security for th e debt which h e


of th e
pay e or wh ich h is gran to r h as pa id or if th e s ub rogation is
l
,
2
,

n ot n ec es sary for h is p ro tection or if h e rel ied up on a forge d


8
,

‘ r if th e a ree m n t h a d bee n th a h o ld
m o rtga ge o , g e t e s h u d e

p end upon a new sec urity wh ich was giv en to h im h e c ould ,

n ot be s ub rogated to th e c h a rge wh ich h ad th us bee n pa i


gi ]
A n d wh ere a c red itor h a ving ta ke n on e x ec utio n h is d ebtor s
’
,

l a nd s wh ich we re s ubj ec t to a pre vio us m ortgage s ubseq uently


, ,

p a id o ff t h e m o rt a
g g e w it h m o n ey w h ic h h e bo rrowed for th at

purpo se of a stranger to wh om h e ga ve th e refor a new m ort ,

g g
a e u p o n th e sa m e l a n d a n d a f te r w a rd s h is l e vy p rove d to
,

b e d efe ctive a nd th e n e w m ortga ge w as acco rd in gly in val id


,

a s suc h th e n e w m o rtgage e wa s h eld as agains t th e d eb tor s


’

, ,

g r a n te e to b,e s ub r o g a te d t o th e r igh ts o f t h e p rio r in c um

b ra nc e r th e p ay m ent h a vi n g b ee n neces s a ry to avoid a fore


,

c lo s ure of th e first m o rtg age Th e s a m e p rinc ipl e w as a ppl ied


6
.

in E nglan d in a cas e in w h ic h th e pla in tifi h eld a j un io r ch a rge


u p on th e c om pan y s p rope rty A s ch e m e of a rra ngem ent was
’
.

c on firm e d by th e c o urt by w h ic h th e com p a ny w as auth o riz e d ,

to is sue ce rta in d ebenture A an d d ebe nture B stock De b en .

t ure A s toc k w as to be a ppl ie d fi rs t in p ay m e n t of th e m o rt , ,

g g
a e d e be n t u re s of th e c o m p a n y a n d o f c e rt a in c o s ts th e , ,

s to c k a ppl ied for thes e p urp oses b e in p r f r r d v r th


g e e e o e e

p ina ll ,48 Mic h 23 8 ; ohnson v J Car 1 5 1 Contra Everston 0 Ce ntral


K
. . . . .
.

B a rrett, 1 17 Ind 5 5 1 ; Le vy v Mar . . Bank 3 3 ans 3 5 2


, .

J
.

tin, 48 Wisc 1 9 8 ; D o wner v Miller,


. .
5
one s v Lockard 8 9 Ala 5 75 .
,
.

1 5 Wis c 61 2 ; Mo rgan v H a m m ett,


. .
Fry 0 H am ner, 5 0 Ala 5 2 ; Loew en
. .
.

23 Wis c 3 0; Lock wood v Mars h, 3 .


tbal o Mc Corm ic k 1 01 I lls 1 43 ;
.
, .

N evada, 13 8 ; Fea rs v Albea , 69 Tex . . S m all 0 S tagg 9 5 Ills 3 9 ; Wo rm er


.
,
.

43 7 ; Foc ko v Weirsheehe r, 5 5 Tex . . 0 Wate rloo Agricultural Work s, 62


.

33 . Contra in Tennessee in the case I owa, 69 9 ; Wats on 0 Wilcox , 3 9


J
.

o f a m arried wom an Owens v ohn . . Wis e 6 43 ; Gage 0 Ward 9 5 Maine,


. .
,

son 8 Baxter, 265


, . 101 ; Wooldridge 0 Scott, 69 Mo . .

1
Mead s Appeal, 46 Conn 417
’
. 6 69 ; Cohn v H olfm an, 5 0 Ark . .

Jeflries 0 Allen, 29 So Car 5 01


'

.
. . . 1 08 .

S pratt v Pierson, 4 So Car 3 01


. . . . Payne 0 Hathaway, 3 V t 21 2 .
. .

Edinburg Mortgage Co v Lath So in Clnte v Em m erich, 26 H un


K
. . .

um 8 8 I nd 8 8
, . .
( N 1
. 0 ; aiser v Le m beck, 5 5 .

Byerly v H um phrey, 65 Nor . . Iowa, 244 .


30 THE L AW or S U BR OG ATION .

resi ue d of th e stock which res idue was to be appl ied in pay ,

ing un paid ve n do rs of l an d De ben ture B stoc k w as to be .

applied in pay in g off d e ben tures of th e com pa ny w h ich were

n ot sec ured by m o rtgage an d in m ee tin g o th e r debts The , .

n et in com e of the c om p a ny wa s to b e a pplie d to fi r t


p y
a s , ,

i nteres t on p refe rred deben ture A s toc k ; se c ond inte re s t on ,

th e res id ue of th at s toc k ; th ird interest on deben ture B ,

stoc k ; a n d l as tly s uch d iv id en d s as m igh t be payable to


, ,

s toc k h old e rs Th e pl a in tiff co nten d ed th at h e wa s n ot boun d


.

by the sch em e a nd th a t h e h ad a ch arge on th e in c om e p rio r


,

to th e h olde rs of th e A a n d B s toc k s on th e groun d th at th e ,

o rigina l priority of fo rm er m ortgagees an d unpaid vendors of


l an d wh o h ad acce pted pay m ent in th ese n ew stock s h ad been
, .

lost by th e ex tin guish m en t of their o riginal sec urities B ut .

it was h eld th a t th o ugh h e was n ot b oun d by th e s ch em e yet ,

as it did n ot l es s en h is righ ts s o n eith er d id it in c rea s e th e m ; ,

th at h e was n ot the refo re en titl ed to suc h p riority as h e


, ,

c la im ed ; but th at th e n et in c o m e m ust in th e fi rs t place to , ,

an a m ount eq ua l to th e s um s due upo n l ien s which h a d bee n

prio r to th e pl ain tiff s be appl ied ac cord in g to th e s c hem e l


’
, .

S o th e le n de r of m o ney bo rro wed by a c o rp oration u ltra vi reo


m ay be s ubroga te d to th e righ ts of l a wf ul c red ito rs of th e

c om pa ny w h o h a ve b een p a id out of s uch m oney a n d a ll o w e d ,

to re c over f rom th e c om pa ny to th e ex te nt of th e l awf ul


liab ilities so p aid off For th e prevention of f raud a p ers on
2
.
,

wh o a d va n ces m o n ey to pay o ff a m ortgage b el ie v in g th at it ,

w as th e only l ien upon th e l a nd m ay b e s ub ro gated to th e ,

l ien of th at m ortgage as aga inst a surety wh o h as paid a


8
,

Building Soc iety 0 Cnnlifl, 22 Oh D


'
1Stevens Mid H an ts Ra ilway
0 .
-
. . .

L R 8 Oh 1 06 4
. . S o in Cam p
. . 61 Wenlock 0 River Dec 19 Q .
.

hell 0 Texas R R
. 2 Woods C C . . . B D 1 5 5 , and 10 App Gas 3 5 4 ;
. . . .

26 3 ; Ba rry v Missouri, K & T R R


. . . . . R ains burg B orough v Fyan, 127 .

3 4 Fed Re p 8 29 ; H ollis ter v


. . . Penn St 74 . . .

Stewart, 1 1 1 N Y 644 ; H um phreys


. . Ed wards 0 Davenport, 20 Fed . .

0 Allen , 1 0
. 0 Ills 5 1 1 . . Rep 75 6 ; White v N ewhall 6 8 Mich
. .
,
.

B rooks Blackburn B uilding 6 41 ; C hafie 0 Patterson. 6 1 Miss . .

Society, 9 App Gas 8 5 7 ; Blac kburn


. . 28 .
vn cu m s
succ m sr . 31

j udgm en t wh ich was a lien subsequent to th e m ortgage and


, ,

th e pay m en t of w h ich appea re d by th e rec o rd to h a v e bee n


oth e rwi se p rov id e d for One wh o h ad paid off a m ortgage
1
.

d ebt un der th e m istaken belief th at the title to th e lan d w as


i n h is w ife wh ile it re a lly b elo n ge d to h er d augh te r by a
,

p r e v i o us m a rria g e w as a llow e d a ga in s t th e d,
a ug h te r a c h a rg e

u po n th e l a n d to reim b urs e him for th is p ay m en t


2
but n ot ,

for im p rovem ents wh ich h e h ad m ad e upon th e la nd 3 B ut .

a h us b a n d wh o bein g s ued with h is wife for h e r d eb t con


,

t rac te d before m arria ge an d sec fi re d by a m o rtgage up on h e r ,

l and all ows h im self after h er death to be defaulted in th e


,

s uit an d p ay s th e debt on e x e c utio n und e r th e m is ta k en ‘


,

s uppo s iti o n th at h e c a n c l a im th e am oun t of h er estate at


law with o ut tak in g an a s s ign m ent of th e m o rtgage c a nn ot
, ,

b e s ub rogate d to th e righ ts of th e m ortgagee for h is re im


b ursem ent ; for h e paid th e d ebt n ot to prote ct an im agin ary ,

e s ta te in h im s elf or h is wife b ut un der a m is ta k en bel ief of ,

h is legal l iab ility th erefor I


5
Th ough a m ere volun teer cannot .

by pay ing ofi a m ortga ge ac quire an eq uitabl e l ien or any


righ t of s ub roga tion yet if h e a dv a nc es th e m oney to redeem ,

o r pay off a m ortgage at th e req ues t of on e wh o is inte res te d

o r bo un d to d is c h a rge it h e m ay be p rote cted a ainst suc h


g ,

p e rs o n by s ub ro ga tio n 6
A th i rd p a rty w h o a t th e
. in s ta nce , ,

o f th e m o rtga gor p ay s a p a rt of th e m ort a e— d b t b u t t k


,g g e a es ,

n o as s ig n m en t of th e m ort a e is n ot th ereby s ub ro ated to


g g g ,

t h e righ ts of th e m o rtgagee as a gainst a sub sequent in c um


b rancer ; to efl ect s uc h a s ub rogation th e re m ust be s o m e
'

Green 0 . Millbank 3 Abbott New ,


5
Warren Jenn1son, 6 Gray v .

Gas ( N Y 1 3 8
. .An d see Burchard
. .
M
( ass 5 5 9 ; and see Peters 11 Flor
. .

a Philli s , 1 1 Pai e ( N 66 ence, 3 8 Penn St 1 94


.
p g . . . . .

Haggerty v McCanna, 10 C E .
. . Gans v Thiem e 9 3 N Y 225 ;
.
, . .

Green ( 25 N J Eq 48 . .
. Robertson 0 Mowell, 66 Md 5 30 . .

Haggerty o McCanna , m pra . Mcwilliam s v Bones, 84 Ga 203 , . .

Gnckian 11 Riley 1 3 5 Mass 71 ,


.
, White v Newhall 68 Mich 6 41 ; Ya
J K
. . .
,

O Brien 0 oyce, 1 1 7 Mass 360


’
.
. .
ple o Ste p
.hen s , 36 an s 6 8 0 , To] .

Warren 0 William s, 10 Cash . . m an 11 S m ith, 85 Calif 280; Fievel 11 . .

( Mass ) 79 . a e r, 67 Tex 275 . .


32 THE LA W or soaaoou r
ox .

th in g o re th an a m ere pay m en t of th e m oney and its silent


m ,

rec eipt by th e firs t m o rtga gee


1 n or will h e be s ub rogate d to

th e ben e fit of th e m ortga ge as aga in st oth ers wh o a re s ec ured


th e reby by h is h av in g furn ish ed th e d eb to r w ith th e m e ans to
,

m a ke a partia l pa y m en t of th e m o rtga ge d eb t e ve n th ough


’ -
,

h e h olds th e a greem e nt of th e m ortgagor th at h e sh all be pro


te c te d by th e m o rtgage 8
Th e m ortga go r s agree m en t c a n not
’
.

prej ud ice th e m o rtga gees th ough it would bind th e m ortgagor ,

h im self ‘
.

20
. W h e re N e w I n c um b ra n oo giv e n for o ld Wh ere a n ew

m ortgage is given for th e s am e debt wh ich was secured by a


p rio r m ortgage wh ich is th ere upon disch arged the e x ec ution
, ,

of th e n ew an d th e s atisfac tion of th e old m ortgage h a ve


been treated as s im ultaneous and de pen dent ac ts ; and if the
n ew m o rtg age is inv a l id its h old er h as bee n sub ro ga te d to ,

th e l ieu of th e old m ortgage ls


But if th e ne w m o rtgage .

c ove rs al s o a n add ition al in d eb ted n es s th is sub roga tion c a n ,

protec t only wh at rem a ins d ue upo n the old m ortga ge de bt 6 -


.

Th e s am e rule is a pplied wh e re th e ne w an d d e fective m ort


g g
a e i s g iv e n to one wh o at th e req ues t of th e d e b to r a dv an c es

th e m on ey to pay off th e p rio r in c um bran c e th e tran eaetion ,

bein g treated in eq uity as an assignm ent of th e old m ortgage


to th e n ew m o rtgagee 7 A fortiori if th e old m ortgage is t e .
,

Com m onwealth v Chesapeake


1 . Ponder v Ritzinger, 1 02 Ind 5 71 ;
. .

O h i o C a na l 3 2 M d 5 01 ; C ollins . Gerwig v S hetterly, 64 Barb (N Y )


. . . .

11 Adam s 5 3 V t 43 3 ; Greer v C hes . 620 ; C hristie 11 H ale 46 l lls 1 1 7 ; . . .

K
. .
,

ter, 7 H um ph ( Tenn ) 77 im ble v Esworthy, 6 Ills Ap 5 1 7 ;


. . .

J
.
.

3
B issell 0 Lewis , 5 6 Iowa, 23 1 ;
.
ones v Parker, 5 1 W ise 21 8 ; C rip
. .

Bockes v H athorn, 20 H un ( N in 11 Chappel, 3 5 K ans 49 5 D illon


. .
p . .

5 03 .
v Byrne , 5 C alif 45 5 ; Birrell
.
Sc hie .
,

Child v N Y N E . 9 Calif 104 ; H azleton o Les ure , 9


. .

K
. . . .

1 29 Mas s 1 70 . . Allen ( Mas s ) 24 ; alsc heuer v ,


.

Cam e ron v Tom e, 64 Md 5 07 U pton, 43 N W Rep 8 1 6 . . . .

J
. .

H aven 0 Grand unction R R


. . . Carr v Caldwell 10 Calif 3 8 0;
.
,
.

109 Mas s 8 8 . .
Birrell v S c hie ,. s u ra
p , D illon v .

Milholland v Tiflany, 64 Md Byrne, 5 Calif 45 5


'
5

K
. . .
.

45 5 Donohue v Daniel, 5 8 Md 5 9 5 ; . .
7 Swift raem er 1 3 Calif 5 26 ; ,
.

Lockwood v Bassett, 49 Mich 5 47 ;


.
. Carr v Caldwell, 10 Calif 8 80; H 0
. .
success w s cu m s . 33

ta in ed un d is ch a rge d a n d a n ew m ortgage tak en to sec ure both


th e d e bt an d th e n ew ad vanc es or if the old m o rtgage is
old
1
,

c o n te m poran eous ly w ith th e p ay m ent ass ign e d by th e m o rt

n e wh o a dv an ces th e m on ey to pay h im
2
g g
a ee to t h e o th is ,

w ill n ot operate a d is ch a rge of th e form e r s ec urity 3


Th e .

auth ority of th e C a lifornia d ec is io n s c ite d a bove h as h ow ,

e ve r been s om e wh a t sh ak e n as to interven in g l ien s of th ird


, ,

pers ons by a later case in th e s am e State an d el se wh ere it


,
4

h a s b een h eld th at a m ortgage on ce un de rstan d in gly an d in


te n tion ally d is c h a rged c a nn ot afte rwa rd s be rein s tated to th e
p rej udic e of oth er claim ants or in c um bra nce rs an d th at5

w h ere a m ortgage h a s bee n d isc h a rged a n d its s atisfac tion


ac k n owl ed ge d a n d a n ew s ec urity tak e n upon th e s a m e lan d
,

for th e s am e d ebt th e l ien of th e old m ortga ge is gone on ce ,

for all a nd th e n e w sec urity m ust be pos tpone d to s uch in


,
~

c um b ran c es a s are p rior to itself th o ugh j un io r to th e old ,

m o rt gage
6
Th e old se curity cea ses to h av e a ny v al id ity upon
.

th e ta k in g of a n e w s ec urity as a s ub stitute th erefo r 7 If th e .

m m opath c I ns Co v Ma rs hall, 3 2
i . . . Gerrish v B ragg, 5 5 V t 3 29 ;
5 . .

N J Eq 103 ; Tyrell 11
. ard. 102
. . W S t Albans Trust Cc v Farrar 5 3 V t
. . .
,
.

Ills 29. 5 42 ; H olt 0 Baker, 5 8 N H 276 ;


J
. . . .

Tenison v Sweeney 1 ones .


, Wes tfall v Hintze , 7 Abbott N ew .

La Touc he , I rish Eq 710; H ill v . . Cas ( N Y ) 23 6 ; Woollen m Hillen


. . .
,

Bee be, 1 3 N Y 5 5 6 . . . 9 Gill ( Md ) , 1 8 5 ; Stearns v God .

5
White o Knapp, S Paige . frey 16 Ma ine, 1 5 8 ; Hinchm an v
, .

1 73 . Em ans, 1 N J Eq 100 ; Barnett v . . . .

5 Dm
ry v B riscoe. 42 Md 1 5 4 ; . . Griffith, 27 N J Eq 201 ; Mather . . .

Christian 0 Newberry 61 Mo 446 .


, . . v Jens wold, 72 Iowa , 5 5 0; W as hing
.

Guy 11 D 11 U prey 1 6 Calif 1 9 5 ;


.
, . ton County v Slaughter, 5 4 Iowa, .

Ding m an v Ra ndall, 13 Calif 5 1 2 . 265 Iowa County v Foster, 49 I owa,


K
. . .

5
Tracy 11 Lincoln 145 Mass 3 5 7 ; , . 6 76 ; itchell v Mudgett, 3 7 Mic h . .

H obbs v H arvey 16 Ma ine, 8 0; Fidel


.
, 8 2 ; S m ith v B ynum , 9 2 N or Car . . .

ity I ns Cc v S henandoah V alley R R


. . . . . 108 ; Mc Keen v H as eltine , 46 Minn . .

Cc , 8 6 V a 1 ; Gibbes 0 Greenville 8:
. . . 426 ; D aly v Proetz, 20 Min 411 ; . .

Co lum bia R R Co , 1 5 8 0 Car 224 ; . . . . . H echtm an 0 S harp, 3 McArthur .

Banta v Ga rm o, 1 Sandi Oh ( N Y )
. . . . .
(D . 90 .

3 8 3 ; Frazee v Iualee, 1 Green (2 N J . . .


5
Wynne , in re, Chase s Dec 227
’
.

Eq ) 239 ; N eidig v Whiteford, 29


. . Am es v New Orleans R R . 2 . .

Md 1 78 ; Weidner 0 Thom pson, 69 Woods C C 206 ; Morris 0 W hite, .

J
. . . .

Iowa, 36 . 36 N Eq 324 ; Gaskill 0 Wales ,


. . .

8
4 TH E LAW or S UBROG ATION .

new securit y is tak en for the


xp res s purpose of gaining an
e

adv an ta ge wh ich c o uld n ot h a ve be e n e njoy e d un d e r th e fi rst ,

th e fi rs t wil l l ik e w is e be e x tin guish ed ; as wh e re a c re d ito r


wh o h eld a no te secured by a m o rtgage upon a stoc k of good s ,

bein g told by th e debtor th at h e h ad a num be r of n otes


c o m in g due w h ich h e c o uld n ot pay d el ive re d up h is n ote an d ,

m o rtga ge a n d took a n e w n o te s ec ure d by a n e w m ort a e


, g g
upon th e s to ck as alte red a nd a dd ed to by l abo r sal es an d , ,

purch ases an d it was h eld th a t h e could n ot upon th e a void


, ,

a nce of h is n ew m o rt ga ge be s ub roga te d to th e lie n of h is


,

form er s e curity B ut if an inte rven ing incum b rance we re


l .

c reate d w ith out th e k n o wl ed ge of th e ben efic ia ry th e rein j ust

p rior to th e ex ecution of th e n ew m ortgage w ith th e fraudu ,

lent inte ntion of givin g it priority over th e l atter it woul d ,

n ot be allow ed a p refe ren ce o ve r s uch n e w m ortga ge


” A nd .

if a first m ortga gee h a s a c c e pted a n ew m o rtgage a n d surren


d ered h is prio r sec urity for c an cella tion in ignoranc e of th e
ex is ten c e of an inte rven ing l ie n e q uity w ill upo n his p ro m pt , ,

a ppl ic ation a n d in th e a b se n c e of l ac h es or o th e r d isq ual ify ing

facts restore h im to h is origin a l po s ition If a m o rtga ge


8
,
‘
.

h as n ot been fo rm ally d is ch a rge d but th e m o rtga gor h as oh ,

ta in ed fro m th e m o rtgagee posses s ion of it a nd of th e n ote


which it secures by m eans of a fraudul en t p reten ce of pay
,

m en t th e m o rtgagee m ay ye t forec lo s e th e sam e bo th a ga in s t


, ,

th e m o rtgago r h im self an d a l s o again st th ose wh o h a ve

Id 5 27 ; Wagners Appeal, 9 8 Penn Keller 0 H annah, 5 2 Mich 5 3 5 ;


5
’
. . . .

St 77 ; Calm es v McCrac ken, 8 S o


. . . Sledge v Obenchain , 5 8 Miss 6 70; . .

Car 87 Anglade v St Avit, 67 Mo


. . . . Yo ung 11 Sharer, 73 Iowa, 5 5 5 Clark
.

43 4 . v B ulla rd
. 66 Iowa 747 ; Bruse v , , .

1
Paine v Waite, 11 Gray ( Mass );
. N elson 3 5 I owa , 1 5 7 Cam pbe ll 0
, .

190 Trotte r, 1 00 Ills 28 1 ; H utc hinson .

Eggem an o Eggem an, 3 7 Mich


. . v S warts weller, 3 1 N J Eq
. 205 ; . .

436 ; Waldo v Ric hm ond, 40 Mich


. . McKenzie v McK enzie, 5 2 V t 271 ; . .

3 8 0 ; Short 0 Currier, 1 5 3 Mass 1 8 2 Stafiord v Ballou, 1 7 V t 329 ; Lam


'

. . . . .

5
Childs v Stoddard, 1 30 Mass
. . bert v Leland, 2 Sweeny ( N
. 218 ;
1 10; Seym our 0 Mackay, 1 26 I lls
. . Wright v Wa1ter McArthur & Mackey .
,

3 41 ; D utton v McReynolds, 3 1 .
(D .3 43 ; W ooster v Cav ender, 5 4 .

Ark 1 5 3 . .
vs cu m s
succm sx . 85

q
ac uire d rights un er d himin ign o ran ce of th e apparent s at
isfac tion .
l
A fo rm al reco rd d is ch a rge of a m o rtgage im prov

iden tly by th e adm in istrato r of th e m o rtgagee , with o ut


m ad e

th e kn owl edge of th e m ortgago r an d with out co ns id eratio n,


w ill n ot n ecess arily d isch arge th e m ortgage, no oth er righ ts
h a ving inte rvened o rtgagee or oth er lien c redito r wh o ?
A m

h as been in d uce d to surrende r h is security by th e m ere fraud


of h is d ebtor m ay in equity h ave it reinstated and en force d
,

a s if n o s uch s urren d er h a d b een m a d e ; but inn oc ent th ird


5

p a rtie s w h o h av e af te r s uc h s urrender and before th e re viv al


,

of the in c um b rance parted with their m oney upon th e faith ,

of the a pparen t surren d er w ill n ot be prej ud ice d by th e re ,

vival
5
. Th e sam e rul e will be a ppl ied for the p rotec tion of
th e as s ign ee of a m ortgage wh ich before th e rec o rdin g of th e ,

as s ign m ent h as by m is ta k e m ere ly bee n d is ch a rged of rec o rd


,

by th e o rigin al m ortgagee ; an d if in tervening incum brancers


5
,

h a ving c o m e in with out n otic e of h is righ ts are en title d to ,

p rio rity ov er him h e m ay upo n p ay in g th e m be sub rogate d to


,

th eir righ ts 5
Wh ere a m o rtgagor m ad e a s ubseq uen t eq uita
.

ble ch a rge upo n h is eq uity of redem ption and then req ues ted ,

5
Grim es ball 8 Allen v. Ki m , 708 ; Farm ers Ins Co a Germ an
’
. . .

( M a ss ), 1 5 3 And see R ob inso n v. . I ns .


79 Ky 5 9 8 ; Sidener 11 . .

Sa m pson , 23 Maine, 3 8 8 Trenton Pavey 77 Ind 241 ; Fouch 0 Wilson,


J
.
, .

Ba nk ing Co v Woodrufl, 2 N
'

. Eq . . . 60 Ind 64 ; Rand v Barrett, 66 Iowa,


. .

1 1 7 ; Mallett v Page , 8 Ind 3 64 . . . 73 1 ; K nit 0 Ensign 6 1 Iowa 724 ;


.
, ,
5
Hay v Wash ington Alex R R
. . . . Ellis v Lindley, 3 7 Iow a 3 3 4 ; Geib
.
,

4 H ughes C C 3 27, and 1 I d 168 ; v Re nolds 3 5 Minn 3 3 1


. . . .
y ; Aldrich v
, . .

H am m ond v Barker, 61 N H 5 3 ; . . . Willis 5 5 Calif 8 1


, . .

Bond v D ors ey, 65 Md 3 10; Moore


. .
5
H eyder v Excelsior B uilding As .

v B ond, 75 N or Car 243 ; Fer uson soc iation 42 N J E


g q 403 ; Gaskill
. . .
, . . .

11 Glass ford 68 Mic h 3 6 ; Hanlou v 0 Wa les 3 6 N J E 27 H a m er s


’
.
, . . .
q
, 5 . . .

D oherty, 109 Ind 3 7 ; Liggett v . . Appea l 9 4 Penn St 48 9 ; Cha rlesto n


, . .

Him le 3 8 Minn 421


, . . 11 R an , 22 8 0 Ca r 3 3 9 ; Bea] 11
.
y . .
.
.

5S hort 0 C urrier, 15 3 Mass 1 8 2 ;


. . Stevens , 72 Ca lif 45 1 ; Edwards 0 . .

Cla rk 0 McN eal, 1 14 N Y 28 7 ;


.
,
. . Thom , 25 Fla 222 ; Morris 0 Beec her. .

S tove r 11 W ood, 26 N J Eq 41 7
. . . . 1 Nor Dak 130; V annice v Bergen,
. . .

Callahan s Appeal, 124 Penn St 1 3 8 ; 1 6 Iowa, 5 5 5


’
. . .

Crum lish 0 Ra ilroad 32 W V a


.
5
Willcox 0 Foster, 1 3 2 Mass 320 . . . . .

244 ; Fre nc h 11 De Bow, 3 8 Mich 5


Clark 0 Mckin, 95 N Y 3 46
. . . . . .
36 1 1111 LAW or SUBB OG ATION .

th e d efend ant , wh o h ad no n otice of th e ch a rge , to pay ofi th e


m ortga ge wh ich was done a nd a receipt was indo rsed upon
, ,

th e m o rtga ge an d th e titl e d eed s we re h an d ed ove r to th e


,
-

defend an t and th e m o rtgago r th e n gave to th e defen d ant a


,

n ew m o rtga ge to s ec ure b oth th e a m oun t h e h a d th us p a id to

th e p rio r m ortgagee a n d al s o a n ew a dvan ce m ade by h im s e lf


to th e m o rtgago r it w a s h eld th at the d e fen d a nt s s ub seq ue n t
’
,

m o rtga ge h a d p rio rity ove r th e eq uit abl e ch a r e b ut on ly to


g ,

th e e x te n t of th e p rior m o rtgage wh ich h e h a d p aid ofi 1


a nd

ev en th is l im ita tio n h as s inc e been d is a pp roved 5


.

21 . H o l d e r un d e r 11 Ju d g m en t Li en s u b ro ga t e d upo n pa y in g
P ri or I n c um b ra n oe j ud gm e nt c red itor l e vied h is
. Wh ere a -

e x ec utio n up on l a n d th e wh ol e of w h ich was s ubj ec t to a ,

p rior m ortgage a nd th e d ebtor w as entitl ed as a gain st th e


, ,

j udgm ent c red itor to h old p a rt of th e lan d a s a h om es te ad


-

, ,

a n d h a d th e s a m e s e t 08 to h im self a n d afte rw a rd s th e c re d ,

itor w as obl iged to pay off th e wh ol e m o rtga ge wh ic h w a s ,

s up erio r to th e h o m es tead e s tate it was h eld th at th e c red ito r ,

was s ub rogated by h is pay m e nt to all th e righ ts of th e m o rt


n d m ight e n fo rc e a ga in s t th e h o m e stea d e s tate th e
g g
a e e a ,

c on trib ution of its p roport io n a l sh a re of th e m ortga ge d e bt


5 -
.

On e wh o le vie s a n e xe c ution upo n a n eq uity of red e m ption ,

a n d th e n p ay s off th e m ortga ges to w h ich h is l e vy was s ubj ec t ,

b ecom es by s uch paym ent the eq uitabl e a s sig nee of th e m o rt


a e s a n d is s ub ro ga te d to a ll th e righ ts of th e m ortga gee s
g g ,

in th e m o rtgaged p re m ises 5
S o wh e re th e purch as e r of a n .

1
Pease L R 3 Oh
v . J ackson, . . .
5 Lam b 3 45 ;
11 . Mason , 5 0 Vt .

5 76 So in Ho well 0 B ush, 5 4 Mis s


.
'
. D evere ux o Fairbanks , 5 0 V t 700
. . .

43 7 Cansler v Sallis , I d 446 . . .


5
Warren 11 Warren, 30 V t 5 3 0 ; . .

5
H osking v S m ith, 1 3 Ap Cas . . . Majury v Putnam , 4 . ane s Ah
’
D .

M ifl
'

5 82 ove rruling on th is q ues tion Pease ( as s ) T a ny 11 K ent, 2

J v
.
,

11 . ac ks on s upra and R obinson v ,


. Gratt ( Va 231 ; H am m ond Leav
Trevor, 12 Q B D 423 So, also,
. . . . itt, 5 9 Iowa, 407 ; Lane 11 H allum , 3 8 .

S angster v Cochran , 28 Oh D 29 8 ;
. . . Ark 3 8 5 ; Eldridge 0 Wright, 5 5
. .

Carlisle Banking Co v Thom pson , 28 . . Calif 5 3 1 . .

Oh D 3 9 8 ; Fourth C ity B uilding


. .

Society 0 William s, 14 Ch D 140


. . . .
succmssw u cu m s . 87

q
e uit y of redem ption at a s ale th ere of on execution against ,

th e m ortgagor paid 06 th e m ortgage a nd h ad it d isc h a rged


, ,

an d th en on p ay m e nt of th e a m o un t for w h ich h e h a d pur


,

ch as e d a t th e e x e c ution sa l e re l ease d to th e m o rtgagor a ll th e ,

righ t h e h ad ac quired und er th e s a le it was h eld th a t h e c o uld ,

af te rw a rd s rec ove r fro m th e m o rtga gor th e a m ount w h ich h e

h a d th us paid upon th e m ortga ge 1


On e wh o h a d p urch a s ed .
,

un de r a n ex ec ution aga ins t th e d e visee th ereof l a n d wh ic h ,

h ad been d evised s ubj ec t to a ch a rge for a l egacy w as allowed ,

in equity upon th e l egacy be in g afte rwa rd s c h a rge d upon th e


,

la n d to rec over th e am oun t of th e lega cy from th e d ev isee


,
’ .

B ut the c red itor will not be all owe d to use h is righ t of s ubro
g a tion fo r an y o th e r pu rpo s e th a n to ob ta in r e im b urs e m en t
for wh at h e h as pa id upon th e prio r incum b ra n c e 5
.

22 . W h e re I n c um b e re d L a n d s s o l d un d e r a Juni o r H en .

W h en th e q y
ption in m ortgaged lan ds is sold
e uit of re em d
un d er a j ud gm en t or a j un io r m ortga ge w h ic h c on s titute s

m e re ly a s ubo rd in ate l ien upo n th e p re m ises a nd th e sa le h as ,

been co ns um m ated s o th at n o right to red eem th erefrom re


m a ins in th e form er ow ner th e p urc h ase r at s uc h sa le is ,

p r es u m e d t o h a v e bid o n ly to th e v a l ue of th e e quity of re

d em p tion ; a nd th e l and wh ich h e h as th us p urch as ed be


5

c o m e s in eq uity th e p rim a ry fun d for th e p ay m e nt of th e

p r io r in c um b ran c e
5 S uc h a p urch a ser c an n o t upo n
.
pay in g ,

a n d taking an as s ign m en t of th e p rior m o rtga ge c oll ect th e ,

d eb t secure d th ereby out of th e m o rtgago r s o the r p rope rty ; 5 ’

5
Gleason o . Dyke , 22 Pick .
(Mas s ) 5 3 ; V anscoyoc v Kin11er, 77 I lls . .

3 90 . 1 5 1 ; Roberts v H ughes, 8 1 Ills 1 3 0;


. .

5
Harris 0. Fly, 7 Paige (N . V aughn v 01ark, 5 Nebras ka , 23 8
. .

4 21 .
5
Weaver Barb
o Toogood 1
K
. .
,

Lyons Appeal 61 Penn St 1 5 ( N Y ) 23 8 Carpenter v oons, 20


’
5 .

J
, . . . .

Den m an v ayne, 1 6 Abbott Pr N 8


. . . . Penn S t 222 ; Robins v Swain, 6 8
. . .

( N . 3 17 Ba ile y v W ar ner, 2 8 . Ills 19 7 ; Ha nge r 0 State, 27 Ark


. . .

V t 87
. Mallory 11 Dauber, 83 Ky . . 66 7 S turges 11 Taylor, 1 5 La Ann . . .

239 ; White 0 Butler, 1 3 Ills 109 . 285 .

K
. .

5
rueger v Ferry, 41 N J Eq . . . .
5
McKinstry 0 Curtis , 1 0 Paige .

43 2 ; Dauchy v Bennett, 7 How Pr . . .


( N . 5 03 ; D ollar Savings B a n k
( N Y ) 3 75 .
; Dod ds v S nyder , 4 4 1113 . . 11 B urns , 8 7 Penn St 491 ; C oole s
.
y
’
. .
88 run LAW or sm oou l os
'
.

th e prior incum brance is disch arged by his pay m ent to the ,

e x te nt of the va lue of th e p rope rty ; on th e c o n trary if pay


5
,

m en t of th e m ortgage debt is th e n enfo rced by its h old e r from

oth er property of the m ortgagor th e latte r will be s ubrogated ,

to the m o rtgagee s lie n upon th e l and th at h e m ay in dem n ify


’
,

h im self out of th e m o rtgage d prem ises as h e will be it upon


5
,

h is pay m ent h e ta k es an exp ress as signm en t of th e m o rtga ge


which he h as gi ven A nd s uch a purch as er h as no equity to re
5 .

q uire th e m o rtgagee to a pply to th e s atisfa ction of his dem a nd


pers ona l p rope rty wh ich is als o em brace d in h is m o rtgage 5
.

B ut th e rule is d ifl eren t befo re th e c on s um m atio n of th e sale ,

whil e th e j un io r inc um b rance rem ains m erely a subo rd inate


l ien upon th e prem lse s ; th en th e owner of the equity if h e ,

wish es to p rese rve h is esta te m ust redee m it from all th e ,

in cum b ran ces to wh ic h it is s ubj ect 5


an d th e j unio r in c um

bra n cer m ay pay ofi th e d eb t s ecured by th e p rior lien an d ,

e n forc e it again s t the p roperty B ut th ere is n o pe rs on al


5
.

ch a rge upon such a p urch aser of th e eq uity of redem ption : if

h e tak es a n a ssign m ent of th e prior m o rt ga ge and forec loses ,

it an d sel ls th e pro perty for less th an the am ount of th e de bt


,

s ec ured th ereby h e c a n th en m a in ta in an a ction for th e ba l


,

a n c e of th e d ebt a ga in s t th e m ortgago r ; th ough the l an d h as

becom e th e prim ary fun d for th e pay m en t of th e debt yet th e ,

o riginal d ebtor rem ains liable for wh at th e land fails to pay 5 .

A n d th e o rigin al debto r w ill h ave n o defence to an a c tion a t


law by th e fi rs t m o rtgagee a gains t hi m to c oll ect the in d eb ted
n ess secure d by th e m o rtgage a lth ough an o th e r c re d ito r h a s ,

l
Appea , 1 G ran t P a C a t ,4 0 1 ; S
. c . B ar k e r
h 9 P ar k e5r , 4 P ic k (.M as s ) .

m an s 0 H a rvey. 5 2 Ind 3 3 1
.
. 5 05 . .

5
Boo e k r 0 A n de rs on , .3 5 Ill s 6 6 5
L o ve
.
la ce v W eb b , 62 A 1 11 27 1.
; .

W a ddl e o C u re to n, . 2 S p ea r s ( S o D ir k s v H u m .bi rd , 5 4 M . d 3 99 . .

Ca ), 5
n 3 .
5
R og e r s v M e y e rs , 6 8 I ll s . 92 . .

5
H art 0 C has e 4 6
. C on n ,
2 0 7 5
So
.
u th w o rth v S co fi e ld , 5 1 N Y . . .

Funk v M c R e y.n old s , 3 3 I lls 4 8 1 ; 5 1 3 .


.

Cox 0 W .h ee le r, 7 P ai g (
e N 2 48 ; .
5
S ou t h w o rt h 0 8 0 0 6 6 111. cc p m . .

Tice o Annin, 2 ohn Ch ( N Y )


. J . . . .

1 25 .
successxvs c u m s . 89

levied on quity of redem ption ; h e cann ot co m pel th e


h is e

p u r c h as e r a t th e e x ec u tio n s al e to red ee m f ro m th e p rio r

m o rtgage ; h e m us t h im self wh ere th e law gives him the ,

p ow e r to do ao r e d e em bo
, th f r o m th e p rio r m o rtgage an d

from the ex ec ution s ale or l ose th e l an d S o one wh o le vies


,
5
.
,

upo n part of a n e q uity of redem ptio n an d th en pay s off an d ,

ta k es a n ass ign m en t of th e m o rtgages to wh ich h is levy was


s ubj ec t b eco m es th ereby en titl ed to th e righ ts of th e m ort
,

g g
a e es in th e w h ol e of th e p r e m ises
5
W he re m ortgage d .

la n d w as suc ce ssively attac h ed by t wo differen t c redito rs of


th e m o rtg agor an d th e firs t attac h in g c re d ito r h avin g oh
, ,

ta in ed j ud g m ent l e vie d on th e e q uity of red em ption an d sold


, ,

it on h is e xec utio n subj ect to th e m o rtga ge an d then th e ,

m o rtga ge e rel eased a nd q uitc l a im e d h is righ t in th e lan d t o

th e m ortga go r it was h eld th at th e o rigina l m o rtgago r bec a m e


,

th ereupon in veste d as to th e l an d w ith th e ch aracte r of a


m o rtgagee an d th at a d eed of re leas e a n d q uitc l a im iv n by
, g e

h im to th e p urch aser of th e eq uity of re dem ption at th e e xe


cution s ale ves te d th e w h ol e titl e to th e l a n d in th e l atte r to

th e ex cl usion of th e sec on d attac h in g c red ito r 5 .

23 S ub rog a ti n f n A u lgn i n B k rupt c y


. o o a A ss igneesee an .

i n ba nk ruptc y will upo n red eem ing pl edges m ade by th e


,

b a nkrupt be s ub rogated to th e righ ts o f the pl ed gees until


, ,

th e fun d for general d istrib ution is m ad e o d f ro th


g o m e p r o

oce da of th e pl ed ges red eem ed 5


If th e p rope rty of a b an k .

rup t was s ubj ec t bo th to attac h m e nts an d to s ub seq uen t l e vies


,

it h as been s a id th at th e diss ol ution of the atta ch m en ts by th e


b an k ruptc y proc eed ings w ill n ot a dva nc e th e l evies but th e ,

as s ig nee will be s ub ro ated to th e p riority of th e d is s olve d


g
a ttac h m en ts 5
th ou h this p ropo s itio n is n eith er self e vid en t
g, -

5 Ro gers 0 Meyers. 68 Ills 9 2


. 5 B ulla rd v
Hinckley, 5 Grcanl
. . . .

5
Tichout v H arm on, 2 Aik ( Vt ) ( Me ) 272
. . . . .

37 Wheeler 11 Wi llard, 44 V t 640 ;


.
5
1l c v Cadwalader, 15 N B . . . .

P
Tuttle 11 B rown, 1 4 ick ( Mas s ) R 3 8 3 ; Longfellow, in re, 1 7 Id 27
. . . . .

5 14 .
5
Matter of Klancke, 4 Benedict,
40 THE L AW or S UBROG ATION .

n or un iversa lly adm itted A nd if a c reditor of th e bank rupt .


5

h old in g s ec urity for th e pay m e n t of h is d ebt p roves it as an


un s ecure d de m a n d a nd th e re by waives h is sec urity th is w ill
, ,

n ot e xtin guis h th e sec urity for th e bene fit of o th er pa rties

c l a im in g th e p rope rty s ubj e c t to th e ri h ts of th e c redi to r


g ,

but pa ra m o un t to th e titl e of th e ass igne e ; but th e as sig n ee


will for th e be ne fit of th e ge n eral f un d be s ub ro ate d to th e
, g ,

s ec u rity th us wa ived by th e c re d itor 5


B ut it is on ly th e .

as s ign ee wh o w ill b e th us s ub ro a te d ; a j un io r c l a im an t of
g
th e sec urity th us w a ived w ill acq uire n o a d va n ta ge by th e
w a iver 5
A j un ior l ien th ough val id again st th e a ss ignee
.
, ,

w ill n ot be advanced by th e as s ignee s a vo id a nc e of th e ’

p rior l ien If th e secured c red itor p ro ves h is wh ole c l aim


5
.

a ga ins t th e b a n k rupt s es tate an d th us d im in is h e s th e d ivi


’
,

den d of th e ge n e ra l c red itors th ey or th e ass ign ee as their , ,

rep res e n ta tive w ill be s ub roga ted to h is rig h ts un der h is


,

s e c urity a n d a llow ed to en forc e th e s am e a gain s t th o s e wh o s e

righ ts were s ubj ec t to h is 5


A cred itor wh o h as p roved h is .

d em a n d a gain s t th e ba nk rupt estate of on e wh o was un d e r


a sub s id ia ry l iab il ity for th e d eb t th o ugh e n titl ed to rec eiv e ,

h is d ividen d m ay yet be c o m pell e d by th e ass ig n ee eith er to


,

p roc ee d h im self a t law again st th e ultim ate debtor or to a llow ,

th e as s ignee to do s o in h is n a m e 5
.

24 . S ub ro ga ti o n of a M o rt g a go r a g a i n s t 11 P u rc h a s e r of th e

E q ui t y w h o h as a ss um e d th e M o rt ga g e . W h ere th e purch as er
of an eq uity of rede m ption wh o h as agreed w ith th e m o rtga gor
to as s um e a nd pay th e m ortg age d ebt fa il s to do -

,
so , th e m ort

3 26 ; S te el e, 7 B
inis s ell, 5
re, 04 ; 5 07 ; W alla c e v C o nr ad , 3 N B R . . . .

s. c .16 N B R . 105 ; Nelson, 41


. . .

is re, 1 6 N B R . 31 2 . .
5
C oo k 0 . F a rr i ng t o n , 1 0 4 M ass . .

5 See the o inion of the court in 212


p .

Gran t Lym a ,
11 . n 4 M e t ( M ass ) 47 0.
5
B e i
.
se n th al, i s re.
, 1 4 B latc hfo rd ,

47 ;
4 H u ll, £11 r e , 1 4 B la tc h fo rd , C C C C 1 4 6 . . . . .

25 7 ; s c 1 8
. . N B R 1 ; B .ea dle, .
5 Tfia er
y ,. J , in W a lla ce m Co nr ad , .

in re 2 Sawyer, C C 3 5 1 .

J
. .
,

5
Hiscock v ayco , x 1
. 2 N B R 5
B a b coc k ,
in r e , 3 .
S to r.y, .
3 9 3 .
succu sl va cu m s . 41

a r
g g , o lf com pelled to pay it will be sub rogate d
if h e is h im se ,

to th e righ ts of th e m o rtgagee agains t th e m o rtgaged prem ises ,

a n d m ay en fo rce th e m ortga ge upo n th em or h e m ay look to


5
,

t h e pers on a l res pon s ibility of th e p urc h aser ev en th o ugh th e


2
,

p u rc h as e r h a s s in c e s old th e p rope rty 5


f or as b e t we e n th e ,

m o rtgag o r an d suc h a p urch as e r fro m h im th e d ebt res ts ,

u pon th e l atter ; a n d wh ere on e p ers on pays a d ebt for

a n oth er bein g l e ga lly obl ige d to pay it or h a vi n g a n in te res t


, ,

in pay ing it h e is s ub ro ga te d to all th e righ ts of th e c red ito r


,

w h om h e h as p ai d 5
So acc o rdin g to th e gen erally rec eived
.
,

d oc trin e th e m ortgagee m ay h im s elf en force th e pe rform ance


,

o f s uc h a n agree m ent by th e purc h as er If th e m ortgagor in


5
.

s uc h a c ase upo n m ak in g th e pay m en t , ob tain s from th e ,

m o rtg agee a d eed of rel e as e of th e es tate h e w ill eve n at , ,

la w be regard ed as the a ss ign ee of th e m o rtgage


,
5
Where .

a m o rtgagee agree d with a m o rtgago r to lo ok s ole ly to th e

m o rtgage d p re m is es for th e pay m en t of h is d eb t a n d to h old ,

th e m ortgage b on d m erely a s evide n ce of th e d eb t b ut in


-

vio lation of h is agree m en t took j ud gm en t on a w a rran t of

a tto rn ey whic h a c c o m pa n ied th e bo n d a n d c oll ecte d th e wh ol e ,

a m o un t of th e d ebt fro m th e m o rtgago r pers o n al ly th e m o rt ,

5
Ki nnaird v
Trollope , 3 9 Oh D . . . 224 ; Taintorv H em m ingway, 1 8 H un .

6 3 6 ; Kinnea r v Lowell, 3 4 Maine, .


(N . 45 8 ; orr v Pete rs , 3 Ed D .

299 ; Dean 11 T0ppin, 1 30 Mass 5 1 7 ; . . wards Oh (N Y ) 13 2 ; Bolles v


. . . .

Marsh 0 Pike, 10 Paige ( N


. 5 95 ; . Beac h, 22 N J Law, 6 80 ; Taylor v . . .

Mc Lean v Towle , 3 Sandf Oh (N . . . . Preston, 79 Pe nn St 43 6 ; Whithed . .

Y ) 11 7
. Still m an v S tillm an, 21 .
v Pills bury, 13 N B R 241
. . . . .

N J Eq 126 ; Morris 0 Oakford, 9


. . . .
5
Reed 0 Paul, 1 3 1 Mas s 1 29 ; . .

Pe nn St 498 ; Baker 11 Terrell, 8


. . . Lowry v S m ith 9 7 Ind 46 6
.
, . .

M in n 1 9 5 ; Flagg v Geltm ac her, 9 8


. .
5
C urry 11 H ale, 1 5 W V a 8 67 ; . . .

Ills 29 3 ; Wright 11 Briggs, 99 Ind


. . . Com stoc k v rohan, 71 N Y . 9; D . .

5 6 3 ; Ris k v Hof m an, 6 9 Ind 1 3 7. . Ferris 11 Craw ford, 2 enio ( N Y )


. D . .

Baldwin v Thom pson, 6 La 474 . . . 5 95 Flagg o Thurber, 14 Barb 19 6 . .

5
Locke H om er, 13 1 Mass 9 3 ; . Orrick D
urha m , 79 Mo 1 74 ; Be .

Furnas v Durgin, 1 19 Mass 5 00 ;


. .
g ein o B .re h m 1 23 Ind 1 60; Jos , .

B ra m an v Dowse, 1 2 Cns h ( Mas s )


. . selyn Edwards, 5 7 1nd 212 ; Bald .

227 ; Pike 0 Brown, 7 Cus h (Mass ) . . win 0 Tho m pson, 6 La 474


. . .

1 3 3 ; Fiske o McGregory, 34 N H . . .
5
P oste 85 d
K
, .

414 ; Bassett 11 Bradley, 48 Conn . .


5
innea r v Lowell, 34 Maine, 299 . .
42 m s u w or SUBBOGATION .

g g
a r w as , ao
s again s t a secon d m ortga gee from a la ter owner
of th e prem is es , subrogated ortga gee to th e righ ts of the first m

in th e m o rtgaged prem ises 5


If a p urc h aser from th e m ort .

g g
a o r h as a g ree d to as s um e a n d p ya th e m ortgage d ebt s uch -

purc h ase r a nd th e o rigin al m ortgagor s tan d to eac h oth er in


th e rel a tio n of prin c ipal and s ure ty ; th e la tte r is qua si s ure ty
for th e form e r for th e paym en t of th e m o rtga ge d ebt 5 T he -

rule is th e sa m e if th e p ay m ent ins tea d of be in g m a de by the ,

m ortga gor pe rs o n a lly is re a lized from th e p rocee ds of c ol ,

late ral sec urity de pos ite d by h im w ith the m ortga gee 5 or
by ,

th e le vy of e x ec ution up on o th er p ro pe rty of th e m o rtga gor 5


.

Ea ch s uc cess ive purch aser of the p rem ises wh o as s um es the


p a y m e n t of th e m o rt a e bec om es in his t urn th e pa rty ul ti
g g
m ately l ia bl e to be a r th e b urden of th e d eb t a n d h is pa y m e nt
5
,

will e xtin guish th e d ebt but s uc h a purc h ase r s gra ntee


5 ’

with w a rranty wh o h as n ot ass um ed th e m o rtgage a n d did


,

not kn ow of its exi stence is n ot s ubj ect to th e sam e e quity as ,

th e origin al p urch as e r 7 .

§ 25 R i g h t o
. f “w a g s
a i ns t H o m e n d u c h a t a s

P ur h as e r c Wh en a purc h as er of m ortgag ed p re m ises h as


.

ass um ed th e pa ym ent of th e m ortgage d eb t th e m o rtga go r ca n ,

n ot re q ui re th e c re d ito r to forec l os e but m us t h im se lf if th e , ,

c re d ito r s o re quire s pay h is d e bt a cc ord in g to h is a gree m e nt , .

5 Conrad 11
. 11015 3 011, 24 N J Eq
H olland, 5 0 N H 43 3 ; Cor . . . radt 11 . . .

he tt v Walerm an, 1 1 Iowa, 8 7 . .

5
U nion Ins Co v Hanfoul, 1 43 5
Ferris 11 C rawfo rd 2 Denio ( N
. . . .
,
.

U S 1 8 7 ; s c 27 Fed Rep 5 8 8 ;
. . . 5 9 5 ; B re wer v S ta ples, 3 Sa ndi
. . . . .

Francisco 0 Shelton, 85 V a 779 ; ( Oh N Y ) 5 79


.

J
. . . . .

Paine v ones , 76 N Y 274 ; s c


.
5
Woodbury o Swan, 5 8 N H. . . . . . .

1 4 H un ( N 5 77 ; Ca lvo v Da v
. 3 80 . .

1435 73 N Y 211 ; s c 8 H on ( N
, . .
5
George o Andre ws , 6 0 M d 26 ;
. . . . .

222 Ma rs hall 5 Davies 78 Youn g 0 H a wkins 74 A11 3 70 .


.

K
, .
,

N Y 414, reversing a c 16 H un, nox 11 McCain , 13 Il e a fl e nn ) 1 9 7


‘
. . . .
, . .

606 ; Bentley 0 V ande rheyden , 35 Mc Lean v Towle , 3 San di Oh ( N


. . . .

N Y 6 77 Aym 5 Dixon, 78 N Y Y ) 1 1 7 Wood 0 S m ith, 5 1 Io wa ,


. . . . . . .

3 18 ; Cornell v Prescott, 2 Barb 1 5 6 . . .

( N Y ) 16 ; F g 11 Thurber, 1 4
. la .
5
S hinn v Fre deric ks , 5 6 1113 439
.
. . .

Ba rb ( N Y ) 19 6 ; Blyer v Monbol
. . .
5
Bock v Gallag her, 1 14 Mas s 28 . . . .

land, 2 Sa ndi Oh ( N Y ) 478 ; B oys . . . .


suoom sm a cu m s. 43

He proceed again st the l and and th e purch aser


th en
’

m ay

th e reof for his indem nity H e can al s o procee d in equity to .


,

c om pel the purc h aser as to wh o m h e stan d s in th e pos ition ,

of a m ere s ure ty to pay the d ebt for h is protection B ut the 5


,
.

m o rtga gee m ay if h e c h oos e rely upon th e pe rson al lia bility


, ,

of h is debtor his righ ts are not affec ted by th e agreem ent


5

betwee n th e m ortgagor an d the purch a ser ; for th e principal


5

d ebtor can n ot a cquire the rights of a s urety against the


c red ito r w ith o ut th e l atter s c o n sen t Th e m o rtgagee is not
5 ’
.

bo un d to l ook afte r or to prote c t th e m ortgaged p rem ises ;


a n d if h e fi n ally fo rec los es th e m o rtga ge th e m ortgag or i s ,

e ntitle d to c red it on ly for th e net p roc ee d s rea l ized th e refrom ,

a nd rem ain s l iable for any defic ie n cy T he m ortgag ee can


5 .

e n force for h is pay m en t bo th th e pe rs on a l l iabil ity of th e

m o rtgagor an d th e sec urity of th e m o rtga ge d p roperty ;


5
,

eq uity will n ot unl ess fo r s pecia l rea s o n s c o m pel h im to elec t


, ,

between h is rem ed ies The m ortgago r w ould h ave been pro


7 .

tec ted in p ay m en t of th e d ebt by h is righ t of s ub roga tion to


th e m o rtgage w h ich as be tween him s elf an d h is gra ntee
, , ,

w o uld n ot be extinguis h ed by be ing trans ferre d to h im 8


B ut .

h e cann ot be s ub ro gate d to th e m o rtgage l ien ag ains t his

5
R ubens v Prindle, 44 Barb Pasheller, 4 Clark Fin 207, and 10
. . v
. .

( N .Y ) 3 3 6 S
. ee Re s or v M c.Ke n Bligh, N s 5 48 , which, however, was . . .

zie , 2 Dis ney ( Ohio), 210 said in h ire 0 R edm a n, s upra , to

J
. .

5
am es 0 Day, 3 7 Iowa , 164 ; . have been dec ided on the ground that
Gillm ann 11 Henry 5 3 Wisc 465
. the c reditor was a party to the new ar
, . .

5 S he herd 11 Ma
p y , 1 1 5 U S 5 05 range m ent
. See Overend 0 Oriental . . . .

Meyer 0 Lathrop 10 H un (N
. Financial Corporation, L R 7 H o
, .
,
. . .

6 6 ; Waters 0 H ubbard, 44 Conn Lds 3 48


. . . .

3 40 .
5
Marshall Davies , 78 N Y 414 ; . .

5
S wire v Redm an , 1 Q B D s c 5 8 How Pr ( N Y ) 23 1
. . . . . . . . . . .

5 3 6 ; Boardm an v La rrabee, 5 1 Conn Boyce 0 H unt, 1 9 La Ann 449


. . . . . .

3 9 ; Gay v Blanchard 32 La Ann


.
5
Mico n v Ashurst, 5 5 Ala 6 07
,
. . . . .

49 7 The contrary is held in I reland See Wadsworth v Lyons, 9 3 N Y


. . . .

( M a in g y
a 11 Le wis , I r Es p
. 5 Com 20 1 ; W ils on v B ryant, 1 3
. 4 Mass 29 1 . . . . .

Law, 229 overruling s c 3 Id


,
5
Ely v S tannard, 44 Conn 5 28 ;
. . . . .

and New York ( Millard v Thorn, 5 6 Welton v Hull 5 0 Mo 296 Sm ith v . . , . .

N Y 402 ; Colgrove v Tallm a n, 6 7 Osterm eyer, 6 8 I nd 43 2 ; Stillm an v


. . . . .

N Y
. . on the authority of Oak ely S tillm an, 21 N J Eq 1 26 . . . .
44 THE LAW or sm ooi n on .

gran tee , un ti ortgagee h as been fully pa id And if the


l th e m .
5

m o rtgago r h a s him s elf ta k en a seco n d m o rtgage from h is


g ra n tee an d h a s,th e n ass ig n e d th is for v a l u e t o th e fi rs t m o rt

g g
a e e wh o,took i t w it h o u t a n y k n owl e d g e of th e a ss u m p tio n

of the first m ortgage by th at grantee th e origin al m o rtgagor ,

will n ot upon pay ing th e firs t m o rtgag e acq uire any righ ts by
s ub rogatio n p rio r to th e l ie n of th e sec o n d m o rtgage in th e

h a nd s of th e firs t m o rtga gee Th e o rigin al m o rtgago r s s ub


’
.

rogation in s uch a case w ill be only a gains t h is g ra n tee w h o

h ad a ss um ed th e first m ortgage 5 .

26 . S ub ro ga ti o n of th e M o rt g a go r a gai ns t 111. G ra n t e e s ub

ic ot t o th e M o rt gag e o rtg g
a e .d p re m iA convey an ce of
s e s m

by th e m ortga gor s ubject in term s to th e incum b ra nce th ough


, ,

th e pay m en t of th is is n ot as s um ed by th e g ra n tee will m ak e ,

th e m ortga ged prem ises as be twee n th e m o rtgago r a n d th e ,

g r a n tee th e p ri
,
m a ry f un d for th e p ay m e n t of t h e m o r t a
g g e

de bt A n d if th e m o rtgagee with n otic e of th e facts releas es


5 .

th e l an d afte r s uch a c o n vey a nc e h e th ereby rel eas es th e ,

liab ility of th e m o rtgagor A sec ond m ortgagee wh o h as


5
.

tak en a c o n v eyan ce of th e eq uity of re d em ptio n in term s s ub

j ec t t o th e p ay m ent of th e m o rtgage s c a nn o t a fte r p ay in g 03 ,

th e n ote s s ec ure d by th e fi rst m ortgage m ain ta in a ny a c tio n ,

upon th em again st th e d eb to rs th e reo n


5
h is purch as e of th e
m ortga ge e x tin g uish es it an d th e d eb t it s ec ures Th e l a n d
5
.

is th e p rim a ry fun d for th e p ay m en t of th e m ortgage d eb t in -

th e h an d s of a m ere a ssignee of th e eq uity of red em ptio n or 7


,

a p urc h as er th ereof wh o h a s reta ined th e a m o unt of th e debt

5
Massie 11 . Wilson , 1 7 Io
wa, 1 3 1 . 43 0; Colby 11 . Place, 1 1 Nebraska,
5
Kn oblauc h v . Foglesong, 3 8 Minn . 3 48 .

45 9 Townsend Savings Bank 0 Mun 5


.

J
.

5 S weetzer v ones , 3 5 V t 3 1 7 son, 47 Conn 3 90


. . . .

H opkins 0 W olley, 8 1 N Y 77 , 5 V iles v Moulton, 1 1 V t 470 .

J
. . . . .

B rewer v S taples, 3 Sandi Oh (N Y )


.
5
S pee r v Whitefield, 10 N .Eq . . . . .

5 79 ; Ste vens 11 Church, 41 Conn 107 Crowley v Ham der, 6 9 Iowa, 8 3


. . . .

3 69 ; Townsend 11 W a rd , 27 Conn Shefly s Appeal, 9 7 Penn St


5 ’ ’
. . . .

6 10; Scheppelm an v Fuerth, 8 7 Mo 3 17 . . .

3 5 1 ; H utchinson v Wells , 67 Iowa, .


successw s cu m s . 45

out of
purch as e m oney If th e m ortgagor is afterwa rd s
h is -
.
5

ob l ige d to pay th e d ebt h e will be s ub rogate d to th e l ien of ,

t h e m o rtgage for h is in dem n ity 5


but th e re w ill be n o pers o n a l
l ia bil ity upon th e gran tee for its paym en t ; th e ris k of the
5

l a tter is l im i ted to the esta te in h is h an ds S uch a purch a ser


5
.

c a n n ot upo n p ay in g off th e m o rtga ge d eb t h a ve th e m ortgage


,
-

as s ign ed to h im se lf a n d av ail h im self of it again s t h is g ra n to r , ,

t h e origin a l m o rtgagor un l e ss for s pec ial re a s o n s


5 5
A c on , .

v eya nc e of th e m o rtga ge d p rem ises m a d e to the m o rtga gee ,

b y th e m o rtgago r s gra n tee wh o h a d ass um ed the m o rtga ge


’
, ,

w ill Ope rate a m erge r of th e m ortgage a n d a p ay m en t of th e


d eb t s ec ure d th e reby s o th at n o ac tio n c an be m a intain e d
5
,

t h e reo n aga ins t th e m o rtga gor 8


But if th e gra n tor h as .

w a rran te d aga in st th e m o rtgage or if it wa s a g reed between ,

t h e gran tee an d th e gran tor th at th e m ortga ge d ebt sh ould -

b e paid by th e gran tor th e o rigin al debto r th en th e gra ntee , , ,

5
Powell, 40 Mich
Manwaring 0 . . v. Stoner 104 Ills 6 18 ; Rourke v
,
. .

3 71 ; An dre ws 0 Ifiske, 101 Mas s . . Colton, 4 I lls App 25 7 ; Ri tc hie v . . .

422 ; D rury v Trem ont Im provem ent . Mc Duflie, 6 2 Iowa, 46 ; Cleveland 0 .

C o , 1 3 Allen ( Mas s ), 1 68 ; Murray


. Southard, 25 Wise 479 ; H all 0 Mor . .

0 Marshall, 94 N Y 61 1 ; Harris 0 79 M 4 7 P t ton v Ad k ins,


.
g m o ; a .

K
. .
.
, .

Jex, 66 Barb ( N Y ) 23 2 ; osten . . . 42 Ark 19 7 Contra , Canfield v Shear,


. . .

bader v S potts, 80 Penn St 430; . . . 49 Mich 3 1 3 . .

D rury v H olden, 1 21 Ills 1 30 . . .


5
Fiske v Tolm an, 1 24 Mass 25 4 ; . .

5
Moore s Appeal, 88 Penn St
’
. . Taylor v Mayer, 93 Penn St 42 ; . . .

45 0; Herm ann v Fanning, 15 1 Mas s . . H ubbard 0 Ensig n, 46 Conn 5 76 . .

1 ; Greenwell 11 H eritage, 71 Mo . . Stebbi11s v H all, 29 Barb . 5 24 , .

45 9 ; Gerdine v Menag e , 41 Minn 41 7; . . Ba um ga rdner v Allen, 6 Munf ( Va ) . .

W eeks 0 Ga rvey, 5 6 N Y Supe r Ct . . . 43 9 ; Tichenor v odd, 3 Green . D


J J J
. .

557 ohnson v Zink, 5 2 Barb (N Y ) . . . .


( 4 N . 45 4 ; o hn s on v M on ell, .

3 9 6 ; s c afi rm ed on appeal, 5 1
. . 13 Iowa 300 ,
.

N Y 333
. . .
5
Atherton v Toney 43 I nd 211 ; .
, .

5
Middaugh v Bac helder, 33 Fed . . Eaton v George 2 N H 3 00 Bier 11
.
,
. . .

R ep 706 ; Sm ith 0 Co rnell, 1 1 1 N Y


. . . . Sm ith, 25 W V a 8 3 0 . . .

5 5 4 ; Bennett 0 Bates, 94 N Y 3 5 4 . . .
5 A in
s Carte r v H olahan, 9 2 N Y . . .

N orthern D is pensary v Merriam , 5 9 49 8


K
. .

H ow Pr ( N Y ) 226 ; Tillotson v
. . . . .
5
Lynch 0 irby 3 6 Mich 23 8 .
,
. .

Boyd, 4 Saudi ( N Y ) 5 16 ; Girard . . .


5
ickason v W illiam s 1 29 Mass
D .
, .

Ins Co 0 Stewart, 8 6 Penn St 89 ; 1 82 ; Buckley s Appeal, 48 Penn St


’
. . . . . . .

Randall v B radley, 65 Maine, 43 ; . 49 1 .

Laurence v Towle, 5 9 N H 28 ; Rapp . . .


46 TH E LAW OF sum om n on.

if o bliged to pay th e inc um b ran ce m ay set it up agai nst , his


g ran to r 5
, an d th e gran tor s p a y m
’
en t will n ot en titl e h i m to
su r b ogation agains t th e g ran te e .
5

27 . R i gh t. of Cc -
m o rtga ge e s a gai n s t e a c h o t h e r. Wh ere a
th ird o rtgage was held by th ree one of wh om also h eld th e
m ,

first and sec o n d m ortgages an d th e latter began to fo reclose ,

the first m ortgage as h e h a d a righ t to do th e o th er two we re


8
, ,

allow ed agains t h im to redee m fro m th e fi rst and sec o n d


m o rtga ge s w ith th e priv il ege if h e refus ed to c on tribute to
, ,

th e red em ption of h old ing th e prem ises a gain st h im un til h e


,

sh o uld c o n trib ute his s h a re b eing s ub ro gated by th eir red em p ,

tio n to the s am e righ ts a gain s t h im wh ich be fo re re dem ption


h e h eld again s t th em 5
If a m ortgago r h as a d em an d aga in st
.

th e m ortgagee wh ich h e h a s a righ t to s et off aga in st th e


,

n otes s ec ured by th e m ortga ge a n d th es e n o tes a re in th e ,

h a nd s of d ifferent a ss ignees the s et oif sh o uld d im in ish th e ,


-

a m o un t to be paid to eac h a ss igne e ra tably ; a n d if on e of


5

th em h as ex tinguish ed th e set ofi a n d th e m o rtga ged estate is -

n ot suffic ien t to pay all its p ro c e ed s sh ould be so d is trib ute d ,

th at all sh all c o n trib ute ratably to th e e xtin guish m ent of the


s et ofi an d rec e ive ra tabl e sh ares of th e s urpl us
-
6
.
.

28 . S ub ro ga t l o n of t h e P urc h as e r o f an E q ui ty of R e d em p

t io n on h is pa y m ent of a P ri o r I n ou m b ra n o e . Th e purc h a s ers


of a n equity of redem ption w h ic h was s ubj ect to th e in c um ,

b rance of four different l iens th e pay m ent of wh ich th ey did ,

n ot a s s um e h av ing p aid off th e fi rs t two ch a rges a n d a po rtion


,

of th e th ird were h eld to be s ub rogated by th e ir pay m en ts to


,

th e righ ts of th e c red itors und er th eir re spe c tive l ien s to th e ,

5
Estabrook v S m ith, 6 Grey Saunders v Frost, 5 Pick (Mass )
.
5 . . .

( M ass ), 5 7 2 ; W olbe rt 11 L ucas 10 25 9


K
.
, .

Penn S t 73 . . .
5
ilpatrick v Dye 4 S m M .
,
. .

5
R uggles v Barton, 1 6 Gray ( Miss ) 289 . .

J
.

( M as s ), 1 5 1 .
5
Ca m pb ell 0 ohns ton, 4 D ana .

5
S an ford v B ulkley, 3 0 Conn . .

344 ; Cronin v H azletine, 3 Allen .

( Mas s ) , 3 2 4 .
succsssx
vs cu m s . 47

exten t to which th ey h ad pa id ofl th e sam e , and were allowed


’

up again st th e h older of th e fo urth ch arge , on th e


5
to se t them
p rin ciple th at wh ere on e wh o is not pers on ally l iable for a
d ebt sec ured by a m o rtgage or oth er lien is c om pelled to pay
it in o rder to pres erve h is own property and does pay it h e , ,

m ay be s ub rogated to th e l i en a l th ough it h as n ot be en as
5
,

s ign e d to h im 5
th ough if h e tak es an as s ign m ent of it this , ,

o f c o urs e w ill o nly stren gth e n h is positio n


5
This righ t of .

s ub rogatio n will al s o pas s to a gra ntee of s uc h a p urc h ase r


5
.

A nd wh ere th e h older of th e fi rs t inc um brance w aived h is


c laim to a ctual p ay m en t for the s ol e benefit of on e h oldin g a n

in te rest in th e equity of red em ptio n an d disc h a rged his m o rt ,

g g
a e of r ec o rd to s u c h p er s on w i t h o ut c o n s id e r a tio n it w a s ,

h eld th at th e in c um bran ce was not the reby ex tin guish ed as to


a s ub sequent in c um b ra nc e r but th e h old er of th e eq uity in
5
,

wh ose favor th e w aiver was m ade was subrogated to its benefit ,

a nd c ould s et it up as a sub s isting titl e 7 If a party wh o h as .

th e righ t to require a n ass ign m en t of a m o rtgage p ays th e


m o rtgage d ebt an d tak es a d isc h a rge of th e m o rtga ge th e
-

, ,

m o rtgage m ay be reg ard e d a s a s ubsis ting s ec urity for h is

p rotection ; h e will be sub rogated to th e rights of th e m ort


a
g g e e 8 T h.e rul e th a t th e p a y m e n t of a m o rt a
g g e d eb t by t h e -

own er of th e equity of red em p tion w ill e x ting uish th e m o rt

g g
a e do es n ot a pply to t h e p a y m en t of an in c u m b ra n c e w h ic h
e x is ted before th e c on vey an c e to th e o wn er of th e eq uity an d ,

wh ich th e l atter is und er n o obligation to pay If s uch an 55


.

5 Walker 45 V t 5 25
v . Ki g n , . .
5
DavisPierce 1 0 Minn 376 ;
0 .
,
.

So in Ayers 11 Adam s, 8 2 Ind 109


. . . B utton 0 Ives, 5 Mich 5 15
. . .

5
Hancock Flem ing, 103 Ind .
5
Bell v Woodward, 3 4 N H 90
. . . .

5 3 3 ; Warren v Hayzlett, 45 Iowa, .


5
Paulsen v Manske, 126 Ills 72 ; . .

23 5 . Wood 11 Wood 61 Iowa, 25 6


.

K
, .

5
McCorm ick 11 nox, 105 U S . . .
5
Spaulding Crane, 46 V t 292 . .

1 22 ; Watson 11 Gardner, 119 Ills . .


5
Bi gney v Lovejoy, 1 3 N H 247, .

K
.

3 12 ; Wilson 0 im ball, 27 N H 300;


. . . 25 2, Pa rker, 0 J D rew 11 B ust, 3 6 . . .

Bell v Woodward, 34 N H 90; Feet


. N H 33 5
. . .

K
. .

e Beers, 4 Ind 46 ; Watts 11 S m es, 5 Abbott v


asson, 72 Penn St
.
y . . . . .

1 De G
Mac G 240 . . . 18 3 ; Holten 0 Lake County, 5 5 Ind . .
48 THE LAW or s unnoc i n on '
.

own er of th e equity of red em ption pays th e debt th e m o rtgage ,

is to be treated as assigned to h im if th is is m a n ifes tly for ,

h is inte res t and n ot in c on siste n t w ith th e j ustice of th e c as e


, ,

an d if n o c on tra ry inte nt i s c l ea rly exp ressed or n e ces s arily

im plied And h e will be entitled to the benefit of a per


5
.

s o n al j ud gm ent al ready re c ove red aga in st th e m o rtgago r for

th e deb t 5
.

29 R i gh t: of uc h a P urc h e r
. Wh ere th e purch aser
s as .

from a m ortgagor pays off th e m ortgage and h as it d isch arged


with out m o re eq uity w ill n ot sub rogate him to th e righ ts of
,

th e m ortgagee aga inst an incum b ra n cer wh os e l ie n is s ubj ec t


to th e m o rtgage but p rior to th e purc h ase ,
5
If h owever th e .
, ,

purch aser h as p aid off th e m ortgage in ignora nce of th e s ub


s eq uen t inc um b ran ce h e c ould in s p ite of its d isch a rge c l a im
,

th e ben efit of s ub rogatio n to its l ien ; m uch m o re if h e m a d e


5
,

h is p ay m ent a n d took th e d is ch arge rely in g upon th e s ta te


m en ts of th e s ub seq uen t in cum b ra nc er th a t th e l atte r h eld n o

c l aim upo n th e p roperty One wh o p urch as es p rope rty s ub


5
.

je c t to th e l ie u of th re e m o rtg g
a e s t h e fi rs t t wo of w h i c h h e ,

p ay s out of h is purch as e m on ey an d h as d isch arged th e th ird -

m o rtga ge h avi ng b een g iven to th e in do rs er of c e rta in p ro m is

s o ry n ote s to sec ure th eir p ay m e nt by th e m o rtga g o r s o as to


.

s a v e th e m ortgagee h a rm l es s by rea son of his in d ors e m e nt

th e re of a n d th en ta k es a d is ch a rge of the th ird m o rtga ge


,

from s uch indo rser th e m ortgagee th erein c an n ot b e s ub t o , ,

g a te d to th e l ien of th e tw o p rio r in c um b ran c es whic h h e h as

p aid aga ins t th e h old ers of th e n otes whic h were s ec ure d by


,

th e th i rd m o rtgage al th ough th e d is c h a rge o f th e th i rd m o rt


,

K
19 4 ; nox v Easton, 3 8 Ala 3 45 ; . . 3 6 6 ; Garwood o Eld1 idge, 2151 J Eq .
-
. . .

Ryer v Gass , 1 30 Mass 227


. . .
( 1 Green) 145 ; Carter 0 Goodin , .

5
Am e, J , in Ryer 0 Gat e. supra , .
. 3 Ohio S t 75 . .

citing H inds v Ballou, 44 N H 6 19 ; . . .


5
Young 0. Morgan
8 9 Ills 1 9 9 , .

Leavitt v Pratt, 5 3 Maine, 147


. Barnes v Mott, 64 N Y 3 9 7 ; McN eil
. . .

5
Greenough v Littler, 1 5 Oh .
. 11 Miller, 29 W V a 480; C a m ero n v
.
. . .

Div 9 3 H olenshade, 1 Cin cin ( Ohio ) 8 3


K
. . . .

5
Guernsey v endal], 5 5 V t 201 ; . .
5
B unting v Gilm ore, 1 24 In d 1 1 4
J
. . ,

Bentley 0 Whittem ore, 1 8 N . Eq . .


succm sm -z cu m s . 49

g g
a e was in q
e uit y in eflicac ious against s uch h old ers 5
th e
only way in wh ich h e o ld
prior lien s alive
c u h av e kept th e
a ga inst th e p a rties interested in th e th ird m o rtgage w as by

h a vin g th e m ass igned to h im 5


Th e b a re purc h as er of an .

eq uity of red em ptio n in te rm s s ubj e ct to th e m o rtga ge d ebt


,
-

c a n n ot be s ub ro gate d to th e ben e fit of o th er s e curities h eld by

th e m o rtgagee for its p ay m e nt ; h avin g p urch as ed th e eq uity


of red em ption and noth ing m ore h e acq uires by h is purch ase ,

n o e q uitabl e c o n trol ov e r s uch o th er s ec urities A s be tw een


8
.

th e o rigin al purc h aser and s uch m o rtgagor th e l an d is th e


prim ary fund for th e pay m en t of th e m ortgage debt and the 5 -

m o rtgago r if c o m pe ll ed to pay it w ill be sub ro gated to th e l ien


, ,

upon th e l an d an d entitl ed to re im bursem ent th erefrom 5


.

30 . P urc h a s e r, 11 111 P urc h as e a v oi d e d ,


s ub rog a ted t o Li en

w hi c h h e h as pai d — The p urch a se r of real estate w h o in


.
,

o rder to save his property h as paid off a val id l ien th ereon , ,

i s en titl ed to b e s ub ro gated to th is l ie n as aga in s t th ose wh o


t urn out to h a ve a titl e to or l ien up on th e p roperty s uperior
t o h is own but s ubj ect to th e in c um b ran ce wh ich he h as dis
c h a rged th ough th e en forcem ent of th is eq uity h as b een
5
,

refus ed at law in Massa c h us etts 7 Wh ere th e purch ase m oney .


-

p aid for real es tate under a sale wh ich is afterwards avoided ,


,

h as b een appl ied in th e ex ting uis h m ent of a v al id m o rtgage ,

s uc h p urch as e r will be s ub ro a te d to th e ri h ts of th e m o rt
g g
g ga e s to th e e x te n t of th e pur c h a s e m on ey w h ich h as b e en so -

a ppl ied ; an d th e own e r w ill n ot be allowed to a v ail h im self


8

of th e pay m ent th us m ade by a purch aser un d er a voidable


s al e an d to rec ov er th e p rope rty f ree of th e in cum b ra n ce
,

w ith out m ak ing c o m pens ation to th e purch aser to the ex ten t


5

5
P os ted , “
1 5 4, 1 5 5 ,
Boyd 0 Parker, 43 Md 1 8 2
v . William s Walker ( Mich )
, , 5 44 ;
.
. .
V alle Flem ing, 29 Mo 1 5 2
v . . .

5
Ste vens 11 Church, 41 Conn 3 69 5 W
. . .
ade 0 Howard, 1 1 Pick
. .

5
Antea , 26 M
( ass ) 28 9
J
.
.

5
Jum el 0 um el, 7 Paige ( N
. 5
French 11 Grenet, 5 7 Tex 273 ;
. .

5 91 .
Hull 0 H ull, 3 5 W V a 1 5 5
. Goring . .

5
Matzen Shaefier, 65 Calif 81
v .
'

. v S hreve, 7 D ana ( K
.
y). 64 , 6 6 .

Muirv . Berks hire, 5 2 Ind 1 49 ; Webb .

4
50 THE LAW or susa oc a n ox .

5
of paym ent wh ich h as gone to th e benefit of th e own er
th e .

If th e purch aser of an eq uity of redem ption h as paid 011 the


m ortgage d ebt but h as neglected to rec ord h is d ee d f rom ,
the
m o rtgagor un til after a c redito r of
, th e m ortgagor h as
attach ed th e eq uity of red em ption h e will be s ub rogate d to ,

th e lieu of the m o rtgage upon th e prem ises for th e reim ,

bursem en t to h im of th e a m o unt wh ich h e h as pa id upon th e


m o rtgage d e bt B ut if th e atta ch m en t h ad b een m a de prior
5 -
.

to th e p urch a se th o ugh a c tua lly un k n o wn t o th e purc h as er


, ,

suc h p urch a s e r h a v ing re ally bo ugh t s ubj e c t to th e a ttac h


,

m en t c o uld n ot
, after th e l an d h a d been s old upon t he ,

atta c h m en t h av e th e s ale vac ate d an d set up aga in s t th e


, ,

a ttach m ent th e lien of a pa ram o unt i nc um b ra nc e wh ic h h e ,

h ad pa id out of h is purch as e m on ey 5
S o th e purc h ase r by -
.

parol of part of a m ortgaged tract of l a n d wh o h a s paid off ,

th e m o rtgage to preven t a s al e of th e m o rtga ged es ta te w ill ,

be s ub rogated to th e l ien of th e m o rtgage upo n th e w h ole


trac t an d to the be nefit of a j ud gm en t rec overed th ere o n
,
5
.

Th e sa m e rul es will be a ppl ied to a purch as e r w h o se m o ney


h as d isc h arged a n in cum b ra n ce upon pers o n al p rope rty 5
.

31 P urc h as e: un d er a M o rt g ag e
“
. or C h a rge s ub ro g a t e d t o i ts

m a . of property un der a val id dec ree in fa vor


Purch asers
of credito rs will be subrogated to th e righ ts of th o se c redi
tors ; an d if th e c red ito rs h a d n o notic e of a l ien upo n th e
5

property and so are n ot bound by it th e p urc h a s e rs wi ll ,

n ot be affec ted by s uch l ien th ough n otified of its e x is te n ce ,

Fagg , J , in Wade v Beldm eir,


5 . tion, 68 Ala 229 ; Check 0 W ald ra m ,
J
. . .

40 Mo 48 6, 488 , explaining Valle v


. . 25 A111 1 5 2 ; ones v Mc Ken na, 4
. .

Flem ing, 29 Mo 1 5 2 . . Lea 6 3 0 Bodkin v M erit, .

5
Sloc um v Catlin, 22 V t 1 3 7 1 02 Ind 29 3 Watkins v Winings ,
J
. . . .

Wade v Beldm eir, 40 Mo 48 6 102 Ind 3 30; ohns on v S an dhofl


'
5 . .

K
.
. .
,

5
Cham plin v William s, 9 Pen . . 3 0 Minn 19 7 ; Frische v
. ra m e r, 1 6 .

S t 341 . Ohio, 1 25 ; Grapengether v Fej em ry,


v
. .

Staflord, 9 Iowa, 163 McC am m on v W orrall,


'
5
Crescent City Ice Co . .

3 W oods, 0 C 9 4 ; St Louis Min 11 Paige ( N 99 ; R aym on d 11


J
. . . . .

ing Co v Sandoval Mining


. . 116 H olborn, 23 Wise 5 7 ; ones v S m ith. . .

Ills 1 70. . 5 5 Tex 8 83 . .

5
Taylor v Agricultural As socia .
s ucc as sr
vn m s . 51

be fore their purch ase If m ortgaged property h as been sold .


5

unde r a d ec ree of forec losure an d th e sa l e h a s b e en c on firm ed ,

by th e co urt which orde red it but s ubsequen tly on appea l ,

th is dec ree is reve rse d an d th e m o rtgaged p roperty is o rdered ,

to be a gain sold for th e pay m en t of th e m o rtga ge d ebt th e -

o riginal purch as er if h e h as paid h is p urch ase m on ey a n d it ,


-

h a s b een appl ied in p ay m ent of th e m ortgage d ebt is entitl ed ,

to be s ub rogate d to th e po s iti on of th e c redito r an d to be


5
,

treated a s th e a ss ign ee of th e m o rtgage to th e ex te nt of th e ,

paym ent of th e debt which h e h as thus m ade An d if th e 55 .

m ortgagee h a d h im self purch ased at such sal e and h ad ,

ac c ord in gly e ntere d s atis fac tion upo n h is m o rtgage t he ,

m ortgage would upon th e s al e bein g subsequently set ,

a s id e be s et up again an d en forced in equity Th e pur


5
.
,

c h as e r a t a s al e m a d e for th e en fo rce m e n t of a m o rtga ge or

oth er l ien is s ub rogate d to th e rights of the origina l l ie n


h older e ven th ough th e procee d in gs were inv al id and h is
5
,

purc hase h as been avo ided Unless h e sec ures a title un d er


5
.

his purch as e th e sal e is treated as an eq uita bl e a ss ignm en t


,

of the m ortgage to h im and h is grantee tak es th e s am e


7
,

5
S m ith 0 ordan, 25 Ga 6 8 7 ; . J . Shannon 0 Hay, 1 06 Ind 5 8 9 Hines
. .

S hepherd 0 Burkhal ter, 1 8 Ga 443 ; . v D resher, 9 3 Ind 5 5 1 ; Ingle 11 .

J
. . .

Martin 11 ackson, 27 Penn St 5 04 ;


. . . Culbertson 43 I owa 26 5 ; Loney 0
, ,
.

S harp v Shea, 3 2 N . Eq 6 5 ; Cas e . J . Courtney, 24 Neb 5 80; Merriam v . .

v W oolley, 6 D ana ( Ky ), 1 7
. . Rauen, 23 Neb 21 7 ; Bonn er v . .

5
Jones v Mc Kenna, 4 Lea . Lessley, 61 M iss 39 2 ; Clark 11 Wil . .

6 3 0; Davis 0 R oosvelt, 5 3 Tex 3 05 . . son, 5 6 Miss 75 3 ; Gregory 0 Bart


K
. . .

5 Martin 0 elly, 5 9 Miss 6 5 2 ; . . lett, 5 5 Ark 3 0 ; Turm an v Bell, 5 4


. .

Wilson 0 B rown, 8 2 Ind 471 ; Miller


. . Ark 273 . .

0 Hall, 1 Bush ( Ky ), 229 ; Cros by 0 .


5
B robst 0 Brock 1 0Wallace 5 19
J
. .
, ,

Farm ers Bank, 107 Mo 43 6 ; ohn Sloan v S ewe ll, 8 1 Ind 1 80; Parker
’

J
. . .

son v R obertson, 3 4 Md 165


. 0 Goddard 8 1 Ind 29 4 ; . a ckson 0

K
. . . . .

5
Zylstra 0 eith. 2 Desa us Eq . . .
Bowen, 7 Cow ( N Y ) 13 ; Gilbert . .

( S o C ar ) 1 40 ; S tack ole v Robbins ,


p v Coole , Walker Oh ( Mich ) 49 4
.
y .

K
. . .

47 B arb (N Y ) 21 2 . . . . R ussell 0 Hudson 28. ans 9 9 ; S t ,


. .

5 Brobst 0
B rock, 10 Wallace, Louis 11 Priest 1 03 Mo 65 2 H ons
. . .

K
.
,

5 19 ; Deam aley 0 Chase, 1 3 6 Mas s . . ker v S hough, 5 5 Mo 472 ; ing 0


. . .

28 8 Brown v S m ith 11 6 Mass 1 08 ; .


, . Brown, 80 Tex 276 . .

D utcher 0 Hobby, 86 Ga 19 8 ; Lo. .


5
Marim uttu 11 De Soysa, ( 1 891 ) .

g a ns po rt 0 C as e, 1 24 Ind . 25 4 ; . 1 Ap Gas 69 ; S m ith v Robertson,


. . .
52 TH E L AW or sm oc n xou .

righ t .
l
proceeds of a sh erifl s sa le m ade upon ex isting
If th e ’

m o rtga es h a ve bee n a ppl ie d in sa ti s fac ti on of prior in c um


g
bran ces a s ub s eq uent m o rtga gee w h o got n oth ing by re as on
, ,

of the in s uffic iency of th e p roc eed s c a nn ot d isrega rd th e sale ,

beca us e th e purc h as er h as faile d to rec ord h is deed S uc h a .

s ubsequent m ort a ee wo uld n ot un d e r a n c i rc um s ta n c es


g g y , ,

be a llo we d to h a ve th e l a n d re s old with o ut reim b urs ing th e


p ric e of th e form e r sale wh ic h h ad bee n ap pl ied upo n th e
p rior in cum branc es B ut if the purch ase r o ugh t h im self to
’
.

h a ve paid th e d e bt fo r wh ich th e sale w as m ad e h e c a nn ot ,

set up a ny titl e th ro u h the prior lie n but it will be d ee m ed


g ,

to h ave m e rge d 3 A n d one wh o h as purc h as ed n ot un d e r a


.
,

param o unt inc um b ra nc e but unde r a n a dve rse c la im will n ot


, ,

be sub roga ted to th e form er m e rely bec a use it was a fte rward s , ,

w ith out h is p rivity pa id off o ut of h is purch ase m oney


,
‘ -
.

3 2 R igh t o f uc h
. P urc h a e r i n C li fo r i
: s a It was h eld s a n a.

in Ca lifornia a fte r a fo rec lo s ure sale h ad bee n a voided


,

beca use th e own er of th e m o rtga ged pre m ises h a d n ot been


m a d e a pa rtv to th e fo re cl os ure s uit th a t th e purc h a se r a t ,

s uc h sa l e m us t s ee k h is rel ief f ro m th e c on seq ue n c es of th e


in v a lid ity of th e d ec ree for th e s al e by p rocee d in gs in th e
forec los ure s uit ; beca use by h is purch as e h e h ad s ub m itted
h im se lf to th e j uris d ic tion of th e c ourt in th at s uit as to all
m atte rs c on ne c te d w ith th e s al e U pon h is applic ation the .
,

c o urt m igh t s e t th e s ale as id e a n d c a n c e l th e sa tis fac tion of

th e m ortga ge a n d auth o rize a suppl em en tal b ill for a re s al e


,

of the p rem is es to be filed and c o nd ucted in th e n am e s o f th e ,

original c om pl ain ants for the benefit of th e purch as e r caus ing ,

8 9 N Y 5 5 5 ; Ch ilds v C hilds, 10 Osborne 0 Taylor, 6 0 Con n 1 07 3


J
. .
. . .

Ohio S t 3 3 9 B rewer o Nas h, 16 R


. ellison v H allo r
. an, 44 M inn 199 ; . . .

I 45 8 ; Curtis v Gooding , 9 9 Ind Cooke 0 Co ope r, 1 8 G reg 1 42


. . . . . .

45 Ulric h o Drisc hell 8 8 Ind 3 5 4


.
,
Wolf 0 Lo wry, 10 La Ann 272
. . . . .

Ray 0 . etchon, 79 I nd 5 65 ; Wells


D Thom pson 0
. H eywood, 129 .

0. Lincoln Co unty, 80 Mo 424 Mass 401 P a lm , 9 46 . . . .

R oge rs 0 Benton, 3 9 Min n 3 9 ,


.
Waples o Hays , 108 U S 6 ;
. . . .

Walk er 0 Lawler, 45 Tex 5 3 2 ; H ose v Den, 85 Calif 3 90 ; Lo v e 0


. . . . .

Wilson 0 White, 8 4 Calif 239


. Ra wlins, 8 3 Ga 3 20
. . . .
socc nssr
vs cu m s . 3

a ll parties intereste d in th e
prem ises to be brough t in as
p arties or m ake such oth er o rders as s h ould protec t th e
,

righ ts of a ll p a rties a n d m ete out ex a c t us tic e I


j l
n th a t .

S ta te it h a s al s o been h eld w ith l ess s h o w of rea s o n th at th e


, ,

p urch as er of property at a j udicial s ale m ade un der a d ec ree


for th e fo rec los ure of a m o rtgage is n ot en titl ed m erely as ,

s uch p urch ase r to h av e th e sa tis fac tion of th e j ud gm en t


,

un der wh ich th e s al e was m a de s et as ide and to be s ubro ,

g a te d to th e r ig h ts of th e pl a in tiff i n th e j ud g m e n t s im ply ,

becaus e th e s al e at wh ich h e purch ased was void and h e ,

a c q uire d n o titl e th ereby : h is m oney h a s gon e to pay the

plaintiff s debt but h e is with o ut rem edy The general rule


’
,
2
.

is o th erwise 8
.

3 3 In t o
. l anf uc h S ub ro g ti
el o s Mo rtgaged l an d upon a on .
,

th e defaul t of th e m o rtga go r w as s old by th e m ortgagee to a


,

purch as er wh o afterwa rd s convey ed the l an d to a s econ d


,

vend ee with w a rranty Th e m ortga gor s h eirs avoid ed th e fore


.
’

c l os ure sal e by s uit a n d re c ove red th e l a n d from th e s ec on d


ven d ee The sec on d vend ee th en s ued the h eirs of th e firs t
.

purch aser upon th e c oven a nts in h is d eed and recovered ,

j ud gm ent agains t them wh ich th ey p aid The h eirs of th e


, .

fi rst purch as er th e n b rough t s uit a ga inst th e grantee s with


n otice of th e m o rtga go r s h eirs to h a ve th e l a n d s old for th e
’
,

pay m en t of th e origin al m ortgaged e bt ; an d it was h eld th at


th ese pl ain tiffs sh ould be rega rd e d as th e equitabl e assignees
of th e m ortgage by sub rogation to th e righ ts of th e m o rtgagee ,

th e c ourt s ay in g th rough B iddle ,


th a t th ough sub rogatio n,

is n ot allowed to vol un ta ry p urch as e rs or to stran gers unl es s ,

th e re is so m e pec ul ia r eq uitabl e rel a tio n in th e tra ns ac tio n ,

a nd n eve r to m e re v ol un teers p o h h p id
4
ye t a e rs n w o ,
as a a

d ebt under a c olo rable obligation to d o ao a nd in o rder to ,

p rote ct h is own cl aim sh ould be s ub rogated to th e righ ts of


,

1
Boggs v 11argrave, 1 6 Calif 5 5 9 . Branham 0. San 108 6, 24 Calif .

J
. .

And see B urden v ohns on, 8 1 Mo


. .
5 85
318 .
Aztec , 31 , and cases there cited .

4
Posted , 240 at seq .
th e c re d itor b ogation i s allowed for the
, a nd th at s in ce su r

ben efit of a purch as er of a n i m m ovable wh o us es th e p ric e ,

w hich h e pays in pay ing th e c reditors to whom th e i nh erit


an c e was m o rtga ged this purch aser s h eirs sh ould be s ubro
1 ’
,

g a te d to t h e rig h ts o f th e m o rt g g
a ee w h o se d e b t h a d be e n

paid by h is purch as e The s am e prin ciple was a pplie d in


2
.

Mic higan for th e protection of one w ho h ad purc h as ed m o rt .

g g
a e d p re m is es f ro m th e w i dow of th e m o rt g g
a o r i n c on s id ,

eratio n of h is p aying h e r a s m a ll s um of m o n ey a nd red eem i n g

fro m th e m ortgage and h e was allowed again s t th e m ort ,

g g
a o r a h e irs u po
’
n th ei r a vo id an c e of hi s p ur c h as e a l ie n u po n

th e l a nd for th e a m ount wh ic h h e h ad pa id to red eem i t with


in te res t les s th e v al ue of th e use an d oc cupatio n w hich h e
,

h ad e njoy e d 8 .

34 . P urc h a s e r o rdi n a ril y s ub rog a t e d t o a ll t h e R igh t of hi s


'

V en d o r A purch as erw ill o rdina rily be s ub rogated to all th e


.

righ ts of h is v endo r in th e prope rty ev en th ough th ey a re n ot ,

exp res s ly c on vey ed to h im


‘
Th o ugh h e had notice of out .

s ta n di n g eq uities h e w ill n ot be b oun d by th em if h is gra ntor


, ,

c ould h av e d efe n d ed a gain st th em as a bona fid e purch a ser

with o ut n o tic e 6 Thus one wh o h olds property in pledge h as


.
,

a s pe ci al p roperty whic h m ay be s old or as signed ; an d h is

as s ignee w ill be s ub rogate d to th e righ ts of th e o rigin al

pl edgee The ass ignee of on e wh o h as agre ed to sell l an d


6
.

is sub rogated to his ven do r s righ t of res c is s ion S o one


’
7 .
,

Antea ,
1
5 . Taylor, 20Iowa, 297 ; em p v e m p, K . K
Muir v B erkshire, 5 2 Ind 149 . . . 8 5 Nor Car 49 1 ; Pettit 0 Bla ck , 8
. . .

Webb 0 William s, Walker . Neb 5 2 ; Stanton v Quinan, 9 1 C alif


. . .

( Mich ), 5 4 4 . 1 ; Orosh or o Crean or, 3 6 Ark 9 1 . .

4
Chicago v Tebbetts, 1 04 U S . . . H einlen v M artin, 5 3 Calif 3 21
. .

1 20 ; Mc Keage v Hanover Ins . . Peters v Clem ents , 5 2 Tex 1 40


. . .

8 1 N Y 3 9 ; Sickles v Flanagan, 79
. .
5
Brown 0 Cody, 1 1 5 Ind 484 ; . .

K
.

N Y 224 ; Thom pson 0


. . enyon, . Drey 0 Doyle 9 9 Mo 45 9
.
,
. .

100 Mass 1 08 ; Ruggles v Barton, Talty v Freedm ens Savings 00


’
. . .

5 06 ; Murdock v 9 3 U S 3 21 ; Merc hants Ban k v


’
13 Gray . . . .

Chapm an , 9 Grey ( Mass ), 1 5 6 B ut S tate Bank, 10 Wall 604 ; Lewis 0 . .

ler v Barnes, 60 Conn 1 70; Loom is . Mott, 36 N Y 3 95 Donald v Sack . . . .

K
.

v. nox, 60 Conn 343 ; Murphy 0 . . ling L R 1 Q B 5 8 5


, . . . . .

Adam s, 71 Maine , 1 1 3 ; Logan 0 .


7
Castle 0 Floyd, 3 8 La A11 5 8 3 . . . .
s uc cnss l vs cu m s . 55

who h as in good faith


l ble cons ideration pur and for a va ua

ch ase d th e wh ole or a p ortion of a m o rtgage d estate from th e

m ortgagee in pos ses sion w ill be regarded as th e equitabl e

ass ignee of th e m o rtgage to th e ex tent of his purc h ase m o ney -

both against the m ortgagor seek ing to redeem th e estate and l


,

again s t pa rties in te rested in th e esta te by s ub seq ue nt c on vey

ances
2 Th e v en dee of one w
. h o h olds a bo nd for title to l an d
acq uires by h is p urch ase all th e in terest of h is ve n dor th at ,

is th e righ t to req uire a c on vey a nce from th e owner of th e


,

land upon pay m ent of the p rice s tipulate d in th e bon d and 3

the ow n er of th e l and and th e h older of th e bon d h aving ,

notic e of h is righ ts ca n n ot re s c in d the ir c ontract s o as to


,

deprive h im of th is eq uity Th e ass ignee of one wh o h eld


‘
.

a con tract fo r th e p urch as e of lan d w ill be s ub rogate d to th e

eq uita ble l ien of h is a s sign or upo n th e l an d for th e re turn of

a portion of th e p urc h ase m oney whic h h e h ad a dv an c ed upon ,

the c o n tra ct fail ing th ro ugh th e default or th e ina bility of


the ve n dor ls
S uch an ass ignee m ay a ls o upon m ak ing full
.
,

paym e nt of th e p rice be s ub rogated to the rights of th e origi ,

nal v e n do r aga in st th e o rigin al purch as er “ The assignee of a .

debt will take as an inc ident the equitable right to th e c ol


7

la tera l obligation of a third person or to any c oll ateral sec u


8
,

rity h e ld by th e o riginal c red itor for its pay m en t even th o ugh


°
,

1 Mc SorleyLarissa, 100 Mas s


v . .
5
Tom pkins v Seeley, 29 Barb . .

270; B uggies v Barton, 1 3 Gray .


( N .Y ) 212 . .

( M ass 5 06 ; G ro ver v Thatcher 4 .


, Dillow v Warfel, 71 I owa, 106 . .

Gray ( Mm ) , 5 26 ; Wym an v Hoo .


7
N ot always the legal right
p er, 2 G ra y ( M ass 1 41 ; Raym ond Batchelder v enness, 5 9 V t 104 . J . .

0 Ra m ond, 7 C ush
.
y ( Mas s ) 605 . . Lahm ers o Schm idt, 3 5 Minn . .

S m ith v Hitc hcock, 1 30 Mass


.
. 43 4 .

5 70 .
Payne v Wilson, 74 N Y 3 48 ; . . .

Graves o Graves , 6 Gray


. Cooper 0 Newland, 1 7 Abb Pr ( N
. . .

391 ; Fulcher 0 Daniel. 80 Ga 74 ; . . Y ) 3 42 ; Hagem ann s Appeal» 8 8


.
’

Shaw 0 Foster, L R 5 H o Lds


. . . . . Penn St 21 ; Cathcart s Appeal, 13
.
’
.

321 . Penn St 416 ; Fitzsim m on s Appea l,


. .
’

Shaver v Shoem aker, Phillips


.
4 Penn St 248 ; Miller v H oyle, 6
. . .

Eq ( N or Car ) 3 27 ; Chickering v
. . . . Ired Eq ( Nor Car ) 269 ; Walle r v
. . . . .

Fullerton, 90 Ills 5 20 . . Tate , 4 B Mon ( Ky ) 5 29 ; Strother


. . .
56 rs s LAW or s uss ooa rlon
r '
.

a form al assign m ent been m ade A m aritim e lien will


h as n ot .
l

pass to an assignee of th e debt sec ured th ereby The claim of 2


.

a v en dee of lan d for a d efec t in th e titl e a c on vey an ce n ot yet ,

h aving been m a d e w ill pa s s to h is gran tee , Th us wh ere the .


,

purch aser at a j ud icial sa l e of l an d paid a part of th e pur


c h as e m o ney
-
an d th en befo re tak in g a c on veyance sold
, , ,

his cl a im un d er h is p urch as e to an as signee wh o p aid th e ,

res id ue of th e price a n d th en a d efect in th e titl e wa s d is


,

c overe d wh e re by the s al e w a s a void ed


, th is as s ign ee was ,

h eld to be entitled to h a ve th e wh ole am o unt th at h a d been


paid refun ded to him in cl udin g th e pay m en t m ade by h is ,

g r a n t o r as w e ll as w h a t h e h a d hi m s elf p a id 8
If th e pu r .

c h a s er of r ea l p rop e rty a t a n e x ec ut io n —sal e b efo re ta k in g h is

deed accepts f rom a s tranger th e am o unt on pay m ent of


—
wh ich th e j udgm e t debtor wo uld h ave been en titled to t e
n

deem and ass igns to h im th e certificate of the sale th e


, ,

s tran ge r is th ereby s ub roga te d to th e righ ts of s uch p urch as er

an d en titled to a d eed of th e p rope rty


4
.

35 . W h e re t h e P urc h as e r p a y s D e b t s w i t h w hi ch t h e P rO p

a rt y w as c h arge a b l e .
— Th e p urc h aser of l an d
p ay s ofi a wh o
l ien upon it m ay be s ubrogated to th e rights of th e h older of
th e l ien as a gain s t an o th e r in c um b rancer s uch purch ase r n ot ,

h av in g as s um ed eith er of th e d eb ts 5
H e h as even b een s ub .

t o ga te d to an in teres t in th e prio r in c um b ra n c e upo n m a k in g

only a partial pay m en t thereof Th e purch a ser from a d e vi


6
.

v H am burg 1 1 I owa 5 9 ; State v


.
, ,
.
4
Eleventh Avenue, in re, 81 N Y .

H oshaw, 9 8 Mo 3 5 8 ; Taylor 0 Nel . .


.
43 6 .

son, 5 4 Mis s 5 24 ; H urt 0 Wilson , Pierce, in re, 2 Lowell, 3 43 ; S te


5
.

K J
.

3 8 Calif 263 ; S kyrm e v Occidental


. . vens 0 ing 8 4 Main e, 29 1 ; oh n
.
,

M ill Co , 8 Ne vada, 219 ; Ro gers v


.
. so n 0 Parm ely, 14 H un ( N
.
398 ; .

Om aha H otel 4 N ebras ka 5 4 , . Robenson v U rq uhart, 1 2 N J Eq . . . .

P os ted 1 85
,
. 5 15 D ircks v L ogsdon. 5 9 Md 1 73 . .

1
Mohle v Tschirch, 6 3 Calif 3 8 1 ;
. . Siden e r v H aw es 3 7 Ohio S t 5 3 2 ;
.
,
.

Wils on 0 Boden 26 Ark 15 1


.
,
. . B re ss ler v Martin, 1 3 3 Ills 278 ;
. .

Th e Am erican Eagle, 1 9 Fed R ep Plante rs B ank 0 D odson, 9 S m 8: M


’
3 . . . . .

8 79 ; The Pride of Am e rica, 19 Id 607 ; .


( M is s ) 5 27 .

J
The Sarah W eed, 2 Lowell 5 5 5 ,
. S im ps on 11 Del H oyo, 9 4 N Y . . .

3 S m ith v B rittain, 3 I red Eq


. . . 1 89 .

( N o r C.ar ) 3 47 .
successi ve cu m s . 57

see wh ose purch as e m o ney h as been appl ie d in pay m ent of


-

deb ts of th e testato r will be sub rogated to th e rights of the


c red ito rs w h o s e d e m an d s h e h a s th us satis fied
1
A n d in .

Pen n sylvan ia a purch as er of real esta te h as b een allowe d to


ta k e a n a s s ign m en t of in c um bran ces wh ich h e h ad a greed to

p y
a o ut of h is p urc h a s e m o n ey a n d h old un d e
-
r th e m a ga,
in s t
a n in c um b ra n c e wh ic h h e h ad n ot agree d to pay but the ,

e x is ten c e of w h ich h e d isc overe d after h is p urch ase If th e


2
.

purc h asers fro m th e im po rters of d utiable good s h a ve upon ,

th e ban k ruptcy of th e im po rte rs paid the d utie s in ord e r to ,

obta in th e good s th ey will be s ubrogate d to th e p riority of


,

th e U n ite d S ta te s for th e ir reim burs em en t even th ough th ey ,

h a ve proved th eir c l aim aga in s t th e es tate of th e im po rte rs in


b an k ruptc y a s an un sec ured one But th is righ t of purch as
8
.

e rs t o be s ub rogate d to th e ben efit of d eb ts w hic h h ave b een

p a id by th em selves or out of th eir purch ase m oney is l im ited


to th eir re im burs em ent for d eb ts wh ich c o n s titute a prio r
‘

c h a rge upon th e p roperty w h ic h th ey h a v e purc h ased If .

th ey h a ve v ol un ta rily p a id d ebts wh ic h c ould n ot h ave been


e n fo rc ed again s t th e m or a ga inst th e p rope rty in th e ir h an d s ,

if for e x am pl e the purch as ers at a fo rec lo sure s a le h a ve


, ,
-

vol un ta rily paid off a j un ior m ortgage upon the property ,

th ey w ill h a ve n o righ t of s ub ro gation to its l ien ‘5


.

36 . P urc h a s e r c om pe l le d to p a y h is V e n d o rs
'
D eb t s ub

ro g a te d t o C re d i t o rs R i gh t s ag a i ns t h is V e n d o r . A purch aser
of l an d wh o in o rder to s a ve th e property wh ich he h as pur
,

c h as ed is c o m p ell ed to pay a d e bt wh ic h o ugh t to h a ve b een


,

p aid by h is ven dor will be s ubrogated to th e ben efit of th e


,

d ebt a nd of any ch arge th erefor upon th e prope rty of th e


,

v endor An d in at least on e S tate th is equita ble righ t of


6 .

Gibson 0 McCo rm ick, 10 Gill


. Co m s tock v . Michael 17 Neb , .

J ( Md ) 6 5
. . 28 8 .

Bryson v Myers , 1 Watts 8: S . .


5
Carpenter v Bre nham , 40 Calif
. .

420 Contra , Birke v Abbott, 103


. . 221 .

Ind 1 . . Chute v Em m erich, 99 N Y


. . .

K irkland, in re, 14 N B R . . . 3 42 ; Alford v Cobb 28 R un (N Y )


.
,
. .

1 39 . 22 ; Hoke v Jones, 33 W V a 5 01
. . .
58 m s u w ou
or snanos A rx -
.

the purchaser h as been preferred to the claim of a surety


of the ven dor for the deb t wh ich cons tituted th e ch arge upon
th e l and to be s ub rogated upo n his pay m e nt of th e debt to , ,

th e s ec urity which was h eld by th e c red ito r 1


A purch as e r .

wh ose lan d h as been tak en upon an e x ec ution agains t h is


ven do r is entitl ed upo n p ay ing th e d ebt to be s ub rogated to
, ,

th e l ien of th e j udg m en t again st the rem a inin g l an d of h is


vendor If h owever h e h as pa id for the l an d by giving
1
.
, ,

bon ds for its p rice wh ich are s till un paid h e m ay s et 03


, ,

h is paym en t again s t these bond s even th ough th ey a re in th e ,

h a nds of one to wh om they h a ve been as s igne d by the ven


dor ; s o too he m ay s et 08 s uch a pay m ent aga ins t n otes
8
, ,

wh ich h e h as given for th e price of th e lan d while th ese ,

n ote s a re s till re ta in ed by th e ve ndo r e ven th o ugh th e n ote s ,

are by s ta tute ex em pte d from l evy in the h a nd s of th e ve n dor ,

l ike a h om estead estate But th is set ofi of such a pay m ent


‘
.
-

by the purch as er against bond s given by h im forthe pric e of the


lan d m us t be m ade firs t upon bon ds whi c h a re retaine d by th e
ven do r befo re a pply ing it upon th o se bo n ds wh ic h h ave been
,

ass igned by h im ; an d if th e p urc h ase r w ith k n owl ed ge of th e ,

a s signm en t of s om e of th e bo n d s a nd w ith n o tice of th e p rio r

lien upon h is l and pay s th e unass igned bonds to th e a m ount


,

of th e l ien the as signed bon ds will be th ereby rel ie ved from


,

all l iab il ity on ac c ount of th e l ien


15
.

36 a . P urc h as e r s
'
S ub ro gs t lo n d o es n ot d e pe n d upon t h o

V a li di ty of of s ub rogation d oes n ot
hi s Tit l e . Th e righ t

depen d upon the va lid ity of th e title of th e pers on c l aim ing


to be reim b urs ed for h is pay m en t in d is ch a rge of a val id in
c um b ran ce It is m erely n ece ssary th at h is pay m ent s h o uld
6
.

S helby 0 Marshall, 1 Blackf ( Ind )


. Arm entront v Gibbons, 30 Gu tt
. .
1 .

3 84 ; Galliher v Galliher, 10 Les ( V a ) 6 3 2 ; Mc Gill, is re, 6 Penn St


. . . .

23 ; H urt v Re eves , 5 H ayw 5 04 . . .

T C b ll v H ughes, 5 9 Ga 49 3
( e nn )
. 5 0 . or a y . . .

1
R us h 0 State, 20 Ind 43 2 ;
.
1
Arm entrout v Gibbons , 3 0 Grs tt
. . .

Arm strong 0 Fearns w, 6 7 Ind 429


.
( Va ) 632 . . . .

L Beall v Walker, 26 W Va 472 ; B right 0 Boyd, 1 S tory, 478


1 .
. . .

McGill, in re, 6 Penn St 5 04 Fow er 0 Parsons, 1 43 Mass 401


. . . l . .
vn cu m s
s uccm sr . 59

h ave been m ad e in good faith for th e protection of an interest


w h ich h e bel ieved h im self to h ave in th e es tate a nd in dis ,

c ha rge of a burd e n ac tually res tin g upon th e p rope rty 1


so ,

th a t h is pay m ent h a s in c reas ed th e val ue of th e estate for


th e ben e fit of th ose wh o turn out s ubse quently to be en titled
to th e titl e ’1
Th e be nefit of s ub rogation h as acc o rd ingly b een
.

a llowe d to one wh o h eld m ere ly an in va lid or a verb a l con

tra c t for th e c o nvey an ce of th e la n d wh ich h e h as freed from


a n in c um b ran ce ; to th e as s ign ee of on e wh o h eld s uc h a
8

c o n trac t to one wh os e o nly title was un d er an in v a l id m ort

g g
a e
5
or un, d e r a voi d abl e d e c ree ;
5
to o n e w h o c l a im e d o n ly
un der a vo id or a vo ida ble s ale even after th e a vo id an ce of
7
,

th e s ale by o rd er of co urt 8
to a n un sec ured c redito r wh o
h as pa id off a m ortgage deb t in c o m pl ian ce with an erroneous -

ord er of c ourt ; to a devis ee wh o h as only a c o ntingent re


9

m ain d er in th e en c um be red es tate an d to on e wh o h olds


10
,

m erely a n equitable l ie n upon th e p rope rty


11
If h e bona fid e .

c l a im s a n inte rest h e is n ot a m ere vol unteer a n d m ay be , ,

s ub rog ate d ; but h e m ust sh o w th at h e h ad or s up po sed h e


12

h ad so m e inte res t to be p rote cted 18


.

Bunders v Sanders, 2 Dev Eq (Nor. . . . 106 ; Lam b v West, 75 I owa, 3 9 9 .

Car ) 26 2 ; Sc ott 0 D unn, 1 Dev


. . . Gilbert 0 Gilbert, 3 9 Iowa, 65 7
.

B ut Eq ( Nor Car ) 425 , 427 Ger


. . . D avis 0 Roosvelt, 5 3 Tex 3 05
. . .

dine o Menage, 41 Minn 41 7


. . .
5
Coudert v Coudert, 43 N J Eq . . . .

1
Gnckian v Riley, 1 3 5 Mas s 71 ; 407 .

K
. .

elly 0 Dnfl, 6 1 N H 43 5 ; Be ne Huts on v Sadler, 3 1 W V a


7
'

. . . . . .

dic t v C hase, 5 8 Conn 19 6 ; Tfiom p


. . 3 5 8 ; M uir v Berkshire, 5 2 In d 149 ;
. .

cos , 0 J , in Mosier s Appeal, 5 6


.
’
. Payne 0 Hathaway, 3 V t 21 2. . .

Pe nn S t 76 , and cases there cited


. . .
5
J
ohnson v R obertson, 3 4 Md . .

1
Weim er 0 Porter, 42 Mich 5 6 9 . . 1 65 Antea , . 31 Pos tea , 5 209 . .

I nge rsoll v Jeflords, 5 5 Miss 3 7 ; . . Magill 0 De Witt Coun ty Bank, .

B lodge tt v H itt, 29 Wise 169 . .


, 1 26 Ills 244 . .

1 8 2 cl seq : W right 0 Oroville Min


. .
1°
Pea se v Eagan, 1 3 1 N Y 262 . . . .

ing 40 Calif 20 . .
11
Hackensac k Savings Bank 0
J
.

5
Cham plin v William s, 9 Penn . . Terhun e Manufacturing Co 45 N .

S t 341 Stewart 0 Fellows, 128 1113 Eq 610


J
. . . . .

48 0 ; Dillow v Warfell, 71 Iowa 1 06 .


11
Harlan 0 ones , 1 04 Ind 1 6 7
K J
.
, . .

Tom pkins v Seely, 29 Barb elly 0 Dnfl, 6 1 N H 43 5 ; am es


'
5
. . . . .

( N Y ) 21 2 ; Shee n 0 H oga n, 8 6 . v Burbridge, 3 3 W V a 272 ; A m 0


J
.

K
. . . .

Ills 16 Fis her v oh nson, 5 Ind 492


. . . . H oppin 25 ans 707 , . .

5
Brooks 0 Bordner, 125 Pe nn . .
15
Wads worth 0 Blake, 43 Minn . .

S t 470; S auldin v Harve , 129 Ind


. . . 5 09 .
60 run LAW or sos nooan ox .

37 . m u t to n of P n roh s s er s '
R i gh t of S ub ro ga ti on . A
gra ntee s of action against h is grantor for any m is
’
c a us e

rep res en tation is pers on al and does n ot pass to any s ubse ,

quent purchas er from th e grantee Th e s ubrogation of th e


1 .

purch as er will n ot ord inarily e x te n d to a m ere righ t of action


which h as al rea dy becom e ves ted in h is grantor s uc h as an
1
,

action for a defic ien cy in th e q ua ntity of th e l a n d w h ich w o ul d

h ave en titl ed th e v endor to an ac tion agains t th e o rigin al


own er for s uch deficiency A n express or c onventiona l s ub .

roga tion is nec ess ary to v es t this righ t of th e v end o r in h is

purch ase r Nor will one cl aim ing unde r a quitclaim d eed
8 .

from a m o rtgagor be thereby s ubroga ted to th e m ortgagor s ’

righ t to defe n d aga inst th e m o rtgage on th e gro un d th a t it

was p roc ured by th e fraud of th e m o rtga gee 5


Nor will th e .

purch aser be s ub rogate d to a ny righ t of h is vendor of wh ich


th e law fo rbids th e co nvey a n ce 5
or wh ic h is e x c l ud ed by ,

nec es sary im pl icatio n fro m th e te rm s of th e c o n vey a n ce un de r

whic h h e c laim s 5
Wh ere th e vendor of l an d h ad a lien th ere
.

on for th e p ric e w h ich was s up erio r to a m ortgage s ubse


,

q uently given by th e vend ee but sold th e vendee s intere st in ,


’

the p rope rty instea d of th e prope rty its elf for th e un paid
, ,

b al an ce of the p rice th e purch as er of th e v end ee s interest at


,
’

this s al e was n ot allowe d to p reven t a fo recl os ure of the


m o rtgage on th e groun d th at h e was by h is p urch as e from

th e vendo r s ub rogated to the vendo r s eq uita bl e l ien


’
7 Th e .

purch ase r of th e righ t to redeem from two m o rtgages or other


l iens since h e ac quires only th e interest of th e m ortgagor
, ,

1 Livingsto n v Peru Iron 2 .


( Mas s ) 5 26 ; Brad sha w
, v H ouse .
, 43
Paige ( N 3 90; Collins 0 S um ,
. . Tex 143 . .

7 R ob t ( N. Y ) 6 23 ; La wrence 0. .
5
Mas on 0 . Mason 1 40 Mass
, , 63 ,

Montgom ery, 3 7 Calif 1 83 . .


5
Co ngdon, 44 N H 48
True 17
. . .

1
Willoughby v Middlesex Co 8 . Warren 0 Coggswell, 10
K
.

Met ( Mass ) 29 6
. . .
76 ; endall 0 Brown , 7 Gray (Mass .

5
C ham bliss v Mille r 1 5 La Ann .
,
. . 210; S quier v Shepard 3 8 N J Eq .
,
. . .

713 ; D avis v Clark, 3 3 N J Eq . . .


.
3 3 1 ; Adam s 0 Friedla nder, 37 La . .

5 79. Ann 3 5 0 . .

5
Fairfield v McArthnr, 1 5 Gray .
7
Allen 0 Phelps , 4 C alif 25 6 . . .
S UCCESS IVE cu m s . 61

c ann ot upon tak ing an assign m ent of th e first m ortgage set


, ,

it up as a s o urc e of titl e aga ins t th ose wh o cl aim un d er th e


sec on d m ortga ge
1
.

38 . B nb ro ga ti o n of th e P urc h as e r at an B x s on tl o n -
s al s

a ga i n s t t h e D e b t o r .
— Th e p urch aser of l an d at an e xecution
l
sa e h old s ly a l ien
m e re th e upon th e l an d whil e s ta tuto ry

pe riod of redem ption is run nin g ; if in th e m ean tim e it be


c o m e s n ec es s a ry for th e p rotec tio n of h is in te res t h e m ay be ,

s ub ro gate d upon d is ch a rging a p rior l ie n c reated by th e j udg


,

—
m en t d ebto r to th e ben efit of th a t l ie n for his reim b ursem en t ;
,
5

a n d if th e p ro c e ed s of p roperty irregul arly s ol d at a sh eriff s


’

s a l e h a v e been a ppl ied in p ay m e nt of th e o wn er s d ebts th at


’
,

ow n er c ann ot rec over th e property from th e purch aser with


out re p ay in g to him th e am oun t so a ppl ied Th e purch a ser
5
.

wh o h as bo ugh t in good faith an d wh os e bid h as d is c h a rge d an


e x is tin g l ien upo n th e l a n d is s ub roga ted to th e righ ts of th e

j ud gm en t c red itor to th e ex tent of the l ien wh ich h e h as th us


-

d is ch arged B ut if th e j ud gm en t itself was void an d c reate d


5
.

n o l ie n a n d th e d eb t was n ot a c h arge upo n th e l an d th e re is


, ,

n o th in g to w h ich th e p urch a se r ca n be sub ro gated a nd h e h as ,

n o righ ts a gains t th e j ud gm en t debto r


5
Wh ere a j udgm ent -
.

de b tor owned a lot of land an d th e sh eriff on an ex ec ution , ,

ag a in s t him s old by m is ta k e an oth er lot to w hic h th e d ebto r


,

h a d n o titl e an d th e purch as e m o n ey wa s p aid an d a ppl ied


,
-

upo n th e j udgm e nt an d th e d eb tor s urren de red h is lot to th e


,

purch aser both supposing it to be th e one th at h ad b een sold


,

1 Afton Bank 0 Thom pson, 72 607 ; Burns 0 Ledbetter, 5 4


. .

Iowa, 41 7 Pa rker, 0 J , in Wade v Te x 374 . . . . .

H ow ard , 6 Pick ( Mass ) 492 .


5
Paxton v Sterne, 1 27 I nd 289 ;
. . .

5
S wain v S tockton Savings Soci
. Short 0 Sea rs, 9 3 Ind 5 05 ; R ay 5 . . .

ety, 78 Calif 600 . etchon, 79 Ind 5 6 ; O Brien 0 B ar


.
’
D . .

5 B
lackburn 0 Clarke, 85 Tenn rison , 5 9 Iowa, 686 Ri nehart v Long,
. . .

5 06 ; Henry 0 Keyea, 5 Snead.


9 5 Mo 3 96 ; Meher v C ole, 5 0 Ark . . .

48 8 ; Shepherd v McIntyre, 5 ana 3 61 ; Cline v Upton, 5 9 Tex 27 ;


. D . .

( Ky ), 5 74 ; Hart 0 Sm ith, 44 Wise Tappan 0 Hunt, 74 Ga 5 45


. . . . .

213 Blanton v Lndeling. 30La Ann .


5
Northraft 9 Oliver, 74 Tex 16 2 ; . . . .

1 23 2 ; M on: 0 Can franc, 11 Martin Two Rivers Manufacturing Cc v


. . .

Beyer, 74 Wi so . 210
.
62 m u w or s o s nos u lon .

upon th e e xecution ,
debtor discoverin g
but afte rwards the ,

th e m is take regain ed th e l an d and re fus ed to re fun d th e


, ,

purch ase m oney th e purch ase r was allowed to recover th e


-

am ount of th e purc h a se m on ey fro m h im 1 Th e purc h as er at


-
.

an e x ec ution s a le of p rope rty w h ich is un de r a tta ch m en t for


-

th e sam e d ebt is en titl ed if it is afte rward s s ubj ecte d by a ,

de c ree to the pa ym ent of th e atta ch m en t to b e reim burs ed ,

out of th e p ro c eed s of th e a tta c h e d p rope rty for h is paym e nt

upo n th e e x ec utio n ?
A n d if th e purch aser of attach ed p ro p
e t ty pays th e p ric e in d is c h a rge of l ien s wh ic h w e re s upe rio r

to th e a tta ch m e nt h e sh ould be in dem nified if th e p rope rty


, ,

is a fte rwa rds de c ree d to be s old upon th e a ttach m ent by th e ,

reim burse m e nt of h is m o ney in p refe ren ce to th e a tt a ch in g

c re d ito r 8 S o al so if an e x ec ution c re dito r ta k e s fro m h is


.
, ,
-

debto r an as sign m ent of the l atter s in tere st in a pe rs onal ’

e sta te th is a s s ign m en t is v al id to th e a m ount of h is d e m a n d ;


,

a n d if th is c red ito r to s av e h is ri h ts afte rwa rd s p urc h ase s


g , ,

th e s am e p rope rty fro m a sh erifi wh o s ells it upo n a s ub se ,

quent l evy m ade under ex ec ution s s en ior to h is own th ough ,

th is l a tte r sale is vo id th e c red itor so purch as in g w ill be .

a llowed a s a ga in s t th e d ebto r to s ta n d in th e pl ace of th e


, ,

s en ior c re d ito rs wh o m h e h as th us s atis fied a n d to b e s ub t o ,

g a te d to th e ir righ ts
5
A n d ge n e ra lly w h e r
.e a n e x ec uti on

s a l e up on a val id j ud g m ent is void abl e an d th e d e b to r s eek s ,

to rec over th e p rope rty if th ere be n o fra ud on th e p a rt of


,

th e purc h a ser th e la tte r wi ll n ot be c om pell ed to re s to re th e


,

p r op e rty to th e d ebto r w ith out be ing re im burs e d th e a m oun t

w h ich h e p a id and wh ic h h as gon e to d isc h arge th e j ud g m e n t


,

l ien A n d in th e sam e way th e purch aser from a j ud g m ent


5
.

debtor of property which h as been sold on ex ec uti on w ill be


1
McLean 0 Martin 45 Missouri
.
, , Bentley 0 Long, 1 S trobh Eq . . .

3 93 .
( 8 0 Ca
.r ) 43 . .

1
Deal] 9 . Barclay, 10 B . Mon .
5
Stone v Darnell, 25 Tex S up
. . .

K
( y) 26 1 . 43 0; Andrews 9 Ric hardson, 21 Tex . .

5
Bea ll v . Barclay, 10 B . Mon . 28 7 ; Morton v We lborn , 21 Tex . .

(H ) 9 6 1 . 772 ; Howard 0 North, 5 Tex 29 0 . .


soc cnss xvs cu m s . 68

su r b ogate d
wh atever right of redem ption the debtor h as by
to
agreem en t ac quired in th e p rem ises
1
.

39 . S ub roga uo n of s uch P urc h a s e r w h e re th e P ro pe rty

re c ov ered been c on s idered th at th e


b y Th ird P arti es . It h as
purch aser of property s old un der an ex ecution h as th e righ t
i n eq uity if th e p rope rty h as been rec ove red from h im or h is
,

v en do r by a n o th e r un d er a s uperior titl e to be sub stit ute d for ,

th e j udgm e nt c re d ito r to th e origin al j udgm en t l ien a n d to


- -

h a ve th e am oun t of h is p urc h a se m o ney refun d ed to h im by -

th e d efen d an t in th e e x ec ution even th o ugh h e k n e w at the


5
,

t im e of h is purch as e th at th e p rope rty b elon ge d to a noth e r ,

a n d w a s n ot l ia ble to be s old on th e ex ec ution a n d th at if


5

th e p rope rty h ad bee n th us rec ov e re d f ro m a ven d ee of th e

p ur ch a se r th e p ur c h as e r in h is s uit for in de m n ity n eed n ot


, , ,

s h o w th at h e h a s reim b urs e d h is ve n d ee to wh om h e only , ,

a n d n ot th e d efe n d ant i n th e e x ec utio n is l iabl e


5
B ut th is .

has al so bee n strenuo usly d enied an d th e po sition m aintained , ,

wi th greate r reas o n th a t the p urch as er at an ex ecution— , s a le is

. ot s ub ro ga ted to th e righ ts of th e j ud gm e nt c red ito r a ga in s t


. -

t he d ebtor if th e p rop erty is afte rw ards ta k e n from h im by


,

vi rtue of a pa ram o un t titl e i n a s tra n ge r j us t as h e c ann ot


5
,

u nd e r th e s am e c irc um s ta n ces re c ov e r ba c k th e am ount of h is

p u rc h as e m o n ey f ro m -
t h e c re d ito r t o w h o m it h as b ee n p a id 5

1
a ny v . McMillan 2 Dnvall , 44 ; Hslcom be Louderm ilk , 3 ones o
. J
( m)
K , 5 5 5 . Law ( Nor Can ), 49 1 ; Goodbar v . .

5
Julian v Bea] 26 Ind 220 .
, .
'
Daniel, 8 8 Ala 5 83 . .

M uir v Craig, 3 Blackf ( Ind ) 29 3


. . .
5
Georgetown 0 S m ith, 4 C ranch, .

Geoghegan 0 D itto, 2 Met ( Ky ) C C 9 1 ; Patters on s Estate, 25 Penn


’
. . . . .

43 3 ; Price 0 Boyd, 1 Dana . St 71 ; Lall v Matthews , 19 V t 3 22 ; .

J
. .

43 4 ; Mc Ghee 0 Ellis , 4 Litt ( Ky ) . . Le port 0 Todd, 3 2 N Law, 1 24 ;


. .

244 . Martin 0 Martin, 7 Md 368 ; Spott. .

5
McLaughlin v McDaniel, 8 Dans . v Com m on wealth, 8 5 V a 5 3 1
. Rol .

18 2 ; aem ble, in Howard 0 . lins v Henry, 78 Nor Car 3 42 ; An


. . .

N orth, 5 Tex 290, 3 1 5 .


. draws v Murphy, 12 Ga 43 1 ; An
.
.

5
McLaughlin v McDaniel, 8 Dana . derson v West, 80 Ky 1 71 ; Bunch
. .

( Ky ), 182 . v Grave, 1 1 1 I nd 3 5 1 ; Conne r o . .

J
.

5
Hawkins v Miller, 26 Ind 173 ; Wells , 9 1 Ind 197 Burden v ohn
. . . .

V attter v Lytle, 6 Ohio, 477, 478 ; son, 81 Mo 3 1 8 ; Nn ent v Prie


.

g
. . .

Perry 0 Willia m s, D udley ( So Can ), batsch, 6 1 Miss 402 ; Goodbar v


. . . .
64 TH E LA W or S UBROGATION .

a nd th is on th e gro un d th at h e is m e rely a vol un ta ry pur


c h ase r of th e d ebtor s inte rest in th e prope rty , a n d th a t it is
’

o n ly wh ere th e person pay ing a debt h a s the righ ts of a s urety ,

or is c o m pe ll e d to pay it by l ega l p ro c ess or in o rde r to sa ve ,

h is own p roperty th at eq uity s ubs titutes him e ven agains t


, ,

th e deb to r to th e pl a ce of the c re d itor ; and th at a m e re


,

strange r or voluntee r p ay in g th e d ebt w ill n ot be s ub rog ated

to th e righ ts of th e c red ito r un less th ere h a s been an as s ign ,

m en t to h im or a n exp ress a g reem en t for s uc h s ub roga ti on


1
.

40 . R i gh t s of a P urc h as er w h o s e P urc h as e a v o id a b ls by

t h e C re d i to rs of his V purch ased p roperty


e n d or . One wh o h a s
a t a s al e wh ic h m ay be av oid ed by th e c red itors of th e ve n d o r ,

wh eth er he is an ass ignee for th e benefit of cred ito rs a pur ,

c h as er or a vol un ta ry g ra n tee will afte r sa tis fyin g th e c l a im s


, , ,

of th e atta ch in g c red itors be s ub rogated to th eir righ ts s o as


, ,

to en abl e h im to h old th e p roperty again s t s ub s eq ue n t a tta c h


m en ts .
2
H is p urch as e at a s h e rifi s s al e a gain st h is g ra n to r ’

will give h im a good title A nd i f the s al e to h im was good


5 .

a s a gain s t th e ven d or s o th at h e c ould req uire th e v e n do r


,

him self to d is ch a rge th e d ebts for w h ic h the p rope rty was s ub


seq uen tly atta c h ed h e m ay i n Ne w York up o n p ay in g th e
, , ,

j udgm ent ren de red und e r such attach m ent tak e an a s s ign ,

m en t of th e j ud gm en t a ga in s t h is ven do r a n d b e s ub ro ga te d

to th e righ ts of th e j ud gm en t c red ito r a ga in s t h is v en d or 5


If
-
.

a gran tee of l a n d w h os e d ee d is vo id able by th e c re d ito rs of

h is gran to r tak es f rom a p rior m o rtga gee of th e p rope rty a


quitc laim d eed of all the l atte r s inte rest in th e p re m is es ’
,

th o ugh it exp res s ly s tate s th at th e m o rtgage is th e re by c an


ce ll e d a n d d is c ha rged th is w ill if h is g ra n t is a vo id e d by th e
, ,

g ra n to r s c r
’
e d ito rs be co n s trued a ga
, in s t th e m to op e ra te as

Dun, Id 6 18 ; Ste vens 0


. ing 21 . K ,
5
Selleck o Phelps 1 1 W ise 3 8 0;
.
, .

Ala 429 ; Fore v Manlove 18 Calif


. .
,
. Lam b v S m ith, 1 3 2 Mass 5 74
. . .

5
43 6 . Arli ngton 0 Arrington 102 N or
.
, .

1
Richm ond v Mars ton, 1 5 Ind
. . Car 491
. .

134 C hildress 0 Allen, 3 La . .


5
Cole v
. Malcolm 6 6 N Y 3 63, . . .

477
vn c u m s
soccessx . 65

a n assign m e nt a n d n ot as a disch arge of th e m ortgage h is 1

righ t of s ub rogation is n ot destroy ed by th e avo id an c e by h is

g r a n to r s c re d ito rs of th e c o n vey a n c e w hic h h e h as ta k e n


’ 2
A .

w ife s righ t of dow e r is n ot barre d by h er h a vin g rel eas ed it


’

i n his d ee d of h is real estate whi ch h as been subsequently set


asid e a s in f ra ud of his c red ito rs
8
This wh ole doc trine rests .

u pon th e p ri nc ipl e th a t m erely c on struc tive fraud w ith out an

a c tua l w ron gf ul in ten t will n ot p re vent s ub ro gatio n th o ugh it ,

wo ul d be oth erwise with an active participant in th e fraud 5

a nd th is p rin c ipl e h as been gen era lly m ainta in e d in th e l ate r de

c is ion s th ough w ith great d iversity of a ppl ication to th e va ry


,

i n g circum s ta n c es an d w ith m uch difl eren c e of opin ion as to ,


’

t h e ex is te n c e of actual partic ipation in th e fraud ul en t sc h e m e 5 .

B ut the fra ud ulen t grantee w ill n ot by s ub rogation or an y


o th er d ev ic e b e re im b urs ed for p ay m ents m ad e by h im in
furtheran ce of th e fraud 5
.

41 W i v e r o f th e R i gh t f S ub ro g ti o n
. a Th e righ t of o a .

s ub rogati on m ay be lo s t by th e wai ve r of th e p arty en titl e d

t o it 7 Thus wh ere one of two wh ose es tates were subjec t


.
,

1
Crosby v . See Loos v Wilk inson, 113 N Y
Taylor, 1 5 Gray 5
. . .

64 . See Mansfield 0
Dyer, 485 , reversing s c , 5 1 Hun, 74 ; . . .

1 3 3 Mas s 3 74 . . B aldwin v S hort, 1 25 N Y 5 5 3 ; . . .

5
Phillips 0 C ham berlain, 61 Miss s c , 5 4 H un, 73 ; Ham ilton Bank 0
. . . . .

740 ; R head v H ounson, 46 Mich Halstead, 5 6 Hun


. New .

24 3 ; Tom pkins v Sprout, 5 5 Calif m an u irk, 45 N J Eq 6 77 Levi K


J
. . . . . .

3 1 ; Merrell 0 ohnson , 96 Ills 224 v Wels h, Id 8 67


. William son v . . . . .

5
Wilkinson 0 Paddock, 5 7 H un Goodwyn, 9 Gratt ( V a ) 5 03 ; B ur
. . .

(N . 19 1 ; Melon y v Horan, 1 2 ton v Gibson, 3 2 W V a 406 ; Cut . . . .

A bbott Pr N s ( N Y ) 28 9 ; Lock c heon v B u c hanan, 8 8 Mic h 5 94 ;


J
. . . . . . .

e tt v a m es 8 B us h ( K
.
y) 28 ;
, R u pe W a llac e 0 M c B ride , 70 M ic h 5 9 6 ;
, . .

v H adle , 113 Ind 416


.
y ; H orto n v S ha w an o Bank v Koeppe n 78 Wis e
. . .
, .

K elly, 40 Minn 19 3 ; Bohan no n v 5 3 3 ; Fordyce v H icks, 76 Iowa 41 ;


K
. . .
,

C oom bs, 9 7 Mo 446 ; H um e v Tuskaloosa Bank v ennedy 9 1 Ala

J
. . . .
,

S c ruggs , 64 Ala 40 470 Pritc hett v ones 8 7 Ala 3 17 ; .


.

K
. . .

5
Mc Caskey v Grafl 23 Penn St W iley v night, 27 Ala 3 36
'
. . .

J
. . .
,

3 21 ; ackson 0 Sum m erville , 1 3 5


S ullivan v Tink er, 1 40 Penn 8 t
. . . .

P e nn St 3 5 9 ; Gilbe rt 0 Hofl m an, 2 3 5


'
. . . .

W atts 66 ; Cook 0 Berlin 7


Richardson 0 Traver, 1 12 U S . . . .

W oolen Mill 5 6 Wise 643 ; Grant 423 ; Turnl 0 Thom as, 1 H u hes,
g . .

0 Llo d 1 2 S m
.
y M
, 1 9 1 P oa tea , C C. 1 72 , 1 76 U 8 B ank 0
. Peters , . . . . . .

5 44 . 1 3 Peters, 123 Cam pbell 0 Sloan, 21 .

5
66 m s LAW or so s aooa rr
ou. '

to o on l ien paid off th e wh ol e d ebt and took an ass ign


a c m m

m en t of th e m o rtga ge i t wa s h e ld th at h e m igh t e ith er


,

rega rd th e m ortga ge as d is c h a rged an d b ri n g an ac ti on ,

a ga in s t th e oth e r for c on t rib uti on or tre a t it a s a subs is t in


g ,

c h arge upo n th e estate un ti l th e oth e r s h ould re d eem by a


p y
in g a reas on a bl e c on trib ution 1
C e rta in m ortgage d p re m is es
.

being s ubje c t to a pa ram ount l ien for ta x es th e firs t m ort ,

g g
a e e b
, efo re f o re c l os ure p a i d th e s a m e u n d e,r a n a greem e nt ,

w ith th e se c on d m ortga gee th a t th e l atter if h e purc h as e d ,

th e p rem is es at th e f orec l os ure s a l e s h o uld re p ay th e a m oun t -

,
.

Th e s ec on d m ortgagee d id so purc h as e ; a n d th e es tate w as


c on v e y e d t o h i m H e th e n refus ed to refun d th e tax es an d
.

it wa s h e ld th a t th e first m ortgagee c ould n ot n ow a fte r h is ,

c on vey a n c e b e s ub roga t e d to th e o rig in a l ta x l ien


,
7
Th ough .

in gen eral a j un i or in c um b ra n c e r wh o p ay s 03 th e h old e r of


a p rior l ien i s e n titl e d t o b e s ub roga te d to th e ben efit of th e

l atte r s s ec urity yet th is right w i ll be wa ived by an agree


’
,

m e n t of th e j un i or in c um b ra n c er th at th e p rope rty s h a ll be

oth erw is e app rop ria te d A l on g de l ay with out action w ill


5 .

be fa ta l to a c l a im of s ub rogation 5
.

42 W h t i n o t W i v er
. a s
— Th e righ t of s ub rogati on to
a a .

a re c o rd e d m ortgage w i ll n ot be l os t by th e m ere f ai l ure t o

ve n o ti c e of th e c l a im t o a purc h as er for va l ue e f ac t
5
g i Th .

th a t on e e n titl ed to s ub ro gation ob ta in s a l s o c oll ate ra l s ecu


rity for h i s p rotec ti on i s n ot of its e lf a w a i ve r of h is righ t
5
.

A m ortga gee w h o is entitl ed to be s ub rogated to th e bene fit of


a p ri or l ien wh ich h e h as d isc h a rge d w i ll n ot b e d e pri v ed of
, ,

th is righ t e v en th ough h e h a s ta k en a n ew m ortga ge upon th e


,

So Car 301 ; Belcher v Wicke rsham ,


. . .
5
West s Appeal
’
8 8 Penn St 3 41
, . .

9 Baxter 1 1 1 Pos ted , 55 1 10, . Flem ing v . Parry, 24 Penn S t 47 ; . .

147 Bufli ngton 0 Bernard, 90 Penn S t


. . .

1
Taylor v Bassett, 3 N H 29 4 . 63.

J
. . .

3
Manning 0 Tuthill, 30 N .Eq . .
5
H urt o Rifl e, 1 1 Fed Rep 790
. . . .

'
5
Sm ith v Dinsm oor, 119 111 6 5 6
. . .

United States Bank


8 v
. Peters, 13
Peters, 1 23 .
suoc sssr
vs cu m s . 67

s am e prem ises for th e am oun t of h is paym ents an d th is ,


1

n e w m o rtga ge h as be e n afterw a rd s a vo i d ed for usury


5
B ut .

i t i s to be ob serve d th at th is agreem en t for us ury wa s n ot


m a d e un ti l a fte r th e ri gh t of s ub roga ti on h a d v es te d if
5
,

h owe ver th e c laim h ad grown out of th e us uri ous agreem en t


, ,

in s te a d of bein g p rio r to it an d in de pen d en t of it it c ould ,

h a ve furn is h e d n o b as is for s ub rogati on 5


Wh e re on e wh o .

was in tre a ty for th e purc h as e of pe rs on a l p rope rty wh ich ,

was s ubj ec t to t wo m o rtgages p a i d off th e fi rs t m o rt ga ge , ,

un d er a n agre em ent th at un ti l th e c om pl etio n of th e s a l e h e

s h ould s ta n d in th e pl a ce of th e m ortga gee a n d h a ve th e

b e n e fit of h i s s e curity it w a s h e ld th at h e was n ot d e p ri ve d
,

of th is c on ven ti on a l s ub ro ga ti o n by th e fac t th a t h i s a g ree

m e n t w ith h i s v end or c on ta in e d a rec i ta l th at th e a m o un t s o

pai d by h im h ad been paid by h im out of th e purch ase m oney -

an d i n d is ch a rge of th e m ortga ge d eb t
5 -
.

43 . R i gh t l o s t b y N e gli ge n c e res ulti n g i n P rej ud i c e t o o th e rs .

fact th at th e l oss of on e wh o s eek s to be p rotected b y


Th e
th e appl i c ati on of th e do ctrin e of s ub roga ti on a ros e f rom h i s
o wn n eg l igen ce an d th a t th e gra n t in g of h i s req ues t w o uld
,

n ow b e pre j ud ic i a l to o th er in n o c en t c red itors or as s ign ee s of

h i s d e btor w i ll be fata l to h is c l a i m
,
5
Th us wh ere the .
,

own er of l an d c on veyed it to an oth e r an d took for th e pur ,

c h a s e m on ey a m ortga ge upo n th e p rope rty a nd th e p a rti es


-

ag reed th at th e d eeds s h ould re m a i n un rec ord ed un ti l th e

l an d sh ould be surveyed an d th e m ortga go r s tated to th e ,

1 Worcester Bank Cheeney, 8 7 0 . 26 H un, 209 ; Farm ers Loan Co v


’
. .

Ills 602 ; B urohard v Phillips , 11


. . Carroll, 5 Barb ( N Y ) 6 13 per . .
,

Paig e ( N 66 ; Eagle Ins Co v


. . . . Welles, J Trible v Nichols, 5 3 Ark
. . .

Pell, 2 Edw Oh ( N Y ) 63 1 . . . . 271 ; posted , 44 .

5
Pa tte rson v Birdsall, 6 4 N Y . . . Watts 0 Sym es, 1 De G , M. . .

29 4 ; afi rm ing s c 6 H un ( N . . . G 240
. .

63 2 ; Mc willia m s 0 B ones, 8 4 Ga . .
5
The S uperior, 5 Sawyer, 3 46 ;
203 . Prin tup v Barrett, 46 Ga 407 ; Gor
. .

5
See Givea ns v
. McMurtry 1 6 N
English, 3 Lea 63 4 ; , don 0
.

J Eq 468
. . . S tate v Bé al, 8 8 I nd 106 ; Conner v . . .

5
Pe rkins 0 H all 105 N Y 5 39 ; W elc h, 5 1 Wise 43 1 Sc haller, in re,
.
,
. . .

Baldwin v Moflett, 9 4 N Y 8 2, and 10 Daly ( N


'

. 57 . . .
68 mm LA W or sos noc m on .

m ortgagee th at h e inten de d to sell th e la n d to one D a nd .


,

prom ise d to tra ns fer D s m ortgage ins tead of h is own to .


’
,

wh ich a rran gem e nt th e m ortgagee ass en ted an d th e m ort ,

a
g g o r d i d c o n vey to D w h o re c ord e d h is d e ed w i th out n ot ice
.
,

of th e pri o r m ortga ge wh ic h was n ot rec o rd ed un ti l after th e


,

c on ve y a n c e t o D it was h e ld th at th e origin a l m o rtga gee w as


.
,

n ot en titl ed to th e b en efit of th e m ortgage giv e n by D in .


,

preferen c e to th e oth e r c red itors of h is d ebtor s in solve nt ’

e s ta te
1
A n d w h e re a gran tor s old l a n d ta k ing n o s ec urity
.
,

for th e pay m en t of th e purch a s e m on ey an d h is gran tee s o ld -

th e lan d t o an oth er a n d to ok d iv ers bon d s for th e p urch as e


,

m on ey it w a s h e ld th at a l th ough th e origin al gra n tor by


, ,

virtue of h is eq uitable l ien upon th e l an d m igh t h a ve s ub ,

je c t e d t h es e bo n d s to th e p a y m e n t of h i s c l a im w h i l e th e y
w ere in th e ha nd s of h is grante e yet h e l os t this righ t by ,

d el ay in g to enforce it unti l after th e b on d s h ad b een as signed


to bon a fide h old e rs for v a l ue with o ut n otic e of h is c l a im 5
.

B ut th e m ere f ac t th at th e l os s of th e p arty s eek in g to be s ub


rogate d a ros e f rom h i s ow n n e gl ige n c e w i ll n ot d eb ar h im

from th e righ t un l es s its e nforcem ent would b e pre j ud ic i a l


,

to o th ers wh o a re n ot at faul t 5
.

44 . Th e P art y s e e k in g S ub ro g a t i o n m us t n o t b e i n h is ow n

W ro n g . A ny on e of th e equit able doc


wh o see ks th e ben efit

t rin e of s ub rogati on m us t c om e in to c ourt w ith c l e an h a n ds


5
.

It wi ll n ot b e appl i ed to re l ie ve a v en d e e f rom th e c on s e
u n c es of h i s o wn wron gful a c t or of a w ro n gful act in wh ich
q e ,

he h a s p a rti c i pat e d 5
or of th e wron gful ac t of on e un d er
,

wh om h e c l a im s 5
A c c ord in gly a ven d or w h o s eek s to re
.
,

Page, 1 3 Main e, 45 9 Mo 1 3 ; Farm ers Loan Co 0 Carroll


’
1
B ussey v . . . .
,

J
.

5
Moore 0 H olcom be, 3 Leigh . 5 Barb ( N Y ) 6 13 ; ohns on 0
. . . .

5 97 Antea , 40
. . Moore 3 3 Kans 90 ,
. .

5
Willcox v Foster, 1 3 2 Mass 3 20
. .
5
Ro wley v Towsley 5 3 Mich 3 29 ; .
,
.

Wall 0 Mason, 102 Mas s 3 1 3 Dan S pratt v Pierson, 4 8 0 Car 3 01 ; John


.

K
. .
. .

iel v Baxter, l Lea


.
6 30 . son v Moore 8 3 . ans 9 0; Devinc v ,
. .

5
Wilkins on v Babbitt, 4 Dillon, C . . Harkness 1 17 I lls 145 , . .

C . 207 ; R ailroa d C o v So utte r,


13 . .
5
Boyer v Bolender, 1 29 Penn St. . .

Wallac e, 5 1 7 ; Grim th v Townley, 69 . 3 24 ; Wilson v Murray, 90 Ind 477 . .


succ essw s cu m s . 69

s ci n d th e c on trac t of s al e an d to rec ov er th e property by rea


s on of th e fraud of th e ve nd e e w i ll n ot be obl iged to re im burse

t h e fraud ul en t v e n de e for h is exp en d itures m a d e t o c a rry out


t h e fraud a l th ough upon recoverin g th e p roperty h e wi ll reap
,

th e be n efit of th es e e xpen d itures by th e d is ch a rge of a l ien


u pon th e p rope rty wh ic h th ey h a ve p a i d th ough it h as been 1
,

s a i d th at in equity wh ere th e p a rty se ek i n g to av oi d a sa l e

h as b ee n be n efite d by th e fra ud ul ent p urch as er s h av in g p aid


’

o ff in c um b ra n c es th e p urch as e r s h ould be reim b urs ed for


,

s uch pay m en ts
5
Wh ere th e s e c on d m o rtgagees of a ra il roa d
.

c o m p an y purc h as e d th e ro ad un d e r a n e x ecuti on again s t th e

c o m p an y form ed th em s e lv es i n to a n ew c o rpo ration an d a s


, ,

s uc h ope rate d th e ro a d for th ei r own b en efi t an d th en th e ,

n e w c o rpora tion to p reven t a fo rec l os ure pa id th e d ebt


, ,

s e c ured by th e fi rst m o rt gage after wh i ch th ei r own purch as e ,

of th e ro a d at th e s uit of c red itors of th e old c o m p a n y was


, ,

s e t as i d e a s fra ud ul en t an d v oid it wa s h e ld th at th e n e w ,

c o rpo ra tio n c ould neith er re c ove r b ac k th e a m oun t it h a d

p a i d to th e fi rs t m o rt a
g g e e s n or y et b e s ub ro g ate d t,o th e i r

ri gh ts und er th ei r first m ortgage 5 If a c red itor wh o m igh t .

ot h e rwis e c l a i m to be sub rogate d to th e l ien of a m ort a e


g g
u pon h is d eb to r s p rope rty wh i ch h e h a s pa id off h as ta k en
’
, ,

fo r h is sec urity an oth e r m ortgage f rom th e d eb tor upon th e


s a m e p roperty wh ich i s foun d to be f raud ul ent an d vo i d a s
,

a g a i n s t th e deb to r s oth er c re d ito rs h e wi ll n ot be a ll owe d


’
,

s uc h s ubrogati on to th e p rej ud ic e of p arties wh o h a ve u r


p
c h a se d th e p rope rty at a n e x ec uti on s a l e a gai n st th e d eb to r 5 -
.

45 . W h en On e en ti t l e d to b e s ub ro g a te d to a Li e n m ay de
m a n d an A s s i gn m en t of s ubrogation to th e
th e re o f. Th e righ t

b e n efit of a pri or in cum b ra n c e is s om etim es enforc ed by


c o m p ell in g an a ss ign m ent of th e p ri or l ien to th e p arty en

1
Guclrenheim er v Angevine, 8 1 .
5
Ra ilroad Co v Soutter, 1 3
. . Wal
N Y 39 4
. . . lace , 5 17 .

5
White v Trotte r, 1 4 S m
. M . .
5
Wiley v Boyd, 38 Ah 6 25
. .

( M iss ) 3 0 ; E v erett v Beebe, 3 7 .

I o wa, 45 2 .
70 rs s LAW or s us nos y n on .

titl ed to be b ogate d th ereto B ut th e m ere righ t of re


su r .
1

dem ption an d of s ub rogation w ill n ot of itself en title a p arty


to require a n a ss ign m en t a lth ough th is h as b een m ain ta in ed ,

in s om e cas es 5
Th e righ t to d em a n d an as s ignm ent i s n ow
.

g en e ra lly l i m ite d to c a s es in wh i ch th e p arty wh o i s en ti tl ed

to red eem an d th e reupon to be sub rogate d to th e b en e fit


,

of th e l ien from wh ich h e redeem s is a ls o in effect a s urety , ,

or is in equity to b e rega rd ed as a s urety for th e p a ym en t of ,


“
th e d ebt secure d th e reby 5
A n y on e h av i n g a sub s equent .

in c um bran ce upon th e m ortga ge d e s ta te c an p rotec t h is in


tat es t by p ay in g th e p rior m o rtgage wh en i t is due ; a n d h e
th e reupon s uc c eed s by s ub ro gati on upon s ettl ed p rin c i pl es of ,

e quity to th e righ ts a n d i n teres t of s uc h p rio r m o rtga gee i n


,

th e l an d s as s ec uri ty for th e a m oun t s o pa i d wi th out a ny


, ,

ass i gn m ent or tran s fe r by th e p ri or m ortga ge e H e is n ot .

e n titl e d to a n a s s ign m en t
” 5
W h ere on e i s entitl e d to an .

as s ign m ent of a p ri or m o rtga ge h e m us t ac tua lly te n d er th e ,

full am oun t of prin c ipa l i nteres t a nd any accrue d c osts to , ,

th e m ortgagee ; m e re ly s ay in g wh at h e w i ll d o an d p ay in g th e
m on ey i nto c ourt w i ll n ot s t0p th e run n in g of i nte rest on th e

m ortga ge d e bt A n d th e righ t of a n y p arti es j un i or i n i n


5 -
.

1
Twom bly v Cas s idy, 8 2 N Y . . . 557 N elson v Loder, 1 3 2 N Y 288 ; . . .

1 5 5 ; Clark 0 Mackin, 9 5 N Y 3 46 ; . . . S peiglem eye r v Crawford, 6 Paige .

Pla tt v B rick , 3 5 H un ( N 121 ; ( N . 25 4 25 7 ; C h erry 0 M onro .

K
. .
, ,

noblauch v Fogelsong, 3 7 Minn . . 2 Barb Oh ( N Y ) 6 1 8 ; Ave rill o.

J
. . . .

3 20; Johns on v Zink, 5 2 B a rb . . Taylor, 8 N Y 44 ; ohnson v Zin k, . . .

( N . Y ) 3 9 6 ;
. s c on app e a l 5 1 N Y . .
,
. . 5 2 Barb 3 9 6 ; s c on a ppea l,
. . .

3 3 3 ; Mount v S uyda m , 4 S andfo rd . 5 1 N Y 3 33 ; Vandercook v C o boes


. . .

Oh ( N Y ) 3 99 ; Lyo ns Appea l, 6 1 Savings Institution, 5 H un (N


’
.

K
. .

Penn S t 15 ; Ra flety 0 ing 1 641 Ellsworth v Lockwood, 42 N Y


' '
. .

K
. .
. . ,

And see Cilley v H are, 8 9 ; H olland v Citizens Savings Bank,


’
eene, 601 . . .

40 N H 3 5 8 1 6 R I 734
J
. . . . . .

5
Forest Oil Co s Appeal, 1 18
’
.
5
ones on Mortgages 5 79 2 citing , ,

Penn St 1 3 8 ; S utk rla na , J in Ells Ellsworth v Lockwood, 42 N Y 89 ,


'
.

J
. . . .

worth v Lockwood, 42 N Y 8 9 , 9 7,
. . .
9 6 ; B um et v Den niston, 5 ohns Ch . . .

citing and c riticising Pa rdee 0 V an .


( N Y )
. 3 5 H ubba
. rd v Asc utney Mill .

Anken , 3 B arb ( N Y ) 5 3 6, 5 3 7, and . . Dam Co , 20V t 402 .

J
. . .

enkins 0 C ontinen tal Ins .Co 1 2 .


5
H ornby v Cram er, 12 H ow Pr . . .

How Pr ( N Y ) 66 ( N Y ) 4 9 0
J
. . . . . . . .

5 B i elow v Cas sed 2 6 N E


g y, q .
. .
s uc csss rvs cu m s . 71

te res t to o pe l th e ass ignm ent to th em of a prior m ortgage


c m

h as been utte rly den ied Th e m o rtgagee s ay s Mr J us


1
.
, .

tice C olt is n ot required to obs e rve or to rega rd th e e quita


,

ble righ ts to c on trib ution wh ic h m ay e x is t b etween pa rt ies


h a vin g d ifferen t in te res ts in th e equity or to p rotect th em ,

by tra n sfe rring h is titl e to a ny on e 5


W h en s uch righ ts .

ex is t th ey a re p rotec te d on th os e s e tt l e d p rin c ipl es of equ ity


,

by wh ich on e wh o as sum es m ore th a n h is sh are of th e c om


m on b urd e n is s ub ro ga ted t o th e righ ts of th e m o rtga gee to ,

h old w ith out an y as s ign m ent or ac t of trans fer as qua si


, ,

ass ign e e for th e p urpo s e of c om pe ll in g con tributi on


,
He .

bec om es in efl ect th e ass igne e of the m ortga ge for th e pur


'

pose of en ab l ing h im to c om pe l a con trib ution But th e .

righ t of s ub roga ti on a rise s by op e rat i on of la w o n ly wh en

th e re h as b e en a p aym en t an d e x tin guish m en t of th e m ort

g g
a e by o n e en t i tl e d t o re d ee m
5
A n a ss i gn m en t i m pl ies .

th e c on tin ue d e x is te n ce of th e debt a n d th e e quitable righ t ,

does n ot aris e 5
.

46 Th e R e l D b t r c an n t b e ub r g t e d
. a e o Th e d ebtor o s o a .

upo n wh o m rests th e ul tim ate obl igation of d is ch a rgi n g th e

debt c an n ot by h is p aym ent ac quire a ny righ t of s ub roga


tion ; a n d if upon m ak i n g h is p ay m ent h e tak es an a s s ign
5
, ,

m en t of th e s e c urity th is w i ll be eq ui v a l ent to a d is c h arge


,

th ereof 5
One wh os e d uty it i s to pay th e tax es upo n re a l
.

esta te c ann ot ob ta in a n y titl e in h i m se lf by n eg l ec tin g to

p y
a th e m a n d e it h e r,b u y in g th e p rop e rt y h i m se lf a t t h e ta x

s a l e o r a ft e rw a rd s p urch as ing it from a th ird p a rty wh o h a d

1
C hedel v Millard, 1 3 R I 46 1 ; . . . 1 29 Mas s 401 ; Wals h 0 Wilson, 1 3 0
. .

Butle r 0 Taylor, 5 Gray


. 45 5 ; Mas s . 1 24 ; Ac er v H otchkis s, 9 7 .

La m so n v Drake, 1 05 Mass 5 64 ;
. . N Y 3 9 5 N Y Ins C c v V ander
. . . . . . .

Lam b v Mon tague, 1 1 2 Mass 3 5 2


. . . bilt, 12 Abbott Pr ( N Y ) 45 8 ; Frye . . .

5
So in Chase 0 W illia m s, 74 Mo . . 0 B an k of Illinois , 1 1 1113 3 6 7 ; At
. .

429 ; Davis v Flagg, 3 5 . kins v Em is on, 10 B us h ( Ky ) 9 ;


.
,

5
See a s tea , 6 . H ardin, ex pa rte, 3 4 So Car 3 77 . .

5
La m b o Montague, 1 1 2 Mas s . . Hardin v Clark, 3 2 S o Car 48 0
. . .

35 3. D a vis 0 Townsend Id 1 1 2 ; Peo le s


.
p
’
, .

5
U nderwood 0 Metropolita n Bank, . Bank v Ballowe , 3 4 La Ann 5 6 5
. . . .

144 U S 669 ; Thom ps on 0 H eywood,


. . .
5
Lovet in v H um boldt Safe De .
72 m s LAW or sus s ooa rr
on '
.

bough t at such s a le A n as s ignm ent of a j udgm ent to one .


1

p rim ari ly boun d to pay it w ill n ot keep it a l i ve On e who 5


.

h as gi ve n two m ortgages upon th e s am e l an d with wa rranty


ca nn o t a fte r th e titl es un d e r th e t wo m o rtgages h a ve b een
,

un ite d i n one pe rs on an d th e s ec on d m o rtga ge h a s b een fore

c lo se d re dee m , from th e first m ortgage and c l a im to be an


equita bl e as s ign ee th ere of an d to b e s ub roga te d to th e righ ts ,

of th e firs t m ortga gee s o as to en able h im to open th e fore ,

c l os ure of th e sec on d m o rtga ge for n o d eb tor c an be s ubro


3

g a t e d a ga in s t h is ow n w a rra nt y 5
n or c a n h e b e s ub r og a te d to ,

th e righ ts of th e s ec on d a ga in s t th e firs t m o rtga gee 5


A pur .

ch a s e r c a n n ot b e s ub rog ate d to th e be n e fit of an i n c um b ran ce

wh ich h e h as agreed to pay On e wh o h as as sum ed an d


5
.

a gree d to pay tw o in c um b ran ce s c an n o t be s ub ro ga te d to th e

l ien of th e s e c o n d an d h is agent wh o m a de th e ba rgain a nd


7
, ,

s o k n ows its prov i s ion s i s un d e r th e s am e d is ab i l ity If h e


8
.
,

h im se lf h e ld th e firs t m ortgage th at i s e x tin guis h ed by h is ,

a ss um pti on of b oth b urd en s S o if th e p urch aser of l an d


5
.
,

pos it 1 1 3 Penn St 6 ;
Co eim v . . K .
5
Montgom ery v . V ickery, 1 10 1nd .

Ro beson , 23 Pe nn St 45 6 ; Clay 0 . . .

Banks , 71 Ga 36 3 ; Carlton v 1 ac k . .
5
Butler 0. Seward, 10 Allen
son, 121 Mass 5 9 2 ; H oope r v H en ry, . .
( Mas s ) , 466 .

3 1 Minn 264 ; McCarty 0 Chris tie,


. . S pa rhawk a
5
Bag , 1 6 Gray .

1 3 Calif 79 . .
( M ass ), 5 8 3 .

1
Barnard a W ilson , 74 C alif 5 1 2 ; .
5
Mc Intier 9 Shaw, 6 Allen .

B arrett 0 Am s t ein 3 6 Calif 3 22 ;


. . . 83 .

B usch v H usto n, 75 l lls 3 43 ; Cho 5


Bolton 0 Lam bert, 72 Iowa,
J
. . .

te au v ones 1 1 Ills 300 ; Me dley v


.
, . . 48 3 ; Goodyear v Goodyear, Id 3 29 ; . .

Elliott 6 2 I lls 5 3 2 ; B urc hard v Fra


,
. . Probstfied v Czizc k, 3 7 Minn 420; . .

zer, 23 Mic h 224 ; C ooley 0 Water . . Mart in v Aultm an, 80 Wise 1 5 0; . .

m an, 1 6 Mic h 3 6 6 ; Gas kins 0 Blake, . . S harp 0 Collins , 74 Mo 26 6 ; C on


. .

27 Miss 675 ; S m ith v Lewis , 20


. . verse 0 Cook , 8 V t 164 ; Wills on
. .

Wise 3 5 0; Bassett v Welch, 22


. . v .Burton, 5 2 V t 394 ; Munroe 0 . .

Wise 1 75 ; Fallas 0 Pierc e, 30 Wise


. . . Grous e 5 9 H un ( N , 248 ; Tom p .

443 ; Fair v B ro wn, 40 Io wa 209 ; k ins v Hals tea d 21 Wis e 1 1 8


J
. .
.
, .
,

Porte r 0 Lafferty, 3 3 Iowa, 25 4 ; Al


.
7
S tige r v Mahone, 24 N Eq . . .

lis on 0 Arm strong 28 Minn 276


.
, .
°
426 ; Willson v B urto n, 5 2 V t 3 9 4 . . .

William son 11 R us sell, 1 8 W V a 6 12 . . .


5
argan v Mc S ween , 3 3 8 0 Car
D . . .

Franks 0 Morris 9 W V a 66 4 ;
K
. .
. ,

Magnet 0 Hibernia Ins . 30 La . .


5
neeland 0. Moore , 1 38 Mass .

Ann , part II , 1 3 5 7
. . . 19 8 .
S UCCESS IVE CLAIMS .

wh ich is in cum bered first by a m ech an ic s l ien an d th en by ’

a m o rtga ge h as as s um ed a n d a gree d to pay th e m ortga ge ;

d ebt h is purc h as e of th e l and wh en s old un d er a j ud gm ent


,

re c overe d upon th e m ec h an ic s l ie n w i ll gi ve to h im or to h is
’

g ra n te e n o tit l e th a t c a n b e se t u p ga a i n s t th e m o r tg g
a e 1 .

Th e p urch ase r of an equity of red em pti on is en titl ed to th e


benefit of a paym en t m a de by a ny on e wh ose d uty as to h im , ,

i t i s to pay th e m ortga ge de bt 5
B ut th e m ere fa c t th at th e -
.

m on e p a i d to a m o rtga gee c om es from t h e d eb tor w i ll n ot


y
n ec es s a ri ly ope ra te a d is ch a rge of th e m ortga ge i f th at i s a s , ,

a p a rt of th e sa m e tra n s ac t ion as s ign e d to a th i rd pa rty for ,

v a l ue Upon paym en t of a m ortgage d ebt from th e fun d s


8
.

of th e d ebtor an d a l s o from th os e of a th ird pa rty th e m ort ,

a
g g e c a n b e k e p t a l i v e o n ly t o th e e x te n t of t h e l a tte r f un d s
5 .

§ 47 . A s s i gn m e n t to One w h o is b o un d to pa y th e D eb t

t an t a m o un t t o a D i s c h a rg e . J us t as an ass i gnm en t is n ot

n e c ess a r y wh ere of sub rogation ex ists s o wh ere


th e righ t ,
5

on e w h o h a s th e righ t to re deem p rop e rty f ro m a m o rtga ge or

oth e r ch a rge p ay s th e am ount due a n d ta k es a n a s s ign m en t

of th e s ec urity th i s w i ll be trea te d a s th ere by d is ch a rge d or


,

as s ti ll s ub s is ti n g as th e j us ti c e of th e c a s e m ay re qui re
5
.
,

Th e pa rty wh o is ul tim ate ly l iabl e for a d eb t c an not upon ,

ta k in g a n a ss ignm en t th ere of e n fo rce p aym en t from on e ,

un d er a m ere ly s ec on d ary l iab il ity 7 Th us an ass ignm ent .


,

of a m o rtga ge to a fo rm er own er of th e eq uity of re d em pti on ,

w h o h as c on vey e d th e m ortgage d p rem ises w ith w a rra n ty ,

e x ting uis h es th e m o rtga ge ; th e as s ign ee ta k es it for t h e

1 H eim V ogel, 69 Mo 5 29
v. . .
5
Grave v Bunch, 83 Ind 4 ; Day . .

5
Willia m s v Thurlow, 3 1 Maine,. ton v Rice 47 Iowa, 429 ; Bailey
.
,

3 9 2 ; N oyes 0 Ray, 64 Ga 283 v Willard 8 N H 429 ; Mc Given v


‘

. . . . . .
, .

5
S heddy o Gera n, 11 3 Mass 3 78 ; Wheeloc k 7 Barb ( N Y ) 22 Leppo
K
. . .
, .

H owe v Woodrufl, 12 Ind 214 ; H all


'
. . 0 Gilbe r
. t, 26 ans 1 3 8 ; C hristy v . .

v S outhwick, 27 Min
. 23 4 ; Goulding . Fisher, 5 8 Calif 25 6 ; Walker0 Stone, . .

0. B nns tc r, 9 Wise 5 1 3 ; Faulks v . 20 Md 1 9 5


K
. . .

Dim ock, 27 N J Eq 65 ello g, 6 7 Mich 3 1 8 ;


7
. . . . Byles v g .
.

5
Ham m ond v Barker, 61 N H 5 3 . . . . Morse v B rockett, 67 Barb ( N Y )
. . . .

5
As ton, 5 45 .
74 THE LAW or sus s ooarx
on .

be n efit of h is g rante e with w arran ty an d th e ass ignm ent is ,

tan ta m oun t to a d is c h a rge 1


S o if a purch as er of m ortga ged .
,

p re m is es wh o h as by h is deed as s um ed pa ym en t of th e m ort
g ga e-
d e b t o r t h e gran,te e o f s u c h a p u r c h as e r 5
ta k e s a n as ,

s ign m e n t of th e m ort ga ge th is ope ra te s a d isc h a rge an d th e , ,

l ien of th e m ortga ge is gone ; an d th e s am e prin c iple will


5

be a ppl ie d to a ta x titl e 5
If th e purc h as er of m ortga g ed
-
.

p rope rty wh o h as agree d w ith h is gran tor to as s um e an d pay


,

th e m ortga ge a s a pa rt of h is purc h as e m on ey c aus es t h e -

c on v ey an c e o f th e p rope rty to be m a d e to a th ird p a rt y in

s te a d of t ak in g it to h i m s e lf a n d th en obta in s an as s i gn m ent ,

of th e m ortga ge to h im s e lf ins tead of h a v in g it d is ch a rged ,

th is w ill as to th e ven d or ope ra te an ex tin guis h m ent of th e


m o rtga g e
5
th e righ ts of s uc h th ird p arty a re n o gre a te r th an
th os e of th e orig in a l purc h as e r 5
S o a l s o on e for w h om p rop .

erty i s h e ld in trus t a n d wh os e e q uita bl e d uty it is to pay a


,

m o rtg a ge up on th e p rope rty th ough h e m a y n ot be l e ga lly ,

boun d th e refor c an n ot after pay in g th e m ortgage debt,


, ,
-

k eep th e m ortgage a l ive by p roc urin g it to be as s ign e d to


h im s elf or to a th i rd pe rs on for h is be nefit ; h is p a ym en t
,

d is ch a rges th e m ortga ge By an a rran gem en t between two


7
.

m ortga gors on e of th e m a s s um e d th e p a ym en t of th e wh ol e
,

debt an d gave to th e m ortga gee a n ew m ortga ge upon th e


,

s am e a n d oth e r p ro pe rty to s ec ure both th e old d eb t a n d a ,

ne w in d eb tedn es s of h is own th e fo rm er jo in t m ortgage be ,

1
Mickles v Townsend 1 8 N Y .
,
. . Fountain, 6 1 Iowa, 5 1 2 ; Winans
5 75 ; Mickles o Dillaye 15 H un .
,
v W ilkie, 41 Mich
. 264 ; Parry v . .

( N. 29 6 ; Wad s w o rth v William s, . Wright, 5 R uss 1 42 . .

100 Mas s 126 . .


5
Be rtram 0 Cook, 3 2 Mich 5 18 ;
. .

5
C ro wley v H aradar, 69 Iowa , 8 3
.
. Stinso n 0 Richardso n, 48 I owa, 5 41
. .

5
R ussell 0 Fisto t , 7 N Y 1 71 ;
. . .
5
Frey o V anderhoof, 15 Wis e
. .

Ely v Mc N ight 3 0 H ow Pr ( N Y ) . . . 39 7 .

K
. .
,

97 ; ilbo rn v R obbins , 8 Allen .


5
Wright 0 Patters on 45 Mich
.
,
.

( M a s s ) 46 6 H oy s rad t 0 H ol land, . 26 1 Re id 0 Sycks 27 Ohio St 28 5


.
, . .

J
,

5 0 N H 43 3 ; e rom e v Seym our


. . . ,
7
Putnam v Collam ore, 1 20 Mass
. .

H arringt ( Mich ) 3 5 7 ; Fre tland v


. . 45 4 .

Ma ck, 76 Iowa, 43 4 ; Byington v . .


8m m cu m s . 75

in g a s l od by th e c red itor as c oll atera l s ecurity A


reta in e .

purc h as e r of the property c overed by th e n ew m ortgage th en


pa id 06 th e l atter s ecurity and took an assignm ent of th e ,

old join t m o rtgage ; an d this tran saction was h eld to operate


a d i s c h a rge of th e old m o rtga ge
1
.

48 . S ub ro ga t l o n of a D o w re ss w h o h as pai d a P aram o un t

L i en on th e P ro pe rty —
dow wh o was en ti tled to dower
A . wi ,

but h a d n ot yet h a d it as s ign e d to h er rem a in ed in th e m a n ,

s io n h ous e of h e r d ecea s e d h us b an d w ith h er infan t c h i ld ren


-

wh om sh e supporte d S h e th en pai d a b alan ce of th e pur .

c h a s e m o n ey wh ich rem ain ed due upo n th e p rope rty


-
an d ,

wh ic h was s ec ure d by a ven d or s l ien th e re on ; a n d s h e a l s o


’

p a id out m on ey for th e ta x es upon th e p roperty and for im


p ro v em e n ts : an d i t w a s h e ld t h a t s h e s h ou ld be s ub ro g ate d
to th e l ien s up on th e p ro pe rty wh ich ex is te d res pectiv e ly for
th e purc h as e m on ey an d for th e ta x es wh i ch sh e h a d p a id
-

e x c e pt s o far a s it w as h e r d uty a s dow ress to pay th e s am e ,

th o ugh s h e h a d n o l ien for wh at s h e h a d s pen t in m ak in g


i m p rovem ents 5
S h e i s en titl ed to be s ub rogate d to a l ien
.

wh ic h sh e h as p ai d off in ord e r to pres erve th e p roperty in ,

w h i ch sh e th us h as an in te res t .
5

49 . W id ow
’
s R i gh t of D ow e r a g ai n s t a P urc h a s e r w h o h a s

p a i d an I n oum b ra n o e t o w hi c h h e r D ow er w as s ub e c t . j As
th e purch aser of an equity of redem ption m ay be subrogate d
to th e l ie n of p rior in cum b ran ces wh i c h h e h a s p a id i n ord er
t o p res e rve h is prop erty with o ut h avin g b een un d er any per ,

s on a l obl igatio n for th e ir p ay m en t if s uch a


5
s o a f ortiom
'

, , ,

purch as e r tak es an ass ignm ent of a previous m ortgage this ,

w ill n ot ope rate a n e xti n g uish m ent of th e l ien of th e m ort


a
g g e
5
A n d
. if th e m o r tg g
a o r s w i d o w w a s e n t itl e d t o dow e r
’

or h om e ste a d a s a ga in s t s uc h purch a s e r but n ot as a ga in s t ,

Mc Given
1
v. Wheelock 7 , Ba rb . 6 3 3 ; Stinson 0 Anderson, 9 6 Ills . .

( N Y ) 22 . 3 73 .

5
Sim m ons u. Lyle, 3 2 Gratt . V
( )a .
5
Anton, 55 13 , 28 .

75 2 .
5
8 e v Montague, 1 02 Ills 446 ;
. .

5
Ga te wood v Gatewood 75 V a .
, . De Lisle v H erbs , 25 H un ( N
. .

407 ; Ro ach v Hacker, 2 Lea . 485 Sim onton v Gray, 34 Maine, 5 0 . .


76 m a LAW or sus noou xon .

th e mortga gee th en afte r such an as s ignm ent from th e lat


, ,

te r to th e form e r s h e c ann ot h a ve h er do we r or h er h om e
,

s tea d wi th out re d e em in g fro m th e m o rtgage whi ch h owe ver , , ,

s h e wi ll h a ve th e righ t to d o A quitc l aim deed of th e


1
.

m ortga ge d p re m ises fro m th e m ortgage e to s uc h a purch ase r ,

afte r a b rea c h of th e c on d it ion of th e m o rtga ge is a s u ffic ien t ,

as s ignm en t of th e m ortgage Th e m o rtgage w i ll be k ept


5
.

a l i v e wh ere th is i s m an ifes tly for th e i n teres t of th e p a rty

wh o h as p a id it a n d is c on s is tent w ith th e j us tice of th e


,

c as e ,
if n o c on tra ry in ten t is e xp re s sed or m an ifes tly im
pl ied in oth er words th e m ortgage w ill be k ept a l ive for
5
,

th e ben e fit of on e wh o h as pa i d it wh ere he is ev i dently en


5
,

t itl e d in e quity to b e s ub rogate d to it a n d doe s n ot a ppea r ,

t o h a ve don e a nyth ing t o w a i ve th e ri gh t 5


th ough it is ,

s om eti m es s a id th at if th e p urch as e r h as s im ply pa i d ofi

th e m ortga ge a n d h a d it d is ch a rged n ot h a vin g ta k en ,

an as s ignm en t of it or i n a n y way in d i c ated a n in te nt i on


,

to av a i l h im se lf of i ts l ien h e c an n o t s et i t up aga ins t ,

th e c l aim of th e m ortgagor s wid ow for d ower 5


Th e ’
.

re l e as e of dower i n a m o rtga ge d ee d w ork s a n es toppe l -

n ot on ly in fa vor of th e m o rtgagee an d th e d irec t a s s ignees

of th e m ortgage but a ls o of th os e wh o by s ub rogation be


,

c om e en titl e d to its b e n efits Th e dower righ ts of th e


7 .

m o rtga go r s w i dow h a v i ng bee n rel e as ed in th e m ortgage


’
, ,

th ough va l id aga in s t th e purc h a se r of th e e quity m ust re ,

m a in s ubj ec t to th e m or t gage after th is h as been ass igne d

Lam b v Montag ue, 1 1 2 Mass Price 0 H obbs 47 Md 35 9 ; B ryar s


1 ’
. . .
.
,

3 5 2 ; Gibson v Cre hore , 3 Pick . . Appeal, 1 11 Penn St 8 1 . . .

( M ass ) 4 75 ; s c 5 Pic k ( M esa.


) . .
5
As in Popkin o Bum stead, 8 .

1 46 ; Carll v B utm an , 7 Greenl ( Ma )


. . Mass 49 1 . .

1 02 ; S im onto n o Gray, 3 4 Maine, 5 0; .


5
As tea , 12 .

Kenyon v S egar, 1 4 R I 490; Hinds


.
5
Cox 0 Gars t, 105 Ills 842 ; At
v
. . .

0 Ballou 44 N H 6 19 ; W oodhull kinson v Angert 46 Mo 5 1 5 , 5 1 8 .

J
. . .
.
, .
,

Re id, 1 Harrison ( 16 N 1 28 . .
7
Dearborn 0 Taylor 18 N H .
,
. .

5
Sa vage v H all, 1 2 Gray . 1 5 3 ; Mc Mahon v Russell 1 7 Fla .
,
.

3 6 3 ; Hinds v Ballou, 44 N H 6 19 ;
. . . 698 ; Walker 0 Walker, 5 Ills App . . .

Carll v But m an, 7 Greenl (Me ) 102


. . . 289 .

5
Hinds v Ballou, 44 N H 6 19 ;
. . .
succsssxvs cu m s . 77

or quitc l aim ed to th e purch as er A n d a redem ption from .


1

th e m ortgage th rough p rocess of law by such a p urch as er w i ll

g i v e h im th e s am e r i gh t 5
t o t h e e x t e n t of th e a c
,
tu a l c o s t of
th e re d em ption 5
If a new m ortgage h a s b een giv en by s uc h
.

a purch as er e xpres s ly a s a s ub s titute for th e old m o rtgage ,

th e w i d ow s righ ts wi ll be n o gre ater a ga in s t th e h old e r of


’

th e n ew m ortga ge or a ga in s t on e wh o h as red eem ed from it, ,

th a n th ey we re a ga ins t th ose c l ai m in g un d er th e old m ort


a
g g e
5
. B u t w h e re a h us b a n d by f a l s e ly r e p r e s en t i n g th a t h e ,

w as un m arrie d ob ta i n e d a lo an on a m o rtga ge i n w h ich h is


,

wi fe did n ot j oin a nd th ere with paid off p ri or l ien s upon th e


,

prem ises th e m ortgagee s es tate w as n ot a llowe d to override


,
’

h e r i nc h o ate righ ts of d owe r ; for th e wife is n ot in priv ity


5

w ith h er h us ban d in rega rd to tran s actions to wh ich sh e is


n ot a p a rty ; an d his fra ud s c a n n ot b e i m p ute d to h er
5 7 Th e .

m o rtga gor s as s ign ee i n in s ol ven c y i s to be rega rd ed as a


’

purch aser wh o is n ot boun d to pay th e m ortgage d ebt an d 5 -

a n as s ign m en t of th e m o rtga ge to h i m w i ll n ot e x tin gui sh i t

for th e ben e fit of th e m ortgagor s wid o w 5


Th e s am e rule s ’
.

a pply to a purc h ase of th e equity of re d e m p ti on by th e m ort

a
g g e e a s to an a s s i g n m e n t o r q u i tc l a i m of th e m o r tg g
a e t o a

p u rc h a s e r of th e e q u i ty a s t o i t s e ff ec t u po n t
,
h e r i gh t s of th e

m o rtg ago r s w i dow Th e m ortgage w i ll n ot be rega rd ed as


’ 1° .

1 Harrow 0 ohns on, 3 Met ( Ky ) . J . .


7
Moore
Foote, 3 4 Mich 4430 . . .

5 78 ; Woods u Wallace, 3 0 N H . . .
5
Bell 0 S underland Buildi ng
.

3 84 .
Soc iety, 24 Ch D 61 8 . . .

5
Evers on v McMullen, 1 13 N Y . . .
5
Sergeant v Fuller, 105 Mass . .

29 3 reversing s c 45 H un, 5 78 ;
,
. .
1 19 ; B rown v Lapham , 3 Cush . .

S heldon v H ofinagle , 5 1 H un ( N M
'
.
( as s) 55 1
K
.

478 ; N iles v Nye, 1 3 Met ( Mas s )


. . .
15
C am pbell 0 nights, 24 Maine, .

135 .
33 2 ; Newton 0 Sly, 1 5 Mich 3 91 ; . .

5
Walker 0 13 1 Ills 27 . Donna , . . Decker 0 Hall, 1 Edm Select Gas
. . .

5
Ne wton 0 Cook, 4 ray . G ( N Y ). 279 ; H
. ugunin v Coc h rane .
,

46 ; Ring o Stets on, 11 Allen ( Mass


. . 5 1 Ills 302 ; Durval v Febiger 1
. .
,

407 C incin ( Ohio) 268 ; Snyder v S nyder,


. .

Westfall
5
o. Hintze, 7 Abbott 6 Mich 470; Thom pson v Boyd, 1
. .

N ew Cas ( N . . Zab .

5
Tibbetts 0 Langley . Mannfg .

1 2 So Car 465
. . .
78 m s L AW or S UBB OGATION .

e xtinguish ed s o as to let in the wi dow s c l aim of dower


,
’
,

wh ich was releas ed in th e m ortga ge un less th e debt h as been ,

pa i d by h er h us b an d th e m ortga gor or from h is m ean s or , , ,

by s om e on e wh o s tan d s in s uch re l ation to h im as to be in


l ega l effect th e d ebtor wh ose duty it is to pay an d d is ch arge ,

th e m ortgage d e bt 1 -
.

50 . D ow er l e t i n if D e b t p ai d b y on e b o un d t o pa y i t .

If, h owever, the o rtgage d ebt h as bee n paid by one boun d to


m -

p ya it th e n ,
th e m o rtg g
a e w ill b e reg a rd ed a s e x t in g u i s h ed ,

wh eth er or n ot it h as been as s ign e d to th e p a rty m ak in g th e


paym en t W h eth e r any particul ar tran saction sh all be h eld
5
.

to ope rate as a pay m e n t which e xtin guish es th e lien or a s a n ,

as s ign m en t w h ich p rese rv es an d k eep s it on foot d oes n ot


, ,

depe n d s o m uch upo n th e form of wo rd s used a s upon th e


rel a tion s s ub s is tin g betwe e n th e pa rties a d van cing th e m on ey

a n d th e p arty e x ec utin g th e t ra n sfe r or rel ease an d th eir ,

re l ativ e duties If th e m oney is advan c ed by one wh os e d uty


.

it is by c ontract o r oth e rw ise to pay a nd ca n c el th e m ort


, ,

g g
a e a
,
n d rel ie ve th e m o rtg g
a e d p r e m i se s f ro m th e l ie n of
th e m ortga ge a duty in th e proper p erfo rm an c e of wh ich
,

oth e rs h ave a n inte rest it will be h eld to be a rel ease an d not ,

an a s signm e n t a l th ough i n form it p urpo rts to b e a n a ss ign


,

m en t 3 If th e p ay m ent is m ad e by a n h eir at law of the


.
- -

m o rtga go r pursua n t to th e te rm s of a b on d g ive n by h im


, to
th e a d m inis tra to r to pay th e d ebts of th e d e ceas ed i n order ,

t o prevent h is rea l e s ta te f ro m be ing s old th erefo r th is pay ,

m ent w ill e x tin guis h th e m ortga ge in fa vo r of th e wi do w s


’

c l a im to d ower
5 —
If th e m ortgage d ebt h as in s ubs tan c e been
.

paid fro m th e m ean s or estate o f th e p rin cipal d ebto r th is ,

1
S ha w, 0 J , in Brown v Lap . . .
7 J h
o ns .
( N Y.
) 278 ; A
.tkinson a .

ham , 3 Cush (Massachusetts) 5 5 1 ; . Stewart, 46 Mo 5 10 . .

C ockrill 0 Arm strong, 3 1 Arkansas,


.
5
S ka te, in Brown v Lapham , .

5 80 . 3 C ush .
( Mas s ) 5 5 1 H a t
.c h v .

5 Az t c
e 5 74 ; M c Cabe o S wap, . Palm er 5 8 Maine, 271 .

K K
, ,

14 Allen 18 8 ; N orris v Mor .


5
ing v ing, 1 00 Mass 224
. . .

rison, 45 N H 490 Collins v Torry, . . .


succs ssl vn cu m s . 79

w ill let in th e widow s claim dower wh ich barred by


’
to ,
wa s
th e m ortgage .
1

51 . Th e w i d o w m ay re d e e m . H e r R ig h ts t h e re upo n . A
widow wh o is en titled to dower in an equity of red em ption m ay
red eem th e es ta te by p ay in g off th e w h ol e of th e m o rtga ge

d ebt and upo n so do ing sh e will with out specific proof of


5
,

h er in ten t at the tim e of p ay m en t to k eep th e m o rtgage


alive be s ub roga ted to th e pl ac e of th e m ortgagee for h er
8
,

protection a nd ind em nity un til th e heirs sh all re im b urs e h er ,

th eir eq uitabl e propo rtion an d th us red eem fro m her a ll ,

th at is n ot c om p reh en d ed in h er c l aim of d owe r 5


W h en .

a n o th e r cl a im in g l ik e h erself un d er th e m o rtgago r re deem s


, , ,

t h e m o rtgaged estate s h e m ay sh are in th e ben e fit of th e ,

re d em ptio n up on p ay in g h er e q uita bl e p roportio n of th e


,

m o rtga ge d ebt a c c ord in g to th e v al ue of h e r dower in te re st


-
5
,

or sh e m ay be as s ign ed h er d o wer in th e e x c es s of th e v al ue

of th e es ta te ove r th e a m oun t of th e m ortgage deb t A n 6 -


.

as s ig n m en t of th e m o rtga ge to h e r w ill n ot m e rge h e r d owe r

in teres t 7 A n d a wife wh o h a s j oin ed w ith h e r h us b an d in a


.

m o rtga ge of both h is l a n d a n d h is p e rs o n a l prope rty h as , ,

afte r th e d ea th of h er h us b an d an eq uitable righ t to h a ve th e ,

m o rtgage d pe rs o n a l ty fi rs t a ppl ie d to th e p aym en t of th e

m o rtga ge d eb t both again st th e m o rtgagee a n d a l so a gains t


-

1 Peckham v Had wen, 8 R I 202 ; Atk inson 0 Ste wart, 46 Mo


. . .

K
.

1 60; etchum 0 Shaw, 28 Ohio St 5 10 . .

J
.

5 03 ; Sweaney v Malony, 6 2 Mo 5
ones 0 Gilbert, 1 3 5 Ills
.
27 ; . . .

48 5 ; Atkinson 0 Stewart, 46 Mo Cox 0 Gars t, 105 Ills 3 42 ; Gibson


. . . .

5 10 . v Crehore, 5 Pick (Mass ) 146 ; . .

5
Davis 11 Wetherell, 1 3 Allen N orris v Morris on, 45 N H 490 ;
.

J
. . .

( M ass ) , 6 0 ; M c Cabe v B ellows , 7 E ve rts e n v Tappen, 5 ohns Oh ( N


. . . . .

Gray 1 48, overruling in part Y ) 49 7 . .

V an V ronker v Eastm an, 7 Met 5


S nyder v Snyder, 6 Mich 470;
. . . .

( M ass ) 1 5 7 N o r ris v Morris on , 45 N H 4 9 0; .

J v
. . .

effer son 0 Edrington, 5 3 Ark Ri chardson v S kolfield,


5
. Pratt .

5 45. Skolfield, 45 Maine 3 8 6 ; George v , .

5
R ossiter v Cossit, 1 5 N H 3 8 .Ccc per 1 5 W V a 6 66 ; Stoppelbeir
. .
, . .

W oods 0 Wallace, 30 N H 384 ; v Shultc, 1 Hill ( 8 0 Car ) 200


. .
‘

. . . . .

N orris v Morrison, 45 N H 490


.
7
H unter 0 Dennis, 1 1 2 Ills 5 68
. . . . .

Manta v Buchanan , 1 Md Oh Dec


. . . .
80 rm : LAW or sus nos a rron
'
.

th e gen eral ditors of h er h usban d s estate ; if sh e has 1


’
c re

g iv en a m o rt g g
a e of h e r ow n r e a l e s ta te m e re ly to sec u r e a ,

d ebt of h er h usban d s she is entitl ed to h a ve h is in terest in ’


,

th e es ta te as te n a n t by th e c urte sy first s old a n d a pplie d t o pay


th e d ebt in e x on eration of h e r own in teres t in th e m ortg aged
,

p rem ises even a gain s t an other c red itor of h er h usban d wh o


, ,

h old s a ge ne ra l l ien upo n h is inte res t in th e p re m ise s create d ,

sub se q ue n tly to th e e xec ution of the m o rtgage 5


B ut if sh e .

h a s j oin ed with h e r h us ba n d in a m o rtga ge of h is re al es tate ,

sh e is n ot en titl e d to h a ve th e d ebt s atis fie d e x c l usively out

of h er h usb an d s in te rest in s uch rea l es ta te s o a s to g ive


’

,
,

h e r dower out of th e w h ole e sta te n otw ith sta n d in g th e m ort ,

g g
a e s h e c a n b e e n d o wed o n ly in t h e eq uity o f red e m p ti o n
5
,

e x ce pt a s a gain s t th os e en titl e d to h e r h us b a n d s es ta te
’
in ,

th e c ase of th e m o rtgage d eb t b ein g h is pe rs o nal d eb t wh ich -

sh e m ay re quire h is rep res enta tives to pay out of his pe rson al


5
es ta te .

52 . dopted in
Th e R ul e i n M a s s a c h us e tts . Th e ru es l a

Massa ch usetts a ppl ic able to all th ese c ases h a ve been suc


cin c tly but fully s tate d by a n e m in en t j ud ge as foll ow s
5
,

F irs t W h en a purch ase r p ay s off a m ortgage to wh ich


.

th e righ t of do we r w o uld b e s ubj ec t m e re ly to c l ea r th e ,

e s ta te of th e i nc um b ra n c e a n d n ot by virtue of a ny obl igation ,

to pay th e m ortga ge d eb t a n d tak es a n a s s ign m en t or a -

c on vey an c e of h is in te res ts fro m th e m o rtga gee h e m a y s ta n d ,

on th e m o rtga ge titl e if h e ple a s e a n d th en n o dow e r c a n b e ,

a ss ig ned w ith out p ay m e nt of th e wh ol e m o rtga ge d eb t by th e


-

d em a n d an t 5
.

1
Harrow ,
K
( y) q 0 E 4
.1 5Johnson
; M a3 Met
nt z v B
. u ch an an , 1 M d . . .

57 8 .
O h D e c 2 0 2 ; C re e c y v P ea rc e, 6 9 . . .

5
Ne im c ew ic z v G a h n, 3 P aig e N o r C a r .6 7 ; H en a g a n v H a r llee , 1 0 . . .

N R ic h Eq ( So C ar ) 28 5 ; H unsuc ker
( 6 1 4 .
. . . .

5
H awley 0 Bradford, 9 Paige (N v S m ith, 49 Ind 1 14 ; Greenbaum v
. . . . .

Y ) 200; Leavenworth v Coouey 48 Austrian, 70 1 113 5 91


.
.
,
. .

Barb (N Y.
) 5 7 0; B en ton N an.n y,
5
W el ls , J ,
in M c C a be o S w ap , . .

8 Barb (N Y ) 6 1 8 , 6 1 9
. 1 4 Allen
. . 1 8 8, 1 9 0 .

5
Ca m pbell 0 Cam pbell, 30 N J
5
Strong 0
. Converse, 8 Allen
. .
.
vs cu m s
succnss r . 81

S econ d . ortgage be d isch arged then


If in such ca se th e m ,

h e will be h eld to h ave re deem ed a n d th e widow w ill tak e h er ,

do wer in th e eq uity or by contribution as sh e m ay elect ,


1
,
.

Third B ut if th e m ortgage debt be pa id by the d ebto r or


.
-

from his property or in his beh a lf th en th e paym ent wi ll be ,

trea ted as a sa tisfactio n an d dis ch a rge of th e m ortgage an d ,

th e wi do w will be re m itte d to h e r full righ t of do wer 5


.

Fourth Th e p aym ent w ill be h eld to be m a de in beh alf of


.

th e deb to r wh en th e re is a n obl igation im po sed by th e gra nto r


,

u po n th e p urch as er to as s um e a n d pay th e d ebt as h is own

o r wh en th e g ran to r furn ish es th e m ea n s for th e pay m ent as ,

wh e re by th e term s of th e convey ance the en tire es tate is


, ,

s o ld an d the s ell er l ea ves a s uffi cien t pa rt of th e purch ase


,

m on ey in th e h a nd s of th e gran tee for th e purpo se In such


5
.

c a s e s if th e purch as er ta k e an as s ign m en t of th e m o rtgage


,

to h im self h e w ill n ot be allo wed to set it up but th e legal


, ,
.

” 5
titl e th us acq uired will be h eld to m erge in th e equity .

53 . A s s i gn m ent of a M o rt g a ge t o t h e O w n e r o f t h e E q ui t y

of R e d e m pti o n w i ll n ot n e c e ss a ri l y t ln gni s h it s Li e n . Th e
pay m en t of the m on ey due upon a m ortgage d ebt by th e ow ner -

of th e eq uity of red em p tio n wh o is n ot th e d ebto r a n d h is , ,

tak in g an ass ign m ent of th e m ortga ge will o pe ra te as a pay ,

m en t or as a purc h ase of th e m o rtga ge a s will be s t s erve th e ,

en d s of j us tice a n d th e prope r in te n t of th e pa rties 5


Wh ere .

th e p urc h a ser of a n eq uity of red em ption m a d e a sec on d m o rt

ga ge th e re of a n d w h il e th is w a s o uts
, ta n d in g,took a n as s ign ,

m e n t of th e first m o rtga ge wh ich h e s oon a fte r a s s i ned to


g ,

a th ird pers o n it w as h eld th a t th e e x is ten ce of th e s ec o n d


,

m ortgage a t th e tim e of th es e ass i nm en ts p reven te d th e


g
( M as s ) 5 5 7 ; MoC
,abe v . Bellows, 7 Brown v Lapham , 3 Cush
5
. .

Gray ( Mass) 1 48 .
( M ass ) 5 5 1 . .

N ow ton 0 Cook, 4 Gray (Mass ) ,


1
.
5
Bolton 11 Balla rd, 13 Mass 227 . .

46 . And see Pynchon v Lester, 6 . Snow 0 Stevens , 15 Mass 278 And


. . .

Gray ( Mas s ), 3 14 ; Eato n v Sim onds, . see H all 0 Southwick, 27 Min . 23 4 . .

1 4 Pick ( Mass) 9 8 . .
5
B ullard v Leach, 27 Vt 49 1 ; . .

5
Wedge 11 Moore, 6 Ca sh . . Loud 0 Lane 8 Met ( Mas s ) 5 1 7 ;
J
. .

( M a s s ) 8 . . Duncan v Sm th, 3 1 N Law, 325


. . .
82 TH E LA W or sus s os a rr
os .

m e rger of th e fi rst m ortgage Th e as signm ent of a m ortga ge .


1

to on e wh o h as purch as ed th e equity of redem ption w ill or


will not operate an extinguish m en t of th e m ortgage a ccord ,

ing to th e interes t of th e party tak in g the as sign m en t and


th e j ust in te n t of th e p a rtie s 5
If th e own e r of m ortgaged .

p rem ises c on vey s difl erent p arts of th em to separate g rantees ’


,

an d on e of th ese p ay s an d t a k e s a n as s ign m en t of the m ort

g g
a e h e c
, a n in t h e a b s e n c e o f c
,
i rc um s ta n ce s wh ic h wo uld
m a k e th is in eq uita bl e h old it aga ins t all th e m ortgaged
5
,

prem is es A n d if the purch aser of a ba re equity of re d em p


5
.

tion wh ich is s ubj ect to two m o r t g ages takes an as s ign m ent


of the first m ortgage for th e p rotection of h is title th is m o rt ,

g ga e w i ll n o t b e th e re by m e rg e d in th e equity so as to g ive ,

to th e h old er of th e j un ior m o rtga ge a preferen ce in pay m ent


out of th e p rocee ds of th e m ortga ged p rope rty
5
An d gen er .

a lly a m o rtga ge w h ic h is a ss igne d to on e n ot be in g th e ,

debtor but h avin g an interest in the m ortga ged prem is es is


, ,

n ot th ereby extin guish ed if it is for th e in tere st of th e

as sign ee to uph old it ; th is eq uitable d octrin e of s ubrogation


5

h as s o fa r been a dopte d at c om m on la w as to p revent a


m e rge r 7 If th e equity of red em ption wa s s ubj ect wh en pur
.

ch as e d to an a ttach m ent aga ins t th e m o rtgag o r which was

j unior to th e m ortga ge th is w ill p revent a m erge r of the ,

m ortga ge upo n a n a ss ign m ent of th e l atte r to th e purch as er

of th e equity 5
.

Evans 0
1
im ball, 1 Allen . K ( N Y.
) 5 09 ; Green 0 C urrier 63 N .
, .

( M as s ) 240 ; S ur
p g in v Adam son . H 5 63 And see Mc Kinstry v Mer .

J
.
, ,
.

6 2 Iowa, 661 . vin, 3 ohns Oh ( N Y


.
) 46 6 . . . .

5
H unt 0 H unt, 1 4 Pick ( Mass ). . .
5
Fellows 0 Do w, 5 8 N H 21 ; . . .

3 74 ; Crosby 0 Taylor, 1 5 Gray . Carpenter v Gleason 5 8 V t 244 ;


.
,
.

64 ; Binsse v Paige, 1 . V an Wagenen v B rown, 26 N J . . .

Abbott ( N Y App Dec ), 1 3 8 ; . . . Law, 196 ; Rawis zer v Ha1nilton, 5 1 .

Franklyn 11 Hayward, 61 How Pr . . . H ow Pr ( N Y ) 29 7


. . . . .

( N Y
.
) 43 . .
7
Hatc h v im ball 1 6 Maine .
. K
K
,
5
P osted, 75 ci seq . 1 46 ; Goodwin v eney, 47 Conn . .

5
Casey v B uttolph, 1 2 Barb (N . . 48 6 ; D ufly v Mc Guinness 1 3 R I
’
.

K
. .
,

Y ) 63 7 Scott 11 Webster, 44 Wise


. . . 5 9 5 ; nowles v Lawton, 1 8 Ga 476 . . .

5
1 85 . Grover v Thatcher, 4 Grey .

5
Millspaugh v McBride, 7 Paige .
( M as s ) , 5 26 .
"

successi ve cu m s . 83

§ 54 . Te s ts by w hi c h M e rge r i s d e te rm in e d . Nor is it
n eces s ar y ortgage alive sh ould
th at the in ten t to k eep th e m

h ave bee n m an ifeste d at th e tim e of th e pa ym ent oth erwise


th an by tak in g an a ss ign m ent of th e security ; unl ess th ere
a ppears to h ave be e n a n intention to ex tinguis h it it w ill be ,

ta k en to be subs is tin g or ex tin guish ed as th e interest of th e ,

party m ay require Th e m erger of a ch arge in th e inh eri


1
. .

tance will n ot be pre sum ed if th is would be c ontrary to th e ,

in terest of th e ow n er of both th e ch a rge a n d the inh erita n ce 5


.

Th e m e rger is prevente d and th e charge or m ortgage uph eld , ,

wh ene ver th ere is a strong equity in favor of it but n ever ,

wh ere it is not for an inn ocent purpose If th ey are held in


5 .

d ifferent rights th ere will be n o m erger Whe n a ch arge on


5
, .

a n es tate b ec om es abs ol ute]y ves te d in the ow ner of th e

inh eritan c e th e te s ts usually a pplied for ascertain ing wh eth er


,

th e ch a rge h as m e r ged a re —first w h et h e r th er e h a s b ee n , , ,

a n a ctual e xp res sion of i ntention to th at effe ct


5
s ec on d ly ,

wh ether th e ac ts don e by th e ow ner of th e estate are only


c o ns is ten t with th e m ain ta ining of th e c h arge a n d thirdly
5
, , ,

wh eth er it is for the in terest of th e owner th at th e ch arge


sh o uld n ot be m e rge d in th e inh erita n ce 7 .

55 . I n oum b ra n o e so as si gn e d , k e pt ali v e on ly fo r a G ood

P urpo s e an d to pro t ec t a B e n e fi ci a l I n t ere s t .


— Th e owner of
a n eq uit y of re emd ption wh o h a s ta ken a n as s ign m ent of th e

5
Radclifle, is
'

Evans
1
B urns, 67 Iowa, 1 79 ; re, 1 Oh D . .
( 189 2)
S tre ver v Earl, 60 H un ( N
. 5 28 . 227 .

B uzzell v S till, 6 3 V t 490 Pool v


. . .
5
Lewis 0 Hinm an, 5 6 Conn 5 5
. . .

H athaway, 22 Maine, 8 5 ; Hatc h v 5


See Gunter v Gunter, 23 Beav .

K
. .

im ball, 16 Maine, 1 46 . 5 71 B atch 11 Shelton, 20 Beav . .

5
Pride, in re, S hackell v Colnett, . 45 3 Hood v Phillips 3 Beav .
,
.

2 Ch D ( 1 89 1) 13 5 Forbes v Mof
. . . 5 13 .

fa tt 1 8 V es 3 8 4 ; Davis 0 Barrett,
,
. .
7
Tyrwhitt v Tyrwhitt, 32 Beav . .

1 4 Beav 5 42 ; Sm ith v Ro berts 9 1 244 ; Lynch 0 Pfeifler, 1 10 N Y 33 ;


'

. . . .
, .

N Y 470 ; Shim er v Ham m ond, 5 1


. . . Ann Arbor Bank 0 Webb, 5 6 Mich . .

I owa , 401 . 3 77 ; Wats on 0 Dundee Mortgage .

5
McClain v Sullivan, 8 5 Ind Co , 1 2 Greg 474
.

K
. . . .

1 74 ; Hatch v im ball, 1 6 Maine, .

1 46 .
84 m a LAW or sos nos i n on
'
.

m ortgage c annot keep it on foot to the prej ud ice of a bona j da


purch a se r un der h im s elf nor unless s om e beneficial in teres t
l
,

is sh own to require it 5
A nd if the pay m ent appea rs to h a ve .

been in ten de d at th e tim e to extinguish th e ch arge it will ,

have th at efi ect 5 Wh en the owner of th e eq uity p aid th e


.

am oun t wh ic h wa s d ue upon th e m ortgage with out th en ,

m an ife stin g a n y in te n tion of k ee pin g the m ortgage in fo rce ,

and with o ut a ny ag reem en t for an as sign m en t of th e m ortgage ,

but m an y y ea rs afterwa rd s to ok an assignm ent of th e m o rt

g g
a e an d th e n o te s sec ure d by it th is tr an sac tion w as h e ld to ,

Operate a d is ch a rge of th e m o rtgage 5


B ut it is a gen e ra l .

rule th at wh ere a d is c h a rge of a m ortga ge h a s bee n tak en

in ad verte ntly and un d e r a m ista ke of fa c t equity wil l k eep ,

th e m o rtga ge alive an d trea t the tra nsac tion as an ass ign


m ent w h en nece s sa ry to p rotec t th e righ ts of th e p arties
,
5
.

§ 56 . M o rt ga g e as s i gn e d to th e P ri n c ipal D e b t o r is ex ti n

g uis h e d . If th e m ortga ge -
d eb t pa id by th e prin ci pa l
is
d ebtor , or out of h is fund s ,
it cann ot be k e pt a l i ve by be in g
as s ign e d to hi m or to a m ere agen t for h im .
5
A n d th e
g ra nte e o f a m ortgage d estate wh o h as accepted a deed of
th e equity of re d em ption w ith out c oven an ts w i ll be h e l d in ,

th e a bs en ce of a s pe c ia l c ontrac t and w ith out s om e s pe c ia l ,

c irc um stan c es to tak e th e l a n d c h arge d w ith th e in c um


,

b ran ce as between h im se lf an d h is grantor Acc ord ingly


,
7 .

h e can n ot af ter p ay i n g off th e d ebt k eep it a l ive aga ins t h is


, ,

Starr 0 Ellis, 6 ohn s Oh ( N


1 . J . . . Barnes v Mott, 6 4 N Y 3 9 7 ; ins
. . . K
Y ) 393 ley 0 Davis 74 Ma in e 49 8 ; Cobb v
.

J
. .
, , .

5
Gardner v As tor, 3 ohns Oh . Dyer, 69 Maine , 494 ; Ham m ond v
J
. . .

( N Y )
. 5 3 ; S
. ta rr v E llis , 6 ohns . . Barker, 61 N H 5 3 ; Coudert 0 . . .

Oh ( N Y ) 39 3
. . . . Coudert, 43 N J Eq 408 ; Bat h s . . . .

5
Lewis 0 Hinm an 5 6 Conn 5 5 ; .
, . V reela nd , 15 N J Eq 103 . . . .

Agnew v Re nwick, 27 8 0 Ca r 5 62 ;
. . .
5
Morse v Bassett 13 2 Mas s .
, .

C ham pney v Coops , 3 4 Barb (N Y ) . . . . 5 02 ; Angel 0 Bone r 3 8 Barb ( N .


, . .

5 39 . Y ) 425 ; Cham pney v Coops 3 4


. .
,

5
Given v Marr 27 Maine, 21 2 .
,
. Barb ( N Y ) 5 3 9 ; S hepherd 0 Me
. . . .

5
S hort 0 C urrier, 1 5 3 Mass 18 2 ;
. . Ch in, 1 8 N J Eq 1 28 . . . .

Eversen v McMullen, 1 13 N Y 293


. . .
7
Antes , 26 .
vn cu m s
suc cs ssx . 85

g ran t r o
by h av ing i t assigne d to h im self to en able ,
1 so as

h im to set it off a gai ns t an y un p ai d b a l an c e th at h e m ay owe


‘

to h is gran tor upon h is purc h as e 5


B ut if a m ortga ge h as .

been a s s ign e d own e r of


y un d er s uch circ um
to th e th e q
e uit

s ta n c es as to be ta n tam oun t to a n e x ti n guis h m en t of th e

se curi ty yet th is o wner afte r as s ign in g it a s a va l id instru


, ,

m ent wi ll be estoppe d from c l aim ing th at it h as b ec om e


,

m e rg ed or ex tin gui sh e d a n d s uch own er s grante e w i th n o tic e


’

of th e c ircum s tan c es w i ll a l s o b e e s topp ed A n d an as s ign


5
.

m ent of a m o rtga ge m a d e to th e p rin c ip a l d e b tor m e re ly a s

a n in term e d ia ry or a trus tee w i ll n ot n ec es s a ri ly e x ti n gui sh

th e m ortgage 5
8 0 a l th ough th e purch as er of an eq uity of
.
,

re d em p ti on h as ex p ress ly as s um ed an d a gre ed to pay th e

m o rtga ge d ebt s o th at an ass i gn m en t of th e m ortgage to h im


-

would Operate an e x tinguish m en t of its l ien yet if wh en 5


, ,

h e pays th e deb t h e tak es an ass i gnm e nt of th e m ortgage in


,

bl an k instead of a d is ch arge an d s ubs equen tly reis s ue s th e ,

m o rtgage to a c re d ito r of h is own fillin g up th e bl an k in th e ,

as s ign m en t w ith th e n a m e of s uch c red itor th e m o rtgage ,

w i ll be k ept on foot even agains t a subs equen t purch as er from


h im with wa rran ty 5
.

57 . C onv ey an c e of t h e E q ui t y to t h e H ol d er of a P ri o r

I nc um b ra n c e w ill not e x t in g ui s h i t in F a v or of a J uni o r . If


a p rior incum bran cer ac quires th e abs olute title to th e in
c um b ere d prope rty h i s p rior c h a rge wi ll n ot b e m e r ed in
, g
t h e a bs ol ute t i tl e wh e re h is inte res t an d th e in ten ti on of th e

p a rt i es u n i te t o p rev en t th e m e rg e r 7
H e m a y s ti ll c l a i m .

1
Donk 0 . Alexander, 11 7 Ills . 36 Minn 18 5 ; Angel] 0 Boner 3 8
. .
,

3 30 ; Morrison 0 Mor
. ris on, 3 8 Iowa, Barb (N Y ) 425
. . . .

73 .
5
Mickles v Dillaye 1 5 H un (N .
,
5
Atherton v Toney 43 Ind 211 . Y ) 296 Antea , 5 46 .

K ll gg
. . . .
,

5
Powell 0 S m ith, 3 0 Mich 45 1 ;
. .
5
Am es, 41 N Y 25 9
e o v. . . .

C ola v Appleby, 22 Hun ( N


.
7
Board m an v Lam bee 5 1 Conn .
, .

72 3 9 ; Holden 0 Pike, 24 Maine, 427


K J
. .

5 elly 0 enness, 5 0 Maine,


. Thom pson 0 Chandler, 7 Green] . .

45 5 ; Denzler v O Keefe, 34 N J
’
. . .
( M e ) 3 77 ; Freem an 0 Pau , 3 . l
Eq 3 61 ; Baker 0 N W Loan
. . . . Greenl ( Me ) 260; Marshall 0
. .
86 run LAW or sos noc a rr
on
'
.

d
un er h is prior titl e ; and th e h older of th e j unior lien m ay
sti ll red eem from h im as befo re or th e e quity of red em p
1

tion from th e j un i or l ien m ay s ti ll be fore c los ed 5


Th e e sta te s .

of th e m ortgagor an d of th e m ortgagee th ough un ite d in th e ,

s am e p e rs on wi ll s ti ll be treated as d is tin ct wh en th is is
, ,

n ec es s ary for j us t purposes an d to effe ctuate th e p rope r in

ten tion of th e p art ies 5


Th ough th e purch ase of th e e quity .

of re d em pti on by th e m ortgagee gen era lly Operates to e xtin


g u is h th e m o rt a
g g e d e b t an d to m erg e th e m o rt g g
a e t it l e
5 - -

th is w i ll n ot be s o wh ere it is th e inten ti on an d th e in terest


of th e m ortgagee to keep th e m ortgage a l ive by reas on of in
te rven in g in cum b ran c e s o r oth e rwise and th is c an be done
5
,

with out in j ury to th e m ortgagor or to th ird parties 5


E ven .

if th e m ortgagee in c ons id e rati on of th e c on v ey an c e to h im ,

of th e equity of redem pti on gives up th e e vid enc e of th e ,

m o rtga ge d ebt or ac k n owle dge s i ts s a tis fa c ti on thi s wi ll n ot


-

, ,

WOOd , 95 0; Myers v Brown


5 Vt .
29 5 ; Clos v Bopps , 23 N J Eq. . . .

8 11, 1 D Chip ( Vt 443 ; D8 7 v .


270 ; Flanigan v Sable, 44 Minn . .

Mooney 4 Hun ( N , 1 3 4 ; Wal .


41 7 E tna Ins Co v C orn 89 . . .
,

la ce v Blair. 1 Grant (Pa Gas ) 75 ;


. .
. Ills 1 70; Meacham 0 Steele, 93 Ills
. . .

Edge rton 0 Young 43 Ills 464 ; Ly


. 13 5 .

J
.
,

decke r o Boge rt, 3 8 N . Eq 1 3 6 ; . .


5
Bleckeley v Branyan, 28 8 0 Car . . .

Thebaud v H ollister, 3 7 N J Eq. . . . 445 ; s c , 26 I d 424


. . . .

402 ; S m ith v S wan, 69 Iowa, 41 2 ; .


5
Bell 0 Tenney, 29 Ohio St 240 ;
. .

Lyon 0 McIlvaine, 24 Iowa, 9 ;


. H agge rty v Byrne, 75 1nd 49 9 ; In
. .

Wickersham o Reeves 1 Iowa , 413 .


, te rnational Bank v Wils hire, 108 Ills . .

B es se r v Hawt horne 3 Ore gon 129


.
, , . 1 43 ; Cohn v H offm an, 45 Ark 3 76
. .

1
Thom pson 0 C handler, 7 Gre en] . Patterson v Mills , 69 Iowa, 75 5
K K
. .

( M e ) 3 77 i nn ey 0 E n s ign , 1 8 . McCrossen 0 H arris, 3 5 ans


. 1 78 .

Pic k ( Mass ) 23 2 ; Fouche v Sw ain,


. . McClaskey v O Brien, 1 6 W V a
’
. . .

8 0 Ala 15 1 ; Fuller v La m ar, 5 3


. . 792 .

Iowa, 477 ; Strong 0 B urdic k, 5 2 .


5
Adam s 0 Angell, 5 Oh Div . . .

Iow a 630; Rogers 0 H erron, 9 2


, . 6 3 4 ; Sim pson 0 H all, 47 Conn 417 ; . .

Ills 5 83
. . D ela ware 8: H udson Canal Co v . .

5
Cochran v Goodall, 13 1 Mass . . Bonnell, 46 Conn 9 ; Cam pbell 0 . .

464 ; C ronin v H azletine, 3 Allen . V edder, 1 Abbott ( N Y App .

324 ; ote n 0 Hair 16 Gray D .


, 29 5 Jam es 0 More y, 2 Cow ( N Y )
. . .

( M ass 1 49 ; P alm e r 0 F o w ley , 5 . 246 ; Mulford v Peterson, 3 5 N J . . .

Gray ( Mesa ) 5 45 ; Walters v B efen ,


. Law , 1 27 ; Pike v Gleason, 60 Iowa, .

baugh, 9 0 1 5 0; V annice 12 Berge n, 16 Iowa, .

5
H utc hins v Carleton, 1 9 N H . . . 5 5 5 ; W ebb 0 Meloy, 3 2 Wise 3 19 ;
. .

48 7 ; Bean 0 Boothby, 5 7 Maine, . Grellet v Heils hom , 4 Nevada, 5 26


. .
succnssrvs cu m s . 87

n ec ess ari ly ex tin guish h is m ortgage for th e benefit of th e


h old er of a s ubs equent l ien 1 In equity a m erger w i ll n ot .

tak e pl ac e un l es s th e purpos es of j usti ce or th e in tenti ons of


th e p a rt ies so d em and 5 Th e m an ifest intention of th e pa r .

ties at th e tim e of th e tran s acti on w i ll determ in e wh eth er


th e l ie n i s pres erve d or ex tin guis h ed 5
Ah e xpress written .

agree m en t th a t th ere sh a ll be n o m erge r w i ll p rev ent it


5
.

The h old er of a m o rtgage m ay k e ep i t a l ive as a part of h is


titl e afte r a c qui ring th e equity of red em p ti on 5 i f th i
s is ,

nece ss a ry for th e pres erv a ti on of h i s righ ts


5
.

58 . C o n v e y an c e of E q ui t y i n P a y m en t of P ri o r. w ill n ot

ad va n c e ortgagee h aving rec eived


J un i o r. I n o um b ra n oe .
-
A m

from th e m ortgagor a deed of th e m ortgaged prem ises wh i ch


c on ta in ed a re c ita l th a t th e d ee d was to c a n ce l th e m ortgage ,

an d th e l an d h a v i ng bee n ta k e n upon an atta ch m en t m ad e

befo re th e e xecuti on of th e dee d an d c on sum m ated by a l e vy


afte rw a rd s a n d th e m o rtgage an d th e m o rtgage n otes h a vin g
,
-

been retained by th e m ortgage e un d er a parol a greem en t with


th e m o rt gagor to awa it th e res ul t of th e attach m en t it was ,

h el d th at th e tak ing of th is dee d d id n ot e x tin guis h th e m ort

g g
a e i n f a v o r of th e atta ch i n g c re d itor : for on e p arty i s n ot

to be estopped by th e rec ita l s in a d ee d wh ich h e h as ta ken

1 Baldwin 0 Norton, 2 Conn 1 61 ,


. . rich 0 Blake, 13 4 Mass 5 8 2 ; Mexall
J
. .

709 N ew England ewelry Co v v Dearborn, 12 Gra M


. . .
y ( ass ), 3 3 6 ;
Me rriam , 2 Allen ( Mass ), 390 ; Tower 0 Divine, 3 7 Mich 443
. . .

5
Hem enway v Bassett, 1 3 . Gray S pencer 0 Ayrault, 10 N Y . . .

( M a ss ) , 3 78 ; Ri c ha rds on v H oc ken . 202 ; Fowler Fay, 62 Ills 3 75 ; .

bull, 8 5 Ills 1 24 ; Sim pson


. Pease, Agnew v Charlotte R R Co , 24 So
. . . . .

5 3 Iowa 5 72 ; Stanton v Thom pson,


, . Ca r 1 8 ; Gresham v Ware , 79 Ala
. . .

49 N H 272 ; Ada m s 0 A nge li, 5


. . 192
J
. .

Oh Div 63 4 .
5
New ersey Ins Co v Meeker, .

J
. . . .

5
Sheldon 0 Ed wards, 3 5 N Y . . . 40 N . Law, 1 8 ; Lockwood v S tur .

279 ; Ba scom v Sm ith, 34 N Y 3 20; . . . devant, 6 Conn 3 74 ; Poll: 0 Rey . .

Waterloo Bank 0 Elm ore , 5 2 Iowa, . h olds , 3 1 Md 106 ; H Oppock v . .

5 41 ; Carpenter v Brenha m , 40 Calif . . Ra m say, 28 N J Eq 413 ; Mobile . . .

221 ; W oodward 0 Davis , 5 3 Iowa, Bank v H unt, 8 Ala 8 76


J
. . . .

69 4 .
5
ackson 0 Evans, 44 Mich . .

5
Oregon Trust Co v S haw, 6 . . 5 10 .

Sawyer, C C 5 2 and 5 Id 336 ; Ald


. . .
88 run LAW or sus aoe i rxos '
.

from g ivin g th e truth in e v id ence to susta i n i t, aga ins t a n

oth er pa rty wh o is seek in g to go beh in d th e deed to prevent


its operatio n 1
. ortgagee of h is m ort
Th e re ten ti on by a m

a
g g e an d m ortg g
a e n o te or o n t a k i n g a c on v ey an ce of bon d ,

th e m ortga ge d p rem is es is pn m a fa cie s nfli c ien t ev id ence of


'

h is inte nti on to k ee p th e m o rtga ge a l ive to p reven t a m erger 5


.

A n d if h e h as c an ce ll ed h is m ortga ge by reas on of th e j un ior


in cum b ranc e h a v in g be en fra ud ul en tly c on c ea l ed from h im ,

h e m ay by s e as o n abl e p roc ee d ings h a ve th e d is ch arge can


c e ll e d a n d be rein s tate d in h is prior l ie n ove r th e h o ld e r of
,

th e j un ior c h a rge 5
th ough th is h as been refused wh ere n o
,

fraud was practis e d upon h im 5


S o h e m ay h a ve th e s a tis .

fact ion c an ce ll e d an d h is m ortgage re in state d if h is purch ase ,

of th e equity wh ich was th e c ons ideration of th e s atis faction


, ,

is a fte rwa rd s set as i d e 5


If th e righ ts of th e parties req uire
.

it if for ex am pl e the con vey a nc e of the e quity was m a de


,

m ere ly for a f urth er s ec urity a n d it w a s to be re c on veye d ,

upon a fi xed p aym ent 5


e quity w i ll re ga rd a m o rtgage a s re
,

m a in in g in force th ough a d ee d of th e eq uity of re dem ption


,

h as b ee n a c ce pte d as a forec los ure th e reof 7 .

59 . W h en a C on v ey a n c e of t h e E q ui ty t o th e M ort ga g es
w ill b e re ga rd e d as a Pay m en t o f th e M o rt gag e d eb t -
. Wh eth er
th e debt w ill be con sidered to h a ve b een pai d by a
m ortga ge -

c on v ey a n c e of th e equity of re d e m p ti o n to th e m o rtga gee ,

wi ll d e pen d upo n th e i n te ntion of th e p arties 5


W h ere a .

m o rtga gor of l an d by d ee d for a v a l uabl e c ons i d erati on e x


, ,

Crosby 0 Chase, 1 7 Maine 36 9


.
, .
7 Decatur 0 . Walker
1 3 7 Mass . .

5 D un phy o R iddle 86 Ills 22


.
, . ,
1 41 W orcester Bank 0 C heeney 8 7 .
,

5 Young 0 Hill, 31 N J Eq
. . . . Ills 602 ; Stim pson v Pease, 5 3 I owa,
. .

429 . 5 72 ; a pp 0 Ge rkens , 5.9 Calif .

5
Bleckeley o Branyan, 26 Se Car
. . . 496 ; Bro oks v Ric e, 5 6 Calif 428
. . .

424 .
5
Germ ania Building As sociation v .

H em street v B undic k, 90 Ills


5
. . Neill, 9 3 Penn St 3 22 ; H uebsc h v
. . .

444 ; Co rwin v Collett, 16 Ohio St . Soheel, 8 1 Ills 28 1 ; Sanbom 0 Ms


. .

K
.

28 9 ; ieser v Baldwin, 6 2 A111 5 26


. .
8 00, 79 Iow a, 5 0 1 .

5
McElhaney v Shoem aker, 76 .

Iowa, 416 .
soccm sm a cu m s . 89

pres s ed th e re in, v y d th e m ortgaged prem ises to th e


c on e e

m o rtga gee it w as h eld th at in th e a b s en ce of ev i d e nce th at


, ,

th is c on vey an c e was in ten ded by th e pa rties as a pay m ent of


th e n otes wh ich were sec ured by th e m ortga ge th es e n otes ,

m igh t s t i ll be coll ec te d or n egotiate d by th e m o rtga ge e


1
.

Th e own er of an equity of redem ption s old it to a purch aser ,

wh o ass um ed th e pa ym ent of th e m ortga ge ; th is p urch as er

g a v e a s e c on d m o rt g g
a e of t h e s am e p rem is es wh ich was a s ,

s ign ed to t h e firs t m ortgagee, a n d th e n c o nvey ed th e p rem is e s

to th i s m ortga gee w ith wa rran ty aga in s t a ll p ers on s c l a im i ng


,

un d er h im a nd a c o ven an t th at th ere were n o i n c um b ra nc es


,

m a de by h i m e x cept th e s ec on d m o rtga ge ; a n d it w as h e ld

th at th e fi rst m o rtgage was n ot m e rge d by th is c onve y an ce ,

an d t h e m ortgagee c ould s till c olle ct th e n ote s ec ured th e reby

from th e o rigina l de btor wh atever th e v a l ue of th e p rem


,

ise s 5
. B ut if a p arty tak es from a m ortgagor a n a ss ign m ent
with out reco urs e of a s ec on d m ortgage upon th e p rem ises ,

g iv e n by a p ur c h as e r of t h e eq uity of re de m pti on wh o h as

ass um ed th e p aym en t of th e fi rst m o rtgage a n d wh o s o s tates ,

in h is s ec on d m ortgage an d if th us h old in g th e sec on d m o rt


,

g g
a e h e th e n ta k es an as s i g n m e n t of t h e fi r s t m o rt a
g g e h e ,

ca n n o t c oll ect th e n ote s ec ure d by th e firs t m o rtg age f rom

th e o ri gin al m ortga gor ; for th is m o rtgago r woul d th en be


sub ro g a ted to th e pri ority of th e firs t m o rtgage ov e r th e

s ec on d a n d th us be enabl ed to ge t b a c k e x ac tly th e am ount


,

h e w ould h ave p a id from th e p arty to wh om h e would h a ve

p a i d i t 5
. T h e c as e s jus t c i te d h ol d th a t a c on v ey an c e of t he

m o rt ga ge d p rem is es m a d e by th e m ort a o r to th e m o rt a ee
g g g g ,

wi ll n ot ope ra te a pay m en t of th e m o rtga ge d eb t un l e ss it is -

sh own a fi rm ati ve ly th at th is w as th e i nten tion of th e par


ties :
5
if th at inten tion does appe ar ,
it w ill be carri e d in to
1V an B enson 0. Frink, 1 5 Pick .
5
Swett 11
. Sherm an, 109 Mas s .

(Mass ) 449 23 1
J
. .

5
Tucker 0. Crowley, 127 Mass 5
S o in Cattel 0 Warwick, 6 N .

J
. .

Law, 190; ackson 0 B ali, 26 Fla . .


90 run LAW or sm oei rx
os
'
.

efi ec t .
1 presum ption h as been said to be the
Elsewh ere th e
oth e r way th at th e m ortga ge debt is pa i d by such a c onvey -

an c e un l ess it a ppe a rs th at th e pa rties in ten d e d oth e rw is e


5
.

It h as e ven been h e l d th at s uc h a c on vey an ce of pa rt of th e


m ortga ge d p rem is es w i ll ope ra te an e x tin guish m ent of th e

m ortga ge d d ebt pro ta n to; b ut th a t it w i ll be o n ly


5
r o ta n to an
p
-

e x tin guish m en t a l th ough th is c o n vey a nc e of pa rt of th e m o rt


,

g g
a e d p ro pe rty c o m e s f rom on e wh o h a d p urch as e d th at p art

from th e m ortgagor an d h ad agreed to pay off th e wh ole ,

5
m ortga ge .

60 . A n I n te rv e n i n g E s t a te w i ll pre v e n t a M e rger . If th e
h olde r o f ldes t l ien up on th e prop
a m ortgage wh ich is th e o

e rty a n d wh i ch i s for a n am ount e x c ee d in g th e v a l ue of th e


,

p roperty ta k es from th e m ortgagor a c on vey an ce of th e m ort


,

g a ge d p rem ises t o s a v e t h e e xp e n s e of a fo rec lo s ure th is ,

w ill n ot operate a m e rger of h is m ortga ge titl e s o as to en able -

th e h old e r of a j un io r l ien to tak e th e p rem ises w ith out pay


in g th e firs t m ortga ge d ebt 5
B ut if th e s en i or m ortgagee -

sh ould p urch a s e th e m ortgaged p rem ise s from th e m o rtga gor

a n d unde rta k e to pay th e j un i o r in c um b ran ce d e d uc tin g its ,

a m ount f rom th e p ric e of h is p urch a s e th is would pos tpone ,

th e l ien of h is sen i o r m ortga ge to th at of th e j un i or in cum


b rance It h as b een said to be a general prin ciple th at
5
.

wh e n ever th e own e r of an e s tate h as a l s o a ch arge upon it ,

a n d th e re is an oth er in te rm e d iate c h a rge or estate be tween

1 D ickason v William s, 1 2 9 M as.s 3 3 1 ; A stle y 0 M illes , 1 Sim 9 9 3 ; . . .

1 8 2 ; H em enway v Bassett, 1 3 Gray Tyrwhitt v Tyrwhitt 39 Beav 944


. .
. .

3 78 ; Holm an o Bailey, 3
5
Wilhelm i 0 Leonard 13 Iowa,
. .
,

Met ( Mass ) 5 5
. . 3 30 ; Trim m ier 11 V isa, 1 7 8 0 Car . . .

5
Bas sett 0 Mason 1 8 Conn 13 1 ; 49 9
K
. .
.
,

B um et v Dennisto n 5 Johns Oh .
5 lock v 0ronkhite
,
. . .
,

( N . Y ) 3 5 .C lif t v W h ite , 1 2 N Y 107 . . . .

5 1 9 ; Spe ncer 0 H ar ord, 4 We


f nd 5 Cam pbell v Carte r 14 Ills 286 .
, ,

J
. . .

( N Y ) 3 8 1 ; .S e ig hm an 0 M ar sh a ll. 2 8 9 ; a rv is o Frin k
. 1 4 I lls 3 9 6 ; .
,
.

1 7 Md 5 5 0; Wilhelm i 0 Leonard, 1 3 Adam s 0 Angel] 5 Oh Div 634 ;


. . .
, . .

Iowa, 3 30 McCorm ic k v Bauer 1 22 Troost v D avis 3 1 Ind 3 4 .


, .
,
. .

Ills 5 7 ; L y
. 3 ill e P alm e r , 5 1 Ill s 5. Fowler 0 Fay, 6 2 Ills 3 75 . . . .
suoosssm cu m s . 91

h is own ch a rge and ownersh i p in fee th en no presum p


h is ,

tion w ith o ut o
s m e s pec i a l a ct c an be m ad e of an in ten ti on to

m erge th e ch arge in th e fee, for th at m igh t be a gains t th e


in te res t of th e own er by letting in , th e i nterm edia te es tate 1

but if th e inte rven in g d by th e a ct of th e estate were c reate

own e r h i m self th is reas on in g would h ave n o appl ica ti on 11


, .

6 1 Th e D oc trin e of T w o P un h — Wh ere on e c re d ito r


. c .

h olds s ecurity upon two fun d s or es tate s with perfec t l ib erty ,

to res ort to e i th e r for th e pa y m en t of h is d em an d a n d an ,

oth er c red itor h olds a j un ior sec urity upon one only of th ese
fun ds equity wi ll c om pel th e form er c red itor to exh aus t th e
,

fun d wh ich h e a lone c an h old as s ec urity befo re c om ing up on ,

th e l atte r fun d a nd th ereby depri vi ng th e l atter c re d ito r of ,

h i s sec urity ; a n d in a dec re e forec los in g a j un i or m ortgage


8
,

th e s eni o r m ortga gee m ay be ord ere d to ex h aust for th e s at


is fa c ti on of h is c l aim a ll th e oth er property d es c ribe d in th e
s e n i or m ortgage be fore res ortin g to th a t wh ich i s c overe d by ,

th e j un i o r m ortgage l If on e j udgm en t c red ito r h as two .


” -

fun ds out of wh ich h e m ay c oll ect h is debt an d a j un ior ,

j ud gm ent c red i tor can reach on ly one of th es e fun ds th e


-

prior c re di tor m ust firs t res ort to th at fun d over wh ich h e


h as th e e x c l us i ve c ontrol 5
Th e j un ior c re d itor m ay a l so .

Scrivner o D ietz, 8 4 Calif 29 5 ;


1 . . solm , 57 Md 3 76 3 8 3 ; Pettibone
.
,
v.

As c he v Asche, 11 3 N Y 23 2 ; Belk
. . . Stevens, 15 Conn 19 ; Ball v Setzer, . .

na p v Dennison, 61 V t 5 20; Gray 0


. . . 3 3 W V a 444 ; Hannegan 0 Hannah,
. . .

N elso n, 77 Iowa, 63 ; Collins v Stock . 7 Elac hi ( Ind ) 3 5 3 ; Davis 9 Walker,


. . .

ing 9 8 Mo 290
, . . 5 1 Mis s 65 9 ; Gusdori v Ikelheim er,
. .

1
Johnson o Webster, 4 De M . G . 75 Ala 1 48 ; Nelson v D unn, 1 5 Ala
. . .

8: G 474 . . 5 01 .

1
Gibson 0 Seagrim , 20Beav 6 14 ; . . S wift v Conboy, 1 2 Iowa, 444 .

Lanoy v Athol, 2 Atk 446 ; Fox, . . Ham ilton 0 Schwehr, 3 4 Md 107 ; . .

in re, 5 Irish Oh 5 41 Merchants Terry 0 Rosell, 3 2 Ark 478 ; Geller


’
. . .

Bank 0 McLa ughlin, 1 McC rary, C C


. . . o H oyt, 7 How
. Pr ( N Y ) 26 5 ; . . . .

25 8 ; R usse ll v Howard 2 McLean, .


. Turner 0 Flinn , 6 7 Ala 5 29 ; B en
. .

C C 48 9 ; Warren 0 Warre n , 30 V t shaw 0 Wells, 9 Hum ph ( Tenn )


J
. . . . . . .

5 3 0 ; York 8: ersey Steam boat Co 0 . 5 6 8 ; Davenport Plow Co v Mewis , . .

J
.

e rsey Hopkins, Oh (N Y ) 460; . 1 0 Nebras ka, 3 1 7 Ste rnberg 0 V al .

J
. .

Baird 0 ac kson, 9 8 Ills 78 ; Wis e 0


. . . cutine, 6 Mo App 1 76 . . .

S hepherd, 1 3 1113 41 ; Glass v Pul . .


1
R eynolds 0 Toot er, 1 8 Wend . .

len, 6 B ush Ky ), 346 ; R us t 0 Chi ( N Y ) 1


( . 5 9 . .
92 m s LA W or suss oea n on .

a
p y off pri or security an d be subrogated to th e pri or
the ,

c red itor s righ ts ov e r both fun ds 1


If th e p ri or i ncum bran cer
’
.

d oes exh aus t th e only fun d wh ich is pl edged to th e h older of


th e j uni o r l ien th e l atte r i s en tit l e d to be sub rogate d to th e
,

form er s l ien upon th e oth er fund or to any ba l an ce th ere of


’
,

rem a in i n g after th e full p aym en t of th e p ri or l ien of wh ic h ,

th e sen i o r c red it or m igh t an d s h ould h ave a vai l e d h im s e lf ’


.

A c red itor h old in g a m ec h an ic s l ien properly perfec ted ’


, ,

wi ll be p rotec ted by th e a ppl ic atio n of th e s am e doctrine a .

A b an k h oldin g a j udgm ent against one of its s tockh olders ,

for wh ich b es ides its j ud gm en t l ien upon h is rea l es tate it


,
-

h as a l s o a l ien upon h is s toc k m ay in d eed c ollect its j udg ,

m en t out of h is re a l e s tate ; but h is oth er j ud m e n t c red ito rs


g
-

wh o a re th ere by d ep rive d of th e oppo rtun ity of c oll ect in g th eir


m on ey sh a ll be s ub ro gate d to th e righ ts of th e b ank s o a s to
, ,

e n ab le th e m to h old th e d eb tor s b ank s toc k ‘ A s th e c red itor


’
.

h aving th e ch oi c e of t wo fun d s ough t so to ex erc i se h is righ t


of e l ec ti o n as n ot to in jure th o se c red ito rs wh o c an re s o rt to

o nly one of th ese funds s o if h e in th e exe rcis e of h is l egal


6
, ,

righ t e xh aus ts th at fun d to w h ich al one th e oth er c re d itors


, ,

c a n res ort e quity w i ll pl a ce th em in h is s ituati on so far as


, ,

h e h as appl ie d th e ir f un ds to th e s atis fac tion of h is c l a im 6


.

62 . A C re d i t o r w h os e F un d h as b e e n t a k e n t o p ay 3 P ri or

D eb t s ub ro g a t ed t o th e Li on o f t h a t D eb t on O th e r F un d s .

1
Washburn 0. Ham m ond, 15 1 Ram sey s
’
Appeal, 2 Watts
Mas s 1 3 2 ;
. K 228
i ng 0 Nichols, . 13 8 .

Mass 1 8 21 .
,
.
5
The Edward Oliver, L R I Adm . .

1
Mower s Trusts in
’
, r e, L R 8 & Ec 3 7 9 ; H urd o E a to n , 28 1 113 1 2 2. ; . . . .

Eq 1 10; Dolphin v Aylward L B


. Wartz o Hart, 1 3 Iowa, 5 1 5 ; Lee 0
.
, . . . .

4 H o Lds 48 6 ; Hunt v Townsend, B uck 1 3 8 0 C ar 1 78 ; Mes sen ey v


. . .
, . . .

4 Sandf Oh ( N Y ) 5 1 0; Cheese . Barelli, 2 Hill Eq ( So Car ) 5 67


. . . . .

J
. .

borough v Millard , 1 ohns . Oh Alston v Mum ford, 1 Brock . . .


.

( N .Y ) 409 ; S la
.d e 0 V an V ec h te n ,
C C 26 6 ; F oot in r e,. 8 B en e d icts . . .
,

21 Ingalls v Mor 228 ; Delaware


’
11 Pa ige ( N . Hudson Canal Co s . .

g un 10 N Y 1 7 8 ; G ist v P res sl ey, A pp ,


. eal 3 8 P en n S t 5 12 ; B a nk o f .

K
. . .
,

2 H ill Eq ( So Car ) 3 18 entucky 0 V ance, 4 Litt ( Ky ) 168 ;


. . . . .

Rust v Chisolm , 5 7 Md 3 8 3 ; Wolf 0 Fergus on, 1 29 Penn St 272


. . . . .

K
.

enny v Gage, 3 3 Vt 302 . . .


suoonss xvn cu m s . 93

If pri or cre di tor of two fun ds satisfies h is dem an d out of


a

th a t fun d whi ch a l on e is pl e dged to a j un i or c re d itor an d ,

th ereby ex h a us ts th a t fun d eq uity w i ll sub rogate th e l atte r ,

c re d i tor to th e form e r s l ien upon th at fun d w h ich i s n ot e x


’

h a n ste d 1 A debtor agains t wh om th ere h a d been i ss ued


.

e x ec uti o ns wh ich we re l ien s upo n h i s pers on a l es ta te h av in g ,

as s ign e d h is p roperty to a trus te e for th e p ay m en t of h is

debts an d d irecte d th at th e a vai ls of certa in c l oth sh ould be


,

appl ie d to pay n ote s gi ven by h im to th e v en do rs of th e wool

whi ch h ad been us e d in th e m an ufac ture of th e c loth an d ,

th is c loth h a v ing been tak en on th e e x e c uti on s th e as s ign ee ,

b id it i n an d a fte rwa rds s old it for a m uch l a rger s um ; an d


,

i t wa s h eld th at th e oth er p a rts of th e as s ign e d prope rty as ,

betwee n th e v en dors of th e w ool an d th e gen era l c red ito rs ,

w ere th e p rim ary fun d s for th e pay m en t of th e ex ecutions


wh ic h we re l ien s upon all th e a ss ign ed p roperty an d th at ,

th ese v en d ors sh ould b e s ub rogate d to th e ri gh ts of th e


ex ec uti on c re d itors aga ins t th e o th er pa rts of th e as s ign e d
-

p roperty so far as th ei r c loth h ad b een appl ie d to pay s uch


,

ex e cution c re d itors an d th at th e a s s ign ee sh o uld re im burs e


-

h im s elf for th e am oun t of h i s b id to buy in th e c loth from


th e gen era l fun d s o as to gi ve to th es e ven dors th e ben efit of
,

a ll th e p ro cee d s of th e c l oth s o fa r a s sh ould be nece s s ary to ,

s a tis fy th ei r n ote s
"1
.

63 . D o c t ri n e of Tw o F un d s n ot a pplie d , if i t w o ul d w o rk

I n j us t ic e t o S e ni o r C re di t o r . B ut th is gen era l rul e, th at a


c red itor h avin g a p rior l ien up on two fun d s w ill n ot be a l

lo wed s o to a pply th em as to e x c l ude a c red itor h a v ing a


j un ior l ien upon on e on ly of th e s am e fun ds from th e ben efit
of his lien w ill n ot be appl ied in any case wh ere it would
,

1
Hawkins 0 Blake, 108 U S 422 ; Theatre, 2 Browne
. 275 . .

Bowler, in re, 2 Hughes, C C 3 1 9 ; Hunter 0 Beach, 8 0 V a 3 6 1 ; R oss. . . .

Findlay v United S tates Ba nk, 2 Me


. a D uggan, 5 Co lor 8 5 . . . .

Le n, C C 44 ; Farwell v 1m porte rs Slade 0 V an V echten, 1 1 Paige


’
a . .
1 . .

Bank, 90 N Y 48 3 ; Milligan s Ap ( N So in Wolf o Ferguson,


’
. 21. . . .

peel, 1 04 Penn S t 5 03 The Olym pic 129 Penn St 272


. . . . .
94 run LAw or EUBBOGATION .

w or k an in j us tic e to th e
pri or l ien to c re d itor h a v in g th e
res tri ct h i m to on ly on e fun d 1 It i s n ever a ppl ied wh e re its .

en fo rc em en t wo uld p re j ud ic e th e righ ts of th e p ri or c red itor z


,

or wh e re it w ould d e l a y h i m in obta in in g h is paym ent 8 It .

wi ll n ot be appl ied a ga in st th e preroga tive righ t of th e gov


ern m ent to h old a ll th e p rope rty of its d e bto r 4
Th e p rior .

c re d itor c an n ot be c om pe ll e d to c on fine h im s e lf to on ly one

of th e fun d s un l e ss th at fun d is sh ow n to b e s uffi ci en t to s at


,

is fy h is d em a n d 5 H e w i ll n ot be c om pe ll e d to res ort to a .

fun d of which h e can rea l iz e th e ben efit on ly by l itigation ; °

if h e h old s b oth a p rior m ortga ge an d a l s o c erta in p rom is


s o ry n ote s as c oll a te ra l s ec urity for th e s am e d eb t th e h older ,

of a j un ior l ien upon th e m ortgage d prem is es c ann ot requi re


h im to p ros ec ute s uits upon th e n otes b efore forec l os ing h is
m ortgage "
A m ortgagee of b oth th e goods an d th e a c counts
of h is d ebtor wi ll n ot be obl iged to c oll e ct th e acc oun ts and
a pply th eir p roc ee d s upo n his c l a im a ga ins t th e d eb tor in ,

1 Woolcocks Hart, 1 Paige v. Mich 77 ; Clark


. 0 . Wright , 24 80 .

( N 1 8 5 ; Jam es 0 H ubbard 1 .
, Car 5 26 . .

Paige ( N 1 28 ; H errim an v
. .
3
Wallis v Woodyear, 2 I nt . .

S kilm an, 3 3 Barb ( N Y ) 3 78 ; V a n . . . 1 79 ; Pennock 0 H oover, 5 R awle .

Mater v Eley, 1 2 N 3 Eq 271 ;


. . . . 3 9 1 ; Detroit S avings Bank
Thaye r v D a niels, 1 13 Mass 1 29 ;
. . o Truesdail, 3 8 Mic h 43 0; Gillians
. .

B runer s Appeal, 7 Watts Be rg v McCorm ack, 8 5 Ten n 5 9 7 ; Rogers


’
. . .

M l o Blum , 5 6 Tex 1
’

( P e n n ) 26 9.
; c C or m ic k s A pp ea , . . .

5 7 Penn S t 5 4 ; Ne wbold v N ew bold


. . .
, U nited S tates 0 D uncan, 4 Me .

1 Del Oh 3 10 ; Post 0 Mackall 3


. . .
,
Lea n C C 607,
. . .

B land ( Md ) 486 ; General Ins C o ,


. . Bam well v Wolford, 67 Ga 5 0 . .

v Un ited States Ins Cc


. 10 Md 5 1 7 . .
,
. Coker o Shropshire, 5 9 A19 5 42
. .

Jones v Zollicofler, 2 Ha wks ( N o r Mason s Appeal, 89 Penn St 402 ;


’
'

. . . .

Briggs v Planters Bank , 1 Fream


’
C an ) 6 23 ; Behn v Young 21 Ga
, .
, . . .

207 ; Gallo way v People s Bank 5 4 Ch ( Miss ) 5 74 ; Trapnall 0 Rich


’
. . .
,

Ga 5 72 ; Wolf 0 S m ith 3 6 Iowa,


. .
,
a rdson , 1 3 Ark 5 43 . .

45 4 ; U nited S tate s 0 D uncan 1 2 Ills Walker 0 001m , 2 8 0 Car 1 6 ; . .

K
. .
.
,

5 23 ; Morrison v urtz 1 5 Ills 1 9 3 ; .


, . Moore 0 Wright, 1 4 Ri ch Eq ( So
. . . .

S weet 0 Re dhead 76 . Lo ,
Car ) . Austin 0 Bowm an , 8 1 .

g a n 0 A nd e rso n 1 8 B M on ( Ky) Iowa 277 ; Bryan B rown S hoe Co v -


. .

K
.
, . .
,

1 1 4 ; Cannon v Kreip 1 4 ans 3 24 Block 5 2 Ark 45 8 ; Rogers 0 Holy .

K
. . .
.
, ,

1'
Saa thoff, in re, 14 N B R 364 ; oke 1 4 Min 220; idder v Page, . .

J
. . .
,

ervis v Sm ith, 7 Abbott Pr N s


. . . . 48 N H 3 80 . . .

1 W olf 0
( N . Y ) 21 7
.
; Sla te r v B rees e 3 6 .
, Sm ith , 3 6 Iowa, 45 4
. .
successi ve c u m s . 95

order to aid oth er cred itors wh o are un se cured Or if th e .


1
,

p rior m ortga gee in an action for h is debt obtain s th e add i


, ,

ti on a l s ec urity of a s uffic i en t a tta ch m ent but th e va li d ity of ,

thi s attac h m en t is c on tes ted in a n oth er a cti on a j un i or m ort ,

g g
a e e c an n ot re q ui re h i m to l iti ga te th is q ues t ion b efore

res ort in g to th e m o rtga ge d p roperty Nor w i ll th e pri or


’1
.

c re d ito r be c om p ell e d to go i n to a n oth er j uris d icti on th ere ,

to prose c ute th e fun d to wh i ch h e h a s th e ex c l us ive righ t 8 .

B ut if th e a va i ls of p roperty c on stitutin g th e first fun d th ough ,

orgin al ly b ey on d th e j uris d i c ti on h av e b een b rough t w ith in


,

th e j uri s d i cti on th e s en ior c re d ito r m ust res o rt to th em


,
‘
.

A n d it h a s b een s ai d th at th e p rin c i pl e th at one c red ito r


s h a ll n ot ta k e a pa rt of a fun d wh ic h would o th erw ise h ave

been avai l able for all th e c red ito rs an d at th e s am e tim e be ,

al lowe d a p ropo rti on ate sh a re of th e rem ain d er of th a t fun d

with th e oth er cred itors does n ot apply to a case in wh ich th e


,

fi rst c re d itor by h is d il igen ce obta in s s om eth ing wh i ch c ould


n ot fo rm a p a rt of th a t fun d 5
B ut th e pri or c red itor m us t
.

be abl e to sh ow wh at d is p os ition h e h as m a de of th e fun d


th at w as ex c l usive ly h is 6
A n d h e m ay n ot vol unta ri ly put
.

h i m se lf in a pos iti on wh ere h e w i ll b e em b arras s e d by th e


en forc em en t of th e righ ts a l re a dy ves te d i n th e j un i or c re di

Th e fa ct th at th e prior cred itor h olds al s o a th ird l ien


on th e firs t fund in fe ri or in d ate to th e j uni or c red itor s ’
,

lien w i ll n ot be sufi c ient to ex em pt th e prior c red itor from


,

th e operati on of th e ord in a ry rul e 8


Th e j un i o r c reditor s
.
’

righ t of s ub roga ti on to th e s ec uri ties of wh ic h th e sen i or

1 Em m ons 0. Bradley, 5 6 Maine, Cockerell v Dickens, 3 M00


1
. .

333 .
P C 98
. . .

1
Si m m ons Hardware Co v B ro . .
1
B ryan Brown Shoe Co 0 Block ,
-
. .

ha w, 7 Nebraska, 405 . 5 2 Ark 45 8 . .

1
Morton o Grafl in, 68 Md 5 45
. . Washbum 0 Ham m ond, 1 5 1 .

Denhs m v William s, 39 Ga 3 1 2
. . . Mass 1 32, 139, at seq
.

K
.

1
Moss s Estate, 1 38 Penn St
’
. .
1
endig o Landis, 1 35 Penn St . . .

646 .
612 ; Moss s Estate, 138 Penn St
’
. .

646 .
96 m s L AW or sus aoou rou .

d itor h as dec l in ed to a vai l h im se lf


c re wi ll be preserved after
the s atis fac ti on of th e l atte r 1
.

W h e re On e of th e T w o P nn d s i s m u s ub ec tj t o P ri or

I n o u m b ran o e s . A
olds security upon two c red it r o Wh o h

tra c ts of l an d one of which is th e d eb tor s h om es te a d c an


’
, ,

n ot e x c ep t by reas on of s pe c ial equities be c om pell ed by an


1

oth er cred itor h old in g a j un ior security upon th e tract wh ich


is n ot a h om es te a d to res o rt fi rs t for th e s a tis fa ction of h is
d em an d to th e h om e s tea d s o as to l ea ve th e oth er trac t s o , ,

fa r as m ay be for th e se c on d c reditor and th e p rio r c red i


3
, ,

to r s s ub s equent purch ase of th e h om este a d w i ll n ot a ffe ct


’

h i s righ ts ‘
But th e creation of th e h om es tead a fte r th at of
.

th e in c um b ra nc e s w i ll n ot a fi e ct th e righ ts of th e j un i or
c redito r A n d if th e p rior c red ito r h ad ch os en to res ort
ls
.

fi rst to th e h om e s tead or even to re l ease th e oth e r l a n d an d ,

th en c om e upon th e h om es te a d th e d ebtor c ould n ot h ave ,

c om pl a in e d ; th e re is n o im pl i ed obl igati on on th e h ol d er
1

of a m ortgage wh ich c overs b oth a h om estead an d oth e r prop


e rty to ex h a us t firs t h is rem e dy again s t th e oth e r p rope rty ’
,

for th e eq uita ble rul e th a t a c re d ito r wh o h as a l ien up on t wo


fun d s upon one of which an oth er c red itor h as a sub sequent
,

l ien on ly w ill be required to s atisfy h is c l a im p rim ari ly out


,

of th at fun d on wh ich th e l atter h as n o l ien h as no appl ica ,

ti on as b etween d e bto r an d c red ito r; it a va i l s on ly as be


1

1 Ki gMcVickar 3 Sandf Ch
n , v . L in sc ott v L am a rt, 46 I o wa, . .
1 .

( N Y )
. 1 9.2 ; R e ig le v Leite r 8
, M d 3 12 ; R ah e r o.G und , 1 1 0 Ills 5 8 1 . . . .

405 D unn v Olney 1 4 Penn St 219 Abbott v Powell, 6 Sawyer, C C


1 . .
. . . . .
,

1
H odges v Hickey, 6 7 Miss 715 9 1 Bowen 0 Barksdale, 3 3 So Car
. . . . . .

1 W ilson 0 Patto n 8 7 Nor Car 1


. 42 . . .
,

3 18 ; S hell 0 Yo ung 3 2 So Ca
. r 46 2 ;
1
A lb rig,
h t o Al b
.r i h
g ,t 8 8 N o
.r . .

Arm ita ge v Toll, 64 Mich 41 2 ; Mc


. Car 23 8 ; Creath v C reath, 8 6 Ten
. . . .

Arthur 0 Martin, 23 Min 74 ; 65 9 ; Vaughn 0 Powell, 65 Miss 401 . .

K
. .
.

Mitchelson v S m ith , 28 Neb 5 83 ; .


7
Chapm an 0 Lester, 12 ans
. . .

McC reery v Shaffer, 26 Neb 1 73 ; 5 9 2 ; De N eg re v Haun, 1 4 Iowa,


. . .

White v Fulghum , 8 7 Tenn 28 1 ; 240; White v Polleys, 20 Wise 5 03 ;


. . . .

Dickson v Chorn, 6 Iowa, 19 ; Sm ith Tuttle v H owe, 14 Minn 145 Wor


. . .

0 Wait, 39 Wise 5 12 ; Mar oester s Estate , 60 V t 420


’
. r0 Lewis, . . . .

3 1 Ark 203 . Contra , in part, State


.
1
Binns v N ichols , L R 2 Eq . . .
.

25 6 ; McDevitt s Appeal, 70Penn St


’
B ank 0 Harlin, 1 8 So Car 425
. . . . .
suc cessrvn cu m s . 97

tween difi erent cre di tors


d ebtor Th e righ ts of
of th e s am e .
1

th e pa rties wh ere a h om estea d is i n volve d wi ll depen d in each


S ta te up on th e loc a l s tatutes ; in s om e S tates th e h om es tea d
1

i s favored an d th e o wn er m ay requi re even a sec ured c re d itor


,

t o res o rt fi rs t to th e oth er property 1 Wh en a p ers on tak es a .

m ortgage up on l a n d of wh i c h one port i on is an d an oth er


, ,

p o r ti o n i s n o t a l re a d y i n c,
um b e re d h e ac q u i r es t h e r i gh t t o ,

s atisfy h is d ebt in th e fi rst in stan c e out of th at p rope rty

w h ich is n ot i n cum be re d ; an d th is righ t wi ll n ot be im

p a i re d b y a s u b s e q ue n t m o rt a
g g e o f t h a t p a rt to a n oth e r c re d
i to r ‘
. Th e j un ior m ortga ge e c an n o t require h im to run th e
ri s k of b e in g obl i ged to pay 011 a p rior in c um b ran c e b e fore

h e c an enfo rce h is own s ec urity 1


B ut if th e debto r h as .

w ai ve d h is ri gh t of re d em pti on again st on e c re d ito r but n ot


a ga in st an o th e r th e l atter h as b een a llowe d to req ui re th e
,

fo rm e r to res ort firs t to th e ex em pte d property 6


.

65 . D o c t rin e of Tw o P un d n ot a ppli e d w h e re i t w o ul d

b e I n j uri ons t o Th i rd P art i es A j un io r cred itor cann ot com


p e l a p ri or c re d it or to re s o rt firs t to th a t fun d w h ic h h e a l on e

c an m ak e a v a i l abl e in any c as e w h e re th is w ould i n j uri ous ly


,

a fi ec t ri gh ts th a t h av e v es te d in oth ers 1 Th e prior c re d itor .

c a n n o t be c om pe ll e d to res o rt first to prope rty wh ich th ough ,

ple d ged for h is d em an d belon gs to anoth er th an h is debto r ,


8
.

Wh ere a d ebt or ga ve to a build in g ass oc iation 8 m ortgage of .

3 73 ; Butler 0 Steinbeck, 8 7 Nor . .


1
Dodds
Snyder, 44 Ills 5 3 v . .

C ar 216 ; Plain v Roth, 107 Ills


. . . Lewis 0 H inm an, 5 6 Conn 5 5
. . .

5 8 8 ; Witherington 0 Mas on, 8 6 Ala 1


Pittm an s Appea l, 48 Penn St
’
. .

J
. .

3 45 . 3 15 ; ones 0 Dow, 1 8 Wise 241 . . .

1
Rogers 0 Meyers, 68 Ills 9 2 ;
. .
1
Leib v Stribling, 5 1 Md 28 5. .

L ee 0 Gregory, 1 2 N eb 282 ; Rich


. . McGinn iss s Appeal, 16 Penn S t
’
. .

ardson v W allis , 5 Allen ( Mesa ), 78 445 ; McClaskey v O B rien , 1 6 W


’
. . . .

1
See Grant 0 Parsons, 67 Iowa, . V a 792 ; Cogbill, in re 2 H ughes, C
.
, .

3 1 ; Ebert v Gerding 1 16 Ills 216


.
, . . C 3 13
. .

1
Lea k 0 Gay, 107 Nor Car 46 8
.
1
Shinn v Sm ith, 79 Nor Car
K J
. . . . .

H orton 0 elly, 40Minn 19 3 ; Cam


. . 3 10, citing Worth 0 Gray, 6 ones .

w ay, a: pa rk , 28 8 0 Car 233 . . . Eq 4, and Ashe 0 Moore , 2 Murph


. . .

1
See Robeson s Appeal, 1 1 7 Penn 3 8 3 Warwick 0 Ely, 29 N J Eq
’
. . . . .

S t 6 28
. . 82 .

7
98 TH E L A W or s vss oos rl on .

two lots of l an d an d an as s ignm en t k as of five sh ares of stoc

se c urity for th e s am e d eb t a n d afte r gi ving a sec on d m ort ,

g g
a e o f o n e o f th e l ots s old h is i n te re s t in th e s t o c k t o o th e r

parties th e secon d m ortga gee al th ough h e co uld require th e


, ,

as s oc ia ti on to e n forc e its m ortga ge firs t upo n th e lot wh ich

w as n ot s ubj ect to h is ch a rge h a d n o righ t to c om pe l it to ,

app rop ri ate th e s tock to th e p ay m ent of its debt 1


wh i le the
rin c ip a l d e btor still own e d th e s tock i t w l i bl t b
p as a e o e ,

appl ie d up on th e d ebt se cure d by th e fi rs t m ortgage s o as to ,

re l iev e th e s ec uri ty of th e s e c on d m ortga ee ; but th e bur


1
g
den of th is l ate nt equity would n ot ac com p an y th e s toc k i nto
th e h a n ds of a bon a fid e p urch as e r th ere of for va l ue 1
Th e
'

j un ior in cum branc er c an not in s is t th at th e fun ds sh a ll be


m a rs h a ll e d wh en th e effect of th is will be to d estroy th e
,

rem e d i es or i m p a i r th e ri h ts of th e purch as e rs or bon a


g
d e grante es of on e or both of th e fun d s or es tate s
fi 1 .

66 . W h e re On e of th e F un d : is p ri m a ri ly li a b l e fo r th e

P ay m e n t of B o th D e b ts . Th e re c a n be no b
s u roga ti n o for
th e l ief of th e owne r of th e fun d wh ich is prim
re a ri ly l iabl e

for b oth d eb ts th e ve ry obj ect of sub rogation be ing to th row


,

th e b urd en up on th ose p arties or th at fun d upon wh ich rests


th e p rim a ry l ia b i l ity 1
A tes tator wh o h eld on e estate in
.

fee s im pl e an d a noth er es tate in fee ta i l l eft an an n uity


- -

'
c h a rged up on a ll h is p roperty A j udgm en t c re ditor of th e .
-

tes tator wh ose j ud gm en t was a ch arge upon b oth estate s


1
, ,

h a v in g obta in ed s ati sfaction m ain ly by e xh aus tin g th e fee


s im pl e esta te th e a n n uitan t w as n ot a llowe d to m a rs h a l th e
,

Re illy v Mayer, 1 2 N J Eq 5 5
1 . . . . .
1Barnes v Racster, 1 Yo Cc . . .

H erbert 0 Mec hanics B uilding Oh 401 ; Engden v Bignold, 2 Yo


’
1 .
. . .

Association, 1 7 N J Eq 49 7 ; . . . 00 Oh 3 77 ; Lloyd 0 Galbraith , 3 2


. . .

Phillipsburg B uilding Association 0 . Penn St 103 ; Green 0 Ra m age 18


. . .
,

Hawk, 27 N J Eq 3 5 5 ; Red Bank . . Ohio 428 ; Sager o Tupper, 3 5 Mich


, . .

Building Association 0 Patterson, 27 . 1 34 .

N J Eq 223
. . . .
1
Aztec , 55 6 , 1 1 , 46 Am h e rst .

1 Re ill 0 Ma or 1 2 N J E 5 5 College 0 Sm ith, 1 3 4 Mass 5 43 ;


y y , q .
; . . . . .

Mechanics Building Association 0


’
. Iowa Loan Cc v Mowery, 6 7 Iowa,
. .

Conover, 14 N J Eq 219 . . . 113 .


vn cu m s
succ ess r . 99

s ecurities as against der m an of th e fee tail estate


th e rem ain - -

s o as to rec oup out of th e s urpl us procee d s of th a t es tate th e

a m oun t wh i ch h a d b een p a i d to th e c re d ito r out of th e fe e

s im pl e es tate T o auth oriz e th e m arsh all ing s aid th e


.
”
,

Mas ter of th e R oll s it is obv ious ly n ec ess ary n ot on ly


, ,

t h a t a c l a im s h o uld e x is t aga in st a fun d subj ect in c om m on


w ith a n o th e r fun d to a p a ra m oun t l iab i l it y but a l s o th at ,

th o se in te res te d in th at oth er fun d s h ould n ot h a ve a righ t


t o th row th at l i a b i l ity up on th e fun d of th e c l a i m a nt A .

m a n s ow n p rope rty in wh ic h a lo n e h is l e gate es c a n c l a i m


’
, ,

m us t be a ppl ie d to th e p ay m ent of h is debts in p referen ce to ,

th e p rop erty of a n oth e r aga in s t wh i ch th e statute m e re ly ,


” 1
g i v es a r e m e dy S o a j un i o r fi rm c
. re d ito r c a n n,
o t c om p e l -

a n ot er fi rm c red itor h old i n g a s e n i or l ien on b oth fi rm a nd


h -

i n d ivi dua l p rope rty to e x h a us t fi rs t th e l atter sec urity 1


,

t h ough th e c on tra ry was h eld in a n ea rly an d doubtful cas e


in T e n n e ss ee .
8

66 a . W ai v e r of R i gh t o f m a rs h a llln g A s s ets . Th ough a

j un i or i n cum b ra ncer h a s th e righ t in equity to c om pel a


s en i o r j ud gm en t c red ito r to l evy on a n d e xh aus t th e o th er
-

p rop e rt y of th e c o m m on d e b to r b e fo r e c om i n g u po n t
,h a t
w h i ch i s boun d by th e j un ior l ien yet if s uch j un i or c red i
‘
,

t or n eglects to in terfere an d a ss ert h is ri gh t un til after th e

p rop e rt y w h i c h h e c o u ld h old h a s b ee n s old u po n th e e x e cu

t i on th is s a l e w i ll n ot afte rwa rd s be s et as i d e for h is rel ief


,
1
.

H e w ill be tak en to h ave wa ived h is righ t to th e a ppl ic ation


o f th e rul e of tw o fun d s un l es s h e p resses it b efore th e p ri o r
,

c red ito r h a s e nfo rc e d h i s s ec uriti es 1


a n d c a n th en h a v e on ly ,

s uc h p rote c ti on a s h e m ay ob ta i n f rom s ub roga t ion to th e

p ri o r c re d it o r s ri g h t s
7
Th e m
’
e r e n e g l e
.c t of th e p r i or c re d i

1
Douglass v Cooksey, Irish R 2 . Baine v William s 10 Sm
1
M
J
. . .
, .

Eq 3 1 1
. .
( Mi ss ) 1 1 3 So in S earles 0. ack .

sonville R R Co , 2 Woods 6 21
1
Bell 0 . H epworth, 5 1 H un ( N .

J
.
,

6 16 .
1
S t oseph Manufacturing Co v . .

1 White v
. Dougherty , Mart . Daggett, 84 1118 5 5 6 ; Turner 0 Flinn, . .

Yerg 309 . . 67 Ala 5 29 . .

1
Aid e d Q62
, .
1 00 TH E LAW or s us noou r
ox .

tor by wh ich h is l ien upon one of th e fun ds h as be en los t will


n ot i n th e ab sen ce of s pe c ia l c i rc um s ta n ces ac c rue to th e
, ,

ad van tage of th e j un i o r c l a im an t of th e s e c on d fun d 1 Th e .

prior c red itor of two fun ds h as a righ t to expec t a n otifica


tion of th e right of a j un i or c l a im an t of on e of th e f un d s if ,

th e l atter d es i re to re s trict th e ac ti on of th e f orm er 1


.

67 . J un i or C re d i t or c a n n ot c l aim t h e B en e fi t o f a Li en ee

t a b lls h e d s ub s e q ue n t ly d itor c an n ot
to m Ow n . One l ien -
c re

c l ai m to be s ub roga te d to a n y s ecurity tak e n by an oth er


wh ich h ad n ot bec om e a l ien wh en h e s ecure d h is own : ac
c ordin g ly a s ub seq uen t m ort a ee h a v in l o t k bo d
g g g a s a e n a n ,

for h is d ebt but with out a w a rra n t to c on fes s j ud gm ent


, ,

c an n ot i n s is t th at a p rior m ortgagee sh a ll en te r up j ud gm en t

up on a b on d an d w a rra n t of a ttorney th at a c c om pa n ie d h is

m o rtga ge i n ord e r to th row h im


, upon oth er prope rty ; nor

c a n th e s ub s eq uent m ortga gee obj ec t to th e w a ive r of a j ud g

m ent s ub s eq ue ntly c onfes se d up on th e p ri or bon d


, th ough ,

p urpose ly w ith d rawn in order to m ake way for oth er j udg


m ent c re d ito rs of th e m o rtga go r wh os e l i en s upon th e oth er
-

property are posterior in d ate to h is l ien upon th e m ortgaged


p rem ises A n d a jun i or c reditor h a s n o righ t to obj ect to
1
.

a n a pp ropri ati on of p ay m en ts i n fa v or of a n ea rl ie r l ien ,

s o lon g a s th e s ec urity wh ic h h e o rigi n a lly h ad re m ai ns

un d i m in ish ed 1
.

68 . C re di t or s ub ro g a t e d o nl y to 3 F un d w hi c h o ug h t to

h a v e d i s c h a rge d th e D e b t h i s F un d h as pa i d fun d can . On e


n ot b e a pplie d to th e rel ief of a n oth er by w ay of s ub ro g a tion

or s ub s titution un l ess it is c l e a rly sh ow n th a t th e fo rm er


,

fun d was l iabl e for th e paym en t of th e debt wh ich th e l atte r


fun d h as d is ch a rged 1
Th e l iab i l ity of th e sh a reh old e rs in
.

an i n suran c e c o m p an y b ei n g un l im ited as to th e ge ne ra l

1
Sandidge e Graves , 1 Patt H . . .
1
Johnson s ’
Appeal, 3 7 Penn St . .

( Va ) 101 268
J
. . .

1
Clarke 0 Bancroft, 13 Iowa, 3 20
.
. Greenlee v McDowell, 3
1
. ones,

P osted , 5 8 1 Eq ( Nor Car ) 325


. . . .

J
.

1
Miller0 acobs, 3 Watts .
succnssrvs cu m s . 1 01

c re d itors but restricted as to th e pol icy h ol ders, th e c om


,
-

p an y b orrowed m on ey upon th e s ecurity of c erta in c all s upon


i ts m em b e rs Befo re th is d eb t was pa i d th e c om pan y wa s
.
,

w oun d up ; a n d th e d ebt was s ub s equently p a i d out of th e


ca ll s Th e pol icy h olders d es ired to h ave th e am ount of th is
.
-

d ebt repaid from th e un l im ited assets s o as to th row th e ,

b urden of its paym ent upon th es e a n d n ot upon th e l im ite d


a s se ts but it was h e ld th at th e y h ad n o righ t i n equity to
h a ve th e debt th us th rown up on th e un l im ite d assets 1
U nder .

s uch c i rcum s tan c es n o c a ll c ould be m a d e up on th e sh a re

h olders for th e purp ose of rec oup in g to th e pol icy h olders th e -

a m o un t of th e c ap ital whi ch h ad b e en p ai d to th e gen e ra l

c re di tors ; for th e l i abi l ity of th e sh a reh old ers is o n ly s e c on d

a n d th e pol i c y h old ers could a ss e rt n o pri ority in th e


1
a ry ,
-

c a pi ta l over th e gen e ra l c re d ito rs


1 .

68 a . W h ere eac h C re di t o r h a s a Li e n upo n t h e G a m e One

of t h o Pu n ch .
— Th is doct rin e
ppl icable on ly in cases in is a

wh i ch th e sen i or creditor h as a l ien upon two fun ds of wh ich ,

th e j un i o r c red itor c an h ol d on ly on e 1
Th e se n io r c red itor .

c a n n ot be c om pe ll e d to res ort to p rope rty n ot i nc l ud ed i n h is

l i en h ow e ve r th is m igh t be nefit th e j uni or c l a im an t


,
1
Ao .

c ord in gly wh ere a ucti on eers h e ld in th e ir h a n d s a p art of th e


,

proc eeds of a b rewery wh ich they h a d s old for a custom er sub ,

je c t to th e i r l ien for c h a rges th e re on a n d a l s o h e ld a s e c o n d ,

fun d for th e sam e cus tom er being th e n et p roceeds of certa in ,

pe rs on a l property wh ich th ey h a d a l s o s old for h im it was ,

h e ld th at th ey m i gh t we ll a pply th e firs t fun d to th e p ay m en t


of th eir ch a rges a n d pa y ov er th e s ec on d fun d to th e i r c us
,

t o m er a l th ough th e e fi ect of th is wa s to l ea ve un p rovi d ed for


,

a n oth er c re d itor of th e c us to m er wh o h e ld a j un ior ch arge on ,

International Life Ass


1
in re .
,
1
Ha ng, 82 Mich
Detroit Bank v
. .

2 Oh Div 476 . . . 607 ; Southern Michigan Bank v .

1
Pro fessional Life Ins in re, . Byles, 6 7 Mich 29 6 . .

L R 3 Eq 66 8
. . . .
1
State v Aetna Ins 11 7 Ind
. . .

1 State Ins Co
, is re, 1 De Gex, . . 25 1 .

Jones S m ith, 63 4 .
102 m Lu v or S U BROGATION .

th e firs t fun d . Th i j u ior


d itor c ould n ot require th em
s n c re

t o pay th e ir c h a rge s out of th e s ec on d fun d an d th us l eave ,

th e first fun d a vai l abl e for h is ben efit b eca us e th ey h ad ,

th em s elves n o l ien upon th e s ec on d fun d 1


.

69 . D o c t rin e of T w o F un d s a ppli e d o nl y if D e b t o rs a re th e

s am e. Th i d s ppl ie d on ly to cas es
octrin e of two fun ds is a

in wh ich two c re d itors h ave th e s a m e c om m on d eb tor an d 1


,

on ly as b etween th e d ifferen t c re d itors or oth ers wh o s tan d ,

a m on g th em se lv es in th e s am e re l a ti on
1 Wh ere a cre d itor .

c an h old th e jo in t a n d seve ra l f un d s of two d eb tors for th e

paym en t of h is dem an d a c ourt of eq uity wi ll n ot qual ify ,

th i s righ t by l im iti n g th e l iab i l ity of ea c h d ebtor to one h a lf -

of th e d ebt If th e fi rs t c re d itor h as a j udgm ent aga ins t A


1
. .

an d B an d th e s e c on d c re d itor h a s one a g a i n s t B on ly th e
.
,
.
,

l atte r c ann ot com pe l th e form er to restric t h im s e lf to th e


property of A wh en it does n ot appear wh eth er A o r B
.
,
. .

ough t as between th em s elve s to pay th e d ebt due to th e firs t


, ,

c red i to r a n d n o e quita bl e righ ts a re s h own in B to h a v e th e


,
.

d ebt ch arged upon A a l on e 1


S o a l s o if on e cre d ito r h as a
. .
, ,

l ien for h is dem an d upon th e property of two separate d eb tors ,

a n d a n oth er c re d itor h a s a j un i o r l ien o n ly upon th e fun d

b el on gi ng t o on e of th e d e btors th e l a tter c red ito r c a nn ot ,

req ui re th e fo rm e r to c oll ec t h is c l a im wh olly out of th at

d ebtor wh om th e l atter cred itor c ann ot reach un l es s i t be


1
,

sh own th a t th e re l ati on s betw ee n th e c o de b to rs a re s uc h a s -

to m ak e it equitabl e th at th e d e btor h a v in g but on e c re d itor


sh ould pay th e w h o l e of th e s en ior d em an d ; for e q ui ty w i ll

1 Webb 0 S m ith, 3 0 Oh D 19 2
. . . . H ow ( Miss ) 427 Gam m ell v Mul
. . .

1
Boone v Clark, 1 29 Ills 466 ; . . ford, 5 3 Ga 78 ; Prout v Lom er, 79
. .

Carter 0 Neal, 24 Ga 346 ; Knouf s Ills 3 3 1


’

K
. . . .

endall, ex pa rte 1 7 V ese , 3 14,


1
Appeal, 9 1 Penn St 78 ; H ouse v . .
y
J
.
,

Thom pson, 3 H ea d 5 12; 5 20; D orr v S haw , 4 ohns Oh ( N . . . .

Saunders 0 Cook, 22 Ind 436 ; Gag


. . Y ) 1 7 ; Lloyd
. Galbraith, 3 2 Penn .

ner v W arfield 72 Iowa, 1 1


. ,
. St 103 . .

0 Miller v ook, 1 3 5 . C Pa rker v Dennie 6 Pick ( Mass ) .


, .

1
H oys v Pen , 2 H e rr . G . . 227 ; London 0 Colem an, 62 Ga 1 46 . . .

( Md ) 473 ; M a rkha m v Calvit, 5 .


vn CL AIMS
succnss r . 1 08

n ot san cti n a o prin c iple wh ic h th o ugh it m ay be j ust as to ,

th e c re d ito rs is un j us t as to th e de btors
,
1
B ut if a p ar tn er .

s h i p c re d itor h as ob ta in ed p a ym en t of h is d e m an d out of th e

s e pa rate p rope rty of on e of th e p a rtn ers wh om h e h eld as a ,

s urety th erefo r th e s e p a rate c re d itors of th at p a rtn er m a


, y
be s ubroga te d to th e righ ts of th e pa rtn e rs h ip c re d itor a ga in s t
th e firm as s ets 1 un l es s it sh ould a ppea r th at th e p a rt n er
,

w h ose separate prop erty h ad th us b een tak en was th en in


d ebte d to the firm 1 A n d th e gen era l rul e th at c ourts of
.

e q ui ty w i ll m a rs h a l s ec uritie s on ly a m on g c red ito rs of th e

s a m e d e b to r is s ubj ec t to th e ex c e pti on th at e q uity w i ll en

force a d uty on th e part of on e debtor to pay in exon eration


of a n oth e r by s ubj e c tin g firs t th e property of th e p rin c i p a l
,

d e bt o r 1
.

70 . J un i or C re d it o r c an n o t be s u b ro g a t e d un t il P ri o r C re d i

t or s a t is fi e d B efore on e c re dito r c an be su rb oga te d to th e


righ ts of dem an d of th e l atter m ust be satis fied
an oth er, th e ,

s o th a t h e sh a ll be re l iev ed from a ll furth e r troubl e ris k , ,

a n d e xpen s e Th e c re d i tor h oldin g two fun ds m ay a v a i l


1
.

h i m se lf of e ith er of th em un ti l h e h as secured h is wh ol e
c l a im A n d if one cred itor h as got h is p aym en t from th e
1
.

fun d wh ich was avail ab l e to an oth er un der s uc h c irc um ,

s ta n ce s a s to en tit l e th e l a tte r to be s ub rogate d to th e form er s


’

c l a im a ga in s t a n oth e r fun d yet th e l a tte r m us t c l a i m h i s ,

s ub rogati on before th e righ ts of an y a s s ign ee of th at fun d

h av e acc rue d 1 .

1 Ayres H usted, 1 5 Conn 5 04 ; 1 7


v. endall, ex pa rts, 1 7 V ese ,
y . K .

Can on 11 Hudson, 6 Del 21,


. 5 5 14 5 20 . , .

Del Oh 1 1 2 ; Wis e 0 S hepherd, 1 3 1


GralTs Estate, 1 39 Penn S t 69 ;
’
. . .
. .

Ills 41
. . Swigert 0 Bank of Kentuc ky 1 7 B .
, .

1
Averill o Loucks 6 Barb ( N Mon ( Ky ) 268 ; Carter 0 N ea l, 24
.
, . . . . .

Y ) 470
. . Ga 3 46 . .

1 Sterlin
g v B rightb ill, 5 Watts
1
. ua c k enbu s h v O’
H are 1 29 N Q .
, .

Y 48 5 Taylor s Appeal, 8 1 Penn S t


’
229 . . . .

1
H odges v Hickey 67 Miss 71 5 ; 460
.
, . .

Hall 0 Ste venson, 19 Greg 15 3 ; 1 William s v Washington, 1 Dov . .

J
. .

Dorr 0 Shaw, 4 ohns Oh ( N Y ) Eq ( Nor Car ) 1 3 7 Aid ed , 65


. . . . . . . . . .
104 rue u w or s unaoom ox .

71 . A ppli c a t i o n of t he s e P rin c i pl es t o a On e of S e v en !
erad ica t of J oi nt an d S e v e ra l D e b t ors . Th e Pi tts burg Ba nk ,
ha v in g th e fi rs t j udgm en t a ga ins t and l ien on th e re a l es ta te

of Pete r Peters on Lewis Pete rs on an d J am es K in c a id s at


, , ,

is fied its j udgm en t by se ll in g l an d wh ich w as th e in d ivi d ua l


property of Le w is Peters on Th e Monongah e l a Na vigation.

C om p an y h a d th e sec on d an d W ill iam S hee r th e th ird


, ,

j udgm ent aga ins t an d l ien on th e rea l estate of th e two


Peters on s but n ot a ga i ns t K in ca id or on h is es tate
, Afte r .

th es e j ud gm e n ts W i ll ia m Tayl or obta in e d th ree j ud gm en ts


,

A ga ins t th e Pete rs ons an d K in c a id on wh i c h Th om as Da l e ,

be cam e b a il for th e stay of e xec ution a n d as s uch pa id th e ,

th ree j ud gm en ts a fte r oth e r j ud gm en ts h a d bee n ob ta ined


,

ag a in s t th e Pete rs on s and K in c a id A m on g th ese was a . .

jud gm ent in favor of Syl van us Lath rop upon wh ich th e re al ,

es tate of th e Pete rs ons a n d K in ca id w as ta k en i n e x ec ut ion

an d s ol d as a l s o un d er a p ri or l e vy upo n th e j ud gm en t in
,

favor of th e Pitts burg B an k U n de r th es e ci rcum stan ces it


.

was h e ld th a t th e Mon on gah e l a C om pan y was en ti tl ed to be


s ub rogate d to th e righ ts of th e b an k a n d to ha ve its j ud g ,

m en t s a tis fied out of th e m o ney a ris ing from th e s a le ; an d


th en th a t W i ll i am S pe e r w as e nt itl ed t o rece ive th e res i due
of th e m on ey towa rds th e s atisfaction of h is j ud gm ent ; but
th a t Th om as Da l e c ould n ot be s ubrogated to th e righ ts of
th e b a n k or rec e ive a n y port i on of th e m on ey in p re fe rence ,

to th e j ud gm en t c red itors of th e Pete rs on s an d K in c a id


-
,

th ough s uch j ud gm en ts m igh t be s ub s eq uen t to T ayl or s


’

j ud gm en ts 1
.

72
. R e le as e b y P ri or C re d it o r of F u n d p ri m a ril y li a b l e t o

hi m .
—Aprior c red itor of two fund s wh o h as n otice of such ,

a j un i or ch arge upon one of th os e fun ds th at th e j un i or c red i

tor m ay req ui re him to re s ort in th e first in s ta n c e to the


oth er fun d w ill by a re leas e of th e fun d th us prim arily l iable
, ,

to h im postpon e h is l ien upon th e rem aini n g fun d to tha t of


,

1 Lathrop s Appeal, 1 Penn


’
. St . 5 12 .
suocm sm ; cu m s . 1 05

the s econ d cre d itor


x ten t of th e va lue of th e prim ary
,
to th e e

fun d ; s o fa r as the subs equen t c red i to r is con ce rn ed th e d ebt ,

of th e pri or c re d ito r is pro ca n to s atis fied by such a re l ea s e 1


.

A n d th e prior c re dito r s was te or m is a ppl icati on of his pri


’

m a ry fun d wi ll as to th e j un i or c red ito r h a ve th e s am e effec t


, ,

a s th e ex pres s re l ease th ere of


1
A cc ordin gly wh ere one c red i .
,

tor h a d a l ien upon two pie c es of l an d be lon gin g to th e sa m e


de btor an d an oth er cred itor h ad a j un i or l ien upon on e on ly
,

of th ese tracts an d th e first c re d itor by h is c on d uct releas ed


,

h i s c l a im upon th at trac t upon whi ch h is w as th e on ly l ien ,

wh ich was m ore th an s ufi cien t to h a ve pa i d th e wh ole of h is


de m an d it was h e ld th at th e debt due to th e j un i or cred itor
,

sh ould b e firs t satisfi ed out of th at trac t on wh ich both h ad

a l i en 1 Wh ere th e a ge n t of a j ud gm en t c red itor was pres ent


.
-

at th e s a e by th e debtor to a th ird p a rty of c e rta in l an d s on


l
wh ich th e j ud gm e nt was a l ien an d d re w th e c on veyance , ,

an d wa s inf orm e d of th e te rm s of th e sa le a n d th e d ebto r ,


.

afte rw a rd s d e l ive re d to such a ge nt as s ec urity for th e p ay m en t

of th e j ud gm e n t de bt th e n otes ta ke n for th e purch as e m o ney


- -

of th e l an d s it w as he ld th at th is w as s ufli c ie nt c ons truc tive


,

n otic e to the c re d ito r of th e f ac ts an d th at th e rec ei pt of th e ,

n otes by h is a ge n t w i th k n owle d ge of th eir c ons id erati on ,

a l th o ugh it di d n ot de stroy th e cre d itor s l ie n upon th e l an d


’

a s s e c urity for th e p aym en t of h is j ud gm ent in cas e it sh ould ,

n ot be o th e rw is e s ati sfi ed im pos ed upo n h im in eq uity th e


,

duty to a pply th e p roc ee ds of th e n ote s i n reductio n of th e


j udgm ent ; an d that th e cred itor was al s o boun d in equity to
reta in al l oth er p rope rty whi ch h a d bee n de l iv e re d to h i m as

s e c urity for th e jud gm e n t an d to apply its p roceed s a l s o ,

upon th e j ud gm e nt before re s o rtin g to th e l an d an d tak i n g


,

1 Was hington Building Association Gordon 0 Bell, 5 0 Ala 21 3 ;


1 .

J
.

e Beaghen, 27 N Eq 9 8 ; Dillon . Henderson v Huey 45 Ala 275 .

J
.
. . .
,

v Be nnett, 1 4 S m
. M 1 71 ; ordan
. .
1
Glass 0 Pullen, 6 Bush ( Ky) ,
.

0 Ha m ilton Bank , 1 1 Neb 499 ; Haz


. . 346 .

ard e Fis ke , 83 N Y 287 ; s c , 18


. . . . .

H un, 277 .
1 06 m s LAW or sunnoou r
ou .

it way from th e purcha s er th ereof ; an d th at th e s urrende r


a

by th e c re d itor of any such security sufli cient to h ave s atis ,

fi ed th e d eb t d is c h arged th e l ie n of th e j ud gm ent upon th is


,

l an d in th e h an ds of th e purch as er 1
.

73 . B ut R e l e as e o f P ri m a ry F un d w il l not p j di c e
re u P ri or

C re d i t o r if m ade i n G o o d F ai t h an d w i t h o ut N o t i c e . If, h ow
v
e er, p rior c re d itor s rel ea se of the fun d p rim arily l iabl e
th e
’

to h im w a s m a de in good fa ith an d wi th out kn ow l e dge of ,

th e fa cts wh i ch establ ish e d th e c l a i m of th e j un i o r c re d it or ,

h is re l ease wi ll n ot p rej ud ic e h is righ t of prece den c e in th e


c om m on f un d ove r th e s ub s e quent c re d itor 1
N or w i ll h is .

c l a im s up on th e sec o n d a ry fun d be p re j ud i c ed un l e s s h is

righ ts to th e p rim a ry fun d wh i ch h e h as ch os en to a b an d on

were c l ea r a n d n ot seri ous ly c onte s ted an d h is rem ed ies for ,

obta in in g its appl ication up on h is d em and were reas ona bly .

eilic ien t
8
A s ettl em ent of a c onteste d l itigati on m ade in
.

g o od f a it h w h e re by h
, e re c e iv e s l e ss th a n i ts v a l ue f ro m th e

p r i m a ry f un d w i ll n ot i n te r fe r
, e w i th th e p ro s e c u ti on of h is

righ t to th e s e c on da ry fun d 1
Alth ough a s ec on d m ortgagee .

of p art of th e s am e property wh ich is c overe d by th e first


m ortgage m ay re quire th e firs t m o rtga gee to a c t w ith reas on

a bl e d i l igen ce in enf orc in g an d p re se rvin g h is righ ts yet h e ,

c a n n ot in eq uity c om pe l th e l a tter to a c c o un t for th e va l ue

of property c ov ered by h is m ortga ge wh ich h as with out h is ,

faul t been put out of h is reach by th e m ortgagor Th e prior 1


.

c re d itor s righ ts w i ll n ot b e a fi ec te d by h is h a vi n g re l eas ed


’

on e fun d if th e rem a in in g fun d is am ply s uffi c ien t for th e


,

p aym e n t of all th e c l a im s 1
.

74 . P urc h as e of a P o rt i o n o f an I n c um b ere d h t a t e ; R ig h ts

of th e P urc h as e r . Th e purch as er of l an d wh ich in c om , m on


w ith oth er l and ,
is s ubj ec t to an in cum b ra n ce for th e , p y
a

Ingalls 0 Morgan 10 N Y 178 1 48 Mass 300 Ro s s 0 D uggan, 5


1
.
, . . . . .

1
Cheeseborough v Millard, 1 Color 8 5 .

J K
. .

ohns Oh ( N Y ) 409 1
Shields 0
. im brough, 64 Ala .

K
. . . . .

1 idder v Page, 48 N H 3 80; 5 04


K
. . . .

Brown v South Boston Savings Bank, elly 0 Whitney, 45 Wise 110


1
. . . .
succes s! “ cu m s . 1 07

m en t of wh ich th e oth er l an d is or h as becom e by h is pur ,

c h as e th e p rim ary f un d a c quires by h is purc h as e th e righ t


, ,

of pa y i n g ofi th e l ien or oth er i n c um b ra n c e a n d of b e in g ,

s ub rogate d for h is in d em n ity t o th e ri gh ts of its h old er


1
If .

th e m ortga ge d ebt is n ot to be c h a rge d p rim a ri ly upon e ith er


-

e s ta te h e c a n th en re q ui re a rea s o n a bl e c on tri b uti on from


,

th e h old e rs of th e oth e r l an d 1
th e gen e ra l rule bein g th at ,

wh en th e es tate s of two or m ore pe rs on s a re subj ect to a c om


m on in c um b ran c e for th e pa y m en t of a c om m on d ebt it is
, ,

to be born e ratably by a ll a n d on e wh o p ay s th e wh ol e for


8
,

th e ben e fit of a ll w i ll h av e th e righ t t o h old a ll th e es tates


th us re d eem ed un ti l t he oth ers s h a ll re im burse h im an equita
,

ble prop ort ion of th e s um whi ch h e h a s th us p ai d for t h ir e

c om m on be n e fit or if h e h as p a i d h i s propo rt i on of th e d ebt
1
,

a n d th e m ort agee
g h a v i n g s old th e oth e r l an d for en ough
,

to pay th e rem a in der fa il s to e nforce th ese s a l es by agree,

m en t with th e own e rs of s uch oth er l a n d s th e m ortgagee c an ,

n ot a fterw a rd s furth er h old h i s l an d for a ny b a l an c e w h ich

th e oth er l an d fa i l s to pay If h oweve r th e p rim a ry lia bil


’

1
,
.
,

i ty for th e pay m en t of th e deb t re s te d up on th e estate of h im


wh o h a s s atis fie d it th en h is pay m e n t w i ll gi ve h im n o c l a im
,

up on th e res t of th e in c um bere d p rope rty 1


e v en th ough h e ,

took an a s s ignm en t of th e m ortgage or oth er c h a rge 7 .

1
Sergeant v Rowsey, 89 Mo 6 1 7
. M
( ss ) 47 ; Allen 0 Clark 17 Pick
a

K
. .
, .

O Brien v renz 3 6 Min M


’
. 1 36 ; , .
( esa ) 47 ; Salem v Edgerly, 33 .

Fletc her 0 Chase 1 6 N H 3 8 ; Kil


.
, . . N . 46 ; Chittenden 0 B arney 1
H . .
,

born 0 Robbins 8 Allen ( Mas s ) ,


.
, V t 28 ; Young 0 William s , 1 7 Conn
. . .

46 6 ; Laws, J , in S treet 11 Beal 1 6


. .
, 3 9 3 ; Skeel v Spraker, 8 Paige ( N
. .

Iowa, 6 8, 70; Cheeverv Fair 5 Calif .


, . 1 8 2 ; Cheeseborongh v M illard, .

337 .
J
1 ohns Oh ( N Y ) 409 ; Ste vens 0 .

J
. . . .

1
White 0 White, 9 V esey, 5 5 4 ; Cooper, 1 ohns Oh ( N Y ) 425
J
.
. . . .

Jones v ones , 5 Ha re , 440 ; Lym an


.
1 J
ennin s o V ickers, 3 1 La Ann
g . . .

0 Little , 1 5 V t 5 76
.
; Hende rson 0
. . 6 79 .

S tewart, 4 Ha wks ( N or Can ) 25 6 1


Merritt v Richey 9 7 Ind 236
J
.
.
, .
, . .

1 New
e rse
y S ink ing Fu nd 0 1
McIntire v Parks, 5 9 N H
J
. . . .

Wood ward, 40 N Eq 23 . . 25 8 ; Chase v Woodbury 6 C a sh . , .

1
S ha w 0 J in Chase v Wood
, . .
, .
( M ass ) 1 43 ; George 0 W ood 1 1 .
,

bury, 6 C ash ( Mass ) 143 , 146 ;


. Allen ( Mas s ) , 41 , 42 ; Cashing v .

B rown 0 Worcester Bank, 8 Met


. . Ayer, 25 Maine, 3 83 .
1 08 ra n m m or sm ooun on .

75 . Ord er of Ll a b lli t y of S e para t e P a roel l of In c um b ere d

h t a te s ol d s uc ce s si v e ly . Wh en d ifi erent parcels of prem is es ,


th e wh ol e of wh ich a re subj ec t to th e b urden of a m ortgage
or oth er ch arge a re s uc ces s ive ly s old to d iffe ren t purc h as ers ,

w ith warra nty th e rule a lm os t un ivers ally adopte d to d eter ,

m in e th e c om p a rative l i a b i l i ty of th e d ifferen t pa rc e l s is th a t

any po rti o n ret a in e d by th e d ebtor or m ortga gor sh a ll be fi rs t

a ppl i e d to th e pa y m en t of th e d eb t sec ure d by th e c h a rge or

m ortga ge an d if th at is n ot s ufi c ie nt th en th e oth e r p arc el s


1
, ,

s h a ll b e res o rte d to in th e in v ers e ord er of th ei r a l ien a ti o n ,

th e p a rc el l as t s old b ei n g fi rs t a ppl ie d upon th e debt even 1


,

th ough a pa rt of th e rem a in in g l an d i s s ituate d in an oth er


S ta te 1 Th e firs t p urc h as er from th e m ortga gor h as th e p rior
.

e quity a l th ough h e d id n ot ac tua lly pay th e c ons i dera ti on


1
,

Savings Bank 0 Cresswell, 100


1 . Ohio S t 305 ; Co m m ercial Bank 0
. .

U S 63 0; Orvis v Powell, 9 8 U S
. . . . . Western Reserve Bank, 11 Ohio, 444
1 76 ; Dougherty 0 Richardson, 20 . Paxton v Harrier, 1 1 Penn St 3 12 . . .

Ind 41 9 ; Edwards 0 Applegate 70 Beddow 0 De Witt, 43 Penn S t 3 26 ; .

J
. . . .
,

Ind 3 25 ; Gantz e Toles, 40 Mich


. . . ones v Myrick, 8 Gratt ( Va ) 1 79 ;
. . .

725 H ofi s Appeal, 8 4 Pe nn S t 40 ; S chofield 0 Cox, 8 Gratt ( Va ) 5 33 ;


’
. . . . .

Lowry e Mc Kinney, 6 8 Penn S t . . . Norto n 0 Lev is, 3 So Car 25 ; Bur . . .

29 4 ; Ra un v R eynolds 1 1 Calif 1 4 ; .
,
. ton 0 Henry, 90Ala 28 1 ; B utton 0
. . .

Keirs ted v Avery 4 Paige ( N . 1 . . . Lockridge, 22 W Va 1 5 9 ; Pallen v . .


.

1
H olden 0 Pike, 24 Maine, 427 . Ag ricultural Bank, 1 Proem ( Miss ) .

Wallac e 0 Stevens, 6 4 Maine, 225 ; . 419 ; D a gger v Tayloe , 60 Ala 5 04 ; . .

B radley 0 George, 2 Allen .


"
Aiken v Bruen. 21 Ind 1 3 7 ; MoCul
. .

3 9 2 ; Pike u Goodnow, 12 Allen . lum v Turpie, 3 2 Ind 146 ; Lock 0


. . .

( M a ss ) , 4 7 2 ; A lle n 0 C la rk,
1 7 . Fulford, 5 2 Ills 1 6 6 ; Matteson 0 . .

Pick ( Mas s ) 47 ; Sandford a Hill 46


. .
,
Thom as, 41 1113 11 0; State v Titus, . .

C o nn 42 ; B rown v S im ons 44 N H
. .
, . . 1 7 Wise 241 ; Warren 0 Forem an. . .

475 ; Deavitt o Judevine , 60V t 69 5 ; . . 1 9 Wisc 3 5 ; Aiken e Milw St . . .

Gates 0 Adam s, 24 V t 71 ; Lym an


. . Paul R R Co , 3 7 Wi se 469 ; S ibley
. . . .

v Lym an 3 2 V t 79 ; Skee l v Spraker,


.
, . .
9 B aker, 23 Mich 3 1 2 ; Cooper v
. . .

8 Paige ( N 1 82 ; Kellogg e
. . Bigley 1 3 Mich 46 3 ; Payne e Avery
,
. .

R and , 1 1 Paige ( N 5 9 ; W elc h 21 Mic h 5 24 . .

J
.

1 W ellin R erson, 9 4 N Y 9 8
v am es , 22 H ow Pr ( N Y ) 474 ; g o y . . .
.
. . . . .

Green v Millbanlt , 3 Abbott N ew Gas


. .
1
V an Slyke 0 V an Loan, 26 H un .

( N Y .
) 1 3 8 ; C h
.a p m a n 0 W es t 1 7 .
, ( N . 3 44 ; Ellis on v P aca re 29 .
,

N Y 1 25 ; Keene v Munn, 1 6 N J
. . . . . Ba rb ( N Y ) 3 3 3 ; Edge 0 G oulard.
. . . .

Eq 3 9 8 ; Dawes e Cam m us 3 2 N J 3 6 N J Eq 43 ; H om ing s Appeal,


’
. . . . .
. .
,

Eq 45 6 ; Mount
. Potts 23 N J ,
. . 90 Penn St 3 8 8 ; Miller 0 Rogers. . . .

Eq 18 8 ; Sternberger e Hanna , 42
. . 49 Tex 39 8 . .
suocassrvn cu m s . 1 09

for h i s purch as e un til afte r oth er portions of th e m ortgage d


prem ises h ad been purc h ase d an d paid for by oth er pur
ch as e rs
1
This prin cipl e of ch argin g difl erent porti ons of
.
'

th e m ortga ge d p rem is es wh ich h ave b een s old at d iffe rent


ti m es afte r th e ex ec ution of th e m ortgage in th e in v erse ,

order of th ei r a l ien ation i s n ot c onfin ed to th e origin al ,

a l ie n ati ons of th e m ortga go r wh o i s p ers ona lly re s p on s i bl e

for th e debt 1 It is eq ua lly a ppl icabl e to severa l c on vey an ces


.

of s eparate parc e ls of th e m ortga ge d prem ises m ad e at d iffer


en t ti m e s by h is g ran tee wh o c on vey s w ith wa rra n ty Th e
1 .
,

fi rs t purch as e r with wa rran ty of a porti on of an e s tate th e ,

wh ol e of wh ich is subj ect to th e b urden of a m ortgage j ud g .


,

m en t l ien or oth er i n cum b ran c e


-

,
ac q uires by h is p urc h as e ,

a n eq uita bl e ri gh t to h ave th e p ay m en t of th e d ebt wh i c h

c re a tes th e in cum b ra n c e c a st upo n th e rem ain in g prope rty ;


1

a n d e a c h s ub se quen t purch as er of oth er po rt i o ns of th e i n

c um be re d es ta te tak es subj ect to this righ t in p ri or p urch as

e rs a n d ac quires th e s am e ri gh t aga in st th o s e wh o p urc h a se


,

oth er porti on s sub sequen tly to h is purch as e An d th e s ub


1
.

s e quen t purch a sers h ave s ufii c ien t n otic e of th e e quita bl e

c h a rge ; for wh en th e rec o rd s d isc l ose an in cum b ran c e up on

p roperty of wh i ch a party is tak in g a c on vey an ce a nd al so ,

sh ow th at th i s i n c um bra n ce res ts l i k ew is e upon oth er prop

Gouverneur v Lynch 2 Paige


1
. (So Car ) 173 ; Wallace v Nicho
. . ls .
, 56
(N . 3 00 And see George 0 . Ala 321 ; Hunt v Mans field 3 1 Co nn
. .

K
.
. ,

ent, 7 Allen 16 ; Northrup 48 8 ; Gilbe rt v Haire , 43 Mich 28 3 ; .


.

v Metcalf, 1 1 Paige ( N McClaskey v O B rien, 1 6 W V a


’
. 5 70 . . . . .

1
See Cra wford 0 Richeson, 101 . 79 1 .

I lls 35 1 ; Hardin v Melton, 28 So


. . .
1
Hahn v Behrm an 73 I nd 1 20 ; .
,
.

C ar 3 8 . . Lynch v Hancock 1 4 8 0 Car 66 ;


K
. . .
,
1
Guion v napp 6 Paige ( N .
N iles v H arm on, 80 Ills 3 9 6 ; Mo
K
, . . .

3 5 ; Hiles v Coult, 30 N J Eq 40
. . . . . inney v Miller, 1 9 Mich 1 42 ; Mid
. .

1
Ge orgia Pac ific R R Cc 0 . . . . dletown Bank 0 Middleto wn Academ y, .

W alker, 61 Miss 48 1 ; Beard v . . 5 Del Oh 5 9 6 ; Miller 0 H olland, 84


. . .

Fitzgerald, 105 Mass 134 ; Sc hryver . V a 6 5 2 ; R ousseau s S uc cession, 23


.
’

v Teller, 9 Pai e N
.
g ( 1 73 ; L ow ry . La Ann 1 ; Iglehart 0 C rane, 42
. .

J
.

e McK inne 6 8 P nn S t 29 4 B n k 1113 261 ; udson v Dada, 79 N Y


.
y e , ; a . . . , . .

of Ham hurg 0 Howard, 1 Strohh Eq . . . 3 73 .


1 10 m x m m or sunnoe u i ou '
.

e rty, an d on an e x am in ation
d irected to th is other property
dis c los e th e add itiona l fact th at a c on veyan ce of th is l atter
prope rty h as been m ade wh ich gives an equita bl e right to th e
g r an t e e th e re of to th row th e b u rd e n of th e i n c um b ran c e upon

th e firs t prope rty th e inten d in g p urch as er m us t be p resum ed


,

to h a ve m a d e suc h ex am in ation an d ac c ord in gly to h a ve h ad ,

n otic e of s uc h e quita b l e righ t 1 S uc cess ive m ortg ages to th e


.
,

e x te n t of th e in te res t wh ich th ey c re a te a re rega rde d l ike ,

oth e r c on veyanc es 1
But th is rul e h as n o a ppl ic ati on t o a
.

c as e in wh ic h s uc c e ss iv e c on vey an ces of d ifi e ren t p a rc e l s of

th e m o rtgage d prope rty h a ve been m ad e to th e s a m e pur


ch as e r ; n or w i ll it be e x te n d ed to c over s uc c ess i ve s a les of
1

un d iv i d e d in te res ts m th e s a m e property n or s o as to c over


1
,

an y c a se i n wh i ch its en fo rc em en t w ould be p re j ud i c ia l to

th e c red itor 1
A n d th e req ues t for i ts a ppl ica ti on m ust be
.

m a d e b efore th e fo rec l os ure is c om pl e te d Th e s am e rule


1
.

h as b een a ppl ie d for th e protec tion of a purch as er from th e


m ortga gor of on e of severa l m o rtga ge d ch a tte l s by c om pe ll in g

th e m o rtga gee to res ort for h is p aym en t fi rs t to th e c h a tte ls


re ta i n ed by th e m ortga gor 1 .

76 R ul in I w
. n d K e n t uc k y
e o But th is rul e of apply
a a .

i n g upon th e m ortga ge such p ort ion s of th e m ortgage d p rop


erty as h a v e bee n c on vey ed by th e m ortga gor i n th e in vers e

ord e r of th e ir a l i en a tion h as n ot b ee n foll owed in I ow a an d

K en tucky In Iow a it is h eld th at wh ere portion s of the


.

m ort ga ged p rop e rty h av e b ee n sold a n d c on vey ed s ub s e quently

1 Hunt 0 . Mansfield 31 Conn 48 8 ; , Cashm an 0 Martin, 5 0 H ow Pr


.
1 . . .

Iglehart v C rane 42 Ills 26 1 ( N Y ) 733


J
. . . .
. .
,

1
Sc hry e
v ro Fulle r 9 Pa.ig (
e N ,
1
P a nc o a s t v D u v a l 2 6 N E q .
,
. .

1 73 ; Thom as v Mora v ia Fo.u n d r y C o 4 45 C a s hm a n 0 M a r t in , 5 0 H o w P r .


. .

43 R un ( N 48 7 ; C o n v e rs e v ( N Y ) 3 3 7 ; F ra n c is 0 H e r re n ,
1 0 1 .

J
. . .
.

Ware Savings Bank, 1 5 2 M a ss 4 0 7; N o r C a r 4 9 7


.
ac k so n 0
.
Sl o a n 7
.
6 .
,

Millsa ps 0 Bond 64 Miss issippi, Nor Car 306


J
. . .
. ,

45 3 ; Fassett v Mnlock, 5 C .o lo ra do ,
1
S t o se p h M an u f a c tu r ing C.
o v . .

466 .
Daggett, 84 Ills 5 5 6 . .

1
Steere v Childs , 1 5. H un ( N 1
H ig h 11 B row n 4 6 I ow a , 25 9 ; .
,

1
5 1 .
L ee 0 B u c k ,
1 3 S o C a r 1 7 8 . . . .
suocnssx
vn cu m s . 1 11

to th e ortgage and th e m ortgagor retains th e rem ain in g


m ,

part th e portion wh ich rem a in s uns old sh ould in deed be first


,

s ubj ecte d to th e p ay m en t of th e m ortgage d ebt


1
for a l th ough -

th e m ortgage is a l ien res tin g upon a ll th e estate a l ik e yet ,

th e m ortgagor in a dd iti on to th e l ega l obl igation s res ul tin g


,

from th e stipulati ons in h is m ortgage deed an d from th e -

c oven an ts in h is d ee d to h is g ran te e is m ora lly bo un d to pay ,

th e deb t an d to c l ear a w ay a ny i n cum b ran ce from th e prop


erty w h i c h h e h as s old ; but th a t a s b etween th e gra ntees
,

wh o h ave purc h ased d ifferen t p arc el s of th e in c um b ere d


es ta te from th e m ortgagor at d iffe ren t tim es th ere is n o ,

g re a te r m o ra l obl i ga ti on t o a
p y t h e d eb t r e s ti n g u po n on e

th an upon th e oth er ; an d a cc ord in gly th e sub sequent pur


ch a s ers of the differen t porti on s of th e m o rtga ged pre m i s es

m us t c on tribute ratably to th e d isch arge of th e i n c um b ran ce 1


.

Th e s am e d o ctrin e is m a in ta i n ed in K entucky 1 A n d it h as .

been h eld in Georgia th at th e purch as ers of parts of th e m ort


g g
a e d p rop ert y f ro m t h e m o rt a
g g o r c a n n o t c o m pe l th e m o rt

g g
a e e t o res o r t f or th e p a ym e n t of h i s d e b t t o th a t p a rt of
th e m ortgaged property wh ic h rem a in s in the poss ess i on of
th e m o rtgagor ; th ough th e ir righ ts a gain st th e d ebtor a nd
1

aga ins t in cum bran c ers j un i or to th em selves are rec o ni z e d 1


g .

77 . No D is t in c t io n b e t w e en M o rtg a ge and J u d gm en t —
li e n

o r o th e r A d istin ction h as som etim es been


I n o um b ran oe .

m a d e b etw een th e l ien of a j ud gm ent or atta ch m ent a n d th at

of a m ortgage It was decided in V irgin ia that wh ere a


.

j udgm ent h as been rec overed against a debtor wh ich is a l ien


upon his rea l estate an d h e s ubs equently c on vey s h is l an d s
,

1 Mickley Tom linson , 79 Iowa,


v. Dickey v Thom pson, 8 B Mon
1
. . .

3 8 3 ; D ilger v Palm er, 6OIowa, 117 ; ( Ky ) 3 1 2 ; Beall v Barclay, 10 B


. . .

Taylor 0 Short, 27 Iowa, 361


. Mon ( Ky) 26 1 ; Morris on 0 Beck
. . .

1
Ha lf v Falw ell, 67 Iowa, 29 8
. with , 4 T B Mon ( Ky ) 73 ; Blight . . .

Barney v Meyers , 28 I owa, 472 ; Grif 0 B anks, 6 Id 19 2


. . . .

6th v Lovell, 26 Iowa, 226 ; Massie


.
1
nowles v Lawton , 1 8 Ga 476 K . . .

e. Wilson, 16 Iowa, 390; Bates v 1


Craigm ales v Gam ble , 8 5 Ga
. . .

Rnddick, 2 Iowa, 423 .439 ; Manley v Ayers , 68 Ga 5 07 . . .


11 2 rue m m or sm oou x
ox .

by separate con veyances m a de at various tim es in d ifferent


parcels to difi erent gran tees a ll th e debtor s l ands in th e ,
’

h a nds of th es e res pec tive grantees are a l ike l ia bl e to the


c re d itor and m us t c o ntrib ute to satis fy th e j ud gm e nt r
, p o

ra ta a n d n ot i n th e in v erse ord e r of th ei r a l ien at ion ; but


,
l

doubt was s pe ed ily th rown upon th is dec is ion by th e sam e


c ourt wh ic h h ad re n d ere d it a n d it h as s in c e b ee n ex p ress ly
1
,

overruled 1 A n d in T en n ess ee it h as been h e ld th at th e


.

seve ra l purc h as e rs of d ifferen t trac ts of l a n d from on e wh os e

real es ta te is a ll s ubj ec t to th e l ien of an e x ec ut ion are m ere

s tra n gers to e ac h oth e r ; an d if s om e of th ese purc h as ers

a ft e rwa rd s l ose th eir l a n d s by h a v in g th em s old on th e e xe

c uti on th ey h ave n o righ t e ith e r of in d em n ity or c on tribu


,

ti on aga in s t th e oth e rs a nd no rem e dy a ga in s t th e gran to r , ,

if th ei r p urch as es were by deed a nd w ith out fra ud or war


ran ty 1
But th e gre at m as s of th e c ases put th e in c um b ran ce
.

of a j udgm ent upon ex ac tly the s am e groun d as a ny oth er


in c um b ra n ce as to its e ffec ts upon th e righ ts of subs eq uent
,

purch as ers of parts of th e in cum bered prem is es 1 Th e s am e .

rul e w ill be a ppl ie d to a dev ise of l a n ds c h a rge d wi th the

pay m en t of l egac ies : porti ons of th e l an ds wh ich h ave b een


c onv ey e d by th e d ev isee at di fi e ren t ti m e s w i ll be c h a rge d

1
Beverley 0 Brooke, 2 Leigh .
( N . Y ) 23 5.
; s c , o n a pp , ea l 9. C o w
. .

426 .
( N . Y ) 40 3 . B arn e s v M o tt 6 4 N Y .
, . .

1
Conrad v Harrison, 3 Leigh . 3 9 7 ; l nga lls v Morgan, 10N Y 1 78 . . .

5 32 . H oward Ins Co v H als ey, 8 N Y .

J
. . . .

1
Mc g 0 B eirne 1 0 Leigh .
,
271 ; am es v H ubba rd, 1 Paige .

3 9 4 ; H enkle v Alls ta d t 4 .
. ( N . Y ) 2 28 ; Ta y
,
lo r 0 M ar ia ,
5 .

Gratt ( V a ) 28 4 ; Rodgers 0 Mc
. . . Ra wle ( Pen n ) 5 1 ; N ailer 0 Sta nley, .

Cluer, 4 Gratt ( Va ) 8 1 ; B rengle 0 . . . 10 Se rg R ( Penn ) 45 0; Eben


. . .

hardt s Appea l, 8 Watts Serg


’
Ric ha rdson , 78 V a 406 . . .

1
Jobe e O Brien, 2 Hum ph
’
. .
( P e nn ) 3 2 7 ; Co w d e n
’
3 E s ta te , 1
( T enn ) .3 4 . Penn S t 26 7 ; Ed wards 0 Applegate,
. . .

1
National Savings Bank v Cress 70 Ind 3 25 ; R usse ll 0 H ousto n, 5
. .

well, 1 00 U S 63 0; Hun t 0 Mans


. . . Ind 1 80 Fowler0 Barksdale, 1 Harp
. . .

field, 3 1 C onn 48 8 ; Pallen v Ag ri . . Eq ( So Car ) 164 ; Relfe v Bibb, 43


. . . .

c ultur al Bank, 1 Fre em (Mis s 419 ; Ala 5 19 ; Hunt 0 Ewing, 12 Lee .

J
. . .

Welch v am es 22 How Pr ( N Y )
.
, . . . . 5 19 .

474 C lowes v Dickins on 5 Johns Oh .


, . .
succr
zssrvn cu m s . 11 3

for th e legac ies in th e h an ds of h is gran tees in th e in ve rse


order of th e ir al ien ation by h im ; a nd th e sam e rule h as
1 .

be en a ppl ied to th e incum bran c e of a wid ow ’


s righ t of dower ,
1

a n d to o th e r l i en s up on p rope rty 1 .

78 . R el ea s e of E s t a t e pri m a ril y li a b l e d i s c h arge s pro t a n t o

th a t s e c o n d a ril y foregoin g rul e as to th e li a b l e . From th e


ord e r of c h a rgi n g th e d iffe ren t pa rc e l s of th e in cum bere d

pre m is es it foll ows th at if th e m ortgage e w ith n otice of


, ,

th e f ac ts rel e ases f rom th e l ie u of h is m ortgage th a t porti o n


1
,

of th e prem ise s wh ich is prim ari ly l iabl e th ereto h e th ereby ,

rele a s es pro ta n to th at po rti on of th e p rem is es w h ic h is o n ly

s e c o n d a ri ly l iabl e ; for h e h as th e reby pre v en te d th e s ub roga

t i on to wh i ch th e own er of th e l atter portion would up on h is ,

paym en t be entitl ed agains t th e form er Wh en after s uch


,
1
.
,

a re l ea s e th e in cum b ran ce is s ough t to b e en f orc e d aga in s t


,

th e l atter po rti on its own er c an c l a im an a b a tem en t of h is ,

l iab il ity to th e e x tent of th e v a l ue of th at p ortion wh ich


sh ould h a ve b een m a d e th e p rim a ry fun d for th e p ay m en t of

th e deb t 1
Th us if th e m ortgagee of several parcels of l and
.
,

re l ea ses on e p a rc el h e w i ll be h e ld to j un i or i n cum b ran c ers ,

1 Elwood v Deifendorf, 5 Barb . Oh ( N Y ) 5 10; Ingalls 0 . Morgan ,

J K
. . . .

( N . Y ) 3 9 8 ; . e n kin s 0 Pray , 4
e r . 10 N Y 1 78 ; Guion v . . . na pp, 6
Pa ige (N 47 ; Nellons v Truax,
. . Paige (N 3 5 ; Blair v Ward, 10
. .

6 O hio S t 9 7 . . N . J
Eq 1 19 ; H arriso n 0 Guerin, 27
. .

1
Ra yn or v Ra ynor, 21 H un . N . J
Eq 219 ; Paxton v H arrier, 1 1
. .

( N . 36 . Penn S t 3 1 2 ; Brown v S im ona, 44


J
. . .

1
ones v Ph elan, 20 Gratt (V a ) . . . N H 475 ; Parkm an v Welc h , 19
. . .

229 ; Whitten v Saunders , 75 V a . . Pick ( Mass ) 23 1 ; Johnson 0 Rice


. .
,

5 6 3 ; Alaba m a 0 Stanton, 5 Lea . 8 Greenlea f ( Me ) 1 5 7 ; S te wart v ,


.

423 ; Wright v Aflrinson , 3 . McMahan , 94 Ind 3 89 ; Iglehart v . .

Sneed 5 8 5 ; Blight v Banks .


, C rane, 42 Ills 261 ; Mobile Ins Co . . .

6 T B . . Cone 0 Don . v H uder 3 5 Ala 71 3 ; Groesbeck v


.
, . .

alds o n 47 Penn S t 3 6 3 ; D ungan v


, . . . Matte son 43 Minn 5 47 ; S hepherd v , .
.

Dollm an 64 Ind 327 ; Bull v Gris


, . . B rown, 3 Mackey ( D 266 . .

wold, 1 4 R I 22 ; Thorington v . . .
1
S hrac k v Shiner 100 Penn St .
, . .

Montgom ery, 8 2 Ala 5 91 . . 45 1 ; B oy 0 Bra m hall, 19 N Eq . . J .

1
P os ted , 81 . 74 and (on appeal)5 63 ; Gaskill v S ine,
,
.

1
Murray 0 Fox, 104 N Y 3 8 2 ; . Lafa rge Ins
J
. . .

am es 0 H ubbard, 1 Paige ( N Co 0 Bell, 22 Barb (N Y ) 5 4 ; Tay


. .

J
. . . .

228 ; Livingston e Freela nd, 3 Barb . . lor 0 Short, 27 Iowa, 3 6 1


. ohnso n
1 14 ra n LA W or sus a oe a rron .

for its p roportion ate val ue : but th is w ould n ot be so if it 1


,

wa s s h own th at th e m ortgagor h a d n o titl e to th e lot rel eas ed ,

s o th a t th e s ub s eq uen t gra n te e s of th e m ortgagor c ould be in

n o w ay p re j ud ic e d by th e re l e as e 1
N or w i ll th e re l eas e of .

a p a rt of th e m ortga ged p rem is es from th e l ie n of th e m ort

g g
a e i n a n y m a n n e r a fi ec t th a t l i e n up on th e re s i d ue of th e

p rem ises as between th e origina l pa rti es ; so fa r a s th e ir


,

righ ts a re c on c e rn e d ev e ry p a rt of th e m o rtga g ed p re m is es
,

is boun d for th e pa y m e n t of th e wh ol e debt 1


Th e re l e a s e of .

th e p rim a ry f un d w i ll e x on e ra te pro ta n to th e s ec on d a ry fun d


in th e h a n d s of on e wh o h a s purch as e d th e l atter s in c e th e
c reat ion of th e l ie n a l th ough th e re l e a s e c on ta in e d an e x
1
,

p ress res ervation of a ll righ ts a ga in st s uch purch a s er If a 1


.

m ort ga ge e h a vi n g n oti c e of a s ub s eq ue n t m ortga ge upon a


,

po rtion of th e s am e l an d rel ea ses th at portion upon wh ich h e ,

h as an ex c l us i ve l ien a n d wh ich wa s of s uflic ie nt va l ue to h ave


,

s a tis fied h is wh ol e c l a im th e c ou rt up on a fore c l os ure s a l e of


, ,

th e re m a in d er of th e p re m is es w i ll p os tp on e h is c l a im to th at ,

of th e s ub s eq uen t m ortgagee S uch a j un ior in c um b ra n cer


1
.

h as an eq uita bl e ri gh t to h av e th e p rope rty wh ich i s n ot in


c l ud ed i n h is s e c urity b ut i s s ubj ec t to th e pri or l ien firs t a p
, ,

pl ied to th e s atis fac tion of th at prior l ien to th e relief of h is


s ec urity 7 Th e purch as e r for v a l ue an d with w arran ty of i n
.

cum b e red l a n d s a n d h is g ra n tees oc c upy a pos i ti o n s im i l ar to

th a t of s ureti es for th e d ebtor a nd a re en titl ed to th e s am e ,

0 William s 4 Minn 26 0; Carey 0 85 ; Mcveigh v S herwood 47 Mich


.
, . .
,
.

Boyle 5 3 W ise 5 74 ; J ones 0 Maney 5 45 ; Ford v Gea uga County 7 Ohio


.

.
,
.
, .
,

7 Le e 3 41 ; Warner 0 De ( part 148 ; Leflingwell v Freyer . .


,

Witt County Bank 4 Ills App 305 21 W ise 3 9 2 ; Moore 0 Trim m ier
,
. . . . .
,

1 W olf 0 Sm ith 3 6 Iowa 45 4 ; 32 So Car 5 11


. . . .
, ,

Elm ic v Main 29 Ark 5 9 1 ; S tevens Da gger v Tayloe, 60 Ala 5 04 1 . . .

J
. .
,

0 Cooper, 1
. ohns Oh ( N Y) 425
1
Deuste r v Mc Cam us, 1 4 Wis e
. . . . .

1
Taylor 0 Short 27 Iowa, 3 6 1 ; 3 07 Alsop v Hutchings, 25 Ind
.
,
. .

V an Orden 0 J ohns on, 1 4 N J Eq 347


. . . . .

3 76 .
1
Sc hofield 0 Cox, 8 Gratt ( V a ) . . .

1
Coutant v Servoss, 3 Barb 5 3 3 ; Mickle e Ra m bo 1 N J Eq
. . .
,
. . .

5 01 ; Baring 0 Moore, 4 Paige ( N . .

1
Martin s Appeal, 9 7 Penn St 166
’
. . .
s uc cessi ve cu m s . 1 15

equities as sureties would be A rel eas e by th e c red itor .

w ith out th e ir c onse nt an d w ith kn owle dge of th e ir righ ts , ,

of an y s ecurity to wh ich th ey would be entitl ed on pay


m e n t of th e d e b t d isch arges pro ta n to th e lien on th eir,

p rope rty 1
.

79 . R el e as e of h ta te pri m aril y lia b l e w ill not e x o n e ra t e

h t a t e s e c o n d aril y li a b l e un l es s in J us ti c e i t o ught t o h a v e th a t

E ffe c t But th e ru e l of
parce ls of l and ch a rgin g d ifi ere nt
w h i c h a re s ubj ec t to a c om m on in c um b ra n c e in th e in ve rs e
orde r of th eir al ien ation by th e debtor bein g a m ere rul e of .

e q uity a n d a re l e as e to a s ub seq uen t purc h as er of one p a rc e l


1
,

of th e l an d not b e in g a tech nic a l d is ch a rge of th e parcels


prev ious ]y c onveye d from th e l ien of th e incum bran c e it ,

w ill be treate d as a n eq uita bl e rel eas e on ly in th os e c a s es in


wh ich ac c ord ing to n atura l j us tice and eq uity it ough t So to
, ,

Ope rate a ga in s t th e on e giving th e re l e as e If th e full v a l ue


1
.

of wh at is p ri m a rily l iable is rea l ize d upon th e d ebt th a t is ,

a ll th at c an be a s k ed by th os e in tere s ted in th e oth e r p a rc e l s


1
.

Th us wh ere a m ortgagor h av ing s old an d c on veyed a pa rt of ,


.

th e m ortgage d p rem is e s a n d rece ive d full pay m en t th ere for ,

a fte rw a rd s se ll s th e rem a in d e r of th e p rem ises to a n oth e r pur

c h a s e r for th e i r full va lue w ith th e a greem e n t th a t a ll th e ,

purch ase m on ey sh a ll be a ppl ied upon th e m ortgage debt


- -

a n d th e p rem ises th us be re l ie ve d from th e l ien of th e m ort

g g
a e ,
th e m o rtg g
a e e w i ll n ot by re c e i v i n g th e va l ue of th is ,

re m a i n d e r f rom th e s e c on d p urc h a s e r a n d th e reup on releas ,

i n g th e l an d of th e l atter from th e m ortga ge d is ch a rge ,

1
00610 Parker, 1 27 N Y 1 1 7 ;
0 K en all v
d Woodrufl, 8 7 N Y 1
'

K
. . . . . .

B a rnes v Motte, 6 4 N Y 3 9 7 ; In
. . . endall v N iebuhr 5 8 Ho w Pr ( N
.
, . . .

ll v Mo r a n , 10 N Y 1 78 Hi k Y ) 1 5 6 ; l c 45 N Y S upe rior Ct
ga s .
g c s . . . . . . .

0 B ingham
. 1 1 Mass 300 , . . 5 42 ; Torrey 0 Cook , 1 1 6 Mass 16 3 ;
. .

1
Franc is v He rren 101 N or Car .
,
. . Clark v Fonta in. 1 3 5 Mas s 46 4 ;
.
.

49 7 ; Aderho lt v Henry, 8 7 Ala 41 5 ; . . Bradley 0 Fuller, 23 Pic k ( Mes a )


. .

Fle is hel 0 House, 5 2 Ga 60; Hawhe


. . 1 ; Willia m s v B ro wn 5 7 Ga 3 04
.
, . .

v S nydaker, 8 6 Ills
. 19 7 ; Worth .
1
Santa Marina 0 Connolly, 79 .

H ill, 1 4 Wise 5 5 9 . . Calif 5 1 7


. .

1
Libby v Tufts , 1 21 N Y 1 72 . . .
1 16 rs : m v or s us aoc a n ou .

wh olly or in part th e po rtion con veyed to th e first purch aser


from th e l ie n of th e m ortga ge for th e balan ce of th e debt ;
th e full v a l ue of th e sec on d purch as e h a vin g been a ppl ied
upon th e m o rtgag e de bt th e fi rs t purch as e r h as e n j oy ed a ll
-

h is righ ts ; an d th e m ortga ge e h as n ot th e equita bl e righ t


1

furth e r to h old th e s ec on d tra ct of wh ich h e h as th us once ,

re c e i ved th e full va l ue ; if h e c ould h old it it would be on ly


2
,

upo n refun d ing th e a m oun t so p a id It h as bee n h e ld th at


a
.

i f a m ortga gor se ll s a po rt i on of an es ta te wh ich is in c um


be re d by a m ortgage to s ec ure th e pay m ent of va rious debts ,

to a p urc h as er w h o h a s on ly c on s truc tive n oti ce of th e m ort

g g
a e a,
n d t ra n s fe rs t h e n o te s g i ve n by s uc h p ur c h as e r fo r th e

purch as e m oney to one of th e m ortga ge cred ito rs to be ap


- -

pl ied upon one of th e m ortgage d ebts th e purc h as er s pay -

,
’

m en t of th es e n otes to on e of th e m ortga ge c red it ors doe s n ot -

re lea se th e l an d th us purch as ed fro m th e l ieu of th e m ort

g g
a e u,n l e s s it w a s s o a g re e d b e t w e e n th e p ur c h a se r a n d th e

m o rtga gees A prior purch ase r from the debtor wh o h as


‘
.

n ot yet pa i d all h is p urc h ase m on ey m ust to th e e x te nt of -

th e un p a id purch a s e m on ey -
“ c on trib ute to th e re l ie f of a
,

s ub s equen t p urch as e r wh o h as be e n c om pe ll ed t o pa y a c om

m on i n c um b ra n ce a l th ough th e l atte r h ad ag ree d w ith h is


,

g ra n t o r t
,
h e o ri g i n a l d e b to r t o p a y t h,e am o u n t d u e u p on t h e

c om m on l ien out of h is p urc h as e m o ney if th e s ub s e q uent


-

purch ase r m a d e th is a greem en t in c on s equence of fraud ulent


m is re p res e n tatio n s of h is g ra n tor a s to th e am oun t of the

in cum b ran c e ‘3
If a fte r th e orig in al in c um b ran ce th e d eb tor
.
, ,

firs t ga ve a m ortga ge upon p a rt of th e in cum b e red p re m ises ,

wh ich h as n ot b een fo re c l osed a nd s ub s e que n tly ga ve an ,

a b s o l ute de e d of th e re s i d ue to a n oth e r pa rty th en th e origi , ,

1Patty v Pease, 8 Paige ( N


. . Colby O Cato 47 Ala 847
.
,
. .

277 H awk s v Snydaker, 8 6 Ill s 19 7


. . . Ba ldwin 0 Sanger 70 Ills 5 03
.
,
. .

3 Pea rson v Carr 94 N or Car


, . . . Beddow v Dewitt, 43 Penn St
. . .

5 67 . 326 .

Browne 0 Davis, 109 Nor Car. . .


succ sssxvs cu m s . 11 7

na l brance sh ould be ch arged first upon th e equity of


in cum
re de m pti on from th e sec on d m o rtga ge and s ec on d a ri ly upon ,

th e pa rc e l sold an d c o nveye d abs ol ute ly 1


A n d if s uch se c on d .

m ortgagee after an a bs ol ute s al e of th e re s i d ue of th e p rem


,

ise s w ith w a rran ty to a s ub s equent purch ase r ta k es from th e ,

m o rtgagor a quitc l a im d ee d of th e e quity of red em p tion in th e

p roperty m ortga ge d to h im and this in te res t is equa l in v a lue,

to th e s um due upo n th e firs t m ortgage on th e entire p rem i ses ,

th en th e s e c on d m ortgagee a n d h is gra n tees s h ould d is ch arge


th a t first m ortga ge w ith out c o n tri buti on from s uch s ubs e
,

q u en t p ur c h a s e r ; a n d a n a s s i gn m e n t of th e fi rs t m o rt a
g g e to

t h e sec on d m o rtgagee wi ll e x on e ra te th e l an ds wh ich h ave


be en con vey ed to th e s ubsequent purc h aser 2
.

80 . R el ea s e of any R em ed y to w hi c h th e S ub s e q ue n t

G ra n t e e w o ul d be s u b ro g a t e d re le as e s t h e Li on o n t h e L a tt e r.

P ro pe rt y .
— Any ac t of th e p rior in cum brancer l
re e as in g a

re m e dy to wh ich th e gran tee of th e own er of th e eq uity of t e


d em ption would on p ay in g th e d ebt be en titl e d to be subro
, ,

g a te d w i,
ll re l e as e th e l i e n of th e p ri o r i n c um b ra n c e on th e

p ro pe rty in t h e h a n d s of s uc h g ra n te e
8
A j ud gm e n t c re d i .
-

t or s v ol un ta ry re l in quish m ent of a l evy upon pers on a l p rop


’
~

e rty of h is debto r s ufficien t to h ave s ati s fied th e j udgm en t

w i ll re l e as e th e j ud gm en t l ien upon l an d prev i ous ly c on vey e d


-

b y th e d eb tor to a bona fid e p urch as e r for va l ue ‘


If a fte r a .
,

m o rtgag or h as give n a s e c on d m ortgage of p rem ises wh i ch

a re subj ec t to a p ri or m ortga ge th e firs t m ortga gee w ith , ,

n ot i c e of th e s e c o n d m ortga ge d im in is h es th e s ec urity of th e
,

j un ior in cum b ran cer by rel eas ing th e m ortgagor from per
s on a l res p on s ib i l ity for th e d eb t h e wi ll th ereby p ostpon e ,

h is lien upon th e p ropert y to th at of th e s ec on d m ortgagee 5

i i w ith n oti ce of th e f ac ts h e gi ve s s uch a releas e after a


, ,

1
K ll gg
Rand, 1 1 Paige ( N
e o v . As in the case of sureties posted ,

59 See Wats on 0 Grand Ra pids


. . 119 et seq .

C c , 5 1 No W Rep 9 90
. . . . . V oorhes v. Gros, 3 How Pr . .

Pike v Goodnow , 1 2 Allen


.
( N Y ). 2 6.2 .

( M as s ) 79
, 4 . Sexton v . Pickett, 94 Wisc 346 . .
11 8 m a LAW or s os aoou x
ox .

c on vey an ce by the m ortgagor to a purch as er of pa rt of th e


m ortga ge d p re m ise s w h o h as ac qui re d by h is purc h as e th e ,

righ t to th ro w th e burden of th e in c um bran ce upon th e m o rt

g g
a o r a n d u po n th e res i d ue of th e m o rt a
g ge d p ro pe rty i n h is

h an d s th is w i ll d is ch arge th e l an d of s uch purch as er from


,

its l i a b il ity un d er th e m ortgage e ve n th ough at th e tim e of ,

s uc h re le as e th e p ay m en t of th e m o rtga ge d ebt was as s um ed -

by an oth er pe rs on th e purch aser n ot h aving as sen ted to th is ,

s ub s titution
1
.

81 . Pri o r I n o um b ra n oor n o t a ff ec t e d b y S ub s e q ue n t A ll e n n

ti o n s of th e P re m is es un l e s s n o t ifi e d of th e m B efo re th e h old er
of a m ortg a ge b ran c e upon prope rty c a n b e
or oth e r in c um
re q uired to ac t in co ll ec tin g h is d em an d w ith re fe ren ce to th e

ord er of s ubsequent a l ien ation s of po rti on s of th e i nc um bere d


property h e m ust h ave n otic e of wh at th at ord er is oth e r
,
2
,

th a n th e m e re con st ruc tive n ot ice d e rive d from th e re g is try


of th e d e ed s g ive n s ub s eq ue n tly to h is m ortga ge un l ess
8
,

s pec ia l c i rc um sta n c es h a ve m a d e it h is d uty to ex am in e th e

rec ord s
“ H e is n ot b oun d to ta k e n ot ic e of s ub s equen t l ien s
.

or c on vey an c e s or of l itiga t i on wh ich a ris e s c on c e rn ing


‘

th e m ; an d s ubs eq ue n t p urc h as e rs of p ort i on s of th e m ort


5

a
g g e d p re m is e s wh o d es i re h im to ac t w ith refe ren c e t o th e

ord e r of s ubs eq ue n t a l ien ati on s by th e m o rtga g or m us t n otify

h im of th e fac ts in p rop e r t im e an d req ues t h im to a c t ao ,

cord in gly Th ey cann ot rem ain pass ive un ti l after a fore


.
‘

Coyle v Davis , 20 W ise 5 64 .Main 29 Ark 5 9 1 S traight 0 Harris, . .


,
. .

Patty v Pease , 8 Paige (N .1 4 Wis e 5 09 H os m er 0 Ca m pbell, . . .

277 ; La Fargo Ins Co 0 Bell 22 98 Ills 5 72 . . .


,
. .

Barb (N Y ) 5 4 ; Robinson v Sher


. . . Al e xande r 0 Welch, 10 Ills Ap . . . .

m an, 2 Gra tt ( V a ) 1 78 ; Boone v 1 8 1 .


. . .

Cla rk, 1 29 Ills 466 ; Sa rles v Mc Gee , Le wis 0 H in m an, 5 6 Co nn 5 5


. . . .

Nor Dak 3 6 5 ; Jam es 0 B ro wn, U nionto wn B uilding As soc iation s


’
. . .

1 1 Mic h 25 . . Appe al, 9 2 Penn S t 200 ; S tuyvesant . .

Geo rge 0 Wood 9 Allen (Mas s ), v H one , l Sandi Oh ( N Y ) 419 ;


.
,
. . . . .

8 0; Wh eelright v Dc Peys te r 4 Ed w W ard 0 Hague , 25 N J Eq 3 97 ;


.
,
. . . . .

Oh ( N Y ) 23 2 ; B oy 0 Bra m hall
. . . Meier v Meie r, 105 Mo 412 .
,
. . .

1 9 N J Eq 74 an d 5 6 3 ; Mark v
. . . S nyder v C ra wfo rd 9 8 Penn St . .
, . .

Spec k, 13 3 Penn S t 27 ; Birnie v 414 ; H om ing s Appeal, 9 0 Penn St


’
. . . . .
s uc csssxvs cu m s . 119

c los ure been c om pl ete d an d th en s et up against th e


h as ,

m ortgage e fac ts of wh i ch th e l a tte r h a d n o k n owl ed ge 1


A .

se c on d m ortgage s or a purch as e r f rom th e m ortgagor ca n


h a ve th e ben e fit of a re l eas e give n by th e first m ortgagee
on ly wh e re th e firs t m ortgagee ga ve th e re l eas e w ith n otice
of th e s ec on d in c um bran ce or c on vey an ce If th e releas e
2
.

w as g iven with out n oti c e of th e equi ti es of th e s ub se q uen t


i n c um b ran c e r or gra ntee th e fi rs t m ortga ge e wh o gav e it is ,

n ot res pon s i bl e for th e c o n s eq uen c es of h is ac t n or is th e ,

l ien of h is m ortgage upon th e un rel eas ed portion of th e prem


is es in an y w is e im p a ired th ereby 8
B ut if a m ortga gee .
,

be fore givin g a part ia l re le as e of h is m ortgage em pl oys an ,

attorn ey to e xa m in e th e tit l e to th e m o rtga ge d p rop e rty th e ,

m ortga gee i s c h a rgea bl e w ith n oti c e of a ll th e c on vey an c es

th ere of f oun d by s uch attorn ey up on rec ord a l th ough th ey ,

h a ve n ot be en c om m un ic a te d by th e a ttorney to h im ‘
A c tua l .

n o ti ce is n ot n ec es s a ry i n s uc h c as es ; k n owl e d ge of fa c ts

wh i c h i m p os e th e d uty of in quirin g b efo re ac tin g i s s ufh


c ien t ;
5
b ut th e m e re p oss es s i on of a s ubs eque n t gran te e is
n ot s uffic ien t un l es s th e p rior m ortgage e a l s o k n ows wh o h a s
6
,

s uch p os ses s ion a n d its c h ara cte r 7 .

82 . Th e M o rt g a go r m ay b y S t i pul a t i o n v ary th e O rd e r of

n ab m ty .
— If th e
o wn e r of in cum bere d p rem is es in c on vey ,

in g difi ere n t p arc el s th ere of fix e s in h is c on vey a n c es th e o rder ,

of prim ary l i ab il ity for th e p aym ent of th e wh ol e or a part 8

3 88 McIlvain v . Mutual Ass urance


14 N J Vano rden 0 . J ohnson, . .

9 3 Penn S t 3 0 ; Igleha rt 1: Eq 3 76 ; Taylor v Maris , 5 Ra wle


K
. . . .

C ra ne, 42 Ills 261 ; ing 0 Mc . 5 1 ; Guion v K napp. 6 . .

V ic ks r, 3 Sandf Oh ( N Y ) 19 2 ; Paige ( N . 3 5 ; H olm an v N or


. . . . .

La naw an v rahos, 8 Neb 45 7


. D folk Bank, 1 2 Ala 3 69 . .
. .

Ric key v Merritt, 108 I nd 3 47 ;


. Ke ndall v Niebuhr, 5 8 Ho w Pr . . . .

Mc Afee v Mc Afee, 28 8 0 Car 218 ; ( N Y ) 15 6 ; s c 45 N Y S upe rior


. . . . . . . . .

M atteson 0 Thom as, 41 I lls 1 10 ; Court, 5 42


. .

J
.

B la ir 0 Ward, 10 N Eq 1 1 9 H all 0 Edwards , 43 Mich 473 .

J
. . .
. . .

Mc Ilvain v Mutual Assurance Coggs well v S tout, 32 N Eq . . .

J
.

Co 9 3 Penn S t 30 ; ohn so n v . 240 . . .

e wey v Ing ersoll, 42 Mich 1 7 D


7
B ell, 5 8 N H 39 5 Powell 0 Hayes, .
. . .

Jh
. .

3 1 La Ann 78 9
. . . Ellis 0 . o nson, 96 1nd 3 77 . .
120 TH E LAW or sons oou xos .

of th e in cum bra nce th en th is order wi ll follow th e d ifferen t ,

parcels in subseq uent c on veyan ces the reof e ven if on e par


l
,

ce l c om es to th e h a n ds of th e m ortgagee h im s e lf ’ A cc ord .

in gly if th e own er of m ort gage d l an d con


, vey s a po rtion
th ere of of m o re th a n s uffic ient va lue to pay th e m ortga ge
,

debt w ith a provis ion in th e de ed th at th e purch as e r is to


,

as s um e a n d pay th e wh o l e of th e m o rtgage an d a fte rw a rds ,

c on veys th e rem a in d e r of th e l an d w ith th e un de rs tan d ing

th a t th e m o rtga ge is to be pa i d 03 by th e form e r purc haser ,

an d th e m ort ga ge e s ub seq ue n tly ta k es an oth e r m ort ga ge upon

th e p orti on firs t c on v ey ed w ith n otice of th e fa c ts th e pur , ,

ch ase r of th e s ec on d lot m ay m a in ta in a b i ll in equi ty to re

deem th e s am e w ith o ut c on tribution toward s th e paym ent of


th e d e bt sec ured by th e firs t m ortgage Th e c on tract of th e .

m ortgagor is b in d ing upon th e l an d in th e h a n d s of an y s ub

seque n t p urc h as e r wh o ac q ui re s h is titl e w ith k n owl ed ge of

h is g ra n tor s 8
An d wh o h as i n h is
’
a greem en t . a gra n te e

d e ed a s s um e d an d a g ree ort d to pa y a ce rta in am o un t of a m

g g
a e up on th e p re m is es afte r wh ic h h e h as purc h a s e d c a n n ot
ward s c on test th e question of th e am ount wh ich is due upon
th at m ortga ge s o lon g a s h e is n ot c a lled upon to pay m ore
,

th an th e s um wh ich h e h a s th us as s um e d Th e p ri or grantee
‘
.

of a portion of in cum be re d p re m is es wh ose grant is exp res sly


m a d e s ubj e c t to th e in c um b ran ce m us t for th e re l ief of s ub ,

sequent gran te es of th e p roperty c on tribute ra ta bly w ith ,

1 B B ram hall, 19 N J Eq 74
oy 0 . . . em Hall 10 Mich 40; McCloskey
0 .
,
.

and 5 6 3 ; Mayo 0 Merric k, 127 Mas s 0 O Brien, 16 W V a 79 1 ; Moor


’
. . . e 0 . . .

S hurtlefl, 128 Ills 3 70; Briscoe v


'

1
51 ; S te v en s v G oo d en o u g h , 2.6 V t .
. .

6 76 ; Bowne v Lynde, 9 1 N Y 9 2 . . . Power, 47 1113 447 . .

Harlem Savings Bank 0 Mic kles .


3 Sa nford 0 V an Ar s dall, 5 3 Hun .

burgh, 5 7 How Pr (N Y ) I O6 Za . . . .
(N . 70 .

briskie o Salte r, 80 N Y 5 5 5 ; . Welch o Beers 8 Allen ( Mesa ), . ,

J
. .

Torrey o O rlea n s. B a nk , 9 P a ig (
e N .
15 1 ; ohnson 0 Walte r, 60 Iowa, .

6 49 Atwood v V incent 1 7 . ,
3 15 ; Miller v Fasler 42 Minn 3 66 ; .
, .

Con 5 7
n 5
. E n g le o H a in es, 1 H als t .
. B urger o Greif 5 5 Md 5 1 8
.
, . .

5 N J E ) 1 8 6 l B itte r 0 Phillips 5 3 N Y 5 86 ;
( q ; s c o n a p pe a . . ,
, ,
. . , . . .

m R o
. ss 0 H a in es 6.3 2 ; Cam th . Wilcox v Cam pbell, 106 N Y 395
. . . .
succ ussrvs cu m s . 1 21

th em d is ch arge of th e l ien an d th ey m ust in l ik e


for th e ,
1

m ann e r c ontrib ute w ith h im 2


B ut m ere p ro of of a purch as e
.

of l an d with full c oven ants of warran ty for l ess th an its v a l ue


is n ot by its e lf sufiic ien t proof th at th e purch ase r un d e rtook
t o d is ch a rge a m ortgage th e re on of th e e x isten c e of wh i ch h e
d oes n ot a ppe a r to h av e h ad actua l n otic e A s b etween a 3
.

m o rtga gor an d h is v ol un ta ry r n t e e w it h f u ll c ove n a n ts th e


g a ,

l atter h as a righ t in equity in th e abse n ce of any d isq uali ,

fyin g fac ts to c a s t th e b urd en of an in cum b ra n ce e x is t in g at


,

th e tim e of th e c on vey an c e upon th e rem a in in g l a n d of th e

g r a n to r wh i c h is a l s o s u bj ec t t o th e i n c u m b r a n ce b u t i f t h e

c ov en an ts w ere ins e rte d with o ut th e k n ow l ed ge of th e gran to r

i n a v ol un ta ry c on vey an c e from th e m o rtgagor to h is w ife ,

th en th e b urd en of th e in c um b ra n ce w ould n ot b e sh ifte d


a n d it m ay be s h own by p a rol ev i d e n ce th at th e v ol un ta ry

g r a n tee u n d e rs to od t h a t t h e c on v ey a n c e w a s s u bj e c t t o t h e

m ortgage : th e e ffe ct of th is will be to reb ut th e eq u ity w h i ch

w ould oth e rw i s e arise in favo r of th e gra n tee a n d to s ubj e c t ,

th e p ort ion of th e p rem i s es c on v ey ed to h e r to pay its pro


portion a l part of th e m ort ga ge debt Th e gen era l rul e th at
5 -
.

th e m ortga ge wi ll b e e n forc e d upon th e d iffe re n t p a rce l s wh i ch


h ave s in c e been con vey ed in th e in v ers e ord er of th e i r a l ien a
ti on a ppl ies on ly wh ere th e m ortgage i s a l i en re stin g upo n
a ll th e l a n d Nor c an an y agreem en t between th e m ortgage e
5
.

a n d h is s ub s e quen t gra n tee of a p a rt of th e l an d d im in ish th e

m ortga ge e s ri gh t to h old fin a ll ll o d p
’
y a th e m r tg g
a e re m i s es

fo r h is s ec urity 7 .

83 . Ex t e n t of th e R i gh t of a S ub s e q ue n t P urc h as e r .

W h ere l and s su bj ect to a j udgm en t l ien -


a re a dvertis ed for
H ill McCarte r 27 N
v . Eq , . J . See Renic k v Ludington, 20 W
5 . .

41 ; Has kell v S tate 31 Ark 91 ,


. Va 5 11
.

J
. . .

Hall 0 Morgan, 79 Mo 47 ;
. .
5
Harrison 12 Guerin 27 N Eq .
,
. .

B rown v South Boston Savings B ank,


. 219 See Olive r 0 Moore , 23 Ohio
. .

1 48 Mass 3 00 . . St 473
K
. .

ilborn v Ro bbins , 8 Allen .


5
Evansville Gas Cc v State, 73 . .

G l a ss ) 4
, 6 6 ; Vilas v McBride, 62 H un . Ind 219 . .

( N . 3 2 4 ; M c Kinnis v E stes, 8 1 . Windsor 0 Evans, 72 Iowa, 692 . .

I owa 749
. .
1 22 rs s LAW or sus sooa n on .

l
s a e un der th e jud gm ent a n d pa rts of th ese lands h ave pre ,

vious l
y b een s old by th e d e b t o r a n d th e re a r e oth e r l an d s of ,

th e debtor un s old but th e j ud gm ent l ien upon th ese l atter


,
-

l an d s would exp ire before th ey c ould be a dvertised an d s old ,

th e own er of th e j ud gm e n t w i ll n ot be boun d at th e re q uest ,

of th e purch a ser from th e d e b tor to ab an don th e s a l e of the ,

l an ds wh ich h e h as a dve rtis e d Th e purch as e r s rem edy .


’

would be to offe r to pay th e j ud gm ent and th en by h is bill , ,

i n eq ui ty aga in st a ll parties in i nte res t b efore th e e x p i ration


of th e l ien of th e j ud gm en t to en force h is equitable righ ts to ,

c o n trib uti on a n d in d e m n ity 1


After such a ten der th e owner .
,

of th e j ud gm ent would h ave n o right to pro ceed with h is l evy


an d s a l e If th e purch aser s l an d is s old up on th e j ud gm ent
2 ’
.
,

h e c a n c om pe l one wh o p urch as ed f rom th e d eb tor s a b se


q uen tly to h im s elf to in d em n ify h im to th e e x tent of the ,

v a l ue of th e l an d s of s uch s ub s e q uen t u h r a Th ur
p rc a s e e p .

ch as e r wh o h as n ot s ea s on a b ly enf orce d h is ri gh t to th e

p roper ord er of s ale can p rote ct h is righ ts on ly by red eem ing


from th e p rior inc um b ran c e a n d h old in g by sub ro ga ti on th e ,

p arcel s th at are p rim a ri ly l iable ‘


A purch as er from th e .

debtor or m ortgagor of pa rt of th e in cum be red p rem ises c an


n ot ,
a ga in s t th e w i ll of th e c red ito r re d ee m h i s prope rty ,

a lon e from th e in c um b ra n c e ; h e m us t pay th e wh ol e d ebt 5


.

B ut if th e m ortgage e or h old e r of th e l i en h im s e lf b ec om es ,

w ith n oti ce th e own e r of th e p rope rty wh ich is pri m a rily


,

l iabl e for th e pay m ent of th e debt a nd is of s uffi c ien t v alue ,

th e re for th en suc h a purc h as e r m ay red eem h i s p rope rty


,

from th e i ncum b ra nc e with out pay in g an y porti on of th e


1 J am es H ubbard, 1 Paige (N
a
5
Case 0 O B rien, 66 Mic h 289 ;
’

K
. . .

228 . See also Dobbins 0 W ilson, . Long v


. ais e r, 8 1 Mic h 5 18 ;
. uack Q
s uba s h v O Hare, 6 1 H un (N
’
107 Ills 17 . . . .

Welch v Jam es, 22 How Pr . . .


388 .

(N Y ) 474
. . . Andreas v H ubbard , 5 0 Conn
5
. .

5
Clowe s v ickinson 5 Joh ns . D ,
. 3 5 1 ; Gam es v Flatt, 5 9 N Y 405 ; . . .

C h ( N Y ) 23 5 ; s c , on appeal 9 S treet 0 Baa l. 1 6 I owa , 6 8 ; N orth


J K
. .
. . .
,

Cow ( N Y ) 403 ; am es 0 H ubbard,


. . . . w estern Co v Randolph, 47 . ans
. .

1 Paige ( N 223 . . 490 .


suoc nssxvs cu ms . 1 23

debt Th e p
.
1
of l an d at a ta x s al e acquires n o such
urch aser -

e q uita bl e righ t a s a gran te e w ith wa rran ty an d cann ot c om ,

l ortgage s to res o rt firs t to th e m o rtgago r s re m a in in g


’
pe a m

l an d .
2

84 . I n s t a n c es of t h e A ppli c a t i o n o f th es e R ules . Afte r


th ree p ieces of l an d h ad been a tta ch ed by a cred itor of th eir
o wn er th e d ebtor s old an d c on veyed one of the p ieces for
,

va lue an d afte rwa rds m ortgage d th e two rem ainin g p ieces


, ,

th e gra nte es in th ese c on ve y an c es h avin g n o actua l k n owl ed ge


of th e attach m ent Th e attach in g c red itor th en rec overed
.

j udgm ent an d th e m ortgagees purc h ased th is j udgm en t and


, ,

levied it up on th e p iece first c on veye d refus ing to l evy upon


’

th e o th e r p iec es wh i ch we re s ufi c ient to s atis fy th e ir j udg


,

m e n t ; an d it w as h e ld th at th e fi rs t grantee a c quire d by h is

p urch as e an equitable righ t aga ins t th e debtor to h ave the


oth er p ieces first a ppl ied to th e s atis fa ction of th e jud gm ent ;
th a t th e d eb tor s s ubs equent m ortga gees of th e rem a in in g
’

pieces took thei r m ortgage s ubj ec t to th e sam e e quitable


b urd en ; an d ac c o rd ingly th at th eir purc h as e of th e j udg
3

m e n t d id n ot giv e th em th e righ t to l evy th ei r ex e c ution on


th e p iec e firs t s old s o lon g a s th e oth er piec es w ere sufiic ien t
,

to s a ti s fy it ‘
Th e c red itor of a m ortgago r l ev ie d an e xecu
.

ti on up on th e e q uity of red e m ption an d h ad an un d iv i de d ,

sh a re th e re of s et 01? to h im s elf i n s at is fac tion of h is j ud g

m en t Th e d ebto r then gav e a s e c on d m o rtgage of h is in ter


.

es t in th e eq uity of re d em pti o n wh i ch was fore c l os ed ,Th e .

firs t m ortgagee th en ob ta i n e d a de c ree of forec losure a ga in s t


th e oth e r c re d ito rs th e t im e l im ite d to th e j ud gm en t c red ito r
,
-

to re deem bei n g a week l ater th a n th at l im ite d to th e s ec on d


m o rtga ge e A s tranger at th e in stan ce of th e secon d m ort
.
,

g g
a e e p a i d
, ofi th e fi rs t m ortg g
a ee a n d t ook fo r h i s se c urity ,

1
B radley 0 George, 2 Allen . As in Acquackanonk Wate r Cc
J
.

( M as s ) , 3 9 2 Meac ham 0 Steele, 9 3 . v Manhattan Ins


. 36 N Eq . . .

Ills 1 3 5
. . 5 86 .

Miller 0 Cook, 13 5 1113 190 . . .


Hunt 0 Mans field, 31 Conn 488
. . .
1 24 rs s LAW or sm oorn on .

a n as s ign m en t of
ortga ge debt an d a con veyance of
th e first m -

a l l th e sec on d m o rtga gee s i nte re s t i n th e p rem is e s After’


.

th is p ay m ent and b ef ore th e e xpi ration of th e tim e l i m ited


,

for th e j ud gm en t c red itor to red eem th e jud gm e n t c re d itor


-

,
-

te n dere d to th is s tra n ge r th e a m oun t so pa id by h im and ,

dem an de d a re leas e of h is in teres t in th e p rem is es wh ich ,

was re fus e d Th e c ourt h e ld th at th e j ud gm en t c re d ito r h ad


.
-

a c quire d by h is l evy a n in d efe as ible in te res t in h is s h a re of

th e eq uity of re d em pti on w ith th e ri gh t as aga ins t th e res t of


, ,

th e l an d to perfe c t h is titl e by p ay in g a c orres pon d i n g s h are


,

of th e d ebt s ec ure d by th e firs t m ortga ge ; th at th e s ec ond


m o rtga gee by th e fo rec l os ure of h is m ortga ge
, bec am e the ,

own e r of th e res idue of th e equity with a l ik e righ t to re deem ,

h is s h a re ; a n d th at th e judgm en t c red itor an d th e se c ond ~

m o rtga gee th us b ec a m e ten a nts in c o m m on of th e eq uity of

re d em p t ion e ach o wn ing an un d iv id e d s h a re th ere of


, an d ,

ea c h b oun d to pay a propo rti on ate sh a re of th e p ri or in c um ~

bran ce ; an d th at th e s trange r h av in g in b eh a lf of on e of , ,

th e m pa i d th e wh ol e of th e p rio r in c um b ran c e c ould n ow


, ,

c a ll upo n th e oth e r to c on tribute h is p ro po rt i on a l s h a re

th e re of or to be forec l os e d of h is in te res t in th e e quity of


,

re d em p tion 1
0 so ld fifty a c res of l a n d an d took fro m th e
. .
,

p urch aser a m ortga ge for $8 70 of th e purc h as e m oney an d -

a fte rwa rd s p urc h a s ed a fa rm f ro m K an d m o rtgage d it b ack .


,

for th e purc h as e m on ey an d as a f urth e r s ecurity as s i gn ed to


-

K th e m ortgage upon th e fifty a c res ; an d both of th ese m ort


.

g g
a es w e re a fte rw a rd s as s ign e d by K to J i n p a ym en t of a .

d eb t 0 th en s old an d c on veyed th e f a rm w ith wa rranty ;


. .

a n d th e fa rm s ubs eq uen tly c a m e by m e an s c o n vey an c es t o S .

J th e n ob ta i n e d a d ec re e to forec l os e th e m o rtga ge upon th e


fifty ac res ; a n d C a fte rw a rds re purch as e d the fifty ac res an d
.
,

a gree d with th e m ort gag or to s at is fy this d e c re e of fo re

c lo s ure but fa i l e d to do so a n d a fte rw a rd s con vey e d th e fifty


, ,

1
Young 0 . William s , 17 Conn . 39 3 . See also Mallory v
. H itc hcock,
29 C onn 127 . .
succ sss xvs cu m s . 1 25

acres to a bona fid e purch aser for va l ue . It was h eld th at


th e m ortgage upon th e fifty ac res was the p rim a ry fun d for
th e pay m e n t of th e debt to J a n d th a t S wh o h ad ob ta in e d
.
,

a n a s s ign m e n t of b oth se c urit ie s was e n titl e d to e n forc e th e


,

d ecree upon th at m o rtgage for th e paym ent of th e b a lan c e


w h ic h wa s d ue up on it 1
Th e h old e r of a l a rge tra c t of l an d
.

s ubj e c t to a v en d or s l ien s old a n d c on v ey e d s om e p orti on s


’

of it with w arra n ty to d iffe ren t purc h asers an d then d ied , ,

l ea vin g a wi ll by wh i ch h e ch a rged w ith th e pay m ent of h is


,

d eb ts s om e of th e pa rcel s th at rem ain e d h is p roperty an d ,

devised th e res id ue to h is c h i ld ren H is exe cutor h avin g


.

s ol d th e p arc e l s c h a rge d w ith th e p ay m e n t of d ebts th e pur ,

c h a s e r of two l ots p a id th e p ri ce of on e but fa i le d to pay for


,

th e oth e r wh ic h up on h is d efa ul t w a s s old a ga in for l es s


, ,

th a n th e am oun t wh i ch h e h a d agree d to pay Th is n ew pur .

c h a se r th en b ough t th e d e c re e wh ic h h a d i n th e m ea n ti m e

bee n obta in ed to enforc e th e origin al ven do r s l ien a n d at ’


,

te m p te d to s ubj ec t th e oth er p ort ion s of th e l an d to i ts s atis


fac ti on ; an d it w a s h eld th at th e lot bough t an d pa id for at
t h e e x ecutor s s a l e m us t be firs t s ubj ec te d b ec ause its ow n er
’
,

w as p rim a rily l iabl e for b oth l ots ; an d th at th e n ew pur


c h ase r a n d th e s e ve ra l d evi sees m us t c o ntribute rata bly to

m ak e up th e de fic ien c y a cc o rd in g to th e p re sen t v a l ue of

th e ir res pe ctiv e l ots re l ie vin g th e gran tees w ith w a rra n ty of


,

t h e te s tator in h i s l i fetim e 2
A debtor h av in g given a first
.
,

m ortga ge of a l ot of th re e h un d re d a n d s i x ty a c res of l a n d ,

a n d th e n a s ec on d m ortga ge of a l l but sev e n ty fi ve a c res of -

t h e lot an d th en a th ird m o rtgage of th e wh ol e pa rc e l it wa s


, ,

h e ld th at th e s e c on d m ortga ge m igh t require th at th e firs t


m ortga ge s h ould be en f orc e d firs t up on th e s even ty five a c res -

n ot in c l ud e d i n h is sec on d m ortga ge a n d th at th e th i rd m ort


,

g ga e e h a d n o ri gh t to c a ll up on th e s e c on d m o rtg agee to c on

t rib ute pro ra ta to th e s atisfa c ti on of th e firs t m ortgage d e bt — 8


.

1
S keel v
. Spraker, 8 Paige (N Aderholt 5 . H enry, 8 7 Ala 415 . .

Conrad 0 . Harrison, 3 Leigh


126 m s L AW or sum oc u r
ox .

A ra i l road com pan y h avin g tak en for th e cons truction of its


ro a d th e t it l e t o a po rt ion of a pi ec e of l a n d upon wh ic h th ere ,

wa s a p rior m ortga ge of wh ic h it h ad c on s tructiv e n otice it


, ,

was h e ld upon a forec l os ure of th e m ortgage an d a s a l e in


,

pa rcel s of th e wh ol e of th e m ortgaged prem ises th at th e c om ,

pa n y was boun d to con tribute to th e pay m en t of th e m ort


a
g g e d
-
e b t if t h e sa m ,e w e re n o t p a i d by th e s a l e i n th e i n v e r s e

ord er of al ien ation of th e oth e r property c overed by th e m ort


g g
a e ,
th e f ull v a l ue o f th e l a n d w h i c h i t h a d ta k e n as o f th e

tim e of th e tak in g w i th in te res t to th e ti m e of p aym en t ; s o


,

th a t th e ra i l roa d c om pan y w as in efl e ct a llo we d to re d eem


'

i ts l an d from th e m ortga ge l ien by p ay in g a rata bl e p ropo r -

t ion of th e m ort ga ge d ebt to th e e x te n t of th e f ull v a l ue of


-

th e l a n d at th e ti m e of th e i r ta k in g it w ith in teres t 1
Th e .

o wn er of t wo tracts of l and h a v in g given a m ortga ge of both ,

tra c ts s old on e of th e trac ts to a purch as er w h o by th e te rm s


, , ,

of h is dee d ass um ed th e paym en t of th e w h ol e m ortgage


,

d ebt an d a l s o gave a m ortga ge b ac k to h is grantor c ondi


, ,

t ion ed to s a ve h im h a rm les s from th e o rigin a l m ortga ge .

Th is purch aser afterwa rd s s old h is tract to oth er ven dees ,

th e a m oun t of th e d e bt due upon th e origin a l m o rtga ge be in g


d ed uc ted from th e p rice T h is trac t wa s h e l d to h ave .

bec om e by th es e c on vey an c es th e p rim ary fun d for th e


p y
a m en t of t h e m or t g a g e ; n or d i d i t c e a s e t o b e s u ch
be c aus e th e origin a l own e r afterwards agree d to d is ch arge
h i s m ortga ge ; f o r th a t w a s a m e r e p e rs o n a l s e c u r i ty t o

h im s e lf 2
.

85 . W h en th e P urc h as e r o f an E q ui t y of R e d em pt i o n as

s um e s th e P a y m e n t of t h e M o rt ga g e . It is gen era lly h eld

th at an a greem e n t by th e purch as er of an e quity of re dem p

So in
5 32 .
e S ibl y v B aker, Bank, 1
34 N E q 4.8 Se e .
als o .
.

23 Mich 3 12 S ee
. also B e rnh.
ardt v . Boraem 0 W ood 2
.7 N 1 E q 3 7 1,; . .
.

M t l I C v E ton A m b oy
Lym bum e r, 8 5 N Y 1 72 . . .
u ua n s c a.s . .

1 D w v Con don 1 6 H ow Pr R R Cc , 3 8 Id 13 2
o s g . . . . . .
.
. ,

S i F t U i 1 S tate v Ri le
p y, 3 2 C onn 1 5 0
(N Y ) 7
5 1 n os er 0 n o n .
o . .
.
. . .
suc cessxvs cu m s . 27

ti on with
ven dor th at h e w ill h im self as sum e an d pay th e
h is
m o rtga ge d ebt w i ll ren d e r h im pers on ally l iabl e n ot on ly to
-

h is g ran to r but a l s o d i re ctly to th e h old er of th e m ortga ge 1


,

a n d th at w ith out affe c ti n g th e l i a b i l ity of th e o rig in a l d e bto r ” .

Th e o rigi n a l doc tri n e whi ch i s s ti ll ofte n suppo rted w as , ,

th at th is ri gh t of th e m ortgagee to h ol d th e p urch aser of th e


e q uity of red em pti o n by reas on of th e l a tter s agree m en t w ith
’

th e m ortga gor to ass um e th e p ay m en t of th e m ortgage d ebt -

does n ot m ean th at th e m ortgagee c an m a intain an a c tion at


la w upon th i s agre em en t b etwe en th e m ortga gor a n d th e pur
c h a ser but re s ts on th e g roun d th a t th e c on tra ct of th e pur
,

c h as e r i s a c oll ate ra l s ti p ul a t ion ob ta in ed by th e m ortga gor ,

wh ich by equitab le sub roga ti on in ure s to th e be n e fi t of th e


m ortga gee
11 Th e m ortga gee is s a id to sta n d on th e righ ts of
.

U nion Ins Cc v Hanford 1 43


1
. . . . Carey 63 Wisc 426 ; U nge r v Sm ith,
, . .

U S 1 8 7 Twic hell v Mea rs 8 Bis s


. . .
, . 44 Mic h 22 ; C rawford v Edwards . .
,

C C 21 1 ; Bo wen 0 Beck, 9 4 N Y
. . . . . 3 3 Mic h 3 5 4 ; Carley v Fox, 3 8 . .

8 6 ; R ica rd v Sanderson, 41 N Y . . . Mich 3 8 7 ; Miller v Thom pson, 3 4


. .

1 79 ; Burr v Beers, 24 N Y 1 78 ; . . . Mic h 10 ; Fitzgerald v Barker, 8 5


. .

V room an 12 Turner, 8 H un (N Mo 1 3 and 70 Mo 68 5 ; Sc hlatre v


. .

K
. . .

78 ; Thorp v eokuk C oal Co , 48 . . Orsand, 19 La Ann 1 25 ; Tunnard . .

N Y 25 3 ; D unn ing v Leavitt 8 5 N


. . .
,
. v H ill, 10 La Ann 247
. H ebert v . . .

Y 3 0 reve rsing D un ning v Fis her, 20


.
,
. D oussan, 8 La Ann 26 7 . . .

H un ( N 1 78 ; Cam pbell 0 Sm ith,


. . Conn Ins C c 0 Tyler, 8 Bis s . . . . .

8 H un (N 6 ; Lam b v Tucker, C C 369 ; Latiolais v Citizens Bank,


’
. . . . .

42 Iowa, 1 1 8 ; Thom pson 0 Be rtram , . 3 3 La Ann 1444 . . .

1 4 Iowa, 476 ; Moses 0 Dallas Dis . Kellerv Ashford, 1 3 3 U S 61 0; . .

J
.

trict C ourt, 12 Iowa, 13 9 ; Mec hanics Cro well v C urrier, 27 N Eq 15 2 ;


’
. . .

Sa vings Bank 0 G06, 13 R I 5 16 ; . . s c , on appea l, nom C ro well v St


J
. . . . . .

U rquhart v Brayton, 1 2 R I 169 ; . . . Barnabas Hospital, 27 N Eq 6 5 0 . .

Lonnig s Estate, 5 2 Penn St 1 3 5 ;


’
Klapworth v ressler, 2 Beas l ( 13 N D
J J
. . . . .

Tho m pson 0 Thom pson, 4 Ohio St Eq )6 2 arm on v W iswall, 9 C E


J
. . . . . .

3 3 3 ; S oc iety of Friends 0 Ha ines , 47 Gree n ( 24 N 267 Wilson


K
. .

Ohio S t 423 ; Daub v Englebach 109


. .
,
v . ing 23 N J Eq 1 5 0; Whitcom b
,
. . .

1113 26 7; Carnahan o To usey, 9 3 Ind v Whitm or e, 5 7 V t 43 7 ; Ga rnsey v . .

J
. . . .

5 61 on es 0 Parks , 78 In d 5 3 7 ; Fol . R ogers, 47 N Y 23 3 ; Trotte r v


J
. . . .

lam bee 0 ohns on , 28 Minn . 3 11 ; . H ughes, 12 N Y 74 King 0 W hite . . .

K eedle 0 Floc k 27 Neb 83 6 ; Da Costa


.
,
. ly, 10 Paige (N Y ) 46 5 ; Halsey v . .

0 Co m fort, 8 0 Calif 5 07 R ickm au 0 Reed, 9 Paige (N 446 ; C urtis v . .

K
. . .

Miller, 39 ans 362 ; Schm uc ker 0 . Tyler, 9 Paige (N 432 ; Blyer v .

K
.

Seibert, 18 ane 104 ; Wills on v . . Monholland, 2 Sandi Oh (N Y )478 ; . . . .

Phillips, 27 Tex 5 43 ; Palm eter 0 . . Scott 0 Featherston, 5 La Ann 306


. . . .
1 28 m s LAW or sum ou r
on .

h is d ebtor an d to be enti tl ed to appropriate for h is debt any


,
1

s e c urity h eld by h is d ebto r for its p ay m en t ; and h is rem edy


’

is res tri cted to th e privi l ege of s ubrogation to th e righ ts of


h is d eb tor an d w ill give h im n o righ ts aga in st th e purch as er
8
,

w h i ch c ould n ot und e r th e contrac t of purch as e h a v e been


c l a im e d by th e o rigin a l d ebtor A cc ord ingly th e m ortgagee
‘
.

h as been a llo wed to en forc e th e pe rs on a l l iab il ity of s uch a


purch ase r on ly to th e e xten t of th e defic ien cy upon a fore
c l os ure s a l e of th e m o rtga ged p re m is es a n d o n ly if th e p a rty
5
,

t o w h om th e purch as e r s a gree m en t w as gi ven w as h i m s e lf


’

pe rson a lly l iab le for th e paym e nt of th e m ortgage d ebt “ -


.

Th e d oc trin e of e quity is th a t w h en th e grante e i n a dee d ,

a s s um es th e p a ym ent of th e m o rtga ge d e bt h e is t o be re -

g a r d e d a s th e p ri n c i pa l d e b t or a n d th e m o rtg g
a or o c c u p ies ,

th e p os ition of a s urety ; a n d th e m ortgagee is pe rm itte d to


7

res ort to th i s g ran tee to rec ov er th e de fic ien cy a fter a pply ing

th e p roceed s of a s a le of th e m o rtgage d prem is es by th e ,

e q u ita b le rule th at th e c red i tor i s e n titl e d to th e be n e fit of

a l l th e c oll ate ra l s ec urit ie s wh ich h is d ebtor h as ob ta i n e d

t o re in fo rce th e prin c ip a l obl igati on 8


th ough th i s righ t is ,

s tric tly an e q ui tabl e on e a n d its e x erc is e a t la w h as be en ,

refus e d B ut th e b roa d d oc trin e h as s inc e been l ai d d own


9
.
,

1
Be rksh ire Ins Co v H utc hings, . . .
10 Paige (N 5
Ki g n 0
. Whitely ,

1 00 I nd 49 6 . . 465 ; Norwood 0 De Hart, 3 0 .

2
A s in the case of sure ties postea , N J Eq 412 ; V reeland 0 V an Blar . . . .

com , 3 5 N J E N l
N 1 5 4 et seq .
q 5 3 0 ; e s on 0 . . . .

5 Os borne 0 Cabell
, 77 V a 46 2 ; Rogers, 47 Minn 103 ; Brown v S till .
. .

B iddel v B rizzolara, 64 Calif 3 5 4 ; m an, 43 Minn 126 .

J
. . .

C ro well v C urrie r,.27 N E q 1 5 2 7


Antea , Q24 H uyler o Atwood,
. .
. .

and 6 5 0 26 N Eq 5 04 J
J
. . . .

5
Laing v Bym e, 3 4 N Eq 5 2 ; Trotte r v H ugh es 12 N Y 74
. .
;

J
. . . .
,

Em ley 0 Mount, 3 2 N
.
Eq 470; Curtis 0 Tyler, 9 Paige (N
.
43 2 ,
.
.

D unning v L eavitt, 8 5 N .
Y 30 B rown v Winte r, 14 Calif 3 1 ; Pru . .
.
.

Albany Savings Institution 0 B urdick, den 0 William s , 26 N J Eq 210; .


. . . .

8 7 N Y 40; Talburt v Berkshire William 8: Mary Co llege 0 Powell 12


. .
.
.
,

I ns Co , 80 Ind 43 4 ; Gilbert 0 San


. .
.
Gratt ( Va ) 3 72 ; Hi c ks 0 McGarry, .
. . .

de rson , 5 6 Iowa, 3 49 3 8 Mich 66 7


.
. .

5
’
Klapworth v ressler, 1 3 N J . DCofi n 0 Adam s, 1 3 1 Mass 133 ; . .
. .

Eq 6 2 ; Halsey v Reed, 9 Paige (N


.
Gable 0 Scarlett, 5 6 Md 169
. .
. . .

446 .
suc cess r
vn cu m s . 1 29

th at on e for wh os e ben efit


prom ise is m ade to an oth er m ay a

m a i n ta i n a n a c ti o n u p o n th e p r om i s e th o u gh h e w as n ot a
,
1
party to th e agreem en t or privy to th e c on s ideration th ereof ;
an d it w as t h e n h e ld i n u n q u a li fie d t e rm s th a t w h o e ve r h a s

for a a v l u a bl e c o n s i d e r a t i o n a ss u m e d a n d a g r e e d t o a
p y an

oth er s deb t m ay be sued d irec tly by th e c red itor 1 an d th at a ‘


’
,

m o rtga gee o r o th e r in c u m b r a n ce r m ay m a i n ta in a p e rs o n a l
o
a c ti n a ga i n st a p u r c h as e r f ro m t h e o w n e r of t h e e q u ity of
d
re em ti on p w h o h as a g r e e d w i th h i s g ra n to r t o a s s u m e a n d

p y
a 0 11 t h e i n c
'

um b r a n c e i f th e p a r ty w i th w h o m th e a g re e
,

m en t was m a d e was h im s e lf pers o n a lly l i a bl e up on th e m o rt

g g
a e d eb t-
8
a n d th a t a
,
p u r c h as e r w h o h a s m a d e s u c h a n

a gree m en t c an n ot afte rw a rds be rel eas e d th e ref rom by h is


r n t o r t w h o i t w m a d e w i th out th e con s ent of th e
g a o m ,
a s ,

c re dito r to wh ose b en efit it in ure s if th e l atte r h as ac c epte d


‘
, ,

it 5
. Th e sam e rule w i ll be a ppl ied to th e c a s e of an y other
i n c um bran ce 5
B ut th e m ortga gee can s i m ply h old s uch a
.

purch as er to th e perform an ce of h is a greem ent h e w ill n ot


Lawrence 0 Fox, 20 N Y 268 ;
1
Pia no Manufac turing Co v B urrows,
K
. . . . .

Fischer o How Ins Co 69 N Y 40 ane 3 61 ; Bingo 0 Wing, 49


K
. . . . . . .
,

1 61 ; H and 0 en nedy 8 3 N Y 1 49 ; .
, . . Ark 45 7 . .

Farley 0 Cleveland, 4 Cow (N Y ) . . . .


5
Anton, n 2, p 94 . . .

43 2 s c , on error, non Cle vela nd


. . .
5
N Y Life I ns Cc v Aitk in, 125
. . . . .

v Farley, 9 Co w (N Y )63 9 ; D el 0 N Y 660; Gifford v Corrigan, 1 1 7


.
p . . . . . . .

Bartholom ay B re wing Cc 123 Penn .


, . N Y 25 7 ; W hitting v Gea rty 1 4
. . .
,

S t 42 ; Ayers s Appeal, 28 Penn St 49 8 Ra nney v McMul


’
. . . Hun (N .

1 79 ; Lewis 0 Sawyer, 44 Maine, . len, 5 Abbott New Cas ( N Y ) 246 . . .

3 32 ; C ross 0 Truesdale 28 Ind 44 ; .


, . Douglass 0 Wells, 1 8 Hun ( N . .

Lam b o Donovan, 1 9 Ind 40; Nelson


. . 8 8 ( overruling Stephen s v Casbac ker, .

v First National Ban k, 48 Ills 3 6 ;


. . 8 H un ( N 1 1 6 and disapproving ,

O Conner o O Conner 8 8 Tenn 76 ; Crowell v St Barnabas H ospita l, 27


’ ’

“
.
, . . .

Travellers Ins Cc v California Ins N J Eq 6 5 0) Fleis chauer v Doe


’
. . . . . . . .

1 5 1 ; Sham pv Meyer .
, ne r 5 8 H ow Pr ( N Y ) 19 0; Wil
, . . .

20 N eb 223 ; Flint v Cadenasso 64


. .
, lard v Worsham , 76 V a 39 2 ; Bay
. .

C ali f 8 3 . v William s , 1 1 2 Ills 9 1 ; Ba um v


.

K
. . .

5
Wood 0 Moriarty, 1 5 R I 5 1 8 ; . . . altw asse r, 4 Mo App 5 73 , 5 74 See . . .

Paducah Lum ber Co v Paducah . . Sc hool Trus te es v Anderson, 3 0 N J . . .

W aterSupply Co , 12 8 0 W Rep 5 5 4 ; . . . . Eq 3 66 ; Young 0 School Trustees ,


. .

R edels heim er v Miller, 107 I nd 48 5 ; . 3 1 N J Eq 29 0 . .

J
. . .

Pulliam v Adam son, 43 Minn 5 1 1 .


5
ones 0 Higgins, 8 0 Ky 409

K
. . . .

M um per 0 elly, 43 Kenn 25 6 . .


5
Haverly 0 Becker, 4 N Y 169 . . . .
30 THE LAW OF S UBROGATION .

be b ogated to a ny other righ t aga inst th e purch as er Th e


su r .
1

deve l opm ent of th is doctrin e th ough doubtl es s an outgrt ,

of th e law of s ubs tituti on s carce ly c om es w ith in th e s c ope ,

of th is in vestigation It is suflic ien t to s ay th at it h as a ls o


.

b een em ph atica lly den ied ; and th e court wh i ch l a i d down


’

th is p ropos iti on in i ts broa d est te rm s h as refus e d to a pply it


to oth e r s om e wh at s im il a r cases a n d h as s a id th at th e rul e
5
,

is on e wh ich ough t n ot to be e x ten ded 5


.

1
Duncan v Baker, 72 Mo 469 Mich 5 1 3 ; Booth r Conn I ns
J
. . . . . . .

5
Malcolm v Sc ott, 5 Exch 601,
. . 43 Mich 299 ; Goodenow v . . ones ,

6 10 Meech 0 Ensign 49 onn 19 1


.
, C . 75 1113 48 ; Gautg ert e H ogs 73 1113 .
,
.

Prentice v B rim hall, 1 23 Mass 291


. . 30 .

Colt, J , in Pette e v Peppard 1 20


. .
,
5 Merrill
Green 5 5 N Y 270;
0
.
, . .

Mas s 5 22 ; Excha nge Ban k 0 R ice,


. . Metropolitan Trust Cc v N Y R R . . . . . .

107 Mas s 3 7 ; Dow v Clark, 7 Gray


. . 45 Hun ( N 84 .

( Mas s ), 1 9 8 Field 0 Crawford, 6 Id . .


5
Pardee v Treat 8 2 N Y 38 5 .
, . . .

1 16 ; Milla rd 0 Baldwin 3 Gray .


, And see Ga rnsey 0 Rogers 47 N Y .
,
. .

( M a s s ) , 48 4 ; Melle n v Whipple , 1 . 23 3 ; Dum berrv Ra n, 60 H un (N .

Gray, 3 1 7 Mason 0 Barnard, 3 6 Mo . . 3 5 8 ; Beveridge v N Y Ele vated B . . . .

3 84 ; Peacock v William s 9 8 N or .
, . R Cc. 1 12 N Y 1 ; Biddel o
.
, . . .

Car 3 24 ; Edwards 0 Clem ent, 81


. . Brizzolara, 64 Calif 35 4 . .
SUBROGATI ON IN CAS ES OF S UB H YS B IP . 1 31

CHA P T ER III .

S UBROGATION IN CAS ES S URETYSH IP .

Su m o:

S um ty s Righ t of S ubrogation S urety d oes not lose his R igh t by


’

I t is an Eq uita ble Assign m en t to a reei113 to


g e xon erate his Cc

th e S uret y sureties

S urety subrogated to th e Priority One wh o h as pledged his Pro perty


of Creditor for th e Debt of a noth er en titled
S ure ties of a Trus tee subroga ted to to S ubrogati on .

R igh ts of th e Trus tee and of the Exten t to which S ubrogation will


Cestuis qua Trus tent
S ureties of a S h erifl subrogated to S urety of S urety m ay be subt o
'

Rig h ts which th ey ha ve satisfied g a te d h ow fa r

for him H o w far Creditors of S urety m ay


b
S ubroga t ion of a De tor s S urety
’
b e s ubrogated
again s t a Sh erifl C reditorcan n ot disch arge Securi ty
'

S urety subroga ted to Corpora tion s


’
for h is own Benefit after Pay
Li en upon th e S tock of its S hare m ent by S urety

h olders Insta nces of th e A pplica tion of th e


S urety en titled to be sub roga ted, Doct rin e of S ubrogation for t he
th ough not in Privity with Prin Protection of S ureties ;

cipnl S urety s Righ t of S ubrogation m ay


’

S uret y on a Bond en titled to th e be lost by h is Wai ver


Benefit of Prior Bond for th e Surety s Ri ght of S ub roga tion sub
’

sam e Debt C s Righ ts


'

j ec t to redit o r
S urety subroga ted to the Ben ef t o i i ‘

Surety indebted to h is Principal


a n Agreem en t m ade by h is C red not entitled to Subroga tion
itor
S urety of a Purc h ase r s ubroga ted S ure ty s Right con fined to th e Con
’

to V endor s Righ t of Resciss ion


’
tra ct for wh ich h e was S urety
S urety of Purchaser s ubroga te d to S urety s Righ t to m ars h al Sec uri
’

Title or Lien reta ined by V en ties given to the sam e Cred itor
dor for S e parate Debts
S urety for V endor subrogated to Surety can n ot req uire Creditor to
Eq 11itable Righ ts of Vendee resort first to Sec urity
Righ t of V endor w h o bec om es Righ t of S ubrogation dest royed by
S urety for V en dee Applica tion of th e Security upon
S ure ty en titled to Funds h eld for th e Debt
th e Debt in th e H an ds of h is Creditors R ight to apply Security
'

Principal as need ed for his own Proteo

i
S urety m ay a vail h m self of h is
Prin cipal s Righ t of Set ofl or
' ‘
-
S urety for Part of a Deb t cann ot
Defence b e subroga ted wh ile the oth er
S urety is a Creditor of Principal Part rem ains unpaid
susnooa n os
'
m ca sas or sunm sm r . 1 33

Indem nity som etim es


’
Creditor m ay be s ubsti t uted to th e S urety s

Ben efit of Sec urity for the Debt treated as a Trust for th e Pay
h eld by a S urety m ent of the Debt

Sec urity h eld by a Surety regarded Partial S urety n ot to be har ed m


as a Trust for th e Paym en t of by th e S ubs titution of th e Cred
itor to his Indem ni ty
C reditors Right to Security h eld
'
Creditor cannot be subrogated t o
by a S urety wh o 1s also a C m d a S e curity n ot created aga in st

itor of t h e Prin cipal . h is Debt .

Creditor s Righ t to S ecurity held


’
Cases where Creditor h as sough t
by S urety m easured by that of t o be subroga te d to S ecurities
S ure ty held by one und er 11 Seconda ry
Security give n m erely to indem Liability
l
.

n ify S ure t ies ca n n ot be enforced Cred itor s ubstituted to th e c aim


a fter S ureties discharged of his Debtor for Reim burse

When S urety s Transfer of Indem


'
m ent upon th e Party ulti m a te

n ity to Creditor does n ot ex liable .

Bondh older subs ti tuted to Claim


Sec urity given by Party
agains t
’
Surety s Indem n ity not availa ble
to C re di tor unless In solvency ulti m ately liable
i nte rven es S ubs titution to Securities h eld by
A pplica tion of th ese Princ i ples m S ureties in a Crim inal Recogni
'

Con nec ticut . zance

Creditoren titled to Ben efit of S ure


ty s Indem n ity wh en In solvency
'

intervenes

86 . S ure ty s y on payin g
'
R i gh t of S ub ro g a ti o n . A . s uret ,

th e d eb t fo r h is p ri nc ipal is en titled to be sub ro gate d to all ,

th e se c urities fun d s lien s a nd equitie s which th e credito r


, , , ,

h old s ag ain st the p rin c ip al debtor o r as a m ean s of enforcing ,

paym en t f rom h im 1
T h is righ t will be e nforced wh eth er the .

Lake 11 B ra tto n, 8 De G M
1
. . Ind 1 9 1 ; R oc ker v Benson, 8 3 Ind
. . .

G 440; Goddard v Whyte, 2 Gifl 25 0 ; 2001: v Clem m er 44 Ind 1 5


'

J
. . . .
,

449 ; Wooldridge v No rris, L R 6 . ones v Tinc her, 1 5 Ind 308 ; Br y


K
. . . .

Eq 410 ; H e y m an v D ubois, L R
. . . . son 0 Close, 60 Iowa 3 5 7 ;
. eokuk ,

1 3 Eq 15 8 ; U nio n Trust Cc v Mor


.
. . v Lo ve 3 1 Iowa, 1 1 9 ; Sea rs 0 L a
.
,
.

ris on 125 U S 5 9 1 ; H unte r 0 force, 1 7 Iowa, 473 ; Fields 0 S herrill


K
, . . . . .

U nited S tate s 5 Peters, 1 73 , 18 2 ; , 18 ans 3 6 5 ; B urk v Chris m an 3 . .


,

Co lvin o O wens, 22 Ala 78 2 ; Faw . B Mon ( Ky ) 5 0; L um pkin v Mills


K
. . . .
,

cetta v im m ey 3 3 Ala 261 ; Talbot


.
, . 4 Ga 3 43 ; Davidson 11 Carroll, 20
. .

v W ilkins
. 3 1 Ark 41 1 ; Belcher 0 , . . L a An n 19 9 ; Scott 0 Featherston,
. . .

Ha rtford Bank 15 Conn 3 8 1 ; Mc , . 5 La Ann 306 ; Tuck v Calvert 33


. . .
,

Dowell v Wilm ington Bank, 1 Har Md 209 ; Winder v Diflenderfier, 2


' '

J
. .

ringt ( De l ) 369 ; Billings v Sprague,


. . . Bland Ch ( Md ) 166 , 1 99 ; ohnson .

49 Ills 5 09 ; Pence v Arm strong, 9 5


. . 0 Bartlett, 17 Pick ( Mass ) 477 ;
. . .
1 34 THE LAW or sus s ooa n on '
.

s uret y
boun d in one in strum en t with th e principal or n ot ;
is 1

an d it will be t ra n s m itte d to th e s urety s as s i n ees a nd to his


’
g ,

c red ito rs w h e n th e p rin cip al d em a n d h a s been s o us ed as to


,

destroy th e ir sub ordin ate l ien s upo n h is property an d to h is


5
,

h eirs wh en n ec es sa ry for th eir p ro tec tion an d to h is gran tees


5
, ,

wh o h a ve l os t th e p rope rty c on veye d by h im to t h e m in con


s eq uen c e of its b e in g ta k e n upon th e prin ci a l obl i a tion 5
p g .

A n d th e c red itor m ust d o n oth in g to d efeat th is righ t of s ub


roga tion on th e p a rt of th e s urety or to v a ry th e p os ition of ,

th e s ure ty ; if h e tak es f rom th e p rin cipa l d eb to r a pl ed ge or


5

s e c urity for th e d ebt h e m us t h old th e s am e fairly a n d ,

pa rtially for th e benefit of the surety as well as for h is own


, ,

p rotection ; an d if h e p arts with such prope rty w ith out the


5

k n owled ge and c onsen t of th e s urety h e w ill l ose h is c l aim ,

a gainst th e l a tte r to th e e x ten t of th e v a l ue of th e p rope rty so

Dick Moon 26 Min 3 09 ; Dozie r


0 . Enders v B runo, 4 Randolph , .
1 .

0. Le wis 27 Miss 6 79 ; Allis on v 43 8 ; Havens v Willis 100


,
. . .
,

S utherlin 5 0Mo 274 ; Aruot 11 Wood N Y 48 2, . . . . .

burn 3 5 Mo 9 9 ; Wilson 0 Bum ey


,
5
Moore v B ray, 10 Penn St 5 19 ;
. .
, . . .

Lo w 11 Blodgett, 21 B olt B odey, 1 8 Penn St 207 ; Neil


'

8 Ne braska, 3 9 . 11 . . .

N H 1 21 ; Dearbo rn 11 Taylor, 1 8 v Miller 8 Penn S t 3 47 ; Ne fi s


’

J
. .
,
. . . .

N H 15 3 ; Young v V o ugh 23 N
. Appeal 9 Watts Se rg ( Penn ) 36
J
. .
. .
, , .

Eq 3 25 ; Irick v B lack , 1 7 N Eq Ebenhardt s Appeal, 8 Watts 3: S erg


’
. . . . .

1 8 9 ; Lew is 0 Palm er, 28 N Y 271 P 3 7 H l


’
.
( e nn ) 2 .us ton s A ppe a , 6 9
K J
. .

ing v B aldwin 2 ohns Oh ( N Y ) .


,
. . . . Penn S t 485 (overruling Ha rrisburg
. .

5 5 4 ; Chatham B an k 0 S hipm an 20 .
,
Ba nk 0 Ge rm an 3 Penn S t .
, . .

1111 11 ( N 5 43 ; Ottm an v Moak, . . S kinner v Te rhune, 45 N J Eq 5 65 . . .

3 Saudi Oh ( N Y ) 43 1 ; Tow e v . . . . . D avenport v H arde m an 5 Ga 5 80 .


,
.

N ew bold, 4 Jon es Eq ( No r C a r ) . . Morris 0 Evans 2 B Mon ( Ky) 8 4 . . . . .

21 2 ; S m ith v Mc Leod 3 I red Eq .


,
. . N eim c ewicz v Gahn 3 Pa ige ( N .
, .

( N o r Ca r ) 3 9 0 ; C o c h ran v S h ields 6 14 ; York v Landis, 6 5 Nor Ca r


K
. . . .
.
, .

2 Grant s Cas ( Penn ) 43 7 ; W are 5 3 5 Watts v inney, 3 Leigh


’
. .
,

ex pa rte 5 R ic h Eq ( 8 0 Ca r ) 473 ; , . . . . 272 ; Mc Dan iels 0 Flo wer B rook .

B itti c k v Wilkins 7 B e ish ( Tenn ) . . . . Manufg Cc , 22 V t 274 . . . .

3 07 ; Wade Gre en, 3 H um ph .


5
Mea dor e Meador, 8 8 Ky 21 7 . . .

( T e n n ) 5 47 ; C a rpen t e.r M in te r 7 2 ,
5
Beaver v Slanker, 9 4 Ills 1 75 ; . .

Te x 3 70; Wills on Phillips 27 Tex Wilson 0 Murray, 90 Ind 477 ; Sta te . .

J
.
. ,

5 43 ; a m es 0 Jac q ues 26 Tex 320 ; .


, . B a nk 0 avis 4 I nd 6 5 3. D , . .

Leaks v Ferguson , 2 Gratt ( V a ) 5


Pearl 17 eac on 24 Ben 1 86 . D .

J
.
. . .
,

419 ; Miller v Pendleton, 4 H e n 19 Oh D


5
. . Forbes v ackson, . . .

Mun f ( V a ) 43 6 ; H ighla nd 17 High


. . . 6 15 .

land 5 W V a 63
, . . .
s us a ooa n on m '
c a ss s or sua m rsm p . 1 35

s urren dered The s urety is d isch a rged at least pro ta n to


.
1
, ,

wh enever by reas on of th e a fi rm a tive act of th e c red ito r th e ,

s urety c a n n o lon ge r be s ub sti tute d to th e righ ts a nd s e c urities

of th e c reditor 5
Th e rule is un do ubted a n d it is on e foun ded
.
,

on th e pl a in es t p rin c ipl es of n atura l re as on a nd j us tic e th at ,

th e s urety payin g off a d ebt s h a ll s tan d in th e pl a ce of th e c re d


itor a n d h a ve a ll th e righ ts which h e h as for th e p urpose of
, ,

o b ta in in h is r i b ur e e nt It is h ardly poss ibl e to put


g e m s m .

th is righ t of s ub s titution too h igh ; an d th e righ t resul ts m ore ,

fro m equity th an f rom c ontract or qua si contract unless in so ,

fa r as th e k n ow n eq uity m ay be suppos ed to be im porte d in to


a n y t ra n s ac tio n a n d s o to ra is e a c ont rac t by im pl ic a tio n
, A .

s urety w ill be en titl e d to ev ery rem edy w h ich th e c red ito r h as

a gain st th e p rin c ipa l d eb to r ; to e nfo rce ev ery se c urity an d

a ll m ea n s of p ay m e nt ; to s ta nd in th e pl a c e of th e cred ito r ,

n ot o n ly th ro ugh th e m ed ium of con trac t b ut e ven by m ea ns ,

of s ec urities en te red into with out th e k nowl edge of th e surety ,

h a vin g a righ t to h ave th o s e sec urities tran sferred to h im ,

th o ugh th e re was n o stip ula tion for th at an d to a va il him s e lf ,

of all th ose s ec urit ies aga ins t th e debtor 5 B ut th e surety .


”

Guild 0 B utler, 127 Mass 3 8 6 ;


1
. . 5 8 1 ; Bla ck River Bank Page , 44 v .

B aker 0 B riggs 8 Pick ( Mas s ) 122 ;


.
, . . N Y 46 3 ; Com m onwealth v Miller,
K
. . .

C um m in gs 0 L ittle , 45 Maine 1 83 ; .
, 8 Serg R (Penn ) 45 2 ; ennedy
. . .

Ne w Ha m ps hire Sa vings Bank 0 Co l . 11 .B rossiers 1 6 La Ann 445 ; .

J
.
,

cord 1 5 N H 119 ; Everly 0 Rice,


, . . . enkins 0 McNeese, 3 4 Tex 189 ; . .

20 Penn S t 29 7 ; As hby v S m ith, 9


. . . Cooper 0 Wilcox, 2 Dev Bat Eq
. . . .

Le ig h Stallings v Am eric us .
( N o C ar ) 9 0 ; T
. urne r 0 McCarter
. .
,

Ba nk, 5 9 Ga 701 Perrin e v Mobile . . 42 Ga 49 1 ; Winston v Yea rgin 5 0


. .
,

I ns . 22 Ala 5 75 ; Mc Mullen v . . Ala 3 40; Hall 0 Hoxsey 8 4 Ills


. .
, .

H inkle 3 9 Miss 142 Pratt s S uc


,
’
.
6 16 Rogers v Sc hool T rustees 46 Ills .
, .

cess ion , 1 6 La Ann 3 5 7 ; Philbrooks . .


428 ; Payne 0 Co m m erc ial Bank 6 .
,

v Mc Ewen, 29 I nd 3 47 M ( Mis s ) 24 ; Middleton


.
; S te wart v Sm
K
. . . . .

D a vis 1 8 I nd 74 ;
, irkpatrick v .
. v. Mars halltown Bank 40 Iowa , ,

H owk , 80 Ills 1 22 ; Morley 0 ick . . D 29 ; Saline County v B uie, 65 Mo . .

ins on 12 Calif 5 6 1
, . 63
K
.
.

5
innaird 11 Webste r 10 Oh Div .
, . .
5
Lord B rougham , in H odgson v .

1 3 9 ; A m e rica n Bank 0 Baker, 4 Met . . Shaw, 3 Myl 81 K 1 8 3 ; Hill 0 V oor . . .

( M as s ) 4 ; City Bank 0 Young 43


1 6 .
, hies , 22 Penn St 68 . . .

N H 45 7 ; H a rd 0 S pe ncer, 40 V t
. . . .
1 36 TH E LAW or s os s ooa n os .

c ann ot acquire by subrogation an y greater righ ts th an th e


c red itor h im se lf enj oy e d 1
.

87 . I t is an Alth oughEq ui t a b l e A n i m am m o t h e S ure ty .

th e s urety s righ t of s ubrogation has bee n s o m etim es l im ited


’

to sec urities in th e h an ds of th e c re d ito r at th e in ce p tion of


th e surety sh ip yet it is n ow s ettled th at n o s uch lim ita tion
5
,

e x ists
5
S o s oon as th e s urety pay s th e de bt of hi s prin c ipal
.
,

t he re a rises in h is fa v or a n eq uity to h ave all th e sec urities


h eld by th e c red ito r for th e d em an d turn ed ove r to h im an d ,

to avail him s elf of th e m as fully as the c red ito r c ould h a ve


don e For th e purposes of his ind em n ific ation h e is e n titled
5
.

to be s ub rogate d to a ll th e righ ts re m edies a n d s ec urities of , ,

th e c re d ito r an d is a llowe d to en force a ll th e c re d ito r s righ ts


’
,

a nd rem ed ie s a n d m ea n s of p ay m e n t aga ins t th e p rin cip a l


5
.

Alth ough th e s urety s p aym en t d isch arges th e debt an d ex ’

tin g uish es all th e s ec uritie s s o far as it c o nce rn s th e c re d itor , ,

it d oes n ot h ave th at e ffect as between th e p rin cipal a nd the

Sc hur v Sc hwa rtz, 140 Penn St


1 . . . 1 1 8 ; Shattuc k 0 0011, 128 In d 29 3 . .
°

5 3 Mille r v S tout, 5 De l Oh 25 9 ; . . . Monroe Bank v (1160111, 79 Iowa, 3 00 .

Walsh 0 M B ride 72 Md 45 ; Mor


’
.
,
. May 11 W hite , 40 Iowa 246
.
, .

se ll 0 Caroline 22 Md 3 9 1 ; Ba rton Be rger 0 Buckland, 28 Gratt


5 .
. .
.
,

0 B rent, 8 7 V a 3 8 5 ; Pe rkins v N o
. . .
( V a ) 8 5 0
.
; S ass ce r 17 Yo ung 6 G ill .
,

la n, 79 Ga 29 5 300; Be nneson v Sa v
.
,
. J ( Md ) 243 ; Lowndes o Chis
. . .

age , 1 30 Ills 3 5 2 ; Wynne v W illis olm , 2 McC ord Eq ( So Car ) 45 5

K
. . . . .
,

76 Tex 5 89 ; Kilpa tric k v Dean, 1 5


. . lopp v Le banon Ban k, 46 Penn St
. . .

Daly ( N 182 . . 88 ; Murray 0 Catlett, 4 Green ( Io wa), .

5 Wade 0 Coope , 2 Sim 15 5 ; . . 108 ; Jacq ues v Fackney, 64 Ills 87 ; . .

N ewton 0 Chorlton, 10 H a re, 646 ; .


H olliday 0 Brown , 5 0 N W Rep . . . .

Lake 0 B ra tton, 8 De G , M
. G . . .
1042 ; S m ith 11 Sc hneider 23 Mo 447 ; .
,
.

440 Loughridge r Bo wland, 5 2 Miss 5 46 . . .

5 Ellison 79 Ky 1 48 ;
Alexander v .
,
.
5
Ward s Appeal, 100 Penn St
’
. .

Ruble r N orm an , 7 Bus h ( Ky ), 5 8 2 ;


.
28 9 ; May 0 Burke, 80 Mo 675 ; . .

Loc he nm eyer v Pog ari y 11 2 I lls 5 72 .


,
.
Darst v Bates 9 5 Ills 493 ; Conway
.
,
.

Fegley v McDonald 8 9 Pen n S t 1 28


.
, . . a S tr
. ong , 24 Miss 6 65 C hris m an a . .

Com m onwea lt h v Mille r 8 Serg .


,
. H a rm an 29 Gratt ( V a ) 494 ; Cul
,
. .

R ( Pen n ) 45 2 ; H ubbell v Carpe n


. . lum v Em anuel, 1 Ala 23 ; Sto
.
rm s 11
.
.

ter, 5 B arb ( N Y ) 5 20; S pringer 11 S to rm s 3 B ush ( Ky ), 77 ; Ghiselin


J
. . .
,

Toothaker, 43 Maine, 3 8 1 ; Pearl St . 0 Fe rgusson, 4 Harr


. ohn s ( Md ) . .

Society 11 Im lay 23 onn 10; Pierc e


.
,
C . 5 22 ; Cottrell s Appea l, 23 Penn St
’
. .

11 H olzer 6 5 Mic h 263 ; Nelson 11


. , . . 294 .

William s, 2 Dev Bat Eq ( No Car ) . . . . .


BUBB OGATION IN 01 8 118 or sum sm p . 13 7

s uret y to th ese it is in th e nature of a purch a se by th e


1 as
,

s urety fro m the c reditor a nd does n ot exon era te th e prin cipal ,

deb tor It operates in eq uity as an as signm ent of th e debt


5
.

a nd th e se c urities to th e surety Th e righ t of s ub rogation


5
.

a nd th e e q uita ble as sign m e nt rel ate b ac k to th e tim e of en te r

i n g in to th e c on tract of s urety sh ip as a ga ins t th e p rinc ipa l ,

a n d th ose c l a im in g un d e r him If a ques tion is m ade wh e th er


5
.

t h e acts of th e s urety h a ve been such as to k eep th e se c urity


o n foo t th e c o urt in th e abs e n ce of evid en ce to th e con t ra ry
, , ,

will p resum e th a t th ey were do n e with th a t in te ntion wh ich is


m os t for th e ben efit of th e pa rty do in g th em
5
Th us the .
,

g u a ra n t o r o f a p ro m is s ory n o te o r oth er d eb t w ill be s ub ro

g a te d to th e righ ts of th e c re d ito r to w h o m h e h a s m a d e py
a

m en t 5. A n d sin ce th e surety is entitled to th e benefit of all


th e se curities for th e debt all p ers on s tak in g any of th em , ,

eith er fro m th e p rin cip al d e btor or from th e c red ito r w ith n o

tice of th e fa c ts an d of th e s urety s res po n sibilitie s a re boun d


’
,

in eq uity to h old th e m for his be n e fit] ; Nor will it m ak e any


d ifi eren ce th at th e s urety in en te ring upo n th e obl iga tion did , ,

n ot rely upon th e sec urity or even k n ow of its elit is ten ce


8
, .

1
P osted , 1 3 5 at 74 ; Dem psey a Bus h 18 Ohio St .
, .

5 Bendey v Townsend, 109 U S . . . 3 76 ; Goss in 0 B rown 11 Penn St .


, . .

6 65 S trong 0 Blanchard, 4 Allen . 5 27 R itte nhouse v Levering 6 Watts .


,

5 3 8 ; Thornton v Mc Kewan, .
(Serg
Pe nn ) 190; Kleise r11 Scott,
. . .

1 H em . M 5 25 Torp v Gulseth,. . D
6 ana ( Ky ) 1 3 7 ,
.

3 7 Minn 13 5 . .
5
Pennsylvania R R Cc v Pem
J
. . . .

5
Magee v Leggett 48 Miss 1 3 9 ;
.
, . berton R R Cc , 28 N . Eq 3 38
. . . .

Dinkins v Bailey, 23 Miss 28 4 ; Mc


. . Babcoc k v Blanchard 86 Ills 1 6 5
.
,
. .

Corm ic k v I rwin, 3 5 Penn St 1 11 ;


. .
7
Atwood v V ince nt 1 7 Conn 5 75 ;
J
. . .
,

ones v Tinc her, 1 5 I nd 3 08 ; Dea d


.
.
Norton 0 Son ic 2 Green] ( Me ) 3 41
.
, .

ef iat , J in B ittic k v Wilkins . 7 H eisk


.
, .
Greene 0 Ferric 1 Desaus Eq ( So
.

K
. . . .
,
‘

gf
nn ) 307 ; Hauser v
.
ing, 76 V a . . . D
Ca r ) 164 ; rew 0 Loc kett 3 2 Beav . .
,

499 .

5
McArthur Martin 23 Min
11 .
,
.
5
Forbes 0 ack son , 19 Oh D . J . .

74 ; Co nner v ,
. H owe 35 Minn 5 1 8 ; . 615 ; Lake v Bratton, 8 De G , M . . .

L3 W13 0 Fabe r 6 5 Ala 460; Wood 0 , . . G 440; Mayhew v Crickett, 2 Swanst


. . .

Lake, 62 Ala 489 ; Ri ce 0 Southga te,


.
. 1 8 5 ; Hevener 11 Berry, 1 7 W V a . . .

1 6 Gray ( Mass ), 142 . 474 .

5
McArthur 0 Martin, 23 Minn .
.
38 m e LAW or sus aoc u xon .

A n y c ollatera l s ec urit y v d by th e c redito r from


rec ei e th e prin
c ipal debtor will in ure to th e benefit of th e surety 1
.

88 . S ure t y A ccord
s ub ro ga t e d t o Pri o ri t y of C re d i t o r .

in gly wh e re th e govern m en t is en tit le d to p riority in th e


,

pay m ent of a d eb t a s urety for th e debtor will upon p aying , ,

th e d eb t to the go ve rnm en t be s ub rogate d to its p rio rity ; 5


,

an d h e c an e n forc e th is righ t in a c o urt of e q uity 5 Th is doc .

trin e h as b ee n a pplie d to th e c as e of a s urety upon a cus to m


h ous e bo n d for th e p ay m e n t of d uties to th e Un ite d S tate s 5
,

ev en in c a se s in wh ich th ere w as n o s ta tutory p rov is ion for

s uc h s ub stit ution th e o wn e r of th e goo d s n ot h a v in g be en a ,

party to th e bon d ; a n d al so in fa vor of som e of th e s ureties of


5

a U n ite d S ta tes c ol lec to r wh o h a d m ad e d efa ul t a n d d ied ia

s ol ve n t afte r th eir p ay m e n t of h is in d eb te d n ess to th e U n ited


,

S tate s as a ga in s t th eir c o s ureties a nd al s o to p rotec t s uc h


,
5 -

s ureties a gain s t th e p rin c ipal d eb to r 7 B ut wh e re th e p rinci .

p a l d eb to r is s till furth e r in d ebted to th e


go ve r n m e n t t h e ,

s urety al th ough h e h as p aid all for wh ic h h e w a s b oun d ca n


, ,

n ot b e s ub ro g ated to th is righ t of priority in c o m petitio n w ith

th e go ve rn m e n t n or w ill th e s urety n ec es sarily b e s ub rogate d


5
,

to all th e p re roga tive righ ts of th e govern m e nt "


A n d the .

c l a im of sureties upo n bo n d s give n to th e U n ited S ta te s for

th e p ay m e n t of d uties up on im po rte d good s w h ic h th ey h ave ,

s in c e p a id is s uperior to th e c l a im
,
of a p urch a s e r o f th ese

1
Kirk m an v B ank of Am erica , 2 . C C 446 ; D18 8 v Bouchaud, 10 Paige . .
.

C oldw ( Tenn ) 3 9 7 ; N ewton v Chorl


. .
( N 4 45 W es t 0 Credi tors , 3 La
. .
. .

ton 1 0 H a re 6 46
. ,
An n 5 29
. . .

5
n i
U ted S ta te s v H erm , 2 n 0 W a l 5
E n d e rs v B r un e . 4 B a n d ( V a ) . . .

J
.

lace 25 1 ; H unter 0 Un d ite S t a tes 4 3 8 A n d


.
se e P r a th e r 0 o h n s on ,
3 .
.

J
. ,

5 Pe e , 7 ,
t rs 1 3 18 2 1 8 3 ; R ic h e s on v H a r r oh n s ( M d ) 4 8 7 . . .
. .

J
,

C raw fo rd, 9 4 I I] 1 6 5 ; a c k s o n 11 .
5
R o b e rt so n 0 T r i gg s , 3 2 G ra.
tt . .

D avis 4 Mackey ( D
,
1 9 4 ; Re ( V a ) 7 6 .
. .

i v S alte r l H u rl sto ne N or
5
L iv in g s to n 0 A n d e r s o n 8 0 G a
g na , . .
.
,

m an , 274 . 1 7 5 Ir b y v Li vin g s to n ,
8 1 G a 2 8 1 .
. .

5 C hur chi l is re 39 C
l h D 1 7 ;
,
4 5
u,
e en 0 O
’
C a ll a g
. h a n., 1 I ris h Q .

B o ltz s Estate , 1 3 3 P
’
e n n S t 77 ; E q 43 9 ; H e th 0 L. e w is ,. 1 1 4 In d . . .

Orem v Wrightson 5 1 Md 3 4 ; Miller 5 08


K
. , . .

v Wo od wa rd, 8 Mo 1 6 9 err0 H am ilton, 1 C ranch, C C


5 .

J
. . . .

5
U nited State s v Preston, 4 Wash 5 46 ; ones 0 Gibson, 8 2 Ky 5 61
. . . . .
8 113 11001 1 101; 111 c a ses or s us m sm p . 13 9

g ood s fro m th e im po r t e r al th o ugh s uc h purc h ase r h as l ost ,

th e g ood s by rea son of an un lawful sal e of th em for th e sa m e


d uties by th e c oll ecto r 1
.

89 . S ure ti es o f a Trus t e e s ub ro g a t e d t o t h e R i gh t s of th e

T rus t e e a n d of t h e C e s tui s q ua Tru t e n t s . Wh ere th e s ureties

of a ve been com pelle d to an s wer for his b reac h of


trustee h a
trus t th ey a re s ub rogated to th e rem ed ies of th e trus tee an d
,
5

to th e righ ts of both th e trus tee an d th e ces tm qua trus t aga in st


’

th o se w h o h a ve p a rtic ipated in h is wron gful acts 5 Th e gua r .

d ian of a n in fa nt h aving w rongf ully as s igned a bond pay abl e


to him in h is oflic ial ca pa city an d th e s ureties upo n h is ofli ,

cia l b on d h a v ing m ad e up th e l os s th ey were allow e d to re ,

c ov e r f rom th e as s ign ee of th e bo nd j ust a s the wa rd c ould ,

h ave d on e 5
Th e s ureties of a decea se d gua rd ian wh o h a ve
.

s atis fi ed th e wa rd for his d efa ult will be s ub rogate d to th e

righ ts a n d re m ed ies of th e w a rd a g ain s t th e guardian s esta te 5 ’


,

a n d a g a in s t a ll p a rties wh o se l ia b il ity w a s p rim a ry to th a t of

th e s uretie s 5
The s ureties upo n th e offi c ial bond of a n in sol
.

ve n t c l e rk of c ourt will in eq uity be e n titled upo n a b rea ch of ,

trust by th ei r p rinc ipal to a ll th e rem ed ies a n d securities th at ,

we re i n th e power of th e ces tuzs qua trus ten t or th e cred itors


’

aga in s t on e wh o p a rtic ipate d in th e b rea c h of trus t 7 If a n .

a d m i n is trator be in g abo ut to l e ave th e Sta te d epo sits th e


, ,

Linville, 20 Mo Ap 1 3 8 g ill v. . . .

5
B oyd v Myers , 1 2 Lee .
5
McClelland 0 D avis 4 Les .
.
,

1 75 ; B us hong v Taylor, 8 2 Mo 660; 9 7 ; Walker 0 C ro wder, 2


.
.
.

W heeler 11 H awkins , 116 Ind 5 15 ; Ired Eq (N or Car) 478 ; Sta te v


. .
. . . . .

Sc hoonover 11 Allen, 40 Ark 1 3 2 Atk ins , 5 3 Ark 303 ; Gilbe rt 11 N eely,


.
. . . .

5
Bla ke 0 Trade rs Ba nk , 145 Mass
’
.
3 5 Ark 24 . . .

3
1 ; Ed m un ds v V ena ble , l Patton 5
Bla ke 0 Traders Ba nk, 145
.
’
.

11 ( V a ) 1 21 ; Ada m s v Gleaves 10 Mass 1 3 ; Thom son 0 H um hre


p p y,
. .
. .
, .

Lea 3 6 7 Wilson v Dos te r, 8 3 N o r Car 416 ; Shields 0 Whit . . . .

7 I red Eq ( Nor Car ) 23 1 ; R ha m e ta ker 8 2 N or Car 5 16 ; H arris 0


. . . .
, . . .

a Le w is 13 Rich E S C H i N or Car 202 ; Mo rley


.

q (, o ar ) 270 ; a r r so n 7 8 . . . .
, . .

M cN eil v Morrow, Rich Eq Gas 17 Metam ora 78 Ills 3 94 : Muldoon


.
. . . .
, .

( 8 0 Car ) 1 72
. . 11 C ra wford, 1 4 Bush K
.
( y) 1 25
J
.
, .

5
Powell 0 ones , 1 Ir ed Eq B unting v Ricks, 2 Dev 6: Bat
. . . . . .

( N0 Car ) 33 7 Fox 11 Alexander, Eq ( Nor Car ) 130


. . . . . . .
140 m s LA W or suss oc a rx
os .

a ss ets of the estate with a stranger in trust for th e n ex t ,

of k in of th e in testate th e s ureties of th e adm inis tra tor , ,

a ga in s t wh om rec ove ries h ave be e n h ad by any of th e ne xt of

k in h ave a righ t to ca ll upon this stra nger for an acc ount of


,

th e as sets s o receiv ed by h im an d to be sub rogated again st ,

h im to th e righ ts of such of th e n ex t of kin as h a ve h eld th e


sureties to res pon s ib il ity A nd al th ough it h as been d ec ided
1
.

in Massa ch usetts th at a s urety upo n a n ad m in istrato r s pro


’

bate bond wh o h a s been oblige d to pay a j udgm ent re cove red


,

by the h eirs at la w upon the bond an d h as tak en a n a s s ign


- -

m en t of all th eir righ ts in th e es tate a n d all c l a im s of th eirs

th erefor ca n n o t m a in ta in a suit aga ins t a n agen t of th e ad


,

m in is tra tor h a v in g in h is h an d s m on ey s belongin g to the

es ta te yet this d ec is ion w as u t up on t h e g ro un d th a t th e


, p
h eirs could not th em selve s h a ve m aintain ed s uch a n ac tion ,
.

but were res tric te d to th eir rem edy upon the ad m in is trator s
’

bon d A surety upon an ad m in istrator s bond wh o h as paid


5
.
’

on e h alf of a j ud gm ent rec ov e red by a c red itor of th e in tes


-

tate again s t th e ad m in istra to r w ill n ot be s ub rogated to th e


righ ts of th e c red ito r wh o m h e h as pa rtly paid b ut to th ose ,

of th e ad m in is trator for wh om h e h as m ad e th e p aym en t ; 5

for a sure ty s s ub rog a tion to th e rem ed ies of th e c red itor is


’

allo w e d o nly wh en th e c re d itor h as b ee n fully s a tis fied


5
.

9 0 B ure ti e a
. of a s h e riff s ub ro g a t e d t o R i g h t s w h ic h t h ey

hav e s a t is fi e d fo r h i m .
-
Th e ve
s ureties Of a s h e riff , wh o h a
been com pell ed to pay a j ud gm en t rec overed aga ins t h im by
th e o wn e r of p rop e rty wh ic h h e h a d ta k e n on a n e xe cuti on
a g ain s t a third p a rty a n d h ad turne d o ver to th e j ud g m e n t
,

r
c e d ito r h ave b e e n,
a l lo w e d to re c ov e r t h e v a l ue of s u c h p rop

i
e rty a ga ns t th a t p l a i n tiff th e s u re tie s w h o h a d s at i s f
i e d th e

o wn er were substituted to h is cause of a ction a ga in s t the


1 K e n ne dy 0 . Pickens 3 Ired Eq
, . . 36 7 . And see Stetson v
.

( r Ca r ) 1 47
N o . . . Moulto n, 140 Mass 5 9 7 . .

5
Winslow v Otis, 5 Gray ( Mas s ) , .
5
Clark 17 Willia m s, 70 Nor Car
.
. .

3 60 as in Adam s 11 Gleaves, 10 Lea


, . 6 79 .

5 d ate d
, 5 88 ; poste , Q 7
1 2 d .
S UBROGATION 111 ca ses or sus m rsm r . 1 41

c re ditor .
1
So if th e s ureties oney of a sh eriff h ave to pay m

for th e default of h is d eputy in failin g to take a b ail bo n d -

f rom th e defen dant in a writ th ey m ay in equity be sub rogated ,

t o th e righ ts of th e s h eriff again st such d eputy an d m ay a l so ,

re s ort to a fun d wh ich th e deputy h a d obtain e d fro m such de

fen d an t to in dem n ify him self again st th e c on sequences of the


s a m e d efa ul t 5
They could al so res ort to th e sureties in a
.

bon d given by th e deputy to the sh erifi to s ecure th e latter


a ga in s t th e d eputy s d el in q uen cies in oflic e 5 Th e suretie s of
’ ‘
.

a s h eriff wh o h av e bee n c o m pe ll ed by rea s on of h is d efaul t , ,

to pay to th e o wners of l a nd th e am o unt for which h e h a d


sold th e l a n d in p artitio n procee d in gs w ill be subrogated to ,

t h e righ ts of th e sh erifi in a n ote wh ich he too k for th e price


of th e l a n d from th e purc h ase r at h is s a l e Th e sureties of a
5
.

s h erifi wh o h av e bee n c o m pell ed th rough h is n eglec t to se rve ,

a n ex ec utio n c o m m itted to him to pay th e a m o un t of such ,

exe c utio n to th e c red itor th erein will be s ub rogate d to th e ,

righ ts of th e c red itor against th e origin a l d efen d an ts in th e

ex ec utio n j ust as th e sh eriff would h a ve been if he h ad him


5
,

s elf m a d e th e p ay m e nt 5
.

91 . S ub ro ga t l o n of a D e b t o rs S ure t y
'
a gai n s t a S h e riff .

Wh ere plaintiff recovered j udgm ent an d is sued ex ecution


a

a gain s t b oth princ ipal an d s urety an d th e sh erifi c oll ecte d th e ,

am o un t of th e j ud gm en t fro m th e prin c ip al debtor but p aid ,

over o nly a part th ereof to th e plaintifi and th e surety pa id ,

th e b al a n c e of th e j udgm ent to th e pl ain tiff neith er of th em ,

t h en k n o win g th at th e sh erifi h ad the fun ds in h is h an d s th e ,

s urety wa s sub rogated to th e plain tifi s claim a gain st the


’

S weet 0 Jefl ries, 48 Mo 279


'
1 Skifi a Cross, 21 Iowa, 45 9 ;
~ 5 . . .

Philbric k 0 Shaw, 6 1 N H 3 5 6 5
Bitticl: v Wilkins , 7 H eisk .

J
. . . . .

5 Blal
ock 5 Peak, 3 ones Eq T 3 07 S i t v Ledyard, 14
. .
( e nn ) a n. .

( No r C a r
.
) 3 23 Ph.ilb ric k 0 Sha w , . Ala 244 B ut not in Miss iss ippi,
. .

61 N H 35 6 D illon 11 Cook, 5 8 m . M ( Miss ) . . .

J
. . .

5
Brinson 11 Thom as , 2 ones Eq . . 773 .

(N o r C.ar ) 41 4 ; N e
.b erg al v Ty ,
m a l .
5
As taa, 57 .

2 W V a 474
. . .
1 42 13 3 M W or S UBBOGATION .

s h eriff funds A surety wh o h as been obliged to


for such .
1

s atis fy an ex ecution agains t h is prin cip al in con seq uen ce of

th e s h e rifi s h avin g w ron gfully applied th e proceed s of th e


’

p rin cipal s property to th e paym ent of a j unior exec ution for


’

wh ich th e surety was n ot liable will be s ub rogated to th e ,

prior credito r s rem edy against th e sh erifi as h e will be if th e


’ 5
,

opportun ity of obtainin g satis faction from the princ ipal h as


been lo s t by th e fault of the sh erifi 5
But if th e l iab il ity of .

th e sh eriff h a d be en for m ere n egligence in n ot c ollectin g a nd ,

return in g th e ex ec ution un der s uch c irc um s tan ces th a t the ,

sh eriff h im s elf upon m ak in g c om pen sa tion for h is d e faul t


, ,

would h ave been entitled to be subrogated to th e righ ts of the


c red ito r aga in st a ll th e d efen d an ts in th e e x e c uti on
5
th en a ,

pay m en t by the surety would not h ave entitled him to an y


red res s a ga in s t th e s h erifi unl es s th e sh e riff s n egl ec t h ad
5 ’
,

re sulte d in a los s to th e s urety for w h ich h e could n ot obtain

s a tisfa ctio n f ro m h is p rin c ipa l A n d th e sure ty can n o t be


5
.

s ub ro gated to th e p rin c ipal d ebto r s rem ed ies again s t the


’

s h eriff un ti l th e s ure ty sh a ll h a ve s atis fied the j ud gm en t


,
]

In a suit at law on a c ons ta ble s bon d for an es ca pe ii since


’
, ,

th e b ring ing of th e ac tion th e original j ud gm ent h as been ,

s atis fied by a s ure ty for th e d eb to r n o m o re th an n o m in al ,

d am ages will be allowed even th ough th e suit after this s atis , ,

faction was prosecuted for th e benefit of th e surety


,
5 .

92
’ '

. S ure ty s ub roga t e d t o C o rpora t io n s m e n up on t h e S t oc k

of lt s S h a re h o l d ers . Wh en c orpo ration s h a ve a lien upon the

Merrym an v State 5 Harr 85


1 Bellows 0 Allen 23 V t 169 ; ,
5
,

J
. . . .

ohns ( Md ) 423 ; Bellows 0 Allen O Hara v Schwab 26 La Ann 78


’
. .
, . .
.
, .

23 V t 169 . . Pennsylvania Bank 0 Potius 10


5
.
,

5
Com m onwealth v Straton, 7 J . . 148 , 1 5 2 See Bo ugh .

J Ma rsh ( Ky ) 90 See Strato n 0


. . . . ton v Orleans Bank , 2 Barb Ch ( N
. . . .

Com m onwealth , 2 Dana ( Ky ) 3 9 7 , Y ) 45 8 ; Ga ry 0 Bank of the State


. .
,

5 R owe v William s, 7 B Mon . . . 11 Ala 771 ; Hill a Sewell, 27 Ark


. .

K
( y ) 20 2.
; M i ller v D yer, 1 Da v . . 15 .

( Ky ) 263 Contra , in Massachusetts 5


Grifl Steam boat S tac y, 12 La
'
. . , v .
.

at law, in Harringto n 17 Ward, 9 . Ann 8 . .

Mass 25 1 . .
5
State v . Miller , 5 Blackf . (Ind ) .

5
Az tec , 5 7 . 3 81 .
sus s oou ron 111 CAS ES or s03 3 rrsm p
'
. 143

o k of th eir shareh olders for th e paym ent of d ebts due from


st c

th e l atte r to th e c o rpo ration s a surety pay ing s uc h in d eb te d ,

n ess wi ll be s ubroga te d to this l ien an d if th e c orpo ra tion


1
,

a b a n don s th is l ien it puts its elf in th e pl ac e of th e d ebto r


5
.
,

Th e s urety s equita ble righ t a tta ch es th e in stan t th e lieu of


’

th e co rporation c o m m en ces a n d is con s um m ate d by h is pay ,

m en t of th e in d e bted n e s s for w h ic h h e is boun d as s urety


5
.

If h owever th e c orpo ration th ough h avin g th e power to


, , ,

c rea te suc h a l ien h a s n ever e xercis ed its op tion to do s o , ,

th en no lien ex is ts a n d th ere is n oth in g to whic h th e s urety ,

c a n be s ub roga te d
5
.

93 . S ure t y e n ti t l e d to b e s ub ro g a t e d th o ugh n o t in P ri vi t y

w i t h h is P rin c i p al ll be sub rogated to the


.
— Th e s uret y wi
ri gh ts of th e c re d ito r a gain st th e p rin c ip a l th ough th e re is ,

n o p riv ity o f c on tra c t b etween th e p rin c ipa l an d th e s urety


5
.

A ow ed a d eb t to B wh o was in d ebte d to 0 At th e request


. .
, .

of B an d in pursuan ce of an arran gem en t between B an d G


.
, . .
,

A ga ve a bon d a n d m o rtga ge for h is d eb t d irectly to C


. A .

th ird p a rty th en a t th e sol ic ita tion of B but with out any re


, .
,

ques t from th e m ortga gor gua ran teed th e pay m ent of th e ,

bond and was c om pelled to pay it upon h is guaran ty : an d h e


,

w a s subrogate d to th e ben efit of th e m o rtgage for his reim


burse m e n t al th ough h e h a d n o rem edy at law again st th e
,

prin c ipal debtor ; for th e surety s righ t of s ubrogation does


5 ’

n ot res t upo n c o n tra c t or p ri vity b ut upon p rin cipl es of n at ,


.

ural j us tice an d equity 7 a nd it w o uld h a ve b een n o defen c e

to th e surety in a n ac tio n again st h im by th e c red ito r th at


, ,

h e becam e s urety with o ut th e p rivity of th e p rin c ipal 8 th ough ,

1
Kl pp o . A13 5 75 ; D unlop, is re, 21 Oh D
Lebanon Bank, 46 Penn
0 . . . .

St 8 8 ;
. Young 0 V ough , 23 N J
5 83 . . . .

Eq 3 25 . .
5
Burns 0 H untington Bank, 1 .

5
Houston 3: Texas B y 00 0 Pen W ( Penn ) 3 95 ; Matthews e . . . . . . .

B re m ond, 66 Tex 1 5 9 Aikin, 1 N Y 5 9 5 .

K
. . . .

5
lopp 0 Lebanon Bank, 46 .
5
Matthews 0 Aikin, 1 N Y 5 9 5 . . . .

Penn St 8 8 ; Peters burg Savings 00


. .
1
Miller v Stout, 5 Del Oh 25 9 . . . . .

0 Lum sden , 75 V a 3 27
.
5
H ughes 0 Littlefield, 1 8 Maine,
. . .

5 Perrine 0 Mobil
e 1113 22 400 And see Wright 0 Garlinghouse,
. . . .

27 Barb ( N Y ) 474 . . . .
1 44 u m u w or sons oorn ou .

he igh t not h ave been able to obtain indem nity fro m his
m

principa l by an action at law S o a s urety for a part of the


1
.

d eb t , as ogated to th e credito r s securities


he c an not be subr
’

un til th e wh ole debt is p aid m ay pay th e wh ole debt in c lud


’
, ,

in g th e part for wh ic h h e is n ot l iable a nd en fo rce th e c redi ,

tor s sec urities to reim burse h im for h is ful l paym e nt


'
a
.

94 . S ure t y up on a B ond e n tit le d t o t h e B en e fi t of a P ri or

B o n d fo r t h e bond h as been given by


sa m e D eb t . W h ere a

tw o debtors for the pay m en t of a debt an d afte r th e d ea th of ,

on e of th e m th e other gives a n ew bond with a surety fo r a


pa rt of th e d em an d due upon th e firs t bond s uch surety a fter , ,

pay ing th e am oun t of the sec on d bon d and ta kin g an as s ign ,

m en t of th e fi rs t bo n d m ay en fo rce it a a in s t th e es ta te of
g ,

th e deceas ed d ebt o r ‘
Th e s ure ty will be s ub ro ga ted under
.

an y o th er b on ds h e ld for th e sam e d ebt


I
i
.

95 . S uret y s ub ro ga t e d t o th e B e n e fi t o f an A gree m e n t m ad e

b y h is C re di t o r . A
quity to be substituted to
s uret y h as an e

th e be nefits obta in ed by th e c red itor un der a n agree m ent


m a d e w ith oth er c red ito rs of th e s am e debtor allo wing ,

h im to s h a re in th e proceed s of p ro pe rty of th e d e b tor


upon wh ic h h e would oth erwise h a ve h a d n o c l aim 5
If a .

ven do r of l an d h as auth o rized h is ve n d ee to b rin g s uit agai nst

a n a d verse occ up an t of th e p rem ise s a gree in g to allow as a ,

pa rt paym ent of the purc hase m on ey th e ven d ee s expen se s in -


’

p rosecuting the s uit sureties on a bon d given by th e ven dee ,

for th e p rosec ution of th e s uit will upon bein g h e ld on th eir ,

bond be s ubrogated to th e righ ts of th eir p rin cipal th e ven


, ,

dee a gain st th e ven d or un d e r this ag reem en t


,
" .

96 . S ure t y o f a P urc h as e r s ub ro g a t e d t o V e n d or
'
R i gh t of

R e so ls s i o n . Where th e se ller of property h as th e righ t to


1
McPhe rson v
. Meek 3 0Mo 3 45
, .
5
Dodd v Wils on
.
, 4 Del Oh 1 08, . .

Ca rter 0 Black, 4 Dev . Bat Law . . 39 9 .

5
( Nor Car ) 425
. . . Person 0. Perry, 70 Nor Car . .

5
P os ted , 11 8 . 69 7 .

5
Gerber v Sharp, 72 Ind 5 5 3 . . . Am erican Land Co
7
. v. Grady, 33
5
Hodgs on 0 Shaw, 3 Mylne K . . Ark 5 5 0
. .

1 83 .
SUBROGATION m c u s s or s os m y sm p . 1 45

re scin d the sa e l y of
for th e non -

pa m en y
t of th e price , a suret

th e purch aser upon being c o m pell ed to pay th e p ric e will


, ,

be subro gated to th is righ t l


After the sureties have been .

c o m pelled to pay th e d eb t an d h a ve establ ish ed th eir cl aim ,

a g ain s t th eir p rin cip al th ey will be s ub ro ga te d to all th e c re d,

itor s righ ts in eq uity an d m ay set asid e an y c on vey ance


’
,

wh ich th e c reditor c ould h ave avoided B ut the in dorser of


5
.

a n ote giv en by th e m aster of a s te a m bo at for sto res a nd

s uppl ies furnish ed to th e bo at do es n ot by p ay in th n ote be


g e , ,

c om e s ub rogated to th e righ t of th e p arty furn ishin g th e sup

plies to h ave a l ien on th e boat Th e obj ect of th e n ote was


a
.

to p reven t th e l ie n ; an d th e ind orser s rem edy is on th e n ote


’

its elf H e m ay be sub rogated to th e righ ts of th e pay ee of


.

th e n ote b ut n ot to th os e wh ich w ere w aiv ed by th e tak in g of


4
,

th e n ote for h e c an n ot c l aim by sub rogation a ny grea ter


,

righ ts th a n b elon ged to th e o rigin al c redi to r 6


.

97 . S ure t y of a P urc h a s e r s ub ro g a t e d to a Ti tle or Li e n

re t a in e d b y th e V pric e of property
en d or . A s uret y for th e
purch ased th e titl e to th e prope rty bein g reta in ed by the
,

ve n do r a s a dd i ti on a l s ec urity for th e p ay m ent of th e pric e ,

h as an e quity if h e is c o m pe ll ed to pay th e p urc h as e m on ey


,
-

or a b a l a n c e th ere of after a p artia l p ay m en t by th e p urc h a s er ,

t o re s o rt to th e prop erty for h i s re im b ursem ent 6


Th e ven .

do rs sti ll h old ing th e l ega l titl e an d h avin g th e power to ,

s e ll th e p rop erty for th e p aym en t of th e purch a s e m on ey th e -

s urety on b e in g h eld l i abl e for th e purch as e r


'

, n on ey m ay b e -

s ub ro gate d to th i s righ t 7 A n d th is righ t wi ll n ot be de .

5 GrovesSteel, 2 La Ann 480; Arnold o Hicks, 3 I red Eq (Nor


0 .
. . . . . .

Torregano v Segnira, 2 Mart N s Car ) 17 ; Barnes v Morris, 4 Ired


. . . . . . .

( L a ).1 5 8 . E q ( N or C ar ) 22 ; T uck v Ca lv e rt, . . . .

5 Tatum v Tatum , l Ired Eq 3 3 Md 209


. . . . .

( N o r C a r ) 1 1 3 7
G hi s elin v Fergusson, 4 Han .

J
. . . .

5 B a s 0 Steam boat Colum bus 23


y , .
( M d ) 5 2 2 ; H a tch er v H atc he t , 1 .

Mo 23 2
. . Rand ( V a ) 5 3 ; Uzzell v Mach, 4 . . .

5
P ostea , 1 81 H um ph (Tenn ) 3 19 Bea ttie 0 Dick
. . . .

5 Az e
t c, 6 86 inson, 3 9 Ark 205
, . . .

5
S m ith v Schneider, 23 Mo 447 . .
1 46 THE LAW or sus aoc u r
ou .

s tr oy ed by th e purch a ser s l y h is inte r


’
s a e a n d c on ve an ce of

est i n th e pr0pe rty


l W h en eve r th e ven dor of property re al .
,

or pe rs o n a l reta in s a l ien th e re on for th e p a ym e nt of th e


,

purch as e m on ey a s urety for th e purch aser wh o is h e ld lia


-

, ,

ble for th e p urc h as e m on ey is en titl ed to be s ub roga te d to -

th is l ien ex c e pt such a l ien as is m e re ly pe rs on al an d un as


2
,

s i gn abl e S o if p rop erty is s old un d e r a d ecree of c ourt


5
.
, ,

th e titl e b ein g reta in e d or a l ien res erve d upon th e prope rty


for th e purc h as e m on ey th e purch ase r s s urety for th e p rice
’
-

m ay be s ub s t itute d to th is l ie n upon th e d efa ul t of th e pur

ch a s e r an d m ay h av e th e p rope rty s old for h is re l ief e ven


, ,

before h e h as h i m se lf p a i d th e p rice a n d a l th ough th e p rin


‘
,

c ipa l d eb to r h a s h im s e lf tra n s fe rre d h is i n teres t i n th e p rop

e rty to oth e r p e rs on s
5
Th ough th e s urety c ann ot ordina rily .

be s ub rogate d t o th e righ ts of th e c re d itor a ga in s t th e p rinc i

p a l d e b to r un t i l h e h as a c tua lly p a id th e d eb t
5
ye t u n d e r , ,

s uc h c i rc um s tan c es th e s urety h as b een a llo we d to h a ve the ,

p roperty res old for h is own prote cti on bec aus e th e s urety s
7
,
’

ri gh t to h old for h is in d em n ity th e p ro pe rty th us p urch a sed

i s superio r t o th a t of th e purch as e r th e p rin c i p a l d e btor 8


, .

98 . S uret y fo r V en d o r s ub ro ga t e d t o E q ui t a b l e R ig h t s of

V en d e e . A s uret y for th e do r to th e v en dee of property


ven

wi ll ,
p
u on an s wering for th e d efaul t of h i s p rin c ip a l be s ub ,

1
Fulkerson B rownlee , 69 Mo v . .
5
McN eil] v . McNeill, 36 Ah 1 09 . .

3 71 ; Myres v Yaple, 60 Mich 3 3 9 ; . . Posted , 1 85 .

Kleiser v Scott 6 Dana ( X y ) 1 3 7 ;


.
, ,
5
H en ry v Com pton, 2 H ead .

S m ith 12 Sc hne ider, 23 Mo 447 ; Ghi


.
. 5 49 .

selin v Fergusson, 4 H art


. J ( Md ) . .
5
Green v Crockett, 2 Dev B at . . .

5 22 ; Egerton v Alley, 6 Ired Eq . . . Eq ( Nor Car ) 3 90; Poll: v Gallant,


. . . .

fl F l 2 Dev 6: Bat Eq ( Nor Car ) 3 95


'

( N o r C
. a r ) 18 8 ; S ho ne r o . o
g e . . . . . . .

m an, Winston Eq ( Nor Car ) 1 2


5
. . . . P oc tao 11 8 , 1 27 ,
.

5
Ballew o Roler, 1 24 Ind 5 5 7 . B rad ford 0 Marvin 2 Fla 463 ;
K
. .
.
,

Wem ecke o enyon , 66 Mo 275 ; . . Pettillo, in re, 80 Nor Car 5 0; Sten . .

Ellis v Roscoe , 4 Baxter ho use 0 Davis, 82 N or Car 43 2 ; .

J
. . .

Riddle v Cohnrn, 8 Gray ( Mas s),


. Ferret v Barrett, 4 onas Eq (Nor
. . .

241 ; Carter v Sim s, 2 B eish (Tenn ) . . . Car ) 45 5


. .

16 6 ; B urk o C hrism an, 3 B Mon .


5
S pring v Chipm an, 6 Verm ont,
K
. . .

( Ky ) 5 0 .
662 eith 0 Hudson, 74 Ind 3 33 . . .
sos aoa u xon m c a sas or sonarrsm p . 147

roga te d l ik e m anner to th e equita ble righ ts of the ven dee


in
a ga i ns t th e ve n do r Thus where th e v en dor of l an d ga ve a
.
,

b on d with surety to th e ven dee c ond ition ed to m ake a titl e ,

to th e l an d upo n paym en t of th e purch as e m oney a n d b efore -

th e m on ey was a ll pa i d th e l a n d was s old on a n e x ec uti on


a ga in s t th e ve n d or wh o becam e i ns ol vent and th ereupo n th e
, ,

v en d ee s ue d th e surety up on th e bo n d a nd re c ov e red j ud g ,

m en t a ga in s t h i m for th e m on e y th a t h a d b een p a i d it w as ,

h e ld th at th e s urety c o uld foll ow th e lan d an d h a ve rem un ,

e ra ti on out of it in th e h a n d s of th e purch a sers a t th e s h eriff s


’

s a l e for th e am o un t th a t h e h a d th us been c om pe ll e d to pay


1
,

b e in g s ub rogate d to th e purch a s e r s e quita bl e l ien upon th e


2 ’

l an d for th e re im burse m ent of p a rti a l pa ym ents of th e p ri ce .

99 . R i gh t of V en d or w ho b ec om es s ure t y fo r V en d e e .

A ve n d or of l an d took th e purch as er s n ote for th e p rice ’

th e re of a n d ga ve a b on d for titl e wh en th e purc h as e m on ey


,
~

s h ould b e p a i d W h en h alf th e purch as e m one y h a d been


.
-

p a i d th e v e n d ee s old t h e l a n d giv in g a wa rran ty d ee d th e reof


,

t o a bon a fid e purch a s e r for v a l ue wh o h a d n o k n owl ed ge ,

th a t th e titl e wa s s ti ll in th e o rigin a l ven d or Afte rwa rds .


,

th e ven d or k n owin g of th is c on v ey a n c e th e o rigi n a l v en d or ,

a n d ven d ee m a d e a ve rb a l a gree m en t th at th e v en d e e sh ould

b l of p o y by p y d b of
’

p y
a th e a a n c e h i s u rc h a s e m n e a in g a e t-

t h e ve n d or giv in g h is own n ote th e refo r w ith th e v en do r a s


,

a s ure ty a n d th at if th e ve n do r a s s uch s urety s h ould be


, ,

c om pe ll e d to pay th is n ote th e p urch as e m o ney sh ould aga in


,
-

b ec om e d ue from th e v en d ee to th e v en d or a n d th e ven d or ,

s h o uld s ti ll h old th e l eg a l titl e to th e la n d as s ec urity th e refor .

T h e v e nd or w as c o m pell e d to pay th is n ote an d th en ev ic te d ,

th e n e w purc h as e r fro m th e l an d a n d h e ld it h im s e lf un d e r ,

h is l ega l title Th e ve n d or th en c l a im e d th e b a l an c e of th e
.

1
Fre e m an v Mebane, 2 ones Eq
. J . 7 Blackf ( Ind ) 45 2 ; Wickerm an v
. . .

( N or C
. a r ) 44 Ro binson 14 Wisc 49 3 ; B rown v
J
. . .
,
5
Cla rk 0 ac obs , 5 6 H ow
. Pr . . East 5 T B Mon ( Ky ) 405 ; Grif
,
. . . .

(N Y ) 5 19 ; Payne 0 Atte rbury,


. . fith v Depew, 3 A K Marsh ( Ky )
. . . .

H arv ( M ic h 414 ; Shirley 0 Shirley,


. . 1 77 .
148 m s LAW or sus noou rox .

purch as e m oney from th e ven dee ; an d th e ven dee s purch as er


-
’

c l a im ed d a m a ges for th e b rea ch of th e v en d ee s w a rra nt


’
y .

It w as h e ld th at th e o rigina l p rice was p a id by th e m ak in g


of th e verba l agreem ent b etween th e vendor a nd th e vendee ,

a n d th at th e in d ebted nes s for th is p ri ce w as n ot re v iv ed by

reas on of th e c on trac t of s urety sh ip ; but th at th e o rigina l

ven dor h a ving e l ec te d to res c i nd h is c ontra c t of s a le by


re s o rtin g to h is l ega l titl e an d ev i c ting h is v en dee s pur
’

c h a ser a nd h av i n g th us m a d e h is v en d ee l ia ble i n d am a ges


,

to such purch as er h e m ust refun d to h is ve n dee th e h a lf of


,

th e purch a s e m on ey wh ich h e h ad rece ived


-
1
.

1 00 . S ure ty en ti t l e d to m a h el d fo r t h e D eb t In th e

B a nd s of m P ri n c i pa l W h ere s ureties a re h e ld to pay th e


debt of th e ir prin c ipa l th ey a re e ntitl ed in , eq uity to th e b en e

fit of a ll fun d s an d a s sets s o fa r a s th es e can be s pec ific ally ,

re a ch e d wh ic h th e ir p ri n c i p a l h e ld as s pe c ifi ca lly a ppl ica


,

b le to th e d eb t wh ich th ey h a ve p ai d an d to h ave th es e fun ds ,

a n d a s sets m a d e ava i l a bl e for th e ir p rotec ti on A pe rs on


2
.

ta k in g any of s uch sec uritie s fro m th e p ri n c ipa l d ebto r w ith ,

n oti c e of h i s res po ns ib i l it ies i s boun d in e q uity to h old th em ,

for th e ind em n i fica ti on of th e s ureties 5 S o th e surety m ay .

en forc e th e p ri n c ip a l s ri ght to i n d em n ity or ep a y m en t f rom


’
r
oth ers 5
.W h ere one wh o h el d a m ortga ge as a dm in is tra to r
took a d ee d of th e equity of red em pti o n from th e m ortga go r to
h im self i n d ividua lly it w a s h e ld s in ce th is d eed on ly m ade
, ,

a b s ol ute th e d efeas ibl e e state a l re a dy v e s te d i n h im as a d

m in is tra tor th a t a n a gree m en t by th e l e gatees of th e es ta te


,

th at h e sh ould h old th e l a n d in h is own righ t l eav in g h is ,

s ure ti es l i abl e for th e b a l a n ce d ue upon h is acc ount c ould ,

n ot be supp orte d aga i n s t th e sureti es but th at th e l atter ,

c o uld re s o rt for th e ir i n de m n ity to th e l a n d both in th e ,

5
Davis 0 S m ith, 5 Ga 274
. Atwood o V incent, 17 Conn
. .
5
. .

5
H obson v Bass, L R 6 Oh 79 2 5 75
J
. . . . .

Gee 0 Pack , 33 L Q B 49 ;
5 R odenba rger v Bram blett, 78
J J
. . . . .

S i a m , (J J , in ohns on 0 Bartlett, Ind 21 3 ; osselyn 0 Edwards, 5 7


. . . . .

1 7 Pick ( Mas s ) 477 48 8 ; Lingle v Ind 212


. .
, . . .

Cook, 3 2 Gratt (V a ) 262 . . .


sos a oe u l on m
'
CAS ES op sos m rs m r . 1 49

h an ds of th e d m in is trator an d of h is grantee Wh ere on e


a .
1

b ec am e slirety apon th e prin c ipa l debto r s prom is e th at cer


’

t a in sto ck sh ould be pl ed ge d for th e pay m en t of th e d ebt but ,

th e prin cipa l d ied before th e trans fer c ould be m a d e th e exe ,

c a ti on of th is a greem en t was en forc ed aga in s t h is ex ecuto r ,

a l th ough h i s es tate was ins olven t E x ecuto rs wh o h a ve


2
.

p a i d a d eb t fo r w h i c h th e ir testa to r was l i a bl e m ere ly a s a

s urety for a res id uary l egatee w i ll h av e a l ien up on th e

l e ga cy for th ei r re im b urs em en t s upe ri or to th at of a m o rt


a
g g e e of th e l eg a cy 3
W h e re t
.h e n o te of on e w h o h a d d i e d
i n deb te d to a ba n k w as ren ew e d by h is e x ecutor as such w ith

a s urety th e s urety h a v i n g pa i d th e n ote was s ub s titute d to


, , ,

th e c l aim of th e e x e cutor as we ll as of th e b a n k aga in st th e


ass ets of th e es tate ; an d th e ex ec utor be ing in a dvan ce to

th e es tate by reas on of th e n ote wh ich th e s urety h a d p a id ,

th e am oun t th us due fro m th e estate to th e ex ecutor was


ord ered to be paid to th e surety in preferen ce to a s ubseq uen t
as s ign ee fro m th e e x ec uto r B ut in Al a bam a un d er s im i l ar
5
.

c i rcum s ta nc es it was h eld th at as th e c l a i m of th e c re d ito r

a ga i n s t th e es tate of th e d ece as e d p rin c i p a l was b arre d by

th e tak ing of th e n ew n ote an d on ly th e p arties to th e n ew


5
,

n o te w ere l i abl e upo n it i n th e ir in d i vi dua l ca p a c ity th e ,

s urety upon th e new n ote wh en h e was c om p ell ed to pay it , ,

h a d n o eq uity a gain st th e esta te of th e d ec eas ed p ri nc ip a l ,

e x cept to h old th e i n teres t th erein of th e p a rt ies to th e n ew

n o te ,
5
th e e x ec uto r h av in g n o pow e r to b i n d h is tes ta to r s ’

es tate by a n ew c on tra ct 7 .

1 01 . S u re t y m ay a v a il H im s e lf o f m s Pri n ci pal '


s R i gh t of

1 Jh o nson 0 . Bartlett, 17 Pick .


5
Willes v. Greenhill , 29 Beav .

( Mas s ) 77
4 . 3 76 .

5
McCoy 0 Wilson .
, 5 8 Ind 447 . .
5
H eart 0 . Bryan, 2 Dev Eq . .
(N or .

See accordingly Tucker 0 Daley, 7 Car ) 147


. .

K
.

Gratt (V a ) 3 30 But the surety s


’ 5
. . . As in ingm an v Soule, 13 2 .

neglige nce defeated a sim ilar claim in Mass 28 5 . .

De Meza s Succession, 26 La Ann 5


Brown v Lang 4 Ala 5 0
’
. . .

K
.
, .

35 . ingm an o Soule , supra Brown .


15 0 THE LA W or susaos rn on .

a ot -
ofi or D efe nc e .
—
d upon h is con trac t
A s uret y wh en
,
s ue ,
,

m ay a v a i l hi m s e lf of h is righ t of set ofi grow in g prin c ipa l s ’


-

out of th e s am e trans a ction l Th us it is a good equitable .


,

d efen ce to the surety as to pa rt of th e am ount c l a im ed of ,

h i m th at a d is pute as to th e c on s iderati on of th e c on tract


,

h a v in g a risen b etween th e plainti fi and th e d efen d an t s prin ’

c ipa l an d th e d is pute h a v in b ee n re fe rr e d t o a rb i tr a t i o n in
, g
a cc ord an ce w ith th e ori i n a l a re em en t th i s u n t h a d
g g a m o ,

b een awarde d to th e d efen d ant s principa l wh ich th e prin c i ’

p a l h a d o ff ere d b efo re s ui t b ro ug h t to s et o ff a g a i n s t th e

p res en t c l a im 5
S o wh en th e payee of a n ote s ue d a s urety
.
,

th ere on a nd i t a ppea re d th at th e n ote was gi ven for a t rac t


,

of l an d s old by th e payee of th e n ote to th e p rin cipa l m a ker ,

a n d th a t at th e tim e of th e s a l e th e re w as a n in cum b ra n c e

upon th e l an d wh ich th e p rin c ip a l h ad s in ce d is ch a rged w ith


,

th e c ons en t of th e pla i ntifi a nd up on th e l atter s p rom is e to


’

a llow it as a c red it upon th e n ote i t wa s h e ld th a t th is p rom ,

is e to th e p rin c ip a l in ured a l s o to th e ben efit of th e s urety ,

a n d ope rate d a s atis fa c tion of th e n ote pro ta n to


5 Th e s ure ty .

m a y in ge n era l s et up a ga in s t th e c l a im of th e c re d ito r any

l ega l or eq uitabl e defen c e wh ich w ould h a ve been Ope n to th e


p rin c ipal s uch as th e estoppel of a pre vious j udgm ent be
5
,

t we en th e c re d ito r an d th e p ri n c i p a l 5 B ut th e s urety s
’
.

e q uity to a va i l h im s e lf of h is p rin c i p a l s ri gh t of se t ofi
’
-

a g a in s t th e c re d ito r d oes n ot e x te n d to d istin c t d e m a n ds of

th e p rin c i p a l n ot in th em s elves a v a i l abl e by way of s et ofi


,
5 -
,

Beche rvaise 0 Le wis , L R 7 C


5
. . . . S m okey Peters Calhoun Co , 66
v .
-
.

P 3 72 ; Hauser 0 King 76 V a
. .
, . Miss 471 ; State 0 Gordon, 8
. .

McDonald Man ufacturing Co v Mo . . I red Law ( Nor C ar ) 179 ; Jam tt a


. . . .

ran 5 2 Wise 203 ; H iner 0 Newton,


,
. . Martin, 70 Nor Car 45 9 ; Huntness . .

30 Wise 640 ; Myers 0 State, 45


. . v Patten, 20 Maine
. 28 ; Am es v ,
.

Ind 1 60; Waterm an v Clark 76 I lls


. .
, . Maclay 14 Iowa, 28 1 ; First National
.

428 ; Ellis 0 Fisher, 10 La Ann . . . Bank 0 R ogers 1 3 Minn 407 ;


.
,
.

479 . Adam s 0 C uny, 1 5 La Ann 48 5


. . . .

5
Murphy v Glass , L R 2 P C . . . . .
5
Gill 0 Morris 1 1 H eisk (Te nn )
.
, . .

408 6 14 ; Bank of Com m erce 0 Porter, 1


J
. .

5
Cole 0 natice, 8 Ala 79 3. . . Baxter 447 .

5
Baines v Barnes, 64 Ala 3 75 ; . .
5
People v Brandreth, 3 Abbott, .
sus nooa n ou m cu ss op sm rrsm p . 15 1

an d owing out of th e s am e trans action un l ess th e


n ot gr ,
5

prin cipa l is ins olvent or th e prin c ipa l h as tak en a dvanta ge


5
,

of th e set ofi in a j oint action a gainst principa l an d surety


-
8
.

A n d th is righ t of set off is rec ip roc a l to th e c re d itor an d th e -

s ureties as a ga ins t th e p rin c i p a l B ut th e s urety c an n ot


5
.

with out th e auth ority of th e princ ipa l set up a gain st th e


c re d ito r th e fa i l ure of th e ti tl e to th e p rop e rty for th e p rice

of wh ich h e bec am e s urety ; th e principa l m ay b in d h is s urety


as w e ll as h im s e lf by w a ivin g th e d efen ce of a defec ti ve titl e

or a bre a ch of wa rra n ty in th e c o n vey an c e by w h i ch th e d ebt

was c re a ted 5
Th e surety is b oun d in th e s am e m ann er an d
.

to th e s a m e e x ten t a s h is p rin c ipa l ; l


5 an d if th e a tter is s a t

is fied w ith h is p urch a se it c an n ot be res c in d ed by th e s urety ,

for a d efe c t in th e titl e wh ich is gi ven 7 A n d th e s urety .

m ay p rose cute an a ppeal or a w rit of e rro r to re vers e a j ud g

Pr N s , ( N Y ) 224 ; La Farge v
. . . . . .
5
Baugh 8 5 Ills 43 5
H im rod v .
, .

Halsey, 1 Bosw ( N Y ) 1 71 ; Thal . . . S pringer 0 D wyer, 5 0 N Y 19 , . . .

heim er v Crow, 1 3 Color 3 9 7 . . B athgate v Haskin, 5 9 N Y 5 3 3 ;


. . .

5
Morgan 0 S m ith , 70 N Y 5 37 ; . . . O Blenis v K aring, 5 7 N Y 649 ;
’
. . .

s c 7 H un ( N
. . 244 ; Las he r v . . Concord 0 Pillsbury, 33 N H 3 10;
.

v
. .

Willia m son, 5 5 N Y 6 19 ; S pringer . . H am s Rivers 5 3 Ind 21 6 ; Wart , .

0 Di r er 5 0 N Y 1 9 L w i 0 Yost 22 Gratt ( V a ) 5 95 ;
.
y , ; e s . . . m an 0 .
, . .

McMillen, 41 B arb ( N Y ) 420 ; . . . Mahurin 0 Pearson, 8 N H 5 3 9. . .

Em ory v Ba ltz, 22H un ( N . 43 4 ; Gris t 0 B u ndle 2 Rawle ( Penn 121


.
, .

Henry 0 Daley, 17 H un (N . 210 ; . Guggenheim v Rosenfeld 9 Baxte r .


,

Putnam v Schuyler, 4 H un ( N .
5 33 ; Lync h 0 Brag g, 1 3 Ala . .

16 6 ; East R iver Bank 0 Roge rs 7 .


, 773 ; H a rrison v H en derson, 4 Ga . .

Bosw ( N Y ) 49 3 Baltim ore


. Ohio. .
19 8 ; Boum e v Bennett, 4 B ing 423 . . .

R R Co v Bitner, 1 5 W V a 45 5
. . . . .
5
Andrews 0 V a rrell 46 N 17 .
, . H .

Dart v S herwood, 7 Wise 5 23 ;


. .
5
Ross v Woodville 4 Munf ( V a )
.
,
. .

Woodrufl v State, 7 Ark 3 3 3 ; Stew


'

. . 3 24 ; He nry 0 Daley, 1 7 H un ( N Y . .

art 0 Le vis, 42 L a Ann 3 7 ; V as tine


. . . 210 .

v D inan 42 Mo 269
.
, . .
5
Chilson 0 Adam s 6 Gray .
,

5 Coflin v
McLean, 80 N Y 5 60; . . . 3 64 ; Evans 0 K neeland 9 Ala 42 ; .
,
.

Morgan 0 Sm ith, supra Gillespie v . . Moulton v Bea ucham p, 1 0 La Ann


. . .

Torrance 25 N Y 306 ; H azard v , . . . 6 66 .

I rwin 18 Pic k ( Mas s ) 9 5 ; Edm unds


, . Os born v Bryce, 23 Fed Rep . . .

v Ha r er 3 1 Gratt ( Va ) 6 3 7
.
p ; Pat, . . 1 71 ; Lyon v Leavitt, 3 Ala 430; . .

te rson 0 Gibson 8 1 Ga 8 02 ; Marc h


.
, . Lillard v Puckett, 9 Baxter
.

m a n v Robertson, 77 Ga 40; S haron


. . 5 6 8 ; Walker v Gilbert, 7 S m M . . .

0. Sharon, 8 4 Calif 43 3 ; Bec ker v . .


( M iss ) 45 6 .

N orthway, 44 Minn 61 . .
15 2 run LAW or susaoou l ox .

m ent rec vere o d again s t th e prin cipa l which would h ave been
c o n c l us i ve upon th e s urety
5
.

1 02 . Th e S ure t y is a C re d i t or of th e P rin c i pal .


— Wh en
the principal d ebtor is b ank rupt th e sureties in , , res pect of

th e ir l ia b i l ity are rega rded in eq ui ty as h i s c red itors and


,
5
,

m ay reta in a n y fun d s of th e p rin c ip a l in th e i r h an ds e ven


5
,

a ga ins t a bona fid e purch as e r th e re of for va l ue with out n otice

of th eir righ ts 5
Th e s urety is re garde d in equity as a c re d
.

ito r of h is p rinc pa l and h as a ll th e p riv i l eges of a c re ditor


i 5
,

from th e tim e of h is s ignin g th e obl iga tion by wh ich h e is


bound j ust as h e is liabl e to th e cre d itor from th at tim e ;
5
,
7

th ough h is ri gh t of acti on a ga ins t h is p rin c ipa l 5


a n d h is

equity to be sub rogated to th e s ec urities h e ld by th e c re d itor

do n ot bec om e com pl ete un ti l h is p ay m ent of th e d ebt 5


.

Th ough th e principal s l ia bil ity to indem nify h is s urety is ’


,

previous to paym en t by th e l a tte r m erely c on tin gen t it is , ,

n eve rth e l es s a d eb t an d w i ll b e em b rac ed w ith i n th e term s ,

of a w ill m ad e by th e prin c ipal ch a rgin g h is rea l estate with


th e p ay m ent of h is de bts 50 B ut wh en a s urety is l ia bl e as .

s uch for s e ve ra l d ifi eren t d eb ts of th e s am e prin c ip a l the


'

5
Farrar 0 Parker, 3 Allen (Mass B ragg 0 Patte rson, 8 5 Ala 233 ; Lane
. .

J
. .

5 5 6 ; Lyon 0 Tallm adge, 14 ohns . . v S piller, 1 8 N H 209 ; Willia m s v


. . . .

( N. Y ) 5 01
. .
Was hington, 1 Dev Eq (Nor Car) . . . .

5
Mace 0 Wells 7 H ow 272, t e
.
,
. 13 7
vers ing We lls 0 Mac e, 17 V t 5 03 ; Scott v Tim berlake, 8 3 Nor Car
5 . .
.

K
. .

C rafts 0 Mott, 5 Barb (N Y ) 305 ;


. . . . 3 82 ; eel v Larkin, 72 Ala 49 3 ; . .

Moorhead s Appeal, 32 Penn S t


’
. . Sargent o S alm on, 27 Ma ine, 5 39 ;
.

29 7 ; Walker 0 D ic ks, 80 Nor C ar . . . Wats on 0 Dickens, 12 Sm . M . .

263 ; Reitz v People, 72 Ills 43 5 ; . .


(M i s s ) 608
.
; S tate v H e m in w
g y
a , 10 .

Davis 0 McCurdy 5 0 Wise 5 69


.
,
. . 8 0 Re p 5 75
. . .

McMillan v Bull s Head Bank,


’
5
5
Beaver 0 Beaver, 23 Pe nn St . . . .

1 67 ; Mattin gly 0 S utton 1 9 W V a .


, . . 3 2 Ind 1 1 Danforth 0 Robinson 80
. .
,

19 ; Mc Knight 0 Bradley, 10 Rich . . Maine, 46 6 ; Pulsifer o Waterm an, 73 .

Eq (So Car ) 5 5 1
. . . . Me 23 3 , 23 8
. .

5
Reynolds is re, 16 N B B 1 5 8 , . . .
5
Adam s 0 Tatar, 5 7 Hun (N .

Mc Knight v Bradley, 1 0 Ric h Eq . . 3 02 ; Ho se o Am os , 104 Mo 9 1 . . .

( 8 0 .Car ) 5 5 7 ;.Abbey 0 V an Cam p ,


en
5
Loughridge o Bowla nd, 5 2 Miss . .

J
.

1 Freem Oh (Misa ) 273 ; Battle v


. . . 5 46 ; Choteau v ones, 11 Ills 3 00 . .
.

Hart, 2 Dev Eq (Nor Ca r ) 3 1 . . . . .


5°
Elwood v Deifendorf, 5 Bat h .
.

5
Mc Kee v Scobee, 80 Ky 124 ; . .
(N Y ) 3 98
. . .
sus aooAn on m
'
CAS ES or suam rsm r . 15 8

latter m ay as s ign a debt due to h im from th e s uret y for th e


se curi ty of any on e of th es e debts th a t h e ay c h oo se
1
m .

A nd if th e suret y
privy to a d eed of trust wh ich as s ign s a
is
dem an d due from h im to h is princ ipa l th e ass ign or and th e , , ,

deed b ein g oth erwis e to h is advanta ge m ak es n o obj ecti on at ,

th e tim e to th e as s ign m en t h e is tak en to h ave w a iv ed for a ,

c om pe ns ati on any e uity h e m ay h a ve h a d a ga in st h is d e bt


q
bein g th us inc luded in the trus t fun d so ass ign ed 5
.

1 03 . S ure t y d o es n ot l os e t h is R igh t b y a g re e in g t o ex o n

era te h is C o -
s nrot i os . On e of th e suretie s u pon th e n ote of a

corporation wh ich was s igned by s everal sureties and was


, ,

a l s o s ec ured to th e c re d it or by a m ortgage upo n th e prop erty

of th e c o rpo ra ti on does n ot c e as e to be a s urety or los e h is


, ,

ri gh t of s ub rogati on a s a ga in s t th e c orpo ra ti on by a greein g


, ,

for va l ue w ith h is c o sureties th a t h e wi ll h im se lf pay s uch -

n ote ; an d upon its p ay m ent by h im


,
h e w i ll be s ubro gated ,

to th e righ ts of th e m ortgagee as fully as if n o such a gree


m e n t h ad b een m a d e a n d m ay en fo rc e th e m ortga ge ,both ,

ag a in s t th e c orp orati on and a l s o a ga ins t o th e r c re d itors of

th e c orpo ration h old in g l ien s j un i or to th e m ortga ge 5


No .

p r i va te a rran gem en t am o n g th e c o s uret i es fo r th e d is trib u -

tion of th e b urd en of th eir j oint l i a b i l ity am on g th em selv es ,

w ill affect th ei r righ ts a ga ins t th eir prin cipa l 5


.

1 04 . O n e w h o h a s ple d ge d hi s P ro pe rt y fo r t h e D eb t of

a n o t h er e n ti t l e d t o S ub ro ga ti o n . On e Wh o s ec ure s th e pay
m en t of an oth e r s debt by a ch a rge or m ortgage upon h is own
’

p roperty is a s urety and is upon h is pay m ent of th e d ebt


5
, , ,

e n t itl e d li k e a n y oth e r surety to be s ub rogate d to th e ben efit

of th e sec urities h e ld by th e c re d ito r fro m th e p rin c i pa l

5
Miller 0 Cherry, 4 ones, Eq . Hook 0 Richeson, 1 1 5 Ills 43 1 ; J .
5 . .

( Nor Car ) 19 7 Walker 0 Mc Kay, Water Power Co v Brown, 23 Km


. . . . .

2 Met (Ky ) 294


. . 6 76 . .

5
Miller 0 Cherry, supra .
5
Bolton 0 S alm on, 2 Oh D (1 89 1) . . . .

5 M
cDaniels v Flower Brook 48 ; Price 0 D im e Savings Bank, 124
. .

Manufg . 22 V t 274 . . I lls 3 1 7 Lazarus


. v. H en rietta Ba nk,
72 Tex 35 4 . .
15 4 m s LAW or sm ou
oc u r .

debtor ; l
n or wi ll th is righ t he afl ecte d by th e fact tha t the
ch a rge u pon
property of the s urety was create d by th e
th e
s am e in s trum ent by wh i c h th e p rope rty of th e p rin c i p a l w as

m ortga ged to th e c red itor a n d th at th is in strum en t r o v id ed


p ,

th at upon pay m ent by e i th er prin c ipa l or surety th e c re d


, ,

itor sh ould rec on vey both th e ch a rge of th e s urety an d th e


m ortga ge d l a n d s of th e p rin ci pa l to be h eld upon th e s am e ,

us e s as befo re th e e x ec uti on of th e in s trum e nt 5


If a w ife .

bec om es a s urety for h er hus band by th e creation of a va lid


l ien upon h er own estate for th e p aym ent of h is debt she ,

w ill be en titl ed to th e s am e equita ble righ ts as would b e en


j oy ed by any oth e r surety an d w i ll be subrogate d to the
5
,

righ ts of th e c re d ito r a ga ins t h er h us b an d s p rop erty e ven


’
,

a ga i n s t h e r h us b an d s as s ignee i n in s olv en c y a n d e ven


5 ’
,

th ough th e prop erty h as c om e to th e h an d s of a bon a fid e pur


ch as er f rom h e r h us b an d if s uch purch as er but for h is own , ,

n egl i gen c e wo uld h av e be en a w are of h er ri gh ts An d the


5
.
,

c re d itor s l ien upon th e p rope rty of s uc h a s urety w i ll be dis


’

c h a rge d by an y i nte rferen c e on h is p a rt w i th h er righ t of

s ub rog ati on A s a gainst h er h us ban d sh e is en tit l e d in


5
.
,

eq uity to h av e h is property firs t a ppl ied to th e p ay m ent of the

L ewis 0 Palm er, 28 N Y 271 ;


5 . . . H om e 0 Everson, 1 3 Barb ( N Y )
. . .

Bowker 0 B ull, 1 Sim N s 29 ; Mc . . . . 5 26 ; Sa vage v Winchester, 1 5 Gray


.

Neale 0 Reed, 7 Irish Oh 25 1 ; Sheidle


. .
(M a sa ), 45 3 ; Gore v Town s e nd , 105 .

v We ishlee, 1 6 Penn S t 1 3 4 ; Wood


.
. . Nor Car 228 Purvis v Cars taphan,
. . .

wa rd, J , in Denny 13 Lyon, 3 8 Penn


. .
.
73 N or Car 5 75 ; Moflitt v Roche,
. . .

St 9 8 ; Christner 0 Brown, 1 6 Iowa,


. . 77 Ind 48 Barrett r Davis, 104 Mo
. . .

K
1 30 ; eel v Levy, 1 9 Ores 45 0 5 49 ; Wilcox 0 Todd, 64 Mo 3 88 ; .

K
. . .
.

5
McNeale v Reed, 7 I rish Oh . . H ubbard v Ogden, 22 . ans 363 .

25 1 ; V artie v U nderwood, 18 Barb . . Spear 0 Ward, 20 Calif 65 9 , 674 ,


. .

(N Y ) 5 61
. . . Hassey v Wilke, 5 5 Calif 5 25
. . .

5
Neim cewicz v Gahn, 3 Paige (N . .
5
Aq uilar v Aquilar, 5 Madd . .

61 4 ; Gahn v Neim cewicz, 11 . 41 4.

5 Carle 0 Fox 3 8 Mic


We nd (N Y ) 3 1 2 ; Fitc h v Cotheal,
. . .
.
y , h . 3 8 7 . .

2 Sandf (N Y ) Oh 29 ; V artie v
. . . .
5
Eisenberg v Albert, 40 Ohio St . .

U nde rwood, 18 Barb (N Y ) 5 61 ; 6 3 1 Union Ins Co v Slee, 123 Ills . . .

K
. . . .

Albion B ank 0 Burns, 46 N Y 1 70 ; . . . 5 7 ; Hubbard v Ogden, 22 ilns . .

S m ith v Townsend, 25 N Y 479 ; . . . 3 63.

Wolfe v Banning, 3 Minn 202 ; Van


. .
svs noc u ros m ca sns or sm s nr
r . 15 5

d ebt ; an d th is righ t w ill pas s


5
to h er gran tees, 5
an d to h er
c red ito rs an d h ei rs
5
.

1 05 . Ex t e n t t o w hic h B ub ro ga t i o n w ill h e c a rri e d . Th e


su rb ogation of a surety wi ll n ot be c arried furth er th an is
n ec es s ary for h is in d em n ity ; if h e b uy s up th e sec urity at a
5

d is coun t or m akes h is p aym en t in a d eprec iated curren cy h e


, ,

c a n enf orc e i t o n ly for wh at it c o st h im


5
H e can n ot s pecu .

l ate a t th e expens e of h is prin cipa l h is only righ t is to be


5

re p a i d 7 Nor wi ll h e be s ub rogated for pay m en ts wh ich


.
,

wh en m a de were m a d e a s gifts to th e p rin c i pa l Th e ex


,
8
.

tent to wh ich th e rem edy w i ll be c a rrie d for th e s urety s in


’

d em n ity w ill be govern e d by equitabl e c on s id eration s A .

s urety wh o h a d b een s ub ro gate d to th e righ ts of a l a n d ow ne r

to wh om h e h a d been c om pe ll e d to pay th e d ebt of h is p rin


e i p e l for l a n d wh ic h h i s p rin c i p a l a ra i l ro a d c o m p an y h ad , ,

ta k en un d er th e ri gh t of e m in en t dom a in wa s n ot a ll owed to ,

s t0p th e runn in g of tra i n s ov e r th e l a n d a s th e c red itor m i gh t

h av e done unti l h e was rep a id b ec ause th e c ourt s aw th at


, ,

Graha m v Londonderry, 3 Atk


5 . . 1 Nebras ka , 33 9 ; Martindale v B rock,
J
.

3 9 3 ; H udson v Carm ichael, 23 L . . 41 Md 5 71 ; H all 0 Cresswell, 12 Gill


.

J
.

Oh 89 3 ; McFillin v H ofim an, 42 N (Md ) 3 6 ; Butler v Butler, 8 W


'
. . . .

J
.
.

J Eq 1 44 ; H arrall s Case, 3 1 N V a 674 ; Fea m ster v Withrow, 9 W


’
. . . .

J
.
.

Eq 1 01 ; Shippen s Appeal, 80 Penn


’
. V a 29 6 ; ordan v Adam s, 2 English
. .

J
.

S i 3 91
. ohns v Be a rdon, 11 Md . .
( Ark ), 3 48 ; C rozier v Grayson, 4 J
J
. .

465 ; Wilcox 0 Todd, 64 Mo 3 8 8 ; . . Mars h ( Ky ) 5 14 ; Miles 0 Bacon,


. . .

Allis v Ware, 28 Minn 1 66 Posted ,


. . . 4 J J Marsh (Ky ) 45 7 ; Owings v
. . . . .

Q 1 1 4 .
Owings, 3 Id 5 9 0; Bonney v Seely, . .

5
Erie Savings Bank 0 Roop, 80 .
2 Wend (N Y ) 48 1 . . .

N Y 5 9 1 ; Meds ker v Parker, 70


. . .
5
Reed v N orris, 2 My Cr . . .

I nd 5 09 . .
361 ; Gilles pie v Creswell, 1 2 Gill
J
.

5 Lan
cas ter0 Evors , 10Bea v 1 5 4 ; .
(Md ) 3 6 ; R obins on v Sherm an , 2
J
.
.

Hanford v Boekee , 20 N Eq 101 . . . . Gratt . Coggeshall 0 B ug .

5
Blake 0 Traders Bank, 1 49
’
.
gle s, 6 2 Il ls 40; Hic ks 0 Bailey, 16 . .

Mas s 25 0 ; Borland s Appeal, 66


.
’
Tex 229 . .

5
Penn St 470 ; Southall v Faris h, 8 5 Boltz s Estate, 1 3 3 Penn S t
’
. . . . .

V a 403 ; Blow v Maynard, 2 Le igh


. . 77 Stanford v Connery, 8 4 Ga 73 2 ; . .

29 . Batsell v Richards, 8 0 Tex 5 05 ; . .

5
Dinkgrs ve s Succession, 3 1 La
’
. Waldrip 0 Black, 74 Calif 409 .

K
. .

Ann 703 ; . endrick v Forney, 22 . Scott v Scott, 8 3 Va 25 1 . . .

Gratt (V a ) 748 ; Eaton v Lam bert,


. . .
15 6 m a LAW or sus noc rrx
os .

th is c u o ld be of o pany being i nsol


no ben efit to h im , the c m ~

v ent an d in th e h an ds of a rec eiver an d th e roa d be in g ope r ,

ated by a trustee m ere ly for th e ac c om m od a ti on of th e p ubl ic

and wi th a v ie w to a m ore a dva n tageous sa l e on fore c los ure ;

for equity w i ll n ot do th at wh i ch w ould be of n o ben efit to


th e p arty a s k in g it but m e rely a h ardsh ip to th e p a rty s ough t
,

to be c oerc e d 5
A surety in a b on d given in adm ira lty pro
.

c eed in gs wh o h as be en c om p e ll ed to pay th e am oun t of a

decree wi ll be s ub rogated to th e righ ts of th e l ibe ll a nt a ga inst


his princ ipa l b ut n ot to th e m aritim e l ien wh ic h was d e
,

s troy e d by th e bon d A n d a s urety wh o h a s pa i d th e jo in t


5
.

n ote of h is p rinc i p a l an d h i m s e lf c ann ot reis s ue i t s o as to ,

bin d any one but h im se lf with out th e cons ent of h is prin ,

5
c i pa l .

1 06 . S ure ty of S ure t y m ay be s ub ro g a t e d , h ow far .


—A
s uret y of a s uret y
pa id an d d is ch a rged th e prin c i pa l
. wh o h as
obl igation h as th e s am e eq uity of s ubrogation to th e securi
,

ties an d rem e d ies of th e c red itor as be l on ged to the s ure ty


for wh om h e w as boun d 5
but h e c an h ave n o gre ate r ri gh ts
th a n h is i m m ed i ate prin c i pa l w ould h a ve h ad 5
A joint j udg .

m en t h av in g b een re c overed a gain st se v era l on e of th em wh o , ,

w a s orig in a lly on ly a s ure ty wa s ta k en on th e ex e cuti on an d , ,

g a v e a b on d w ith a n e w s urety to ob ta i n h is re l e as e ; a n d it w as

h e ld th at th is n ew s urety h avi n g b een c om pe ll e d to pay th e ,

d eb t was en titl ed to be s ub rogated to th e cre d itor s rem e dies


,
’

ag a i n s t th e l a nd of th e origi n a l p rin c ip a l a l th ough th is l an d


7
,

h a d b een s old by th e p ri n c ip a l an d h ad c om e into th e h an ds ,

of a bon a fid e purch as er for v a l ue with out n otice of th e c ir


5
H ewitt, in re, 25 N J Eq 210 .
5 Hall Sm ith, 5 H ow 9 6 ; Bit
v .

J
. . . .

5
oliet C hicago R R Co v . . . . tenh ous e v Levering, 6 Watts
. Serg .

H ealy 9 4 Ills 41 6
, . .
( Pe nn ) 1 90;
. M c Da niels 0 Flow er .

5
The Robe rtson, 8 Biss 1 8 0; . Brook Manufg 22 V t 274 ; E1
. .

R oherts v The H unts ville, 3 Woods


. wood 0 Deifendorf, 5 Barb ( N Y )
. . . .

C . Carroll 0 The T P Leath . . . 39 8.

ers , 1 N ewb ( Adm ) 43 2 . .


5
Putnam v Tash, 12 Gray (Mass ),
.

5
H opkins 0 Farwell, 3 2 N H . . . 121 .

5 D dd 0 Wi son 4 Del Ch 399 l


425 . o , . . . .
sus a oc l n ou m
'
ca ses or sos m sm p . 15 7

c um sta n c es, before th e service of th e ex ecution upon th e


origi n a l surety 5
But th e surety of a s urety wh o h as bee n
.

c om pe ll e d to pay th e cred it o r c an n ot be s ubrogate d to th e

plac e of th e cred itor for th e purpose of enf orcing paym en t


from th e prin c ipal if the l atter h as a l ready pa id h is im m ed i
a te s urety Th e im m ed iate surety c an re c ov e r of th e p rin
5
.

c ipa l wh e re th e d ebt h as be e n p a i d by h is own s urety tre a ti ng ,

th e p aym en t as m ad e by h i m s e lf th rough th e l atte r as h is


a ge n t wh e re th e l atte r h old s th e i m m ed iate s urety for h i s
,

re i m burs e m e n t 5
One wh o h as agre ed to i nd e m n ify a s urety
.

from l os s wi ll upon c arry in g out h is agreem en t be subro


, ,

g at e d a g a i n s t th e p rin c i p a l d e b to r a s th e o ri g in a l s urety
w ou ld h av e be en 5
.

1 07 . H o w fa r C re d i t o rs o f th e S ure ty m ay be s ub ro ga t e d .

Wh e re l and s of a s urety h a ve been ta k en for th e debt


th e
of th e prin c ipa l th ough th e s ubs equen t j ud gm en t c re d itors
,
-

of th e s urety wh o h a ve th us l os t th e be nefit of th eir l ie n


,

up on h is l a n ds h av e a n equity to be sub rogate d to th e l ie n


,

of th e jud gm ent aga in s t th e prin cip a l to th e ex ten t to wh ich


th ey h a ve b ee n d ep ri ved of th e p roc eed s of th e s urety s l a n d s
’

by reas on of th e prior jud gm en t agains t prin cipa l an d surety 5


,

y e t th i s e q ui ty d e p en d s e n ti re ly upo n th e ri gh ts of th e s ure ty
aga in s t th e p ri n c ip a l a n d is l i m ite d to th e b a l an c e of gen
,

era l a c c ounts betw een th e p rin c i p a l an d th e s ure ty A n d if


5
.

th e su rety wa s in form an d app a ren tly a m e re j oi n t d ebto r -

h i s c re d itors c a nn ot by s ub ro gati on c l a im h is ri gh ts a s a
surety s o as to p re j ud i c e j un i or l ien s a ga in s t th e p rin c i p a l

debtor Th e c l a im of a c red itor of th e surety such c red ito r


7 .
,

h avi n g be en d ep riv ed of th e oppo rtun ity to s ecure th e pay

5
Leake v Ferguson, 2 Gratt
. . V
( a)
.
5
La beaum e v . S weeny, 1 7 Mo .

419 . 15 3 .

5
N ew York Bank 0 Fletcher, 5 H uston Appea l, 6 9 Penn St
’
5
. s . .

Wend ( N Y ) 85
. . . 48 5 .

H oyt v Wilkinson, 10 Pick Nefl v Miller 8 Penn St 3 47


'
5 5
. . . . .
, .

M 7
Indiana County Bank s Appeal,
’

( a ss ) 1
3 .

9 5 Penn St 5 00
. . .
15 8 m a m w ou
or sus aoc a rx '
.

m en t of
dem and by th e s urety s property h avin g been
h is ’

ta k en to pay th e p rin c ip a l s d eb t w ill be p refe rred to th at


’
,

of an as signee of th e s urety wh ose as s ign m ent was m ade ,

after th e righ t of th e c re d itor h ad ac c rued 5


.

1 08 . C re di t o r c an n o t d i s c h a rg e S e c uri ty fo r h is ow n B e ne

fit a ft e r P a y m en t by S ure t y .
— An indors er of ote wh ich is
a n

l o secure d by a m ortgage is entitled to


a s look to th e p roc eeds
of th o m ortgaged prem ises for h is rel i ef ; an d if in s uch a
5

cas e th e c re d ito r a fter re c e i v i ng pay m en t from th e s urety


, ,

c a nc el s th e m o rtga ge w ith out th e s ure ty s c on sen t s o as to


’
,

leave th e l an d subj ect to a j un ior l ien for an oth er deb t wh ich


th e c red itor h old s a ga in s t th e p ri n ci p al d eb tor th e c l a im of ,

th e s urety to h a ve reim burs e m ent out of th e l an d w i ll h ave


p riority over th e c red itor s j uni or 1ien Th e s urety s right
5 ’
.
’

of s ub rogati o n is s upe ri or to th e c re d itor s c l a im to h old th e


’

s ec urity for an oth e r d ebt n ot c ove re d by th e agreem en t


5
.
,

A n d one wh o as s urety for th e se c on d i n d ors er of a n egotia


,

ble n ote h a s been c o m pe ll ed to pay th e n ote is en titl e d to a


, ,

re c o urse agai n st th e fi rs t i n do rser to rec over th e am oun t

wh ich h e h a s th us pa id 5
.

1 09 . 1n s t a n o es of t h e A ppli c a ti o n of t h o D o c t rin e of S ub

ro ga ti o n fo r t h e P rot e c ti o n o f parties h a ving S ure ti es . S e ve ral


un ite d m th e p urch as e of l an d a nd gi v en th e i r j oint b on d s for

ea ch o n e s sh a re of th e p urc h as e m on ey to on e of th e i r n um
’
-

be r i n wh om th e l egal t itl e to th e l an d w as vested as th eir


,

trustee a n d on e of th e m h a vin g fa i l ed to pay h i s sh a re of the


,

p urch as e m on ey th e suretie s on h is bon d wh o were h is as so


-

, ,

c i ates in th e o rig in a l purch a s e p a i d it for h im ; a n d th ere ,

upon it w a s h e ld th at th ey ac q uired an e quitabl e titl e to h is

sh a re i n th e l a n d a n d th a t un ti l th e y w
,
e re f ully re im b urs,
ed
5
Erb s Appeal, 2 Penrose
’
Watts Ottawa Bank 0 Dudgeon, 65
5 .

29 6 . Ills 1 1. .

5 Perr 0 Mille r 5 I 277


5
Fowler 0 Scully, 72 Penn St . .
y , 4 owa , .
;
45 6 ; Woods 0 Pittsburg Bank, 8 3 . Sim m ons v Oates , 5 6 Ga 609 . .

Penn St 5 7 . . .
5
Chrism an v H arm an, 29 Gratt . .

V
( a ) 494 . .
s us aoou r
on m c a ses or sua m sm r . 15 9

for th ei r pay m e nt of h is of th e
sh a re m o n ey n e ith er
purc h a se -

h e n or th os e c l a im in g un d e r h i m c ould d em an d of th e trus te e
a c on vey a n c e of h i s sh are or a de c l a ration of trus t i n h is

favor A tr ustee appointed by a c ourt of ch an c ery to s ell


.
5

c e rta i n l a n d s old th e s a m e a n d took th e purch as e r s bon d


’
,

w ith a s urety for th e pay m ent of th e purch ase m on ey th e -

l an d n ot to be c on veyed un til th e purch as e m on ey was p aid -


.

Th is purch as er soon after sold th e l and for th e s am e sum


th at h e h a d agree d to pay t o th e truste e for it to a s ub pur ,
-

c h as er wh o k n o win g th a t th e trus te e h a d n ot b ee n s a tis fied


, , ,

p a id to h is own gra n tor th e wh ol e price of th e l a n d an d re ,

c e ived fro m th e l att e r an as s ign m en t of a c l a im of h is a ga in s t

th e own er of th e l a n d wh i ch it w a s th ough t would be m o re


,

th an s uffi c i en t to pay for th e l a n d B ut th e es ta te turn ed out


.

to be i n s ol vent ; an d th e d iv i d en d upon this c l a im w a s n ot s uf


fic ient to pay th e purch as e m on ey to th e trus tee wh o ac c ord
-

i n gly w ithh e ld th e c on veyan c e from th e sub purch as e r to -

wh om h e was orde red by th e court to c onvey th e property


upon th e p urch as e m on ey b ein g p ai d a n d s ued th e surety on
-

th e b o n d of th e o rigin a l purch a ser an d rec ov ered a j ud gm en t


,

for th e unp ai d porti on of th e purch a se m oney Th e s urety


-
.

th en c l ai m ed th at wh at h e was th us c om pe ll e d to pay sh ould


b e ch arged for h is reim bursem en t upo n th e l a n d in th e h a n d s
of th e s ub purch as er ; a n d it w as h e ld th at un l e ss th is s ub
-

p u rc h as e r sh o u ld p y
a to t h e s ur e t y th e a m o u n t of h i s p y
a

m e nt ,
th e l an d or s o m uch of it as m i gh t be n eces s a ry
, ,

s h ould be s old to rai s e th at a m oun t ; for th e s ub purch a s er -

c ould n ot by h is purc h a se u t t h s ur ty f or t h e o r i gi n a l
p e e

p u rc h a s e m
-
o n ey in a w o r s e p o s it i o n th a n th e l a tte r wo u ld
oth erw i se h ave oc cup ied 5
A tract of l an d wa s s old th ree
.

t im es by th e s uc ces s ive purch asers th ereof th e o ri gin a l ven ,

d or reta in ing th e titl e an d res erving a l ien on th e l an d as


, ,

w e ll as tak in g a bon d with sureties for th e p aym en t of th e

5
Deitzler v . Mishler 3 7 Penn St 5
Ghiselin v Fergu son, 4 H arr .

J
, . . .

ohns ( Add ) 5 22
. .
1 60 m a LAW or sus noc s rl ox .

purch as e on ey
-
m . U n de r th ese c irc um s ta n ce s, one of th ese
s ure ti es a dv is e d
party to buy th e l an d but gave h im n o in
a ,

tim ation as to th e l ien Th e c ourt h e ld th at a l th ough th is .


, ,

a d vic e an d c o n c e a l m en t m i h t es top th at s urety f rom


g a s

se rt i n g a ny e qui ty for hi s own be n efit to th e p re j ud ic e of ,

th e p a rty wh o p urch ase d it upon h is a dvice i t co uld n ot ,

afi e c t th e righ ts of th e firs t ve nd or an d th e p urch as e m on e y


'

, ,

h a vi n g rem a in ed un pa id upon each success i ve s a l e th a t t h e ,

l a n d m igh t be s old un d er th e fi rs t l ien to wh ich th e s ureti e s , ,

wh o h ad p aid th e debt se cured th ereby w ere s ub roga te d 5


,
.

B ut wh ere th e ven d or h ad given a full titl e to th e l a n d s ol d ,

tak in g th e v en d ee s bond w ith two sureties for th e p ay m e n t


’

of th e purch as e m oney it was h eld upon th e in s olve n c y an d


-

, ,

dea th of th e vend ee an d one of th e s ureties an d after a sa le ,

of th e l a n d by a d evisee of th e v en d ee to a purc h a ser w ith

n ot ice of th e c irc um s ta n ces th at th e re was n o l ie n up on ,

wh i ch th e oth er surety c ould h old th e l an d for h is in d em n ifi


c at ion upon th e b on d 5
.

1 10 . S ure ty
'
s R i gh t of S ub ro g a t l o n m ay be lo s t by h is

W a iv e r . Th e righ tb of a
d to th e ben e s uret y to be su rogate
fit of th e se curitie s an d re m ed ies h e ld by th e c re d itor aga in st
th e p rin c ip a l d eb tor m ay be l os t by th e s urety s w a iver 5 If ’
.

one wh o c l a im s to b e a s urety h as for a lon g tim e a llo we d

h i m se lf to be h eld out a s th e prin c i pa l d eb tor a n d oth er ,

righ ts h ave i n th e m ea n ti m e ac c rued a gai n s t th e re a l p ri n c i

p a l i t i
, s t h e n to o l a te for h i m t o c l a i m t o b e s ub ro ga te d as a

s urety to th e pre j ud ic e of th ose ri gh ts A y ea r s d e l a y i n a


5 ’
.

s i m i l a r c a s e h as b een f ata l to th e ri gh ts of th e s urety oth er ,

l iens h a vin g in th e m e an ti m e attach ed upon the e state


wh ich th e surety d es ired to h old 5 a nd
th e d e lay h a vin g bee n ,

5 Kle iser 0 . Scott, 6 Dana K


( y ), St 223 ; B arbee]: v V a nderbilt, 20
. .

13 7 . N Y 39 5. . .

5
Miller v . Miller Phillips Eq
,
.
5
Sm ith v H erbin, 1 24 I nd 43 4 . .

( N o r Ca r ) 8.5 . . Thom as 0 Ste wart, 117 Ind 5 0; 6 09


. .

5
Midland Banking Cc v Cham . . wiler s Estate, 3 Pen
’
Watts .

hers, L R 4 C h 39 8 , and L R 7
. . . . . 200 .

Eq 1 79 Douglass s Appeal, 48 Penn 5


Gring s Appeal, 89 Penn St 336
’ ’
. . . . .
sos aoc a rl ou In c a ses or s uaarrsm p
'
. 1 61

m a d e with kn owl ed ge of facts Wh ere a bill in equity th e .


5

a tim et was file d for s ub ro a ti on a gai n s t pe rs on s wh o


'

q m g
m i h t be ul ti m ate ly l i a bl e t h ro un d of a c ti on be in g for
g e g ,

bon ds given m ore th an twen ty y ea rs before th e suit was


brough t it w as h eld th at th e c om pl ain an ts h a d lost th eir
,

ri gh t to re l ie f in eq uity by th e ir l a ch es in n egl i gen tly ly in g

by until by reas on of th e l aps e of tim e th ere could be n o


, ,

s a fe d ete rm in a ti on of th e m a tte rs in c o n tro ve rs y A nd j us t


5
.

a s th e s urety c o uld n ot re c ove r fro m h is p rin c ip a l upon h is

v oluntary pay m e nt of a deb t b arred by th e statute of l im ita


tions s o h e wi ll be ta k e n to h a ve w a ive d h is p ri vil ege of
5
,

s ub roga tio n un l e ss h e c l a im s i t b efore h is rem edy a t la w


,

a ga i n s t h is p rin c ip a l is b a rre d by l a ps e of ti m e Th e righ t


5
.

of s ub rogation w ill be b a rred by th e s ta tutory period of l im i


t a ti on l i k e a ny oth e r ri gh t 5
But th e m ere l a p s e of a s h o rter .

tim e is n ot of i ts e lf a ba r to th e righ t th ough th e sure ty s


5 ’
,

b a re d el ay if p rotracte d is evid ence a ga inst h im of a wa iver


, ,

of h is righ t Th e s urety s righ t of s ub rogation ac c rues upon


7 .
’

h is p ay m en t ; a n d as to h is prin c ip a l th e statute th en be gi ns
a n d h e sh ould th en c a ll a t on c e for th e
8
to run a ga in s t h im ,

s ec uri ties i f h e d e s i res to be s ub ro ga te d to th em Th e surety


5
.

See Bla ke 0 Traders Bank , 145 5


B ird 0 Louis iana Bank, 9 3 U S
5 ’
. . . .

Mass 1 3 . . 9 6 ; Ro be rtson 0 Mowell, 66 Md . .

5
S m ith 0 Thom pson, 7 Gratt . . 5 30; Conne r v H owe 3 5 Minn 5 1 8 .
, . .

( V a ) 1 1
. 2 .
7
N oble 0 Turne r, 69 Md 5 19 . . .

5
Ra ndolph o Randolph, 3 Rand . .
5
Mc Donald 0 Magruder, 3 Peters, .

( V ) 90 H h P 1 470 B lake v Traders Bank, 145


’
a 4 .
; a tc ett v e
gr am , 2 . .

La Ann 722
. . . Mas s 1 3 ; Thayer v Daniels , 1 10
. .

5
Ri tte nhouse o Levering 6 Watts .
, Mass 3 45 Ben nett v Cook, 45 N Y
. . . .

Serg ( Pen n ) 1 90 ; Fink 0 Ma 268 Sam uel v Zackerey, 4 I red Law .

J
. . . .

ha fly, 8 Watts
'

3 8 4 ; oyce (Nor Can ), 3 77; Lowndes v Pinc kney,


. .

0. J oyce 1 Bus h ( Ky ), 474


, See . 1 Ric h Eq (S o Car ) 1 5 5 ; Burton
. . . .

R a c ks 0 Taylor, 49 Miss 5 5 2
. . . v R utherford
. 49 Mo 25 5 ; Barns , .

5
K reider v Isenbice, 1 23 Ind . . back 0 Reine r, 8 Minn 5 9 ; Sc ott 0
. . .

10 ; Arbogast v Hays, 9 8 Ind 26 ; . . N ic hols, 27 Miss 9 4 ; Re eves v Pul . .

Bleds o v Nixon, 6 8 N or Car 5 21 ;


. . . liam 7 Baxte r
, 1 19 ; Ga rrett
Mitchell v Mitchell, 8 Hum ph (Tenn ). . . v Gar
. rett 27 Ala 6 8 7 ; Ha m m ond o
, . .

3 5 9 ; Walker v V audry, 4 Rob (La ) . . . Mye rs , 3 0 Tex 3 75 ; Junker v R us h, . .

3 95 Sim pson 0 McPhail, 1 7 Ills Ap . . . 26 N E Rep 499 . . . .

499 .
5 Barton 0 Moore 45 Minn 9 8 .
, . .
16 2 m s LAW or susaool rr
on .

h as a n e ec ti n l o
k h is re im bursem ent eith er by subrog a
to s ee

tion to th e re m ed ies of th e c re d ito r or by a n ac ti on a ga in s t


h is p rin c ipa l upon th e l atte r s im pl ied prom ise of in de m n ity 5 ’
.

H is fa il ure upon p ay in g a de bt sec ure d by m o rtga ge from th e


,

p rin c ipa l debtor to take e ith er a d is cha rge or an as s ignm en t


,

th e re of h a s been h e ld to bar h is righ t to a de c re e for f ore


c los ure of th e m o rtgage by righ t of s ub roga tion In d em
5
.

n ity re c e ived by th e s urety f rom a s tra nger w i ll b e re g a rd e d

as c um ul ative to th e ri gh ts w h ich th e s urety a l re a dy pos

sess e s
5
One w h o is m a n ifes tly a s urety w ill n ot be d e p ri ve d
.

of th e be n e fit of sub rogati on to a m ortgage security h e ld by -

th e c re d itor m ere ly b e c a us e h e took oth er s ec uri ty f rom th e


,

p rin c ipal wh ich h e afte rwa rd s rele as ed an d d id n ot as k for


5
, ,

an ass i gn m e n t of th e m o rtga ge im m e d ia te ly upon h is pa y

m en t of th e d eb t wh ic h i t se c ure d 5
But h e c ann ot d is re ga rd .

th e righ t s of oth e r pa rties wh ic h h a ve a c c rue d in th e m e a n


ti m e Th us if th e ven dor of l an d h as a l ien th ereon for th e
.
,

p ric e a surety of th e vend ee wh o pa y s th e price will not be


,

s ub ro gate d to th is l ie n if h e h a s ta k en oth e r se c urity f ro m ,

th e ven d e e for h is p rote c tion a n d h as w ith out obj e c t io n a l ,

l ow ed th e ven dee to s ell th e l an d to an oth er purch ase r ,

a l th ough th is s ec urity afte rw a rd s turn s out to be in suffic ie nt 5


.

Th e e l ec t ion of th e s urety to c l a im gre ate r righ ts un d e r an


e xp re ss a g re e m en t th a n h e w oul d a c q uire by s ub rogat i on is a

w a ive r of h is righ t to sub roga tion If h e refuses to ac cept


7 .

th e s e curity wh e n offe re d to h i m by th e c re d itor h e w a ives ,

h is righ t to de m and it afte rw a rds 8 A n d if afte r a s urety .


,

5
Bo wers v Cobb 3 1 Fed R ep .
, . .
5C ra wford v Richeson 101 Ills .
. .

6 73 ; H ill v V oo rhies , 22 Penn St 6 8 ; 3 5 1 ; Gossin 0 Brown, 1 1 Penn St .

K
. . . . .

Wem ecke v enyon 6 6 Mo 275 .


,
. . 5 27 .

5
Lynn v Ric hardson. 78 M aine,.
5
Henley v S tem m ons , 4 B Mon
. . .

3 67. K
( y) 1 3 1 .

5
Wesley Church v Moore, 10 .
7 White h u
o se 0 Edwards, 3 7 Oh . .

Penn S t 273 ; Cornwall 0 Gould,


. . . D 6 83 ; Go rton, in re , 40Oh D 5 36
. . . .

4 Pick ( Mass ) 444 ; West 0 B ut


. . .
5 H ubbell v
Carpente r, 5 N Y . . .

land Bank, 19 V t 403 . . 1 71, reversing s c , 5 Barb 5 20, and 2 . . .

5
Balle w v R ole r 1 24 I nd 5 5 7 ;
.
,
. Barb 48 4 . .

Hancock 0 H olbrook, 40La Ann 5 4


. . . .
sus aoaa m ou IN ca ses
'
or sus m sm r . 1 68

for tw o princ ipal s h as pa id th e debt h e tak es from one of th e ,

prin c ipa l s a s e c urity for h is re im burs em ent h e h as b een h eld ,

to w aive his righ t to th e ben efit of a s ec urity wh i ch h a d pre


vi ous ly been give n by th e oth e r p rin c ipa l to th e c re d ito r If
1
.

h e h as th e m ea ns of re im b urs em en t in h is own h an d s a n d ,

refus es or n eg l ec ts to m a k e due a ppl ic atio n th e re of h e can ,

n ot c om e upon an oth e r fun d by w ay of s ub roga tion


5
B ut a .

s urety wh o h as uns uc ces s fully attac k e d for a ll ege d f raud an

as s ignm ent m ad e by h i s p rin c ip a l th e ben efits of wh ic h h a ve ,

been accepted by the c red itor is n ot th ereby es toppe d from ,

ass e rtin g h is righ t of s ub roga tion to th e c re d itor as to th es e

ben efi ts 5
Nor is it n ecessa ry to th e s urety s sub rogation
.
’

th a t h is pay m en t sh o uld h ave b een c oe rc ed by an ex ec utio n ;


h is pa ym en t th ough v ol unta rily m a de w ill be rega rde d as
, ,

c om pul s ory wh e n ev e r i t c o uld h a ve b een en fo rc ed


5
.

11 1 . S ure t y
’
s R i gh t of S ub ro g a t i o n s ub e c t j to C re d i t o r s
’

R i gh t s . It h a s b roga b een h eld th at th e s u ret ys’


righ t of su

tio n to the sec urities h eld by th e c red ito r c a nn ot be e n forc ed


to th e p rej ud ic e o f a n in te rve nin g ch a rge ta k en by th e c red
itor from th e p rin c ipa l d eb to r in ign o ra nce of th e s urety sh ip .

Th us wh ere A and B h ad given to a c red itor th eir j oint and


,
. .

s e v e ral n ote s ec ure d by a m ortga ge of th e ir re s pe ctiv e estates


, ,

an d th en A ga v e a s e pa ra te m o rtga ge of h is own e sta te to a


.

c red ito r of h is own wh o a fte rwa rd s to ok an ass ign m e nt of ,

th e p rio r m ortga ge an d it th en a p pea re d th at B h a d j o in ed , .

in th e firs t n ote and m ortgage m erely as th e surety of A a n d .


,

B c l a im ed th at upon p ay in g th e firs t d ebt h e was e n titl e d to


.

be subrogated to th e righ ts of th e m o rtgagee a n d to h old th e ,

en tire m o rtgage d p rem is es for h is in d em n ity it w as h eld th a t , ,

b efore B c ould c laim th e righ ts of a s urety again st A s c red


. .
’

5
C Appeal, 7 Wa tts
o rnwel s l Motley v Harris 1 Lea
’
5
.
,

Se rg (Penn ) 3 05
. And see Wa tts . . 5 77 .

v Eufa ula Ba nk, 76 Ala 474


. . .
5
Mc Neilly o . Cooksey, 2 Lea
5
B ell, J , in N 8 3 0 Mille r, 8 . . 3 9 ; S tate v
. Blakem ore, 7
Penn St 3 47 3 5 1 S harp v Caldwell,
. .
,
. B els k (Tenn ) 63 8
. . .

7 H um ph ( Tenn ) 415 . . .
1 64 m s LAW or s us nooi n ou
'
.

ito r, h e ow th at th e l atte r k n ew or h ad th e m eans o f


m us t s h ,

kn owing of th e s uretysh ip ; an d th e c ourt said th at th ough a


c redito r c a n n o t tac k to a n e x isting m o rtga ge d ebt a d em a n d -

n ot secured by th e m o rtga ge n or a s ub s eq uen t m o rtgag e t o a ,

p rior on e as aga in st a n inte rven ing incum b ran ce r yet a m ort ,

a
g g ee m a y t a k e a n o th e r m o rt a
g g e w h ic h w ill be va l id a g a in s t ,

a n in te rven in g in c um b ra n ce i m pl ied by e q uity of wh ic h th e ,

m o rtgag ee h a d n e ith e r a c tua l nor c on s truc tive n o tice B ut


5
.

if th e c re d it o r h ad k n ow n th a t B was m erely a s ure ty th ou gh .


,

it d id n ot a p pea r upon th e face of th e p a pers th at would h a ve ,

bee n sufiic ien t Nor will a su rety s s ubroga tion to th e righ ts


5 .
’

a n d lien s of th e c red itor be a llo wed to d efe a t an inte re s t ao

q uired a n d h eld by a th ird pe rson wh en th at in te rest th ough , ,

s ub ord in ate to th e c red ito r s lie n is prio r in d a te to th e


’

s urety s un d e rta k in g
’
5 Th us wh en a debtor s ells p roperty
.
,

w h ich h e h a d m o rtga ge d for a d e bt and th en a j ud g m e n t for ,

th e d eb t h a vin g b ee n ob tain ed a ga in s t h im gives a s ure ty for ,

th e j ud gm e n t wh o is afterwa rd s c o m pel led to pay it th is


, ,

s urety c a n n ot be s ub roga ted to th e m ortga ge s o as to d efea t

th e p urc h a ser s titl e w h ic h ac c rued b efore th e c on trac t of


’
,

s urety sh ip was e n te re d in to ;
5
fo r th e s ub roga tion of th e
s urety to th e c red ito r s m ea n s of p a y m en t res ts s olely upon
’

p rinciple s of j ustice a n d eq uity B ut th e s urety s s ubroga


5
.
’

tion will o ve rrea ch a ll righ ts th a t h a ve acc rued s in ce th e c on


trac t of s ure ty sh ip was en te red in to
5
.

112 . S u re t y i n d e b t e d t o h i s P rin c i p al n ot e n ti t l e d t o B ub

hi m
ro g a ti o n a ga i n s t q uita b le rig h t of . s u b r o The
g a tio n w ille

ll
n ot b e a o ew d t o a s ure ty w h o is h im s e lf i n d e b te d t o h is

p rin cipal again s t wh om h e as k s to be s ub rogate d with out


, ,

5
Orvis v N ewell 1 7 Conn 9 7 ; v Morris on 5 B Mon ( Ky ) 106
.
,
. .
,
. . .

B u dd 0. O liv e r 2 3 A tl R ,ep 11 05 S
. ee p oa te a , 5. 1 3 1 c l se
.
q .

P atte rson 0 Pope , 5 Dana ( Ky ),


5
5 R o ers 0 S c hool Trustees, 46
g
.
.

Il ls 428
. .
24 1 ; F is h b ac k v B o d m an , 1 4 B u s h .

Fa rm ers Bank 0 S herley, 1 2 ( Ky ) 1 17


’
5 .
. ,

B u s h K
( y) 3 04 ; F ish ba ck v B o d 5
E a to n v H as.ty 6 N eb ras kaA l Q .
,
.

J
,

m a ,n 14 B us h K
( y ), 1 1 7; o hn s on
5
P ie rc e 0 H i gg in s , 1 0 1 I nd 17 8 . . .
ou m
sos aoc i rx CAS ES or sunarrsm p . 1 65

h is firs t fy ing s uch d ebt A j ud gm ent again st prin cipal


s atis .
5

a n d s urety h a v in g bee n sa tis fied o ut of a sa l e of th e s urety s


’

l an d s th e s urpl us proceeds in c ourt were cl aim ed by th e


,

p rin cipal debtor wh o h eld th e n e xt j udgm en t lien on the ,


-

s urety s l a n d s an d by s ubsequen t judgm ent c redito rs of th e


’
,

s urety wh o c la im ed by virtue of th e s urety s pay m en t to


’

, , ,

—
be s ub ro ga ted to th e l ieu of th e firs t j udg m en t c red ito r 5
Th e .

s ure ty b ein g al so in d ebte d on an oth er a cc o un t to th e p rin c i

p a l a, n d b e in g in s ol ven t it w as h eld th a t th e p ay m en t m ad e ,

out of th e s urety s es tate c ould not be se t off again s t th e


’

p rin cipal s j udgm en t and th at th e p rinc ipal h a d ac cord in gly


’
,

th e firs t righ t to th e s urpl us p roc eed s 3 A n d ii a s between .


,

prin cipal and s urety the pay m ent of th e de bt h as been as ,

s um ed by th e o rigin a l surety th e l a tte r c an n ot in equity in s is t ,

th at th e p rope rty of th e form e r p rinc ipal is p rim a rily l iable


for th e d eb t any m o re th an h e c ould rec ove r aga ins t h is
5
,

p rin c ip a l a t l a w af te r p ay in g th e d eb t ;
5
n o r w ill h e h a ve

a ny righ t of sub ro gation a ga ins t h is p rinc ipa l upon p ay in g

th e d ebt ; h e h as bec om e th e rea l d eb tor an d s o c an not be


5
,

s ub ro gated 7 But the s urety s righ t of s ub roga tion will n ot


’
.

be d es troy e d by th e fac t th a t th e p rin c ipa l h a s him s elf be


c o m e a s urety upo n a n oth er obl igatio n upo n wh ich th e s urety

h as rais ed th e m oney to pay th e origin al d eb t 8


.

1 13 . S ure t y
'
s R i gh t c o n fin e d t o th e C o n tra c t fo r w h i c h h e

w as S ure t y .
—A s th e s urety s l iability is
’
l im ited to th e e xp res s
t erm s of his c ontrac t 5
, so h is righ t of sub rogatio n is c on fi n ed

5
D wight v
Scranton Lum ber Co . Cc . Lewis 8 3 V a 246 ; B oulware
0.
, .

8 2 Mich 6 24 ; Coa tes s Appeal, 7


’
. v H arts oo k, 8 3 V a
.
6 79 ; Chaplin 0 . .

W atts 8: Serg ( Penn ) 99 B ut see . . . Bake r, 1 24 1nd 38 5 ; C rim v Flem . .

B arney v Gro ver 28 V t 3 9 1


.
, . . ing 123 Ind 43 8
, .

5
See a ntea , 5 107 .
7
A ntea , 5 46 .

5
Cos tea s Appeal, supra Owen s Appeal, 1 1 W N C 488
’
.
5 ’
. . . .

5
W right 0 Crum p, 25 I nd 3 3 9 ; . .
5
Ward 0 S tahl 8 1 N Y 406 ; .
, . .

L aboytea ux v Swigart, 103 1nd 5 9 6 . . . C helm sford Co v Dem arest, 7 Gray . .

5
Le wis 0 Lewis 9 2 Ills 23 7 .
,
. . 1 ; Stull v Hance, 62 Ills 5 2 ; .
.

5 Shi le
p y v F o x, 69 Md 5 72 ; . . Parham v Co bb, 9 La Ann 423 ;
. . .

W as hington, Ohio Western R R . . Glassell 0 Colem an, 94 Calif 260


. . .
1 66 m s LAW or S UBROGATION .

to th e righ ts an d sec uritie s th e c n trac t for h ich h e was of o w


suret
5
y p y
One wh o h as guara ntee th e a m e nt of a rom is
. p d
s o ry n o te by a n in do rs e r th e reof will upon p ayin g th e sam e , ,

h a ve n o greate r righ ts again st th e m a ke r th an th e in do rse r


h im self h ad 5
The ha il of a defen d a nt ca n n o t look for re im
.

burs em ent to on e wh o was jo in tly l ia ble for th e o rigin a l de b t 5 .

Th e s urety upon a n ote will n ot by p ayin g it acq ui re a ny


righ ts again s t th e parties to a f orm er n ote wh ich h a d be en

pa id by the note upon which h e was s urety If one partn er


5
.
,

th ough for th e benefit of th e p a rtners h ip ex e c utes a bond ,

with a s urety th is surety on be in g c om pelled to pay the , ,

bond ac quires th e reby n o righ t of ac tion aga inst the oth er


,

partners On e wh o is s urety both for a firm a nd for a n in


5
.

divid ual m em ber of th e firm h as n o righ t to apply upon th e


in d iv id ual d e bt fun ds of th e firm wh ich m ay c om e into h is
h a n d s but ii h avin g do ne s o h e afte rwa rds applie s h is o wn
, ,

m on ey to th e p ay m en t of th e firm d e bt h is righ ts w ill be th e ,

s a m e a s if h e h ad p aid th e l atte r d eb t out of th e p artn e rs h ip

fund s If one wh o h as boun d h im self as bail for th e d efend


5
.

a n t in an a ctio n a ga in st a sh ipm as te r for th e v alue of p rop


,

e rty l ost th ro ugh th e n eglec t of th e office rs an d c re w is ,

c om pelled to pay th e am oun t of th e j udgm en t a ga in s t the

5 Wagner v Elliott
, 9 5 Penn St . . .
5
C unn ingham o C larkson, W right .

48 7 ; Carlton v Sim on ton, 9 4 N o r . .


( O h io ), 21 7 .

C ar 401 ; Mc Mullen v Ca thca rt, 4


. .
5
Barne tt 0 Reed, 5 1 Penn St . . .

Ric h Eq ( S o Car ) 1 17 Matt hews


. 190 ; Merrim an 0 Soc ial Mah a tao .

v
. . .

Co lburn, 1 Strobh ( So Car ) 25 8 ; . . . turing C c , 1 2 R I 1 75. . . .

D un ca n 0 Le wis, 1 Duv ( Ky ) 18 3 ;
. . .
5
Leggett v H um phreys 21 How . . .

B ank of England v Tarleton 23 Miss .


, . 6 6 ; Tom a Goodric h, 2 John s ( N
. . .

1 73 ; Gerdone c Gerdone, 70 Ind 6 2 ; . . Y ) 21 3 ; Bow m an 0 B lodgett 2


.
.
,

No ble 0 Murphy, 5 2 N o W R ep
. . . . Met ( Mas s ) 308 ; Osborn v C un
.
.

148 ; Gun u v Geary, 44 Mic h 6 15 ; . . n ing ha m , 4 De v 3: Bat Law ( Nor . . .

Old 0 C ha m bliss, 3 La Ann 205 ; 423 ; Foley 0 R obards 3 Ired ,


.

K
. . . .

Trent v Calderwood, 2 La Ann. . . Law ( N or 1 77 ;. rafts v .

9 42 Creighton 3 Ri c h Law ( S o .

K
.
.
,

5
D
e wey v Living, 3 Allen . 273 Adair v Cam pbell, 4 Bibb ( .

22 Putnam 1 2 Gray ( Mas s ),


1 21 ; N elson 0 Ha rrington, 16 Gray, .
5
Do wning o . Lin ville ,
3 B us h
13 9 . K
( y ), 472 .
m oc xn ou In ca ses or suaa rrsm r
sur '
. 16 7

m as ter, th ough h e
w ill be s ub roga ted to the be nefit of the
j udgm ent so obtained and will h ave th e right of recourse ,

a ga in s t th e ow ners of th e s h ip wh ich th e m a s te r wo uld h a ve

a c q uired by p ay m en t of the j ud gm en t et h e w ill n ot be


y ,

s ubroga ted to th e o riginal ca use of a c tio n aga inst b oth th e

m aster an d th e owners of th e sh ip
5
W he re th e acc om m od a .

tion acceptors of two b ill s of exch a nge rec eive d a dee d of


trust as sec urity fro m th e d ra wer an d one of th es e bill s was ,

tak en up by givin g a n e w n ote with a new s urety th e s urety ,

upo n th is new n ote afte r p ayin g it was n ot a llo we d to s h are


, ,

in th e ben efit of th e origin al s ec urity 5


If th e n o te of a prin .

c ipal w ith th re e s uret ie s is d is c h a rged a t m aturity by giv in g


, ,

an o th er n o te w ith on ly t wo of th e s ureties th e th ird s urety ,

h aving d ied befo re th e fi rs t n ote fe ll due th e es tate of th e ,

latter wil l n ot be l iable to contribute upon th e in s olven cy of


th e p rin cip a l an d the p ay m ent of th e n e w n ote by th e sureties
th ereo n a lth ough w hen th ey ex ec ute d the n e w n ote th ey
,

s uppos ed th a t th e es tate of th e th ird s urety wo uld be l iabl e

th e reo n 5
If two e x ec uto rs h a ve given a joint a nd seve ral
.

bon d for th eir fa ith ful ad m in is tration and after th e death of ,

on e of th e m th e s urvivo r h as waste d th e es ta te th e s ure ties , ,

after sa tis fy in g a j ud gm en t rec o ve re d upo n th e b on d a a in s t


g
th e s urv ivo r an d th em s el ves for s uch w as te w ill h ave n o ,

righ t of ac tion a ga ins t th e es tate of th e d ec e ase d ex ec uto r ,

eith er for in dem nity or c on tribution 5


th o ugh if this e x ecutor ,

h a d l ive d th eir righ ts upo n th e bon d would h ave been c om


5
plete a g a in s t h im .

1 1 4 S ure t y s
.
'
R ig h t t o m a rs h al S ec uri t i es gi v e n t o th e sam e

C re d i t o r fo r S e para t e D e b t s . W h e re a d eb tor giv e s t o h is

c red itor c ollateral sec urities fo r th e pay m en t of th e d eb t, a nd

a fte rwa rds bo rro ws of th e s a m e c red ito r a furth er s um of

5Tardy 0 Allen, 3 La Ann 66


. . . .
5
Brazer v Clark 5 Pick ( Mass )
.
,
. .

5
Hous ton 0 Hunts ville Bank, 25
. 96 ; Towne v Am m idown, 20 Pick . .

Ala 25 0
. . M
( ss ) 5 3 5
a .

5
H utchings c McCaulcy, 2 Dev. .
5
Mc Coun S perb 5 3 Hun ( N
v .
, .

Ba t Eq ( Nor Car ) 3 99
. . . . . 165 . P ostca, 5 202 .
16 8 m s L AW or sonnoc i n ou .

m on ey paym ent of wh ich he gives a surety th e


,
for th e ,

s urety if c alle d upon to pay th e secon d d ebt is entitled to


, ,

the s urplus of th e s ec urities over th e a m ount nee d ed to


satisfy th e first deb t Th e s urety for o n ly one loa n if he
5
.
,

h as bee n obliged to pay th at lo an h as a righ t again st th e , ,

p rin cipal debtor or h is rep resen tatives to m a rsh a l th e se curi ,

ties gi ven by th e p rin c ip al to th e c red ito r for seve ral s uc cess ive
loans s o as to obtain re im burs em ent for h im self out of th e bal
,

a n c e of th e se ve ra l s ec urities a fter th e c red itor is sa tis fied


5
, .

Th e purch aser of several lots of l a nd h a vin g give n h is sepa ra te


n o te for ea ch lot with th e s a m e in do rs er an d th e l ots h a vin g ,

be en afterw a rds re sold for his defa ult in th e pay m en t of th es e


n ote s a n d s om e of th e lo ts h a v in g b ro ugh t m o re a nd s om e
,

less th an th e fi rst contrac t pric e th is indorser wa s allo we d ,

to m a rsh al th e p roceed s of th e se s a le s so as to m a ke good ,

th e defic ien cy of one s et by th e surpl us of th e oth er 5 So .

wh e re h usb an d an d w ife h ave give n sec urity for th e h us ba nd s


’

d ebt upon th e property of each sh e m ay require th e c red itor ,

to s ell h er h usb a nd s p rope rty b efore res o rtin g to h ers 5


’
.

1 15 . S ure ty c an n o t re q ui re t h e C re d i t o r to re s o rt firs t t o

S e c urity . Th e righ t of th e s urety does n ot exten d to


q re uit

ing th e c red itor to ex h aus t th e se c urity given to h im


by th e
prin c ipal d ebtor for th e pay m en t of th e debt befo re com ing
up on th e sure ty Th e s ub roga tion of th e s urety w ill never
5 .

be allowed to th e p rej ud ic e of th e c red ito r s righ t to c ollect


’

his d ebt ; th e l atter m ay proceed agains t th e s urety pe rs on


5

5
Praed c . Farm ers Bank, 5 1
Gardiner, 2 Cox Oh .
5 K oehler 0 .
’

Gas . 86 . H un ( N 418 ; Gary 0 Cannon 3 . .


,

5 v D ubois , L R 13 Eq
Heym an 1red Eq ( N or Car ) 64 ; Mille r v
. . . . . . . . .

15 8 . W hite 25 So Car 23 5 ; Arm stro ng ,


. .

5
Sm ith v Arden, 5 Cranch, C C c Poole, 3 0 W V a 666 ; H a rdy v
. . . . . . .

48 5 . Ove rm an, 3 6 Ind 5 49 ; Sa yre 0 Me . .

Erie Savings Bank 0 Roop 80 Ewen, 41 Ind 109 ; Roberts v Jeflries ,


5 ’
. . .
,

N Y 5 9 1 ; Payne 0 Burnham , 6 2 N 8 0 Mo 1 1 5 ; Doughe rty v Macken


. . . . . .

Y 74 ; N eim cewic z c Gahn, 3 Paige zie 3 4 Mo 46 2 ; S peight 0 Porter


. .
, . .
,

( N . 6 14 ; S hin n v S m ith, 79 N or 26 M iss 28 6 . . . .

Car 31 0 Aid ed, 5 104


. .
5
New Bedford Savings Bank a
. .
S UBROGATION m CAS ES or s uaarrs m p . 1 69

al ly , an d at ollateral security to
th e s am e tim e su bj ect th e c

th e pay m ent of h is debt until h e h as o b tain e d full sati s fac tion l .

T he c red ito r m ay p roceed again st th e s urety in th e firs t in


s ta n c e or ag a ins t th e princ ipal a n d th e s urety j ointly for th e
, ,

s a tis fa ction of h is d em an d Th e p ay ee of a n ote m ay m ain


5
.

ta in an a ction thereon with out fi rs t ex h aus ting a m o rtgage


s e c urity given by th e prin c ip a l A guarantor will n ot be
5
.

relea s ed by th e m ere fact th at th e c red itor h as en tered upo n

th e l an d of th e p rin c ipa l d eb tor un d er a m ortga ge given to


h im by th e l atte r to s ecure the deb t 5
Th e e xis ten c e of a .

j udgm ent wh ic h is a lien upon th e l and s of the princ ip al ,

a n d on wh ich th e m o n ey m igh t be m a d e by iss uing a n e xecu

t ion is no reas on for refus in g th e c red itor a re c ov ery aga in s t


,

th e s urety 5
A n in d o rs er of a pro m iss ory n ote given as c ol
.

la teral se c urity for the paym en t of a sum of m on ey d irected


by th e orderof a c o urt of ch an cery to be paid by th e m aker
of th e n ote on pain of attach m ent h as n o righ t to require th e ,

c red ito r to en forc e th e attach m en t p rev io us to c all in o n h i


g m

for pay m e nt 5
Th e s urety m ust firs t pay th e debt a nd c an
.
,

th en h im s elf enfo rc e th e s ec uritie s 7


One wh o in giving a .

leas e of la nd takes n otes with a s urety for th e pay m en t of


th e rent a n d al s o res erves in h is lea s e th e righ t of d is tress
, ,

is n ot bound to re so rt to th e righ t of dis tress but m ay c ollect ,

Union Mill, 1 28 Mass 27 ; B rough s New Orlea ns Canal Cc 0


’
. 405 ; . .

Estate, 71 Penn St 460 ; Anderson Esc o fi e, 2 La Ann 8 3 0; Walker 0


. . . . .

v Sharp 44 Ohio S t 260; Fox 0 Collins 22 Te x 1 89 . .

K
.
.
, .
,

H udson, 20 ans 247 5


Crocker 0 Gilbert, 9
. . .

5
13 1 .

68 2 ; Linc oln 0 Bassett 23 Pic k 5


Geddis v Hawk, 1
.
, . .

( Mas s ) 1 5 4 ; B ro wn v B rown, 17 280 re versing Hawk v Geddis , 16 .


, .

Ind 475 Se rg R ( Penn ) 23 ; Ne tf s Ap


’
. . . . .

5
Muscatine 0 Miss R R Co 1 pea] 9 Watts Se rg ( Penn ) 3 6
. . . .
, . . .

Dillon, C C 5 36 ; S torrs v Engel 3


. .
5
Bea rdsley v Wa rner, 6 Wend .
,
.
.

H ughes , C C 414 ; Dom estic S e wing ( N Y ) 6 10


. . .

Mac hine Cc v S aylor 86 Penn S t


. .
7
B uffalo Bank 0 Wood, 71 N Y
, . . . . .

287 Fulle r 0 Loring 42 Maine 48 1 ; 405 B rick v Fre ehold Banking


.
, ,
.

Gary 0 Hignutt 3 2 Md 5 5 2
. 3 7 N J La w, 3 07 ; Geddis v Hawk,
, . . . .
.

5
Alle n v Woodard 125 Mass .1 Watts 28 0 H all 0 Hox , . .

400; B ufla lo Ba nk a Wood, 7 1 N Y M ] , 84 1113 6 16 . . . . .


70 m a u w or suns oc u r
on.

th e n otes from th e s uret y .


5 In deed , th e righ t of dis tress h as
been held to be th e m ere person al privilege of th e lan dlord,
a nd n ot to pass by b
s u rogation to th e s urety .
5

11 6 . R igh t of B nb rog a ti o n d es tro y e d b y Appuc a tio n of th e

S e c uri ty up o n t h e D eb t l d to.
— Al th ough th e s uret y is entit e

th e ben efit of a se c urity h eld by the c redito r for th e pay m ent


of the d ebt yet if the wh ole security h as been a pplied upon
,

th e d ebt w ith out pay ing it in f ull an d th e s urety h as been ,

c om pell ed to m a k e up th e d efic iency h e c a n not th en res ort to ,

th e s ec urity for s ub rogat ion o r c ontrib ution for this wo uld 5

s o fa r d efea t th e v ery obj ec t th e pay m e nt of th e d eb t for , ,

wh ich th e s ec urity was tak en 5


A n d if th e d ebt is p aid by .

th e p rinc ip al debto r a m ortgage h eld by th e c red ito r to sec ure


,

its p ay m ent is th ereby e xt in g uis h ed ; an d an as sign m en t of


5

it by th e s urety to s ec ure m oney borrowed by h im on h is


in d ivid ual ac c oun t is in valid especially if th e len d e r k n ew ,

b efore such as s ignm ent that th e o rigina l d ebt h ad been p aid 5


.

11 7 .
’
C re di t o r s R i gh t t o a pply S ec uri ty as n ee d e d for h is ow n

P ro te c ti o n . A
d itor wh o h olds agai ns t th e s am e debtor
c re

s e ve ral s ec urities for d iffe rent de b ts on wh ich th ere a re dis ,

tin ct s ureties m ay obtain s ec urity or s atis fa ction by atta c h


, ,

m en t a n d j ud gm e nt or oth e rwis e of on e d ebt in full an d yet , ,

reta in h is en tire c l aim upo n th e s urety for th e oth ers Neither .

la w n or equity req uires th at s uch a pay m en t s h all be c on


s ide red to h a ve be en m a de for th e bene fit of a ll th e sure ties

rata bly Th e h older of on e s ec urity for difl erent dem an ds


'
7
.

1H all 12 Horsey, 84 Ills


. 6 1 6 ; Bank, 13 2 Mass 3 1 5 ; Belcher 0 . . .

B roo ks v Carter, 3 6 Ala 68 2


. Ha rtford Bank , 15 Conn 3 8 1 ; Stitc
. . .

5
Russell, in re 29 Ch 25 4 ; walt 0 Martin, 84 Nor C a r 4 ;
, . . . .

N e wm an v Greenville Bank, 66
. Mis s Landry 0 V ictor, 3 0La Ann , pt II , . . . . . .

3 23 ; Wohne r 0 Ha ndy, 68 Miss 1041 ; Whan v Irwin, 27 id 706


. . . . .

15 3 .
5 Tarbell m Parker, 101 Mass 165 ; .

5
Sawyers 0 Baker, 72 Ala 49 ; Shackleford o S tockton, 6 B Mon
. . . . .

Ma rshall 9 ixon, 8 2 Ga
. D
43 5 ; ( Ky ) 3 9 0 . . .

Sc hae ffer 0 Bond, 72 Md 5 01


. inley v Hill, 4 Watts
. Serg . K .
.

5
Ma rchand c Frellsen, 105 U S ( Penn ) 426
. . . . .

423 Stafiord v New Bedford Sa vings 7 5 m , 0 J , in Dalton v Wc


'

. . . .
sm m oc a n on m '
CA SES or suam rsm p . 1 71

m ay a pply th e sec urity upon whichever debt h e ch ooses an d ,

st ill h old a surety upon th e o th e rs And wh ere a debtor


5
.

g a y e to on e c r e dito r a m o r tg g
a e of tw o fun d s a n d a ls o a

coven an t by a s urety an d th en ga ve a s ec on d m ortg age of ,

on e of th e fun ds to anoth e r c re ditor an d th e s ec on d c red , ,

itor s fun d h avin g been e x h aus te d by p art paym en t of th e


’

fi rst c re d ito r s debt th e surety pa id th e b ala nce due to th e


’
,

firs t c redito r an d to ok a trans fer of the firs t m ortgage it was ,

held th at th e sec on d credi tor h ad a righ t to m ars h al th e


securities again st th e sure ty an d th at th e s ec on d c re d itor s
’
,

righ t to be s ub rogate d to th e fi rs t fun d was s uperior to th e

s urety s e q uity
’ 5
Wh ere the c red itor h oldin g a s urety for
.
,

the p ay m en t of h is debt took from th e debtor a m ortgage ,

to sec ure both th is an d an a d dition a l in deb ted ness it was ,

h eld th a t th e s urety wo uld h a ve n o right o f s ubrogation to


th is m o rtgage un til both debts h ad been p aid to the c reditor ;
an d th e c red itor was allowed to a pply all th e p ro ceed s of th e

security upon th e s ec o n d in d eb te d n es s a nd s till to h old th e ,

s urety fo r th e firs t a A s urety upon an appea l bon d wh ose


.
-

l iabil ity h as becom e fixed can n ot req uire th e c reditor to ap ,

ply towa rd s th e satis fac tion of th e bon d a pa rtial paym ent


obtained from th e property of the prin ci pal defendant but is ,

res pon s ibl e for th e un s atis fie d d a m ages aris ing on th e a ppeal

to th e full am o un t of th e b ond 5
If a m o rtga ge runs jo intly .

to the c red itor an d th e surety an d is c on d itioned for th e ,

p a y m en t bo th o f a n o te g iv e n by th e m o rtg g
a o r to t h e c re d
itor an d of a n oth er n ote given by th e m o rtgagor a nd th e

burn Assoc iation, 24 Pick ( Mu s ) South 0 Bloxam , 2 H em .


5
. .

25 7 ; Harding v Tiflt, 75 N Y 46 1 ; Mill 45 7


'

So in Hanford 0 Robert
“
. . . . . .

H a usen Rom an , 74 1113 23 8 s ou 47 Mich 100 But the sure ty s


’
0 . . .
, . .

But see Bridenbec ker v Lowell, 3 2 right is not usually so m uch restricted
“
. .

Barb ( N Y ) 9
. . . A rd en,
.

5
H anson v Manley, 72 Iowa, 48 ;.
5
Sta m ford Bank 0 Benedict, 15 .

B ryan 0 Hende rson, 8 8 Tenn 23 , 28 ; Conn 43 7


. . . .

Ma thews v S witzler 46 Mo 301 ;


.
5
Ses sions 0 Pintard, 18 How 106 ;
, . .
.

s r in Mos he r v H otchkiss, 3 Abbott I ves o Merchants Bank, 12 How


.
’
. . .
.

( N App Dec 3 26 . 15 9 . . .
172 m a LAW or S UBROGATION .

s uret y d itor the surety cann ot upon paying the


to th e cre , ,

n ote for w h ich h e is l iabl e as s e rt any righ ts un d er this m o rt ,

red itor un til th e c red ito r s oth er n ote is


’

g g
a e a ga in s t th e c ,

paid ; if th e s urety wish es to avail h im self of th e m ortgage ,

h e m us t on d efaul t of th e d ebto r pay th e l atte r n ote a ls o


,
5
,
.

B ut if s e veral d eb ts a re s ec ured by a m ortga ge give n by the


p rincip al d e btor an d for som e of th e debts th ere a re sureties
,

wh o a re n ot pa rties to th e m o rtga ge th e m ortgagee is s om e ,

tim es regard ed a s a trus te e of th e s ure ties for th e se c urity


thus p rovid ed for th e ir in dem n ity an d b oun d to a pply a j ust ,

propo rtion of its proceed s upon th e de bts for wh ic h th e sure ties


a re l iabl e ope ratin g a p ay m en t of th es e d eb ts pro ta nto and
, ,

dis c ha rgin g th e sureties to th at e x ten t If p roperty is de


5
.

p os ited with th e c red itor by th e princ ipal debtor to be applied ,

upon an in d eb ted n e ss on wh ic h th e re is a s urety th e c red itor ,

h as n o righ t aga in st th e surety to a pply th is up on a noth er


d ebt on wh ich th e p rinc ip al alone is l ia ble A n d th e p roper
5 .

a ppl ic ation on c e m ad e c an not be afte rwa rds c h an ged s o as


, , ,

to revive th e obl iga tio n of th e s urety 5


.

118 . S ure ty fo r P art of a D eb t c a nn o t be s ub ro ga te d . w hile

th e o th e r P a rt re m a in s debt
un pa i d .
A s uret y for part Of th e
is n ot en titl ed to th e be ne fit of a sec urity given by th e d ebtor
to th e c red ito r a t a d ifferent tim e for an oth e r p a rt of the
deb t A vendor of l an d took th e notes of th e ven dee with out
5 .

a ny oth e r s ec urity for th e p ay m ent of th e purc h as e m on ey -

re tain in g on ly a lien upo n th e l a n d to se cure th e pa ym e n t of

th e n ote s R ega rd in g th e l a n d a s an ins uflic ie nt s ec urity


.

h e b rough t a n action upon the first one of thes e n ote s and ,

a tta c h e d p rop e rty of th e v en d ee of th e v al ue of one th o us a nd

5
Root 0 Stow, 1 3 Metcalf ( Mas s
. .
) 5 Miller 0. Montg om ery, 3 1 Ills .

5 . 35 0 .

Fielde r v V am e r 45 Ala 429


5 .
,
.
5
Wade
Coope 2 S im 1 5 5 See
0 .
, . .

Cory 0 Leonard, 5 6 N Y 49 4
. . . . also Grubbs v Wysors , 3 2 Gratt ( V a )
. . .

5
Rosborough v Mc Aliley 10 So . . 1 27 ; Parke r0 Mercer, 6 How ( Misa )
.

J
.
,

Car 23 5 ; Wetherell 0 oy, 40Maine,


. . 3 20; Welch v Parran, 2 Gill ( Md ), .

3 25 , 3 28 . 320 .
BUBB OGATION IN 01 8 3 9 or soam rsm p . 1 73

dollars . To secure th e release of th is property , th e ven dee


g ave to th e vendo r a bon d with sureties in th e sum of a
th ous an d doll a rs a s s ec urity to th at a m o un t for the n ote
,

upon wh ic h th e suit w as brough t Judgm ent was th en ren .

d ered for th e am ount due upon the note Afte rwa rd s th e .

v en do r ob ta in ed a j ud m en t upo n th e th ird n o te an d s old


g ,

t he l a n d up on th es e j ud gm en ts H e a ppl ied th e p ro c eed s of .

th is s al e fi rst upon th e la st j udgm en t an d on ly the ba lan c e ,

o f th es e p roc e ed s upon th e firs t j udgm ent l ea vin g d ue th e reon ,

a n a m oun t e x ceed in g th e bo n d Th e s ureties upon th e b on d .

c on te nd ed th a t as th e first j udgm ent was a l ien upo n th e


,

la n d sold th ey h ad a righ t to be s ubs titute d a s to th is l ien


,

t o the pl a ce of th e j ud gm e nt c re d itor a n d th at as h e h ad -

d is ch a rged th is l ien by s ell in g th e l an d on th e ex ecutio n s ,

h e h ad th ereby d is ch a rged th eir l iab il ity But it was h eld .

th a t th ey h ad n o such righ t ; th at th e d octrin e of sub rogation


d id n ot a pply to th e c as e ; th a t it wa s n ot th e ca se of a s urety
a sk in g to be s ub s tituted to th e pl a ce of a c red ito r wh o h ad

c oll a te ra l s ec urity for th e d ebt but of a s urety for on e p a rt


'

of th e debt asking to be sub stituted for the c red itor in rel a


t ion to a security wh ic h th e c red itor h a d th e righ t to apply
upo n a n other p art of h is d eb t wh en th e effe ct w o uld be to ,

d eprive th e cred itor of h is resource s an d c ause h im a partial ,

loss of h is dem an d But th is rule m eans only th at th e


5
.

s urety s c red ito r m ust be s atis fied : if a m ortga ge is m a d e to


’

t wo d iffe re nt m o rtgagees to se c ure th eir res pective d em an d s


a ga in s t th e sa m e d eb tor a s urety to on e of the m ort a gees
, g
for h is d em an d wh o pay s th e s a m e b eing th e wh ole a m oun t ,

d ue to th is cred itor will be s ub rogated to th e s am e pro ra ta


,

i n teres t in th e m o rtgage wh ich w as po ssessed by th e c re d ito r


w h om h e h as pa i d 5 .

1 19 . S urety di s c h a rge d b y C re di t o r s gi vi ng up S ’
e c uri t y to

w hic h h e w o ul d be s ub ro ga te d . A s th e s uret y h as an in terest

5
Crum p v McMurtry 8 Mo 408
.
,
.
5
Lynch v Hancock, 1 4 So Car 6 6
. . . .

V ance 0 Monroe, 4 Gratt ( Va ) 5 2


. . . .
1 74 TH E L AW or sosnoc u r
on .

in v y sec urity wh ich the cred itor h old s against th e p rin ci


e er

p a l d eb to r w h eth er t h e s u re ty h a s k
, n o w n of its e x is ten ce o r

n ot ao if th e c red ito r in te rferes with th e s urety s righ t of


’
, ,

s ub roga tion by pa rting w ith any s uc h s ec uri ty with o ut th e

c o n sent of th e s ur ety th e s urety is th ereby d isch a rged to the ,

e x te nt of th e va l ue of such sec urity 5


Not only an a c tual .

pa rting w ith th e sec urity but any dealing with it s uch th at the ,

s ure ty ca nn ot h a ve th e ben efit of it in th e s am e c o n d itio n in

wh ich it ex is te d in th e c red itor s h an d s will h a ve th is efi ect


’
5
'

, .

Th e s urety is en title d to the be nefit of all th e sec uritie s in


th e h a n d s of th e c redito r ; an d if any of th e se are lost by th e
c red ito r s ac ts or n egl ec t th e s urety is d is ch a rged to the
’
,

e x te n t to wh ich th e a c ts of th e c red ito r m ay h a ve prej ud iced

h is re course for th e re im b urs e m en t of wh at h e m ay be obl iged


to pay un der h is c o ntrac t of suretys h ip but on ly to th is e x
5
,

ten t 5
Th e s urety w ill n ot be d isch a rged by wh at ca n n ot
.

inj ure h im 5
Ac cord in gly th e c red itor w ill not dis ch arge the
.
,

surety by m ak in g a n ex ch an ge of se c urities w ith th e p rin c ipal

d eb tor wh ereby h e ob tain s a m ore val uable security th an he


,

g iv e s u p
5
A n y a ffi rm a tiv e a.c t of th e c re d ito r by w h ic h a

s e c urity of w h ich th e s urety m igh t h a ve a vaile d h im s elf is


'

5 Wulff 0
Jay, L R 7 Q B 75 6 , . . . . . V a 6 1 4 ; Robers on c Tonn, 76 Tex
. . .

762 ; B echervaise v Lew is, L R 7 . . . 5 3 5 ; H ubbard v Pace, 3 4 Ark 80; . .

C P 3 72,
. Fitchburg Savings
. Lafayette Coun ty v H ixon, 6 9 Mo . .

Bank 9 Torrey 13 4 Mass 23 9 ; Gro w


.
,
. 5 8 1 ; Gorda wah v Ma lone, 63 Ah .

v Ga rlock 9 7 N Y 8 1 ; Griswold v
. . . 556 .

J
.
,

5 N ic hols v B ur
ac kson 2 Ed w Oh ( N Y ) 46 1
,
. . . . c h , 1 28 I nd 3 24 ;
. .

Fegley v Mc Donald, 8 9 Penn S t . . . Arm or 0 Am is , 4 La An n 19 2 ;. . .

1 28 ; S m ith v Mc Leod , 3 Ire d Eq Pratt s Succession, 1 6 La Ann 3 5 7 ;


’
. . . . .

C hafle v Taliaferro, 5 8 Miss 5 44


‘

( N o r C a r ) 3 9 0 ; R
. uble 0 N o rm a n .
,
. . . .

7 B ush ( Ky 5 8 2 D illon v R ussell, .


5
Blydenburg h v Bingha m , 3 8 N . .

5 N ebras ka 48 4 ; B urr v Boyer, 2 ,


. Y 3 71
. D
obson 0 Cha m bers , 79 Nor . .

N ebraska 265 ; Allen 0 H enley, 2 ,


. C ar 142 ; Barrow v S hields, 1 3 La
. . .

Lea 1 41 . Ann 5 7 .

J
.

5
Pledge v B uss, ohns ( Eng . . .
5
Cam bridge Savings B ank 0 .

Oh ) 66 3 ; H utc hins on v Woodwell,


. . Hyde 1 3 1 Mas s 77 Heath 0 Gris
,
. .

1 07 Penn St 5 09 ; Mellendy v Aus . . . wold 1 8 Blatchf C C 5 5 5


, . . . .

tin 69 Ills 1 5 ; Foss 0 C hicago 3 4 5


Thom as 0 Cleveland, 33 Mo .

J
. . .
, ,

1113 48 8 ; ohnson 0 Young, 20 W


. . . 1 26 .
S UBROGATION m CASES or s uam rs m p . 1 75

put out of l atter s reach operates as a dis ch arge of th e


th e
’

su et p
r y ro ta n to
5
b u t o n ly p r
,
o t a n to
5
A n d t h is p r in c ipl e .is

n ow g e n er a lly e x te n d e d t o se c ur it ie s t a k en by th e c r e d it o r

f
a te r t h e c o n tr ac t of s ur e ty s h ip h as b ee n m a d e
5
a l th o u g h it ,

h as eeb n d e te r m i n e d in E n g l an d c on tr a ry t o t h e , u s u a l d oo

t i e
r n
5
t
,
h a t t h e c re d it o r i s n o t bo u n d t o ret a in f o r th e p ro

te ction of th e surety s ec urities for th e d eb t wh ich h e m ay


h a ve ac quired from the p rin cip a l d ebtor s ub se q ue ntly to th e
c on trac t of s urety sh ip an d w h ich w h il e th e c red ito r h olds
, ,

th em th e s urety does n ot call upon h im to enfo rc e ; an d th at


,

a c red itor wh o h a vin g ta ken a furth er s ecurity f rom


,
th e

p r in c i pa l a f t e r t h e c o n t rac t of s u r e ty s h ip w a s m a d e a ft e r ,

w ard s pa rts with th at security does n ot th e reby d isch arge ,

th e s urety eith er wh olly or pro ta n to


,
5
.

1 20 . C re d it o r h e ld t o R e s po n s ib ilit i es of T rus t ee fo r S ure ty .

Th e d itor wh o h old ing th e en ga gem en t of a s urety


c re , ,

ta kes a l s o from th e p rin c i p a l d ebto r c oll atera l s ec urity for


th e p ay m en t of th e d ebt is b oun d to h old th e p ro perty wh ic h ,

h e so ta k es in trus t, n ot on ly for h is own be n e fit but a l s o ,

for th e prote c ti on of th e surety 5


H e m us t act w ith good .

faith toward s th e surety as h is cestui que trust an d h old th e ,

fun d fa irly an d im pa rtia lly for th e bene fit of th e s urety a s


w e ll a s of h i m s e lf H e m us t a c c ount to th e s urety for th e
.

val ue of th e p roperty n ot on ly if h e pa rts w ith it or s urren, ,

d ers it with out th e c ons ent of th e surety or does any a ffirm a ,

5
Allen v O Donald, 23 Fed Rep
’
. . . 3 81 Sherradeeu 0 Parker, 24 Iowa, .

5 73 ; Philbrook v McEwen, 29 Ind . . 28 ; N els on v William s , 2 Dev & Bat . . .

3 47 ; Guild v Butler, 1 27 Mass 3 8 6 ;


. . Eq ( N or Car ) 1 1 8
. . . .

Marbury v Ehlcn, 72 Md 206 Wat


. .
5
A id ed 55 8 6, 8 7 , .

s on v Reed, 4 Baxter
. 49 ; 5
Newton 0 Chorlton, 10 Hare, .

C ullum o Em anuel, 1 Ala 23


. . 6 46 .

K
.

5
Allen 0 O Donald, 28 Fed Rep
'
es le r v Linker, 8 2 Nor Car
. .
5 . .
. .

17 ; Bedwell c Gephart, 67 Iowa, . 45 6 ; Pipkin a B ond, 5 I red Eq


J
. . .

( N o r C a r ) ;
.9 1 H olland 0. ohn son .
,

Scanland c Settle, Meigs


5
. 5 1 Ind 346 ; Willis 0 . avis 3 Minn . D ,
.

169 ; Pearl St Society 0 I m lay, 23


. . 1 7 ; McMullen v H inkle, 3 9 Mis s . .

Conn 1 0 May 0 White 40 Io wa,


. .
, 1 42 ; Ha rdin v Eam es, 5 Ills App . . .

346 Springerv Toothake r, 43 Maine, . 15 3 .


1 76 TH E LAW or sus s oc u r
on .

ti v e ac t in v iol ation
wh ich h e h olds it but of th e trust upon 5
,

a l s o for h is negl igen c e or om iss i on to p erform an t


y a c , ,

wh ereby th e surety s rec ours e to th e fun d is p re j ud i c ed 5


’
.

Th ough m ere n on action by the c reditor wil l not ord in arily -

re l eas e th e s urety 5
et if i t i u h ti o t d
y s s c n on a c n as o re n er , ,
-

un p rod uc t ive s om e c oll a tera l security s uch as a m ort a e


g g , ,

h e ld for th e p aym en t of th e debt th is w i ll b e an a v ai l a bl e ,

d f e or t e s urety at l east pro ta n to If h e w aives h is


e e n c f h 5
, .

s ec urity by p rov in g h is c l a im as a n uns e cured one a ga ins t

th e es tate of th e p rin c ip al d e bto r in b an k ru tc y th is w i ll


p , ,

d is ch a rge th e s urety to th e ex tent of the va l ue of the security


th us re l e a s ed th o ugh i t h a s been h e ld th at th e cred i to r is
5
,

n on e th e l es s en titl ed to e x e rc i s e h is opt io n of s urren d e ri n


g
th e s ec urity a n d p rovin g in f ull aga ins t th e p rin c ipa l s e s tate ’

bec ause h e h old s a surety and th at th e surety wi ll n ot be ,

d is ch arged by s uch proof Th e right of th e cred itor aga ins t


5
.

5
Otis
Von Sta rc h, 15 R I 41 ; v . . . 231 Schroeppell v S haw, 3 N Y 446 ; . . .

H um ph rey v Hayes 9 4 N Y 5 9 4 ; .
, . . Dec k v Works , 1 8 H un ( N
. 26 6 ; .

Wharton v D uncan, 8 3 Penn S t 40; . Canton Bank 0 Reynolds, 1 3 Ohio,


K
. . .

Sa m ple v Co chran, 8 4 Ind 5 94, and. . 8 4 ; irby v Studebake r, 15 Ind 45 ; . .

8 2 Id 260 Nels on 0 Munch, 28


. . V ason v Beall, 5 8 Ga 5 00; Pickens
. .

Minn 3 14 . . v Finney, 1 2 S m
. M ( Miss ) 46 8 ; . .

5
S trange v Fooks, 4 Gifi 408 ; . . Clopto n v Spratt, 5 2 Miss 25 1 ;
. .

Watts v S huttleworth , 5 H url Nor


. . . B uckalew v S m ith, 44 Ala 6 3 8 ; . .

23 5 ; s c on e rror, 7 H url
. N or .
,
. . H um phreys 0 C rane , 5 Calif 1 73 ; . .

35 3 Taylor 0 Scott, 62 Ga 3 9 . . Parker0 Alexander, 2 La Ann 1 8 8


. . .

Payne v Com m ercial Bank, 6 S m . . Murrell 0 Scott, 5 1 Te x 5 20 H unter


. .

M ( Miss ) 24 ; Phares v Barbour,


. . . v Clark, 28 Tex 1 5 9 ; Terrel v Town
. . .

49 Ills 3 70 ; Brockm an v Sieverling,


. . send, 6 Tex 1 49 . .

6 1113 App 5 12 ; She rradeen 0 Parker,


. . .
5
L um sden v Leonard, 5 5 Ga . .

24 Iowa, 28 ; Saulet v Trepagnie r, 2 . 3 74 ; City Bank 0 Young, 43 N H . . .

La Ann 427
. . . 45 7 R ussell v Weinberg, 2 Abbott, .

5
Trent N avigation Cc v H urley, . . New Cas ( N Y ) 422 ; Ram sey v
. . . .

10 Eas t, 3 4 ; Allen 0 B ro wn, 1 24 . Westm oreland Bank, 2 Pen Watts .

Mass 77 Watertown Ins Cc v S im


. . . . 203 ; Gilles pie v arwin, 6 . D
m ons , 1 3 1 Mass 8 5 Heisk ( Ten n ) 21 ; Merc hants Bank
’
Chapin 0 Liver . . . .

m ore, 1 3 Gray ( Mass ) , 5 6 1 ; Taylor a Cordeviolle , 4 Rob ( La ) 5 06


. . . .

v S tate 73 Md 208
. Kelserv Linker,
, . .
5 Jones
H awkins 60Ga 5 2 See
0 .
,
. .

8 2 Nor Car 45 6 C herry 0 Miller, 7


. . . Phoenix Manufg Co v Fuller, 3 . . .

Lea 3 05 Grisard c Hins on, . Allen ( Mas s ) , 441


J
.

5 0 Ark 229 ; Mc Kecknie . Ward 5 8 ,


5
Ra inbo w v uggins, 5 Q B Div . . . .

N Y 5 41 Clark v Sicklcr, 6 4 N Y
. . . . . 13 8 ; s c afi rm ed on appeal, 5 Q B
. . . .
S UBB OGATION m ca ses or s oa m rs m p . 1 77

th e y w ill be destroy ed by m ak ing suc h a c om prom ise


s uret

w ith th e prin c ip a l d eb tor th at th e s urety c an n ot for h is


reim burs em e n t b e s ub roga ted to th e c re d ito r s righ ts ; but
5 ’

a c om prom is e wh ic h p res erves th e p riv i l eges of th e s urety

w i ll n ot h ave th is efi ect 5
'

1 21 . L a c h es of C re di t o r res ul ti n g in L o s s of S e c urity m ay

d is c h a rge S ure t y A c c ord in g]y it h as been h eld th at th e c red.

i t or s fa il ure to re c o rd a m ortga ge or c on vey an ce of property


’

wh ich h as b een giv en to h i m by th e p rin c ip a l d ebtor as a s ec u


ri ty for th e d e b t wh ereby th e ben efit of th e s ecurity is l os t ,

both to th e cred itor an d th e s urety w ill d is c h arge th e s urety ,

to th e e x ten t of th e v a l ue of th e p rope rty ; for th e los s m us t


5

be born e by th e pe rs on to wh ose n eg l ec t it was due 5


Th is .

h as h ow eve r b een s om etim e s d en i ed on th e g roun d th at th e


, ,

c re d ito r s l i ab i l ity is for pos i tive a c ts on ly n ot for m e re


’
,

pas s i ve n egl igen c e ; but it is gen era lly c on s ide red th at th e


5

c red ito r sh ould be h e ld res p on s ib le for th e l os s of a n y s ec u

ri ty a ris in g fro m h is w ron gful ac ts wh eth e r of om iss io n or ,

of c om m i s s ion If h oweve r th e c re d itor s n egl e ct h as n ot 5 ’


.
, ,

Div 422 And see S t Albans Bank


. . Harperv ean 11 Serg . . . K , .

0 Wood 5 3 V t 49 1
.
,
R S im m ons v Tongue,
. . . .

5
Hopk irk v Mc Conico, 1 Brock 3 Bland Ch ( Md ) 3 41 ; Curry v
. . . . .

C C 220; Mo rris Canal Cc 0 V an Mack 90 1113 606 ; Lyon v H un


J
. . . .
, . .

V ors t, 21 N Law, 100 ; Re nick v tingdon Bank 1 2 Serg


. R ( Pe nn ) .
, . . .

Ludington, 1 4 W V a 36 7 6 1 ; R ussell 0 H ester 10 Ala 5 3 6


. . .
,
. .

5
Muelle r v Dobsc huetz 89 Ills 5
Was son r H ods bire 108 1nd 26 .

K J
.
, .
, .

1 76 en w o rthy v S awyer 125 Mass N Y Exchange Bank v o nes 9 Daly .


, . . . .
,

28 ; Tobey v Ellis 1 14 Mas s 1 20 ; ( N 248 ; Philbrooks v McEwen


.
, . . .
,

H utc hins v N ic ho ls, 10C us h ( Mass ) 29 Ind 3 47 ; H am pton v Levy, 1


. . . . .

29 9 ; Sohier v Lo ring 6 Id 5 3 7 McCo rd Eq ( 8 0 Car) 1 07


.
,
. . . . . .

5
Capc l v B utler 2 S im Stu 5
Douglass v Reynolds, 7 Peters,
.
, . . .

45 7 ; W ultf v Jay L R 7 Q B 1 13 ; Gettysburg Ba nk 0 Thom pson,


.
,
. . . . .

75 6 ; Tea fl 0 Ros s 1 Ohio St 469 ; 3 Grant ( Pa 1 14 ; S hippen v


'

. . .
,
.

B urr o Boye r, 2 N ebraska 26 5 ; At Clapp, 3 6 Pe nn S t 89 ; Ke m m erer


.
,
. .

lanta National Bank v D o uglas s, 5 1 0 Wilson, 3 1 Penn St 1 10; Selle rs 0 .

J
. . . .

Ga 205 ; Toom er v Dickerson 3 7


. ones , 22 Pen n St 423 ; Lang 0 .
, . . .

Ga 428 . . B revard, 3 Strobh Eq ( So Car 5 9 ; . . . .

5
D ucker v Rapp 6 7 N Y 464 ; S m ith v Mc Kean, 9 9 1nd 101 ; Wen .

K
. . .
.
,

Muirhead v irkpatrick, 21 Penn St dell v H ighstone , 5 2 Mich 5 5 2; Jen


. . . . .

23 7 ; Beale v The Ban k, 5 Watts nison v Parker 7 Mich 3 5 5 ; Sle vin


. .
,
.

12
8 run L AW or m om m a .

l d in th e los s of a ny m eans of paym ent to wh ich th e


re su te

s urety on d is ch a rgi ng th e d e b t would h a v e th e righ t to b e


, ,

s ub rogated th e c red itor s c l a im upon h im w i ll n ot b e ai


’
,

fec ted 5
A n d as l ach es c an n o t be im p ute d to th e gove rn
.

m ent
5 th e fa il ure of a c oun ty c ourt to ta k e a m o rtga ge on
,

un in c um b e re d re a l es tate a s w a s re quire d by s ta tute to , ,

s ec ure th e p ay m e n t of s ch ool m on ey loa ne d w i ll n ot d is -

c h a rge a s urety for th e l oa n 5


A nd th ough a rul e of c ourt .

req ui res th at a rec ogn i za n c e s h ould be ta k en and reco rd ed

for th e p ay m e nt of th e ren t of p rope rty in ch a rge of th e


c ourt a fa i l ure of th e c l e rk of th e c ourt to rec o rd s uc h a
,

rec ogn i z an ce wh ereby a l ien for th e ren t upon th e pro perty


,

of th e lessee is los t w ill n ot d is c h arge a s urety for th e pay ,

m ent of th e re nt f rom h is l iab il ity S o wh e re an ord e r of


5
.
,

c ourt m a d e in p urs ua nc e of a s ta tute p rov id e d th at a m ort


, ,

g g
a e s h o uld b e ta k e n f o r th e p urc h as e m o n e y of p r o p e rty s o ld -

at an a d m in istrat or s sa l e a s urety for th e purc h as e m on e y w as


’
-

n ot rel e a s ed by th e fa ct th a t c on tra ry to h is e xpe c tat i on n o , ,

s uc h m o rtgage wa s ta k e n n o m is re p res en ta tion h av in g be en ,

m a d e t o h im B ut th e c red itor is n ot req ui red to do m ore


5
.

for th e p rote c tion of th e s urety th an to prese rve th e force


an d v a l i d ity of th e sec urity f urn is h ed by th e d ebto r ; i t is

en ough if h e i s a bl e to p rod uc e th e security in as good c on d i

tion a s h e rec e ived it 5


.

vMorrow 4 1nd 425 ; Lam berton v


.
,
. O s b o rn e 0 U n ite d S ta te s , 1 9 .
5 .

Windom 1 8 Minn 5 06 Grou se J


, ,
W a.ll 5 77 . 5 8 1 ; G a n ase n v U n ,
ite.
d . .

in B urr v Boy er, 2 N ebras ka, 265 ; Sta tes 9 7 U S 5 84


. ,
. . .

Marion Co unty v Moflctt, 15


'

C hicheste r 0 Mason 7 Leigh .


5 .

244 ; Lee v Baldwm , 1 0 Ga 208 ; Mo 604 .

J
. . .

P ic k ens v Y a rb o ro ug
. h 2 6 A la 41 7 ;
5
e p h so
,
n v M s u n se ll, 1 0 I ris h E q . .

N oland v Cla rk 10 B Mon ( Ky ) 3 8 , and ( on appeal) 1 3 2


.
. . . .

23 9 Wood r Morgan, 5 S ueed .


5
Wornell v William s, 1 9 Tex . .

7 ;
9 H ill v B o urc ier, 29 L a 18 0 .
S ee R e y no ld s 0 D ec h a u m s , 2 4 . . .

Ann 8 41 ; Wa tson 0 Allcock 1 S m


. Te x 1 74 .
, . . .

Gifi 3 1 9 ; s c , on appeal, 4 De G
5
C la rk 0 Youn g 1 C runch, 1 8 1
'

. .
. . ,

M . G 2 4 2 . .
O rm s by v F o rt une , 1 6 S e rg R . . .

5
Pottawattam ie Cc v Taylor, 47 ( Penn ) 3 02 ; Trotter v Crockett, 2
. . . .

Iowa, 5 20 . Porter ( Ala ), 401 .


S UBROGATION m CA S E or suns rrsm r
'
. 1 79

1 22 . C re di tors D is c h a rge of Levy or A tta c h m en t on th e P ro p

a rt y c f th e P ri n c i pa l . h o w an 3 D is c h arge of th e S ure ty . If th e
c re d itor re l eas es th e l evy of an ex ec uti on for th e debt upon
p rop e rt y o f th e p ri n c i p a l s ufli c i en t to s a tis fy th e d e b t t h i s ,

w i ll d is ch arge th e surety ; for th is is a sec urity wh ich th e


5

s urety ca n re q ui re th e c re d ito r to p rese rv e


5
Much les s ca n .

th e c red ito r t o th e in j ury of th e surety d is ch a rge the l evy


, , ,

s o a s to let in an oth er d e bt d ue to h im s e lf or by as s ign in g


5
,

h is j ud gm en t to an oth er pe rs on en abl e th e l a tte r by dis ,

ch a rgin g th e l e vy t o s a ve a n oth e r d eb t out of th e p roperty


, ,

t o th e los s of th e s urety 5
A re le as e of property upon wh ich .

th e j ud gm en t is a l ie n w i ll h a ve th e s am e efi e ct a s if th e
'

p rop e rty h a d b ee n a c tua lly le vi e d up on


5
If th e l ie n of th e .

j ud gm ent upon th e l an d of th e prin cipa l d ebtor h as be en lost


by th e c red itor s h a vin g p rove d it as a n uns ec ured d e bt
’

a ga i ns t th e e s tate of th e p ri n c i p a l in b an k ruptc y th is w i ll ,

d is ch arge th e surety to th e e xtent of th e in j ury th ereby re


s ultin g to h i m but on ly t o th is e xten t ,
5
A n d it h as b een .

h eld th at after a le vy upon p ro pe rty of th e prin c ipa l a de ,

l ivery of s uch property by th e sh eriff to th e prin c ipa l debtor


w ill d is ch a rge th e surety to th e e x te n t of th e v a l ue of this
p roperty ; for if th e c re d itor was n ot i n faul t th e sh eri ff w ill ,

b e l iabl e to h im an d th e sure ty s h ould be re l eas ed ; if th e


,

Spangler v Shefle r, 69 Penn S t


'
5 . . . C uran v Co lbert 3 Ga 23 9 ; B rown
.
,
.

25 5 ; Mc Kenzie v Wiley 27 W V a .
, . . 0. R iggins 3 Ga 405 ; Morley v
, . .

6 5 8 ; Fa rm e rs B ank v K ingsley 2
’
, D ic kinso n 12 Calif 5 6 1 ; Moss v
, . .

D oug ( Mic h ) 3 79 ; H utto u v Ca m


.
p . Pe tting ill, 3 Minn 217 ; H a rrison .

he ll 10 Lea
, 1 70; S to cka rd v . Machine Works 0 Tem pleton , 8 2 .

G ra nbe rry, 3 Id 668 ; Holt v Ma nie r . .


, Te x 443 ; Jenkins 0 Mc Neese 34
. .
,

1 Id 48 8 Winsto n v Yeargin, 5 0 Ala


. . . Te x 1 89. .

340; M ulford v Estudillo 23 Calif 9 4 .


,
. .
5
Mc Mullen v H inkle, 3 9 Miss . .

5
S te phens v Monongahela Bank, . 1 42 .

88 Penn S t 1 5 7 Shutts v Finger,


. . .
5
N els on v Willia m s , 2 Dev . .

1 00N Y 5 39 , 5 46 S pring 0 Geo rge,


. . . Bat Eq ( Nor Car ) 1 1 8
. . . . .

5 0 H un ( N Y 227 ; Day v Ra m ey,


. . .
5
H olt v Bodey, 1 8 Penn S t 207 ; . .

40 O hio S t 446 , Mohrm an v Wood ,


.

. . H o llings worth v Tanner 44 Ga 1 1 . . .


°

1 17 I ud 1 44 ; Coo pe r v Wilco x 2
. .
, Mc Mullen v H inkle, 3 9 Miss 1 42 ; . .

Dev . Bat Eq ( Nor Car ) 90 ; . . . . R o beson v Ro berts , 20 1nd 1 5 5


. . .

Winston v Yea rgin, 5 0 Ala 340


. .
5
Jones 0 Hawkins , 60 Ga 5 2 . . .
1 80 THE LAW or sus aoc m r
on .

c re d itor w as i n faul t th en a f ortiorz th e s urety sh ould be re ,


'

le a sed th ough th e doc tri n e is n ot c om m on ly c a rri ed to th is


l
,

e x te n t B ut th e m e re fa il ure of th e offic er th rough n egl i


5
.

g e n c e t o m a k e t h e m o n e y o u t of t h e p ro p e rt y of th e p ri n c i p a l
w i ll n ot d is ch a rge th e s ure ty 5 If th e d e l a y or d ism iss a l of .

th e l e vy does n ot a n n ul th e l ie n of th e j ud gm e nt upon th e
p rope rty th e n as th e righ ts of th e s urety are n ot th e reby
, ,

a ffe c te d h e w i ll n ot be d is ch arged from h is l ia b ility ; a


,
5

m e re s us p e n s i o n of e x e c ut ion w i ll n ot d is ch a r e th e s ure t 5
g y ,

un l e s s it is th e resul t of a n a gree m en t of th e c red ito r w ith

th e p rin c ip a l d eb to r n ot to is s ue e x ec ut ion or n ot to a tte m pt ,

c oll ec t ion f rom S om e a c t of i nte rfe ren c e w i th th e


5
h im .

s ure ty s ri gh t of s ub roga tion to a s ec urity or a rem e dy m us t


’

be s h own to opera te h is d is c h a rge by reas on of th e c red it or s


’

n egl ec t in p urs ui n th p ri n ip l r h i p r p rty 7 Th l i


g e c a o s o e e e n .

of a n a ttac h m en t for th e d eb t ob ta in e d by th e c red itor u po n

th e p rope rty of th e p rin c ip a l de b tor is a s ec urity for th e


d ebt h ich will inure to th e be n efit of th e s urety ; an d its
8 w

d is ch arge w i ll rele as e th e surety at l ea st pro ta n to S om e 5


,
.

c ourts h a ve i n d ee d h e ld th a t th e re l eas e by th e c re d itor of an

a tta ch m e n t upo n th e p ro pe rty of th e p rin c ip a l w i ll n ot d is

Lum s den v Leonard 5 5 Ga 3 74 ;


5
.
, . Man ioc v . D uncan 1 2 La Ann 71 5 ;
, . .

Ra m sey v W estm o reland Ban k 2 Pe n


.
,
. H um ph rey v . H itt, 6 Gratt ( Va ) . .

8: W ( Pe nn ) 203 ; Lac ke y v S teere,


. .
. 5 09 ; S ha rp v . Fagan, 3 Sneed
1 21 1113 5 9 8 . . 5 41 .

5
Ra ddy v Wh itney, 4 E D . . . Evans 0 Raper 74 N or Ca r
5
.
, . .

S m ith ( N Y 3 78 . . 6 3 9 ; S te rne o V incennes Bank, 79 .

5
K indt s Appea l 102 Pen n S t
’
. . . I nd 5 49 ; Blazer v Bundy, 1 5 Ohio
. .

441 ; Moss v C raft 10 Me 720 ; .


, . S t 5 7 ; S torm s v Thorn, 3 Ba rb
. . .

Ba nk of Alabam a v Godden 1 5 Ala .


, .
( N Y )
. 3 1 4. .

6 1 6 ; Grief? v S team boat S tacy, 12 .


7
Jac kson 0 Patrick, 1 0 8 0 Car . . .

La Ann 8
. . . 19 7 ; D ills v Ce cil, 4 B ush ( Ky ),
.

5
Wyley v Stanford, 22 Ga 3 8 5 ; . . 5 79 .

S um m e rh ill v Tapp, 5 2 Ala 227 . .


5
C ook, in re 2 Story, C C 3 76 , . . .

Am bler v Leach 1 5 W V a 677


.
,
. . .
5
Te m pleton v S hakley, 107 Penn . .

5
Wilson 0 Be ds H em pst 284 ; .
,
. S t 3 70 ; S pringe r 0 Toothaker 43
. . ,

B rown v C ham be rs , 6 3 Tex 1 3 1 ;


. . Maine, 3 8 1 ; Maquoketa v Willey .
,

H e the rington v Mobile Bank, 1 4 Ala . . 3 5 Iowa 3 23 ; Ashby v S m ith, 9


, .

68 ; C raw fo rd v Gaulden, 3 3 Ga 1 73 ; . Leigh 16 4 ; Miss ouri Bank


J
.

erauld v Trippett, 62 Ind 1 22 ;


. . v Matson, 24 Me 3 3 3
. . .
sos aoc n i on m c a ses or s oa nm r
sm p . 18 1

ch a rge a suret y for th e debt b ecaus e th e cred ito r is n ot bound ,

t o p ros ec ute a s uit or to us e a ny a c ti ve d il ige n c e to ob ta in


p ay m en t from th e p rincipa l but n o satis fac tory reas on h as
5

e v er be en giv en why th e re l eas e of an a ttac h m en t l i en upon

th e prope rty of th e princ ip al sh ould be d is tin guish ed f rom o

th at of a ny oth er l i en 2
Th e m ere fa il ure h owever of th e .
, ,

c red itor t o ta k e out a n d l evy an e x ec uti on or to p ros ec ute a


3

s uit wh i ch h e h as c o m m en c e d a ga in s t th e p rin c ip a l for th e

d ebt n o security h av in g been obta ined th ere in wi ll n ot


, ,

re l eas e th e s urety It h a s been h e ld th at th is doctrine of


5
.

th e re l ease of th e s urety w i ll n ot b e a ppl ie d i n fa v or of on e


of th e j oint m ak e rs of an obl igati on wh o was in fac t a surety
for th e oth er m a k ers ; for th a t th ey w ere a ll prin c ipa l d e b tors
as to th e c red it or a n d th at th e re l ati o n of s urety sh i p e x is ted
,

on ly as between th em s e lves : but el s ewh ere it is h e ld to be


5

im m ate ria l w h eth e r or n ot th e c re d ito r a t th e tim e th at h e


re le as es th e p rop e rty k n ow s of th e re l a ti o n of h i s d e b to rs ,

am on g th em s e lv es a s pri n c ip al an d s urety ; if h e in fa c t re

l eas e s th e property of th e prin c ipa l h e does s o at h is pe ri l 5


, .

1 23 . C re d i to r b o un d to re t a i n M on ey or P ro perty of th e

Prin c i pal rig h tfully i n h is H a n d s . Wh en ever th e cre d itor h as


5
Som ersworth
Savings Ba nk v g ,
o 5 Baxte r 603 ; Fox 0

K
. .

Worceste r, 76 Maine, 3 27 ; Herrick H udson, 20 ans 247 ; Thom pson v . .

v Orange Co unt Bank, 27 V t 5 8 4 ; Robinson, 3 4 Ark 44


.
y . . .

Baker v Mars hall 16 V t 5 22 ; Mont


. .
5
So m erville v Marbury 7 Gill
J
, .
,

p e li er B a nk v D ixo n, 4 V t 5 8 7 ;
. Carr . ohns ( Md ) 275 . Ri c hards 0 Co m
. .

v S te rling , 1 14 N Y 5 5 8 ; Morrison
. . .
m on wealth, 40 Penn S t 1 46 ; Ma n . .

Citize ns Bank, 6 5 N H 25 3 ;
’
0. . . chester Ba nk 0 Bartlett, 13 V t 3 1 5. .

B arney v Clark 46 N H 5 14 ; Bel


.
, . . C reath v Sim s 5 Howard , 1 9 2
.
, .

lows v Lovell, 5 Pic k ( Mas s ) 307


. . . .
5
Patte rs o n 0 Brock 14 Me 473 ; .
,
.

5
See Gre en 0 Mann, 76 Ga 246 ; . . S hriver v Lo vej oy, 3 2 Calif 5 74
. . .

H ollings worth v Tauner, 44 Ga 1 1 ; . . And see Pinta rd v Da vis, 21 N J . . .

Freano r v Yingling 3 7 Md 49 1 ;.
, . Law 63 2 ; McCall 0 Evans 2 B re v
, .
,

S tate Bank 0 Ed wards, 20 Ala 5 1 2 ; . .


( S o Ca r
.
) 3 . .

Dixon v Ewing , 3 Ham m ond ( Ohio),


.
5
Artc her v Douglass 5 Denio .
,

28 0; Ha rd v S pencer, 40 V t 5 8 1 .
( N 5 09 ; Gipson v O gden , 1 00
K
. . . .

5 night v Charter, 22 W V a . . . I nd 20 ; Gates 0 Thayer, 9 3 1nd


. . .

4 22 ; Charlotte Ba nk 0 Hom esley, . 1 5 6 ; B elt 0 Bodey, 18 Penn St . . .

9 9 Nor Car 5 3 1 Anderson v Lith


. .
. 207 .
1 82 n rz LAW or s os noc u r
oh .

in h is h an ds m one y
property of th e p rin c ipa l de btor wh ichor ,

h e m ay righ tfully re ta in an d a pply to th e paym en t of th e


debt w ith out vi ol ating any duty or subjectin g h im s e lf to an y
,

a cti o n th e s urety m ay req uire it to be so a ppl ied


,
5
a n d if

th e c re d itor in s tea d of reta in in g i t s uffe rs i t to p ass in to


, ,

th e pos sess i on of th e p rin c i pa l th e s urety is th e reby to th a t ,

e xte nt d i sc h arge d ; but th is m ust be p ro perty on wh ic h th e


5

c red itor h as a l ien to wh ic h th e s urety on p a y m ent by h im


, , ,

c a n be s ub rogate d 5 Th us a corporation wh ich h as th e .


,
“

option to p reve n t th e tra n s fe r of s toc k b it h r h old r


y s s a e e s

wh o a re in d ebte d to it but h as ne ver ex erc is ed th at opt ion , ,

w ill n ot l os e its righ t to h old a surety for an in deb te dn ess of


on e of its s to c k h old e rs by a llow in g th e l a tte r to tra n sfe r h is

s to c k th e s ure ty n e ve r h a vin g ca ll ed upon th e c orpo ra ti on to


,

enf orc e its p oss ibl e l ien A c re d itor wh o h olds a j udgm en t


5 ”
.

a ga ins t p ri n c i p a l a n d s urety does n ot re l ease th e s ure ty by

em pl oy in g th e p rin c i pa l to do wo rk for h im an d th e n pa yin g ,

th e p rin c ip a l for s uch work in a c c ord an c e w i th an a gre em en t


to do s e in ste a d of s et tin g it ofi a ga in st h is j ud gm e n t 5
'

.
,

N or w ill h e d is ch a rge th e sure ty by purch as i n g property of


th e p rin c ipa l a n d pay in g h im for it, before th e d eb t for
wh ich th e s urety is l iable becom es due an d payabl e Wh ere 5
.
,

5
Ba dm an o Thi nner 6 5 Nor Car .
,
. . Penn St 43 2 ; Mc shane 9 H oward
. . .

445 ; Allen 0 Sm itherm an , 6 I red . . Bank, 73 Md 1 3 5 ; Stree t 0 Old . .

Eq ( N or Car ) 3 41 ; Henderson 0
. . . . Town Bank 67 Md 421 ; 000t , v . .

Huey 45 Ala 275


, . . Parker 1 7 Ohio, 28 9 Foste r 0 Gas
, .

5
Law 0 East India 4 V esey, ton , 1 23 I nd 96 ; E tna Bank 0
K
. . .

8 24 ; innaird v Webster, 1 0 Oh . . H ollister, 5 5 Conn 18 8 ; Glazier v . .

D iv 1 39 ; Bixby v Darhlia 26 H un
. . ,
Douglas , 3 2 Conn 3 9 3 ; Beaubien .

N 2 7 B R hb v S tone , S ears Eq ( 8 0 Ca r ) 5 08 ;
( 5 ; ro wn v a t urn .
y p .

J J
.
, .

10 Greg 15 8 ; ones v Fin dley 8 4 . Taylor v eter, 23 Me 244 ; Good


. .

K
.
,

Ga 5 2 ; Crim v Fle m ing 101 Ind


. .
,
. ac re 0 Skin ner, 47 ans 5 75 . .

5 Pe rrin e 0 Mobile Ins 22


1 5 4 ; Kies s ig v Alls paugh 9 1 Calif .
, . . .

23 1 ; S palding 0 Bank of Susq ue . Ala 5 75 .

haun a, 9 Penn S t 28 ; R ichards v . . .


5
Hollingsworth v Tann er, 44 Ga . .

C om m onwealth 40Penn St 146 , . . .

5
Tena nt v Tenant , 1 10 Penn St . Ech ols a H ead 68 Ga
5 .
, . 15 2 ;
478 ; Clow v Derby Coal Cc 98 . .
,
H igdon v Bailey, 26 Ga 426 . . .
BUBROGAH ON IN CA S E
'
or s uas rrsm r '
. 1 88

a fter th e con tract of suretysh ip h a d b een m a d e th e principal ,

debtor gave to th e cre d itor as new sec urity a m ortgage of rea l , ,

es tate un d er an a greem en t th at th e c red ito r sh o uld s urren


,

de r th is m ortgage wh en th e debtor sh o uld furn ish oth er s uffi


c i en t sec urity in its pl a c e and afterw ard s on th e deb tor s
’
, ,

furnish ing th e in dorsem ent of a res ponsible pers on th e cred ,

i te r gave up th is m ortgage it was h e ld th at th is s urren d e r of ,

a s e curity d id n ot re l eas e th e o ri gin a l surety b eca us e th e ,

c red ito r un d er th e agreem en t by w h ich h e a cqui re d it h ad


, ,

n o righ t to re ta in it after oth e r s uflic ien t s ec urity h a d been

furn ish ed 5 S o wh e re princ i pa l an d s urety w e re in d ebte d


.
,

to a ba nk on a n ote which was ov erd ue an d th e pri ncipa l ,

depos ite d m ore th an th e am oun t of th e n ote with th e ban k ,

on th e expres s agreem en t th at th i s d epos it sh ould be appl ied

to m eet certa in ch ec k s which w ere to be d rawn a ga ins t it ,

th e b an k s a ppl ica tion of th i s d e pos it to th e paym en t of such


’

ch ec k s would n ot re leas e th e s urety A n d th e s urren de r by


5
.

th e c red itor of a fo rged or fra ud ul ent bo n d or oth e r s im ila r


s ec urity given to h i m by th e p ri n c ip a l d ebtor wh i ch c ould ,

n ot h a v e been e n forc ed again s t th e obl igo r th ere in w i ll n ot ,

releas e th e s urety 8
In all th es e c as es if th e c reditor h a d
.
,

pres erved th e property or m ean s of paym en t in h is own


o

h an ds an d th en c oll ec ted th e debt fro m th e s urety th e l atter


, ,

would h ave h ad n o righ t of subroga ti on to th es e res ources ;


an d th e re fore h e w a s n ot re l eas ed by th e ir surren d e r Even .

a pa ym e nt m a d e to th e c re d ito r by th e p ri n c i pa l d ebto r if ,

aft erw a rds a vo id e d an d re c ove re d bac k as a fraud ul en t pre fe r

en ce h as bee n h e ld n ot to op e rate a d is ch a rge of th e s urety


,
5
.

B ut s in ce if th e prin ci pa l d ebtor were in s ol ven t h i s set off


, ,
-

aga in st th e c red ito r would b e a v a il a bl e to th e s urety 5


it h as ,

been h eld th at an insuran ce c om pa ny h old in g th e n ote of a


5
Pearl St Society 0 I m lay, 23. .
5
Loom is v Fay, 24 V t 240
. . .

Co nn 10 Se in Adam s 0 Duttou,
. . .
5
Petty 0 ook. L
. C
R 6 Q B . . . .

5 7 V t 5 15 ; Phcs nix Ins Cc 0 H01


. . . . 790
.

loway, 5 1 Conn 3 10 . .
5
Autea , 5 101 Walsh 9 . Colquitt,
5
Wilson v Dawson, 5 2 1nd 5 13 . . . 64 Ga 740 . .
1 84 TH E L AW or sus aoc h rr
ou .

d eceas ed pol ic y h old er for m oney l ent to h im and kn owin g


-

th a t h is es ta te is in s olven t is boun d to retain th e m on ey due ,

on th e n ote out of th e am oun t p ay abl e to th e a dm in is tra tor of

th e d ec eas e d upon th e pol i c y ; and i ts negl e ct so to do w i ll


d isch a rge a surety upon th e n ote 5
.

1 24 . N e gle c t of a B an k to a pply D e pos i ts oi


'

t h e P rin c i pa l

upo n h is N o t e , h o w fa r a R ele as e of t h e S ure ty . It h as b ee n


h eld th at th e l of a b a n k to apply th e fun d s of th e
n e g ec t

prin c ipa l debtor d eposite d wi th its e lf to th e paym ent of h is


n ote d ue to th e b a n k w i l l d is c h a rge th e s ureti es an d i n d ors e rs

upo n s uch n ote on th e groun d th at th e b an k h ad a lie n up on


,

th e s e fun d s for th e p ay m e n t of th e n ote wh ich it m igh t h a ve ,

e nf o rc ed an d wh ich th eref ore th e s urety c ould re q uire i t to


,

e x e rc is e for h is p rote cti on


5
Th is h as h owever been den ied .
, ,

on th e groun d th a t s uc h a pp rop riati on i s pure ly Option a l w i th

th e b an k wh ich c a n n ot be c om pe ll ed to v i olate th e te rm s
5
,

upon w h ic h th e m oney wa s ob vi ous ly pl ac ed i n th e b an k for ,

th e p a ym en t to th e d ep os ito r s ch ec k s 5
Th e b ank be in g th e
’
.

a b s ol ute own er of th e m o n ey d ep os i te d a n d b e in g a m e re ,

d eb tor to th e d e pos itor for th e b a l an ce of h is a cc oun t h o lds ,

n o p rope rty i n wh i c h th e d ep os i tor h as a n y titl e or ri gh t of

wh ich a s urety on an in d epen den t d ebt of th e d epos itor to the


b an k c an av a il him self by s ub rogation 5
Th e true p rin c ip le .

is l a id down in a n E n gl is h c a se th at if th e c i rc um s ta n c es
5
,

sh ow th a t a b on d giv en by a d e po s ito r to a b an k was i n ten d ed

5 White v. 271 Fishkill Bank 0 S peight, 47 N


Life Assoc iation of . .

Am erica, 63 Ala 41 9 Y 668 ; S teiner 0 Erie Savings


.

K
. . .

5
innaird v Webster, 1 0 Oh 9 8 Penn St 5 9 1 ; Grissom v Com m er
. . . . .

Div 1 3 9 Germ an Ba nk v Forem an, c ia l B ank, 8 7 Tenn 3 5 0 ; Martin v


. . .

J
.

1 3 8 Penn St 474 ; Com m ercial Bank Mechanics Bank, 6 H arr ohns


’
. . . .

v. H enninger, 1 05 Penn St 496 ; ( Md ) 23 5 ; V oss v Germ an Bank,


. . . .

McDowell v Wilm ington Bank , 1 8 3 Ills 5 99


. . .

Harringt ( Del ) 3 69 ;
. awson 0 .
5 Mahaiwe Bank 0 Peck, 127
D . .

Re al Estate Bank, 5 Pike Mass 29 8 . 3 01 ; Lafayette Bank v . .

28 3 . H ill 76 Ind 223 , . .

5 Ar
d en, 9 2, 1 23 Henniker v Wigg, 4 Q B ( Ad
. . .
.

5
Newburg Bank v Sm ith, 6 6 N Y 3: E1 N s ) 79 2. . . . . .
sos a oe s m on m
'
c a ses or suam rsa r
r . 185

to be o
a c n tin uin g s e curit yboun d by th at
,
th e s ureties a re

inte nti on an d c ann ot in s is t upon s uch an a ppl ication


,
N or .

c an th e p rin c i p al debto r re qui re a b a n k h old i n g d epo s i of


th e s urety to a pply th em upon th e d ebt 5
.

1 25 . R i gh ts of a S ure ty w h o h as pa i d t h e D e b t in Ign ora n c e

of th e C re di to rs ’
D is c h a rge of a S e c uri ty . Wh en a c re d itor
m a k es an a gre em en t wh ere by a s e c urit y is m a de l l
va ue es s to
a s uret y wh o i s en title d d th ereto an d th e
to be s u rogate b ,

s ure ty i n i gn ora n c e of s uch agreem ent pay s th e d eb t to th e


, ,

c re d ito r after j ud gm en t re c ov ered a ga i n s t h im by th e l atter ,

th e s ure ty m ay a pprop ri ate any sec urity tak en by th e c red


i te r in l ieu of th at s o ab an don ed or h e m ay rec over from th e
5
,

c red i tor th e va l ue of th e s e c uri ty wh ic h th e c re d i to r h a s

th us m a d e v a l ue l es s to h i m Th is d octri n e was l aid down


.

un d er th e foll ow in g c irc um s tan c es : Th e K in gs ton B an k d is

c o n ti n ue d a s uit wh i c h i t h a d b rough t a ga i ns t th e m a k er an d

i n do rs e rs of a p rom is sory n ote up on th e e x ec uti on of a b on d


,

by th ree of th e p a rties to th e n ote for th e paym en t of th e ,

a m oun t d ue th e reon in e igh t m on th s ; an d th is b on d wa s d e

l i vere d on a s ec ret agreem en t th at th e bank w oul d en deavor


t o c oll ec t th e a m oun t of th e n ote f rom th ose p artie s wh o w ere

on ly l iabl e as s ureties th e re on th ough th e prim ary obl igation


,

w as up on th e obl igo rs in th e b on d an d th e oth er p a rties to th e


n ote .Th e s ureties upon th e n ote b ei n g igno ran t of th is c on ,

d ition af te rw ard s paid a j udgm ent rec overed again s t th em


,

by th e b an k for th e sam e debt a nd th e b an k tran sferred th e ,

bon d to th em ; an d it was h e ld th at th e bond h avin g by rea ,

s on of th e c o n d iti on m a d e wh en it w a s d e l i vere d b ec o m e ,

s at i s fied wh e n th e b an k rec ei ve d pa y m e n t fro m th e s ure tie s ,

th e l atte r w ere i n equity en titl ed to rec ove r back from th e


b a n k wh ate ver th ey h ad p a i d on th e j ud gm en t 5
But if after .

th e s urety h as p a id th e d eb t to th e c red itor th e l a tte r col

5
Citizens Bank
’
v
. Carson, 32 Mo . Chester 5 v . Ki g t
n s on Bank, 16
19 1 . N Y 336
. . .

5
Corey 0 Leonard, 5 6 N Y 494
. . . .
18 6 m a LA W or sunnoe u xou .

lects it again of th e p rinc ipa l d ebtor th e s urety ca nnot , th en


rec ov er b ac k h is p ay m en t be caus e this wh en m a de was
, , ,

righ tfully re ce i ved by th e c re d ito r 5


.

fe re n c e w i th h i s R igh t of ven dor Oi 8 1aves


B nb rog s fl on Th e
s old in a l um p for a ro un d s um re ce i v ed from th e purc h aser
,

a n o te for th e p ric e in do rs ed by a th i rd pe rs on as s urety for


,

th e p ay m en t th e reof an d s ubse que ntly re purch a sed s om e of


,

th e s l a ves from h i s ve n dee ; an d it was h e ld tha t as th e ve n


dor s righ t of res c iss ion or l ien upon th e p rope rty for th e
’

price was in d ivis ible an d c ould n ot be ex erc ise d upon m e re ly


, ,

a p a rt of th e p ro pe rty wh ich h a d b ee n s old in a l um p for a

roun d sum h e h a d by h is re purch as e des troy ed th e s ure ty s ’


, , ,

righ t of s ub roga t ion to th is p riv i l ege an d s o re l eas e d th e ,

l atte r from h is l iabi l ity Th e c red itor h a vin g re c ove re d a


5
.
,

j udgm en t for th e d ebt agains t th e prin c ipa l d eb tor as s ign e d ,

th e s am e to a th ird p a rty to geth e r w i th ce rta in p rop e rty,

wh ich h ad a l ready been s old on th e ex ecution an d bid i n


by th e cred ito r res erving h owever th e righ t to enforc e a
, , ,

j udgm ent wh ich h e h ad a ls o obtain e d aga ins t a surety for a


part of th e s am e debt A t th e s am e tim e h e gave to th e prin
.

c ipa l a rece i pt in wh i ch h e ag ree d n ot to en forc e a ga i n s t th e


,

l a tter an y c l a im s on th e j udgm e n t or on th e o rigin a l d ebt .

It w as h eld th at by th is a rran gem en t th e cre d itor h ad in


effec t rel ease d th e p rin c ip a l d e b tor from a ll furth e r ob l iga

tion to pa y th at pa rt of th e d e bt for whi ch th e s urety was


l iabl e an d acc ord in gly h ad ex on erated th e s urety a ls o A
,
5 .

build er agree d to e rec t a b uildin g for wh ich h e was to rece ive ,

s pec i fie d s um s d urin g th e p rog re s s of th e wo rk an d th e ,

b a la n c e of th e agreed price s ix ty d ays after th e c om pleti on


of th e build in g and gave a s urety for th e prope r perform an ce
,

5 Dalton Woburn Agricultural


v
.
5
H ubbell v
. Carpenter, 5 Barb .

As sociation 24 Pick ( Mas s ) 25 7


,
.
( N . . Y ) 5 20
. .

5 Hereford v C has e 1 R ob L
.
( )
,a .

212.
sos aoe i rxon m GAS ES or s e m rsm r . 87

of his build ing h aving been c om pleted the


contract. Th e ,

own er a l th ough h e h ad recei ve d n otic e of v a ri ous m ech an i cs


’
,

l iens p ai d th e b uil der th e ba l anc e of the con tract price before


,
-

it was due un der th e c on trac t H e afte rward s h ad to pay


.

th e am o un t of th e l ions an d sued th e bui ld er s surety th ere


’
,

for ; b ut it was h e ld th at h e h ad exon erated th e surety by


fa il in g to reta in th e s um s th at fell due after h e h ad rece ive d
n oti c e of th e l iens B ut th e m ere fac t th at an agent em
5
.

pl oyed to sell m ach ines on a c om m iss ion is paid s om e of h is


c o m m is s io n s b e fo re th ey a re d ue un der h is c o ntract wi l l n ot

of its e lf rel ease a s urety upon a bon d gi ven by h im for th e


faith ful pe rform an ce of h is obl igati ons 5
A debtor gave to .

s e v e ra l b an k s to wh i ch h e was i n d ebted c oll ate ra l s ec urity of

tw o c l as s es ; th e firs t c l as s c ons i s tin g of n otes gi ven for d eb ts


d ue to h im s elf a n d th e s e c on d clas s c ons is tin g of n otes m a de
, ,

in dors ed or gua ran tee d by a s urety for h is a c c om m oda


,

tio n B y an i n den ture to wh ich th e s urety an d th e b an ks


.
,

were p arties h e th en a s s ign ed all h is property in c l udin g


, ,

c h os e s in ac ti on to a trus tee to pay th e d ebts due to th e


,

ba n k s By th e term s of th e in denture th e ban k s were


.
,

a uth o riz e d to us e th e ir d is c reti on in c oll ec ting th e n ote s of

th e firs t c l as s an d w ere to apply th e i r p roc ee d s wh en c ol


, ,

lecte d to th e pay m ent of h is d ebts due to th e b an k s


, Th e .

ban ks w ere to h old th e n otes of th e secon d class a s c ollateral


s ec urity a n d n ot c oll ec t th em
,
un ti l th e trustee sh ould h a ve
,

d is p os e d of th e property ass i gne d to h im an d h a ve dis trib ,

a te d th e p roce e d s a m on g th e b an k s Th e ba nk s with th e .
,

c on s en t of th e d eb to r a nd of th e trus tee but n ot of th e s urety , ,

m a d e in good f a i th a c om p rom is e w ith s ev era l of th e m a ke rs

of th e n otes of th e first c l as s s o th at a b a l anc e rem ained due


,

Taylor v
5
eter, 23 Me . J
244 ; sociation v Miller, 16 Nevada, 327
. . .

Lucas County v R oberts, 49 Iowa, A id ed ,


. 123 .

15 9 Se in Feuaille v Coudert, 44 5
Howe Machine Cc v Woolley,
. .

J
. .

N . Law, 28 6 ; Ryan v Morton, 65 50 Iowa, 5 49 . .

Tex 25 8 ; Carson Opera House As


.
188 m s LAW or S UBROGATION .

to th e bank s fter th e procee ds of th e property ass igned to


, a

th e trus tee h ad been pai d to th em wh ereas if th es e n otes , ,

h ad been c ollecte d in full th e b ank s would h a ve be en fully


,

pai d It was h e ld th at th e b ank s h ad disch arge d th e s urety


.
,

to th e e x te nt of th e sum s gi ven up by th e i r c om prom is e f rom ,

h is l i abi l ity on th e n otes of th e sec on d c l as s 5


Th e s urren .

der of a l eas eh old es tate by a tenan t an d its a c cepta n ce by


th e l an dlord were h eld to e xonerate a th ird p arty from th e
burd en of a m ortgage wh ich h e h a d given to th e l an dlord as
sec urity for th e pe rform a n c e by th e te n an t of h is c ov en a n ts

in th e l eas e on th e groun d th at th e t erm was a s ec urity to


,

wh ich h e m igh t h ave res orte d for h is in d em n ity a nd wh ich ,

c o uld n ot h a ve b ee n tak en from th e d efen d an t with out free

in g h im from h is l ia b i l ity ; b ut th e s a m e rul e wou ld n ot


5

be a ppl ied to a tra ns fer of th e l eas e m ad e by th e ten an t


to th e less or as c oll ate ra l s ec urity m e re ly for a deb t or ,

to a s urrend e r wh ich th o ugh m ade by th e te n a n t h ad n ot


‘

, ,

been actua lly ac cepted by th e l an dlord A nd it h as b een


5
.

h eld in New Yo rk th a t th e s urren de r of a l e as e a n d th e


rel eas e of th e rent th e reafte r to ac crue w i ll n ot d is c h arge

on e wh o h a s gua ra nteed th e p ay m en t of th e ren t res e rved

in a l ea s e from h is l iab il ity for th e ren t wh ich is over


,

due at th e tim e of s uch s urre nd er 5


A c red itor wh o h eld .

a m o rt ga ge f rom th e p rin c ipal d ebto r an d a l s o a m ort ,

g g
a e f rom th e p rin c i p a l s w if e as h i s s urety bough t of th e
’
.

p rin c ipa l th e prem is es m ortgaged by h im for a price ex


c ee di n g th e am oun t of h i s d eb t but d id n ot a pply th e p rice
,

in p ay m e nt of h is d eb t ; an d it was h eld th at h e th e reby


d is ch a rge d th e m ortgage wh ich h e h ad fro m th e s urety ; for
h e h ad ren dered una v ai l in g th e m ort gage giv en by th e p rin

5
Am erican Bank v
. Baker, 4 MetBange 2 E D S m ith
.
5
B reese v .
, . .

( M as s.
) 1 6.4 ( N 47 4 ; M c Ke nz ie .c F arrell 4 .
.

5
He berton v Bennett, 1 Beatty Bosw ( N Y ) 19 2 . .

K
. . .

( Ir. 3 8 6 See
. als o N ichols v
5
ings bu ry v W.es tf all, 61 N Y . . .

Palm er, 48 Wise 110; Farm . v 35 6 . .

K ram er, 5 Mo App 1 6 7


. . .
s us aoe s n on m
'
C AS ES or s oaa rrsm p
'
. 189

c i pa l, to wh i ch
y h ad a righ t to be sub rogated
th e s uret So .
5

if th e purch as er of l a n d wh i c h is s ubj ec t to th e l ien of a


jud gm en t aga inst d ifferen t pers on s one of wh om is a m ere ,

surety purc h a s e s a n d ta k es an a s s ign m e nt of th e j ud gm en t


, ,

h e th ereby d es troy s th e surety s righ t of s ub roga t i on to s uch


’

l ien an d s o d is ch arges th e s urety pro ta n to B ut a c red itor


,
5
.

wh o h old s both th e l i ab i l i ty of a s urety an d th e sec urity of


a m o rtga ge from th e p rin c ip a l d eb to r w i ll n ot d is ch a rge th e

s ure ty by s i m ply purch a s i n g th e e quity of re d em p tion from

th e prin c i pa l a llow in g its full va lue up on th e d eb t es pe ci a lly


,
5
,

if h e m a k es th e purc h a se in good fa ith w ith th e purp os e of

g iv i n g th e s ur e ty th e be n e fit of th e m o rtg ga e a n d of a pp ro ,

p r i a t i ng th e r e n t s a n d p ro fi ts in a i d of h i s l i a b i l ity ; fo r th is

wi ll n ot opera te a m erge r of th e m ortga ge a nd th e s urety s


5
,
’

ri gh t of s ub roga ti on w i l l n ot be im p a i re d Th e s urety w ill


5
.

n ot be d i s c h a rge d un l es s h is righ t of sub rogat i on to th e sec u


,

ritie s an d rem e d i es of th e c re d ito r h as b e en im p a ire d If th e


5
.

c red itor d oes a n y act wh i c h d es troy s or i m p a i rs th e s urety s


’

ri gh t of s ub rogation to h is m ortga ges or p ri v il eges 7 or to h is ,

rem ed ies aga in st the p rin c ip a l h e th ereby re l eases th e


5
,

Loo m er v Wheelright, 3 Saudi


5
. . 6 2 ; Port 0 Robbins , 3 5 Iowa, 208 ; .

Oh ( N Y ) 1 3 5 ; W heelwrig ht v De
. . . . S m ith v Clopton, 48 Miss 6 6 ; N ew
. .

Peyster, 4 Ed w C h ( N Y ) 23 2 . England Ins Cc v Randall, 42 La


K
. . . . . . . .

5
Wright v nepper, 1 Penn St . . Ann 260 ; aig le s S uccession,
. 15 D ’

3 61 . La An n 5 94 ; H om ily J , in H ere
. .
, .

5
Mars hall 0 ixon, 8 2 Ga 43 5 . D . . ford 0 C hase, 1 R ob ( La ) 21 2 ; S r
. . . .

5
Autea Q5 7 s t seq Joseph s Ins Cc v H auc k, 71 Mo
’
. .
, . . .

5
Cullum v Em an uel, 1 Ala 23 ; . . 46 4 .

Croso v Allen, 1 41 U S 5 28 . . . . B lackburn, J , in Swire 0 R ed


5
. .

5
Tiernan v Woodrufl, 5 McLean, an , 1 Q B D
‘

. m 5 41 B est, 0 J , in
. . . . .

C .C 3 5 0; Agricultural Bank 0
. . Philpot v B rian t, 4 Bing 717, 719 ; . .

B ishop, 6 Gray ( Mas s ), 3 1 7 ; Payne K em m erers Appeal, 1 25 Penn S t


’
. .

0. Co m m e rc ial Bank, 6 S m M . . 28 3 ; Bosc hert 0 B rown, 72 Penn . .

( Miss ) 24 ; Muller v Wadlington, 5 . S t 3 72 : Boyd v Mc Donough 3 9


. .
,

8 0 Car 3 42 ; R a wlings v Barham ,


. . . H ow Pr ( N Y ) 3 8 9 ; Bangs 0
. . . . .

1 2 La Ann 6 3 0; Claiborne v Birge,


. . . S trong, 1 0 Paige ( N 1 1 ; Callo .

42 Tex 9 8 . . way v S napp 78 Ky 5 61 .Wheaton , .

7
Thayer v Finnegan , 1 34 Mas s . . 0 Wheeler, 27 Minn 464
. . .
1 90 m L AW or sum ou m x .

s urety, e env th ough he h as a lrea dy reco ered v j udgm en t

a ga ins t th e latter .

§ 1 26 a . am e ty on n on d n ot eo b o ah w b y n ol u u of

S ec urlty c a use d by A ct ag a ins t w hic h B on d t a k e n . A s ure ty

on a gud ian s bon d c ann ot c la im th at h e is d isch arged


ar
’

from l i ab il ity by reas on of h is h avin g given up security th at


h e h eld in rel ia n c e upon acts of th e w ard in d uce d by th e
,

fra ud ul ent a ctions of th e gua rd ian again st wh ich th e bon d w as


i nten d e d to be a s ec urity ’
Wh ere s uch a surety h ad ta ken
.

a m ortga ge f ro m th e guard ian a s a pro tec ti on a ga i ns t h is


l iab il ity and th en d is ch arge d th is m ortgage in re l ian ce upon
,

a re c e i p t in full i v by t h w rd ft r i of t t h
g en e a a e c om n g a g e o e

g u a rd i a n b u t i
, t a pp e a re d th a t th e g u a r d ia n h a d f ra u d u l e n t ly
obtained th is rece ipt from th e w a rd wh o was of feeble m in d , ,

by m isrepresenta tion s of its c h aracter it was h eld th at the ,

w ard c ould s ti ll h o ld th e s urety upon th e bon d ; for th e wa rd


owed n o d uty to th e s urety but th e surety h ad un derta k en ,

for th e fid elity a nd h on e s ty of th e gua rd ian to wa rd s the


ward an d s o c ould n ot av ai l h im se lf of th e re ceipt obta in ed
8
,

from th e wa rd by th e m e re fraud and c irc um ve ntion of the


g u a rd i a n e v e n
,
th o u gh by m e a n s of th e s a m e re c e i p t th e

g ua rd i a n h a d p r o c u r e d h i s d i s c h a rge f ro m th e c o u rt to w h i c h
h e w as ac c ounta bl e 4
Th e s urety on a bon d gi ve n by a c on
.

trac tor to a c ity to pay labo re rs e m pl oyed by th e c on trac tor


on th e c ity s w o rk c a n n ot c om pl a i n th at m on e y e a rn ed
’

up on th e c on trac t w as p a i d a cc ord in g to i ts p rovi s i on by the

c ity to th e c on trac tor


6
.

1 27 . S ure ty n ot e n ti t le d to S ub ro ga ti o n unt il th e w h ole

D e b t 1. pa l a — Th e ri gh t of b
s u rogat ion d oe s n ot a ri s e in
favor of a s uret y un t i l h e h as ac tua lly pa i d th e d e bt for

Allison 0 . Thom as , 29 La . Ann . So in the case of a hank cash ier -

73 2 . Mc shane 0 H oward Bank, 73 Md


. .

3B ank 0 B uchana n, 8 7 Tenn


. . 32; 13 5 .

Douglass o Ferris, 63 H un ( N
. . Gillett v Wiley, 1 26 Ills 3 10
. . .

413 .
5
D uluth v Haney, 43 Minn 15 5 . - . .
svs s ooa rl on m
'
c asas os s oam rsm p . 1 91

wh i ch h e is l iable as s urety th e righ t does not a c crue upon 1

a p arti a l p ay m e nt by th e surety un ti l th e c re d itor i s wh olly ,

s ati s fie d
2 Even if a surety is liable only for a p art of th e
.

d ebt and pays th at pa rt for wh ich h e is l iable h e can n ot be


, ,

s ub ro ga te d to th e s ec urities h el d by th e c re d ito r un ti l th e

wh ol e d em an d of th e cre ditor is s atis fied Where th e surety


8 .

i s a ll owe d by b i ll in equity afte r th e d ebt h as bec om e due to


c o m pe l th e c re d itor to e n fo rce h is d em an d a ga in s t th e p rin

c i pa l d ebto r yet h e c an n ot be s ub ro gate d to th e c re d itor s


4 ’
,

l ien s sec urities an d eq uities for th e debt unti l h e h as ac tu


, ,

a l ly pa i d it S o th e indo rse r of a prom is s o ry n ote wh ich


5
,
.

i s p ay abl e on tim e a n d sec ure d by a m ortgage of th e p rin c i


pal s re a l es tate wh o h as been c om pe ll ed by th e m ortgagee
’
,

to pa y th e in terest wh ich h as b ec om e due th e re on c an n ot ,

e nf orc e th e m ortga ge for h is in d em n ity wh i l e th e n ote re ,

m a in s th e p roperty of a n oth e r h old er a n d th e p rin c ipa l s um

is s ti l l due th ere on 6
Th e p aym en t n ee d n ot be in one s um .
,

but m ay be m ad e at d iffe ren t t im es ; n or n e ed it be wh olly


7

Ewart o Lotta, 4 McQu H L . . . . Harlan 0


. S weeny, 1 Lee .

9 8 3 ; Church, Petitioner, 1 6 R I . 682


K
. .

23 1 ; e m m ere r s Appeal 1 25 Penn Neptune Ins Cc v Dorsey, 3


’
.
, . . .

S t 283 ; Glas s 0 Pollen 6 Bus h


. .
, Md Oh Dec 3 34 ; s c m
. . S wan. . . .

3 46 ; Pennsylvania Ba nk v .
0 Patte r
. son, 7 Md 1 6 4 U nion B ank .

Potius, 10 Watts 1 48, 1 5 2 ; 0 Edwa rds , 1 Gill 8: J (Md


.
) 3 46 ; . .

Conwell o McGowan, 5 3 1113 3 63 ; . . Wilcox v Fairhaven Ban k, 7 Allen


.

Darst v Bates. 5 1 Ills 43 9 ; Gillia m


. .
(M a ss 270 ; H opkins ville Bank 0 .

v. Esselm an, 5 Sneed 86 ; Rudy, 2 Bush 3 26 ; Rice v .

McConnell v Beattie, 3 4 Ark 1 13 . . Morris, 82 Ind 204 ; Cooper 0 Jen . .

Rushforth, ea: pa rk 10 V es 409 , . . kins , 3 2 Beav 3 3 7 ; Farcbrother v . .

B ridges v N icholson, 20 Ga 90 . . Wodehouse 23 Bea v 1 8 , . .

Magec v Leggett, 48 Miss 1 3 9 ; . . P osted 13 0 ,

Co m m onwealth v Chesapeake Ohio .


5
Covey v Neff, 63 Ind 3 9 1 Rice .

K
.

Canal 32 Md 5 01 ; yner v 0 D owning , 1 2 B Mon K


( y) 44 ;
K
. . . . . .

y ner, 6 W at ts 221 Lee 0 Griflin, 3 1 Miss 63 2 Delaney


. .

B rough s Estate , 71 Penn St 46 0


’
v Tipton , 3 Ha w ( Tenn 1
. . .
y ) 4 . . .

C ox 0 N J Midland R R
. . 31
. . . Gannett v Blodgett, 3 9 N H . . .

N J Eq 1 06 ; Ba rton 0 B rent 8 7
. . . .
, 15 0 .

V a 3 85 ; S tam ford Bank v Benedict


. .
,
7
Davies o Hum phreys, 6 M . .

15 Conn 43 7 ; Field 0 Ham ilton, 45


. . W 1 5 3 ; Bulloc k 0 Cam pbell 9 Gill
. .
,

V t 3 5 ; V ert v V oss, 74 Ind 5 66 ;


. . . 18 2 ; Willia m s v Willia m s, 5 .
1 92 m s LAW or sus noc m x
ox .

or at a ll on ey if th e c red itor acc epts s om eth in g e lse ;


in m ,

th o ugh a s h as been a l rea dy s tate d if it be n ot in m one y th e


, , ,

s ure ty s righ t w i ll e x ten d on ly to h is re im burs em en t for th e


’

rea l v a l ue of wh at h e h as p a i d 1
It h as be en h e ld in M is .

s ouri th a t a s urety for p a rt of th e i n d e bte d n ess of h is p rin

eip e l b ec om es e n t it l e d by p ayin g th e part for wh i ch h e is ,

l ia bl e to a pro ra ta or p ropo rtion ate sh are of th e p roc ee ds


,

a ri s i n g f rom a s a l e of th e d e b tor s p rope rty a n d m ay be s ub


’
,

rogate d ac c ord in gly to th e righ ts of th e oth e r c re d itors s o as ,

to h ave th e be n e fit of a ll th e i r se c urities ;
2
b ut th i s is c on

tra ry to th e ge n e ra l d octrin e .
5
B ut if th e eff e ct of th e yss uret
’

b ogation w ould be to gi ve h im a l ien upon th e


su r property of
th e c re d it o r h im s e lf s o th at h e w ould be en ti tl e d t o i m m e d i
,

a te re pa y m e n t f ro m th e c re d ito r s p rop e rty th en t o a voi d c ir


’
, ,

c o i ty of a c tion th e ri gh t m ay be e n fo rce d i n th e c re d itor s


’
,

su it a g a in s t th e s urety w ith out w a itin g for a ctua l p a y m en t


4
.
,

1 28 . S
“
a ti s fa c t i o n is C re di t o r. R i gh t ; i t n ee d n ot c o m e w h o lly

fro m 8 n re ty . l d to s atis fac


It is th e c re d ito r wh o is e n tit e

t ion ; a n d n e ith er th e d e b tor n or a n y oth e r c red itors c a n oh


ny a rra n gem en t b et w e en th e s urety a n d th e c re d ito r
jec t t o a

for th e s ub rogati on of th e s urety wh e th e r th e la tt er h a s or ,

h as n ot c om pl ete ly s a tis fied th e d ebt 5


If th e c re d itor ac .

c ed e s to th e reques t of th e s ure ty for th e e n force m e nt of th e


6
c oll a te ra l sec urity th is w i ll b e o rd ered If th e s ure ty h as
,
.

s a ti s fie d th e c re d itor p a rtly by a s et ofl of th e c re d it o r s own


" ’
-

obligations or oth e rwise a n d on ly p artly in m on ey h is ri ght


, , ,

of s ub rogation wil l yet ex ten d to th e wh ol e of th e i n d eb te d


n es s wh i ch h e h as s a t is fied If th e p rin c i p a l d ebtor h as
7 .

h im self p a id p a rt of th e in d eb ted n ess a n d th e s ure ty on ly ,

Ohio 444 ; H all 0 H all, 10 H um ph


,
. .
5 Motley
H arris, 1 Lea 0 .

( Te nn ) 3 5 2
.
; Pic kett o B ates , 3 L a . . 5 77 ; Spaulding 0 Cra ne 46 V t 29 2 ; .
,
.

Ann 6 27. . Gedye v Matson, 25 Beav 3 10


. . .

1
Antea , 9 105 .
5
Lnsk v H opper, 3 B ush ( Ky ), .

5
Allison o S uthe rlin, 5 0 Mo 274 . 179
K
. . .

eokuk 0 Love, 3 1 Iowa, 1 19


5 Child 0 N ew York 7
N ew Eng . .

land R R Cc , 1 29 Mass 1 70
. . . . Bausm an 0 C redit Gim me 47
.

5
State v Atkins 5 3 Ark 303 .
, . . Minn 3 78 . .
sus a oou xon IN c a s as or s us m rs m p . 1 93

th e b a l ance yet wh en on ce th e c red itor is wh olly s atis fied


, , ,

th e s am e p rin c ipl e of equity wh i ch sub s titutes th e surety wh o


h a s p a id th e wh ol e d ebt to th e pl ace of th e c re d i tor w ill
e qua lly p rotec t th e s urety p ay i ng a p a rt th ere of to th e ,

e x te n t of h is paym ent l A parti a l pay m ent is suflic ient to


.

e s ta bl ish th e s urety s righ t as aga ins t th e p rin ci p a l


’ 2
or a ny ,

on e s ta n d in g in th e pl ac e of th e p rin c ip a l ; i t i s o n ly th e
5

c re d ito r wh o c an in s is t th at th e d eb t m us t be pa i d in full .

Nor nee d th e s urety s pay m en t be m ad e in m oney wh atever


’

i s a cc e pted by th e cred itor as a p ay m ent s o as to d is ch a rge ,

th e prin c i pa l d eb to r from h is l i ab i l ity wi ll operate as a pay ,

m e n t in fa v or of th e s urety But un ti l th e c re d ito r h a s be en


5
.

paid in full th e surety cann ot again s t th e w ill of th e c red i


, ,

tor in a n y m an ner inte rfere w i th th e l atter s righ ts or secu


’
, .

t iti es s o a s to put h im to an
, y e m b a rra s s m e n t i n c o l l ec tin g
th e re m a i n d er of h is dem an d 5
If th e surety h as m a d e par .

tia l paym en ts upo n a d ebt s ec ure d by a m ortgage from th e


prin c ipal debtor th en upon fore c l osure any surpl us proceeds
,

over th e am oun t needed to pay th e credito r in full m us t be


appl ie d to rep ay th e sure ty 5
.

1 29 . c re d i to rs R igh t t o a pply S e c uri ty h e ld fo r S e v e ra l D e b ts

un t il a n a re s a t is fi e d .
—A
d itor wh o h olds s ecurity w ith out
‘

c re

s p ec i a l s ti pul a ti on s as to its a pp li c a tion for various s um s ,

d ue to h im from h is debto r for s om e of wh i ch h e al s o h old s ,

s ure ties m ay i n c a s e of th e in s olv en cy of th e pri nc ip a l a n d of


, ,

s o m e of th e s ureties apply th e p roc ee d s of th e s ecurity up on


,

s uc h of th e d eb ts a s m a y be n ec e s s a ry for h is own p rote ction


;
a n d s ol ve nt s ureties upon oth ers of th e d eb ts c an n ot in an
y
5
Hess Estate, 69 Penn St 272 ;
’
s . .
5
N ew J crs ey Midla nd R R Cc . . .

Magec v Leggett, 48 Miss 1 3 9 ;


. . v. Wortendyke 27 N J Eq 65 8 ; , . . .

Ha rdcas tle 0 Com m ercial Bank, 1


.
H ollings worth v Floyd, 2 B art . .

Harringt (Del ) 3 74, note


. . . Gill 8 7 ; Cason v Wes tfall 1 8 . .

5
Gedye v Matson, 25 Beav 3 10 ;
.
So W Rep 668
J
. . . . .

Com ins v C ulve r, 35 N


. Eq 9 4 . . .
5
Bowen v Barksdale, 3 3 8 0 Car
. . .

5
Roc ke r v Bens on, 8 3 Ind 25 0 . 142
K
.
. .

5
nighton v Curr , 6 2 Ala 40 4;
y . .

cm , 105 , 127 .
1 94 m s LA W or sonnoe y m on .

w ay a ai v l th em se lves of
y in equity with out pa y s uc h s e curit ,

in g or o fferin g to pay th e wh ol e of th e d eb ts for wh i ch t h e


s ec urity w as gi ven
1
S o wh ere a d ebto r m ortgage d t w o
.
,

esta tes to a c re d i tor as se c urity for th e p ay m en t of tw o d is

ti nc t s um s w i th a s urety for th e p ay m en t of on e of th e s um s
,

on ly th e ri gh t of th e c re d itor to reta in b oth se c urities un t il


,

th e pay m en t of b oth d ebts w i ll ove rri d e th e ri gh t of th e


s ure ty upon h is p ay m en t of th e d eb t for wh ich h e is s ure ty
, ,

to h a ve th e ben e fit of th e s ec urity pl ed ge d for th at d e b t 5


.

A n d wh ere th e prin c ipa l d eb tor ga ve to his c re d ito r both a


m ortgage a n d a c oven an t by a s urety to se c ure th e p a y m e nt

of th e deb t an d th en ga ve th e c red itor a furth er ch a rge upon


,

th e m ortga ged p rop erty to s ecure a furth e r l oa n it wa s h e ld ,

th at th e s urety w as n ot en titl ed to th e bene fit of th e fi rs t


m o rtg a ge w ith out p ay in g th e s ec on d l oa n as we ll as th e d ebt

for w h ich h e was surety ; but th is d e c is i on h as s in c e be en


5

overruled on th e groun d th at th e c red itor could n ot th us


,

derogate f rom th e righ ts of th e s urety be in g a w are of th e ,


‘

fa cts which create th os e righ ts A s th e doc trin e of s ubro


5
.

g a t i on i s f oun d e d up on reas o n a nd j us tic e an d n ot upo n a n


y ,

c o n tra ct or s ti pul ati on be tween th e pa rties it follo w s as a ,

n e c es sa ry c o n s eq uen c e th a t th e s ure ty is n ot to be s uhati

t ute d to th e p la c e of th e c red itor un l es s up on th e c i rc um ,

s tan c es of th e ca se it is sh own to be j us t an d p rope r th at

h e s h ould be To b ec om e en titl ed to s uch s ubs titution h e


.

m us t fi rs t pa y th e wh ol e of th e d eb t or d e b ts for wh i c h th e

prope rty is h eld by th e c red itor; for it would be m an ifes tly


un j ust an d a pl a in v iol a ti on of th e c re d ito r s righ ts t o c om
’
, ,

1
Wilcox Fairha ven Ba nk , 7
v .
5
William s 0 Owen, 1 3 Sim 5 9 7 .

J
. .

Allen ( Mass ) , 270; Ric hards on 0 .


5
Forbes 0
. ac kson, 19 Oh D . .

Was hington Bank, 3 Met (Mass ) . . 6 16 ; Green 0 . Wynn, L R 4 Oh


. . .

5 36 ; Allen v Culver, 3 D enio


. 204 .

28 5 ; Stone v Seym our, 1 5 Wend . .


5
National Exchange Bank a Silli .
.

( N. Y ) 19
.
; U nion Ba nk 0 Ed wa rds ,
. m an 6 5 N Y 475 ; Otta wa B ank 0
, . . .

1 Gill J ( Md ) 3 46 ; Noble v
. . Dudgeon, 65 Ills 11 ; Perry 0 Miller, . .

Murphy, 5 2 N W Rep 148 . . . . 5 4 Iowa, 277 Sim m ons 0 Gates, 5 6 .

5
Farebrother v Wodehous e, 23 . Ga 609
. .

Beav 1 8
. .
BUBB OGATION m c a se s or S UR ETYS H IP . 1 95

pe l l in quish any porti on of th e property b efore th e


h im to re

obl igati on for th e perform an ce of which it h ad b ee n con veyed


to h i m h as been fully com pl ie d with 1
If a c red ito r h old ing .
,

a c l a im for wh ich h e h as both c oll ate ra l s ecurity f rom th e


princ ipa l debto r and al s o th e engagem ent of a surety ac ,

quire s an add ition a l c l ai m aga inst th e s am e prin c ipa l to ,

wh ich th e agreem en t upon wh ich th e security was tak en


does n ot exten d th e surety wi ll be en titl ed to th e ben efit of ,

s uch s ec urity on paym ent of th e firs t in d eb te d n es s a l on e and ,

c an re qui re th e p roc eed s of s uch s ecurity wh e n re a l i z ed by ,

th e cre d itor t o be a ppl ied upon th e firs t in d eb te d n es s for


,

th e s urety s righ t of s ub rogation wh en once v e sted c ann ot


’
, ,

be inte rfered w ith by th e a ct of th e c red ito r a lon e 5


.

1 30 . S ure t y m ay c o m e in to Eq ui t y t o c om pe l P ay m en t o f th e

D e b t b y th e P ri n c ip alA s urety afte r th e deb t h as bec om e .


,

due a l th ough h e h as not pa i d it m ay if th e c red itor refus es


, , ,

or n egle c ts to en forc e h is d em a n d a ga in st th e p rin c ip a l d ebtor

by proper l ega l p roceed in gs c om e into equity b rin gin g both , ,

th e d ebtor a n d th e c red itor b efore th e c ourt an d h ave a ,

d ec ree c om pe ll in g th e deb tor to m ak e pay m ent an d th us to ,

e xo n era te th e s urety fro m l ia b il ity 5


a n d th e c red ito r b ei n
g ,

n Wilcox 0 Fair
Merrick, J
i
1
, . .
( T en n ) 4 ; Gilliam v Esselm an 5
1 0 . .
,

have n B ank 7 Allen , 270 , S need 8 6 ; Han nay v Pell, 3 .

272, c iting Richardson 0 Was hington . E D S m ith ( N 43 2 ; H ayes 0


J
. . . .

Ba nk 3 Met ( Mass ) 5 3 6 ; CO pis 0


, . . . Ward, 4 ohns C h ( N Y ) 1 23 . . . .

Middleton, Turn . I ric k 0 Black, 1 7 N J Eq 1 8 9 ;


. . . .

s on 6 Sha w 3 Myl . K 1 83 , . . . Pride v Boyce, Rice Eq ( So Car )


. . . .

5
National Excha nge Bank 11 Silli . 275 28 7 Tankersly v Anderson 4
,
.
,

m an 6 5 N Y 475 ; Holliday v
,
. . . Desaus Eq ( So Car ) 44 ; McCon
. . . .

B rown , 5 0 N W Rep 1 042; Forbe s . . nell v Scott 1 5 Ohio 401 ; Purviance


.
, ,

0 Jac kson, 19 Oh D 6 1 6 v S uthe rland 2 Ohio S t 478 ; S tum


p
. . . . .
, .

5 Antrobus 0
Davidson, 3 Meriv . . 0 R o ers , 1 Ham m ond
.
g ( Ohio), 5 3 3
5 69 5 79 ; Barbo ur v Exchange Bank
, .
, R itenour 0 Matthe ws , 42 Ind 7 . .

45 Ohio S t 1 3 3 ; N orto n 0 Re id 11
. .
, Bis hop 0 Day 13 V t 8 1 ; Wetzel 0 .
, . .

So Car 5 9 3 ; Towe v Newbold 4


.
S ponsler 18 Penn S t 46 0 ; R uddell
J
. . .
, , .

ones Eq ( No r C ar ) 212 ; Oroc ue


. . . v C hildr
. ess, 3 1 Ark 5 l l ; S te phens on .

v .B ivens , 2 Head 339 ; v. Taveners, 9 Gratt ( Va ) 3 9 8 ; . .

Was hington v Tait, 3 H um ph (Tenn ) . . . Whitridge v Durkee, 2 Md Ch Dec . . . .

5 43 ; H owell v Cobb, 2 Coldw . . 442 .


1 96 TH E L AW or sus noc s rxon '
.

fi rs t fully indem n ified s ubj ecte d to n o d el ay an d expos e d to


, ,

n o ris k of l oss m a y up on s uc h a b i l l b e c om pe ll ed to re s o rt
, , ,

to th e p rop e rty of th e p rin c ip a l for th e s atis facti on of h is


c l a im b efore c om ing upon th e surety ; an d th e sure ty m ay
1

h ave an y p rope rty wh ich h as been s pe c ific a lly a pp ro pri a te d


for th e p aym e n t of th e deb t by or for th e p rinc i pal d e b tor
a ppl ie d th e reto for h is in d em n ity 2
but th is is s trict ly th e ,

righ t of th e s ure ty a n d is n ot for th e be n efit of th e p rin c i


,

p a l 5
.S o th e s urety m a y fo r h i s re l i ef h a ve th e d e bt p ro ve d
a ga in s t th e es ta te of th e p rin c ip a l i n b an k rup tcy 5 B ut th e .

s urety c a n n ot a sk for th e us e of th e s e curi ties a n d re m e d ies

h e ld by th e c re d itor to enforce p aym e nt from th e p rin c ipa l ,

w ith out i n d em n i fy in g th e c re d itor a ga in s t a n y c os ts a n d e x

penses N or h a s th e s ure ty an y im pl ied a uth ority to s ue


5
.

th e p rin c ip a l in th e n a m e of th e c re d itor 5
A n d wh e n s ure .

t ies wh o a re c l a im in g in a c ourt of eq uity th e be n e fit of s ub


rogati on h a v e n ot yet p a id th e c re d itor th o ugh a j ud g m ent ,

h as been rec ove red a ga in s t th em i t h as b een h e ld th at th e ,

c ourt m ay i n th e e xe rc is e of its equitabl e j uri s d ic ti on to


,

decl are f uture righ ts an d d uties order th at th e s ure ties be ,

s ub rogate d to th e ri gh ts of th e c red itor w h en th e y sh a ll h ave

pa id th e d ebt a n d m ay in th e m e an tim e protect th e s ure ty


’
,
5
.

1 30 a . Eq uitab l e R e li e f gi v e n to t h e S ure ty . In e q u it y ,

re l ief m ay a l s o be gi ven to a s urety for h is p rote c tion out of


th e p rope rty of h i s p rin c ip a l s o fa r a s th e s urety s e q uita ble
’
,

righ ts c a n be m a in ta in ed with out in j ury t o th e c re d itor ,

e i th e r by g ran tin g a n in j un c ti on a ga in s t th e s a l e of th e

1 Taylor, 72 N Y
Thom pson 0 . . . Y ) 13 , 17 ; R ushforth, ex pa rte, 10
.

3 2 Hayes 0 Ward, 4 Johns Oh (N


. . . V e s 409 . .

Y ) 123 ; I rick v B lack 1 7 N J Eq


. .
, . . .
5
B eardsley v Warner, 6 Wend . .

1 8 9 ; H uey v Pinney, 5 Minn 3 10


. . .
( N Y ) 6 10
. . .

5
Wooldridge v Norris , L R 6 . . .
5
Hardware Co v Deere 5 3 Ark . .
, .

Eq 410 1 40 .

K
. .

5
White v Schurer 4 Baxter .
,
7
eok uk 0 Love, 3 1 Iowa 1 19 ; .
,

Moore 0 TOplifl 107 Ills 241


'

23 . .
, . .

Moore 0 Toplifl , 107 Ills 241,


'
5
Babcoc k, in re, 3 S tory 0 C . .
5 . .

3 9 3 ; Wright 0 Austin, 5 6 Barb ( N . . 249 .


s usnooAn on m
'
c u s s or suam rsm r . 197

s uret y s property un ti l property pledged by th e prin c i pa l for


’

th e debt s h a ll fi rs t h a ve been a ppl ie d for i ts pay m en t or by ,

s ub rogatin g th e s urety to th e c red i to r s righ ts a ga in s t th e


’

princ ip al or by m a rs h a ll in g th e s ecuri tie s a va il abl e an d a p


,

ply ing th em to th e s atis fa ction of th e debt in th e ord er in


wh ich th ey a re equita bly ch a rge a bl e a c c ord in g to th e c i r ,

c um s tan c e s of th e p a rti c ul a r c a s e Even afte r a j udgm en t


1
.

a t la w aga in s t p rin c ip a l a n d s ure ty e quity w i ll s ti ll p rote c t ,

th e s urety s o far a s th is m ay be don e w ith out pre j ud ice to


th e p a ram o un t righ ts of th e c re d ito r but n o farth er
2 ‘1
If , .

u pon a w rit of e rror th e prin c ip a l gi ves n e w s ure ties a n d

s up ers ed es th e j ud gm e n t a ga ins t h im s elf th e c re d itor m ay ,

be restra in e d f rom ta k in g out e x ec ution a ga in st th e s urety ,

pen din g proc ee d in gs upon th e writ of error Th e prope rty 1


.
‘

of both h us b an d an d w ife b ein g m ortgaged to secure th e d ebt


of th e h usban d sh e was a ll o we d on forec l osure to h ave th e
,

h us b an d s property first s old a n d a ppl ie d on th e d eb t 5


An d
’
.

if th e c red itor h av in g ta k en out e xe cution a ga in s t b oth prin


,

c i pa l a n d s urety l ev i es upon th e s urety s l an d a n d th is is


’
, ,

purch ased at th e ex ecuti on sa l e by th e principal th en by -

, ,

re a s on of th e d uty in c um b en t up on th e p ri n c ip a l h im s e lf to

a
p y th e j ud gm e n t h i s p u rc h a s e w i ll i n ure t
, o th e s ur e ty s
’

b e n e fit a nd h e c an n ot h old th e l an d a ga in st th e surety
,
5
.

131 . R i gh t s of S uc c e ss i v e S ure ti es t o B ub ro ga t lo n a g ain s t

ea ch o th e r .fac t th at two or m ore pe rs on s a re


Th e m e re

s ure ties for th e s am e d ebt w i ll n ot g i ve th em e qua l ri gh ts

ag a in s t e a ch oth er un l es s th ei r l ia b i l ity i s th e s a m e in k in d
,

an d d egree ; n ot s ep a ra te a n d s ucce s s i ve but j o in t an d c c ,

ord in ate s o th at a ll s tan d in aequa li j ure in rega rd to th e


,

1 Skinner v Terhune, 45 N Eq . West 0 B rison, 99 Mo 68 4 . J .


5
. . .

5 6 5 ; Phila Rea ding R R Cc v


.
5
Wren v Peel, 64 Tex 3 74 . . . . . . .

Little, 41 N J Eq 5 19 ; Pettillo ea:


.
5. H oppes v Ho ppes 1 23 Ind 3 9 7
.
,
.
,
.

pa r t e, 8 0 N or Ca r 5 0; Allis v Ware, Trentm an v Eldridge 9 8 Ind 5 25


. . . .
, . .

28 Minn 1 66 . .
5
Greer v Wintersm ith, 8 5 Ky . .

5
Staflord v Montgom ery, 85 Ten
'
5 16
. . .

3 29.
198 m s m m or sm ooa n on .

paym ent of th e debt for wh ich th ey are res pecti vely l ia ble .
1

A surety wh o firs t bec om es such in an obligati on in c i den ta l


to th e p ros ec uti on of a legal rem e dy a ga i ns t th e p rin c i pa l ,

wi ll upon pay in g th e d eb t be a l lowe d to s ta n d in th e c re d itor s


’
, ,

place on ly as to h is rem ed ies aga i ns t th e pers on or pro perty


of th e prin c ipal ; as to any prior s urety or any prior in t eres t
5
,

in property wh ic h m ay be pl edge d to th e c re d itor fo r th e


d eb t h e m ust oc c upy th e pos ition of th e debtor; h e c a nn ot
,
5

c l a im to be s ub rogated to th e righ ts of th e c re d ito r a g a ins t

a ny p ri o r s ure ties ; on th e c on t ra ry th e p ri o r s ure ty if c om


5
, ,

p e l le d to p y
a th e d eb t w i ll be s ub ro ga te d a g a i ns t th e s
,
ubs e

quent s urety Th os e wh o l ast bec om e s ure ties do s o n ot


5
.
,

on ly for th e benefit of th e c red itor b ut in e xon erati on of the ,

form e r s ureties and wi ll be l iable to i ndem n ify s uch fo rm er


,

s ureties
5
A c c ord ingly ii after a j udgm ent aga in s t two
.
, , ,

on e of wh om a ppe a rs by th e re c ord t o be a s urety o n ly a ,

th i rd pa rty in te rven es s ol e ly at th e reques t of th e pri n c i p al, ,

an d bec om e s b a il for th e s ta y of e x ec uti on ta k in g i n d em n ity ,

from th e prin c ipa l th erefor an d at th e e xpiration of th e s ta y ,

th e o rigin a l s urety is c om pe ll ed to pay th e j ud gm en t h e ,

m ay by s ub roga tion th e reto ;re c over th e am oun t th e re of from


'

s uch b a il 7 On e wh o b ec om es s urety for th e prin c i pa l in th e


.

1 Bigelow, C Stout v Fenn o


. J m .
,
5
H am m ock 0 Baker, 3 B ush ( Ky ) .
,

6 Allen ( Mass ) , 5 79 , 5 8 0; Ada m s 0 . 208 ; S m ith v Bing, 3 Ohio, 3 3 ; .

Flanagan 36 V t 400; Sc hur o


, . . Fitzpatric k 0 H ill, 9 A13 78 3 . . .

Sc hwartz, 140 Penn St 5 3 ; Tracy . .


5
Kellar v William s, 10 B ush .

v Pom eroy 1 20Penn S t 14 ; Se m m es


.
,
. . K
( y) 21
,6 F ribe rg o D o no van , 23 .

v Naylor, 1 2 Gill J ( Md ) 3 5 8 ; Il ls App 5 8


J
. . . . . .

D illon v Scofield 1 1 Neb 41 9


.
,
. .
5
C hris m an v ones , 3 4 Ark 73 ; . .

5
Riem e r v Schlitz, 49 Wise 273 ;
. . Bently 0 Ha rris , 2 Gu tt ( V a )
. .

Burgett v Patto n, 99 . 3 02 . 3 5 7 ; H iggs v Landm m , 1 Coldw . .

5
Arm stxgh g s Appeal 5 Watts
t
( T ) 81
’
,
e nn . .

Sc hnitzel s Appeal 49 Pe nn St
7 '
Berg (
. P e nn ) 3 5 2 ; H
. o pk ins v ille . . .

Bank 0 Rudy, 2 Bus h ( Ky ) 3 26 ;


.
, 23 B um s v Huntingdon Ba nk, 1 Pen . .

C ro w v Murphy, 1 2 B Mon ( Ky )
. . . W ( Penn ) 3 9 5 ; Pott v N athans
. . .
,

444 ; Bohannon v Coom bs, 1 2 B Mo n . . . 1 Watts Se rg ( Penn ) 1 5 5 Win . .

K
( y) 5 6 3 ; P a tte r so n 0 P o pe 5 . ches te rv Beardin, 10H um pb ( Tenn ) .

J
.
,
. .

D ana 241 Yoder v Briggs, 3 . 247 ; B ann e r0 Douglass, 4 ones Eq . .

Bibb ( Ky ), 228 .
( N o r.C a r ) 26 2 . .
s us s oc u xon IN ca ses or s uns rrs m r . 1 99

o
c urs e of legal proceed ings agains t h im h as n o right of con
tribution aga in st a p ri or s urety for th e d ebt 1
but on th e ,

c ontrary th e l atter is en title d to be s ubroga te d to th e c red i


,

to r s righ ts agains t h im as in th e c as e of b a i l 5
Th e righ ts
’
.

of a s urety on a s ec on d a ppea l m ust y ield to th os e of a


surety on th e fi rs t a pp ea l of th e s am e c as e b oth b ein g s ure ,

ties for th e s am e p rin c ip a l 5


A n d on e wh o by b ec om in g a .
,

surety on a j ud gm e nt bon d h a s p re ven ted a s al e of th e -

d ebtor s pm perty w ill n ot be substituted to th e l ieu of


’

th e cred ito r s o as to ove rre ach a j un i or l ie n c reate d b efore


,

th e s urety b ecam e l iabl e n or c an s uc h a s ub s eq ue n t s urety


4
,

afte r h av in g p a i d th e j ud gm en t c l a im by s ubroga tion th e ,

b en efit of a m ortgage gi ven by th e princ ipa l d ebtor to th e


origin a l s urety for th e l att er s in dem n ity 5
B ut after
’
.

th e s ubs equen t sureties wh o are p rim ari ly l ia bl e h av e b een


h e ld for th e fu ll am oun t for wh ich th ey beca m e boun d th e ,

ea rl ier s ureties w ill b e l ia bl e on th ei r obl igati on for an y

defic ien cy ; th eir ri gh t is m ere ly to be p referred to th e s ubse


quen t s ureties 5
.

132 . R igh ts of on e w h o b ec om es S ure ty fo r th e P a y m en t

of a Ju d g m en t . Wh ere
p ayee of a p rom iss ory n ote com th e
m e nc ed a suit a ga in s t th e th ree m ak e rs th ereof an d p en d in
g ,

th e sui t m a d e a n a greem en t with A on e of th es e m ak ers .


, ,

by wh ich A was to pay a ce rtain sum up on th e n ote a n d th e


.
,

c re d ito r sh o uld t a k e j ud g m en t for th e b a l a n c e a a in s t th e


g
th ree but sh ould n ot en forc e h is j ud gm en t a ga in st A
, an d .
,

A m a d e th e pay m ent a cc o rd ingly a n d th e c red itor s ubs e


.
,

1
D aniel 0
3 I red Eq Hinckley v
. Jy re itz
o ner, 58 N Y . .
5 . K ,
. .

( Nor Car ) 5 1 3 ; ent 0 Wait, 9 5 8 3 ; Moore 0 Larriter 16 Les


. . D . .
,

W V a 41 ; Ham m ock 0 Baker, 3


. . 63 0 . .

Bush ( Ky) , 208 5


Fis h baclc v Bodm an, 1 4 B us h
. .

5
Bender 0 George, 9 2 Penn St 1 17
. . . .

36 ; Hanby v H enritze 8 5 V a 1 77 ; 5
Havens v Foudry, 4 Me t ( Ky )
.
, . . . .

D enier v Myers, 20 O hio St 336 ; 247


. . .

Chaflin 0 Cam pbell, 4 Sn eed .


5
Ches ter 0 B roderick, 1 3 1 N Y . . .

1 8 4 ; B randenburg v Flynn , 12 B 5 49 s c , 60 H un ( N . 5 62 . . . . .

Mon ( Ky ), 3 9 7
. .
200 TH E LAW or s us noc u l on .

quen tly c oll ected h is j udgm ent from th e h a il of a n oth er of


th e d efen d a nts an d in purs uan c e of an ord er of th e c oun ty
,

c o urt th e b a i l took a n ass ignm en t of th e j udg m en t fro m th e

c red itor a n d s ub s e quen tly c oll e cted th e am oun t of th is j ud g


,

m en t from A it wa s h e l d th at th e c re d ito r was n ot res pon


1
,
.

s i bl e for th is a c t of th e b a il after th e as s i n m en t of th e
g
j udgm ent h ad been m ade by o rder of th e c ourt an d th a t A ,

c ould n ot m a in ta in a n a c ti o n a g a ins t th e c re di to r upon th e

agreem ent n ot to en fo rc e p ay m en t fro m h im a n d R edfie ld ,

J sa id th at th e c oun ty c ourt h a d n o power to ord er s uc h


.
,

s ub ro gati on of th e b a i l to th e righ ts of th e c re d ito r a n d th a t ,

a t m os t th e b a i l by s uc h s ub roga ti on c o uld ac q ui re on ly

th os e ri gh ts wh ic h th e c red itor h ad a n d m us t tak e th e j ud g


,

m en t s ubj ec t to th e c re d itor s a greem e n t n ot to en forc e c ol


’

le c tion th ereof against A th ough A s on ly rem edy to


.
, .
’

en fo rc e c om pl i a n c e by th e b a i l w ith th is a greem en t w ould

be i n eq uity 5
.Wh ere th e origin a l p rin c ipa l in th e de bt
p rosecuted a w rit of error wh ich was ove rrul ed an d th e
, ,

s urety or i n do rs er of th e n ote a fte rwa rd s p a i d th e d e bt h e ,

w as s ub rogate d to th e j ud gm e nt ren d ered on th e writ of error


a ga i ns t th e org in a l d ef en d a n ts a n d th e s uretie s on th e super

s ed ad a b on d up on th e ge n e ra l p rin c i pl e th at th e s urety is
,

en titl e d to a ll c oll ate ra l s a n d th at th e s ec on d s ureti e s m ay


, ,

by becom in g s uch h ave put h im in a worse c on d ition ; an d


,

th e c ourt s a id th a t th e l atte r s ureties h a vi n g at th e i n s ta n ce


, ,

of th e prin c ipal s tipul ate d to pay th e d ebt s uffered n o in


, ,

j ustic e in b e ing c a ll ed upon to do s o s in ce th ey w ere obl iged


,

to do n o m ore th a n th ey un d e rtook an d h a d n o righ t to c o m


,

pl a in th at th ey w e re n ot a ll owe d to us e as a paym en t by th em
s e lves th e m on ey wh ic h p rocee d ed f ro m a n oth e r pe rs on wh om ,

th ei r p rin c ip a l was p rev io us ly boun d to s a v e h a rm l es s If .

th e i nte rpos ition of th e s ec o n d s ureti es m ay h av e b e en th e


m e an s of in v olv in g th e firs t s urety i n th e n eces s ity of p a y in g

1 See Pierson v . Catlin 3 V t 272


, . .
7
Pierson o
. Catlin, 18 V t 77 . .
S UBROGATION m cs sns or suas rrsm r
'
. 201

th e debt quity of th e first surety w i ll decidedly prepon


,
th e e

derate If th e in terpos ition of th e b a il or th e surety for th e


1
.

j udgm ent is th e m ean s of hin derin g or del ay in g th e pay m en t


of th e debt s uch sec on d surety h as l es s equity th an a prior
,

s urety Th e c om in g in of th e b ai l by del ay i ng ex ecuti on


5
.
, ,

m ay h a ve p reven te d a p a y m e n t by th e d eb tor or out of h is

fun ds A s between th e b ai l an d the prin c ipa l debtor or


.
,

th os e wh os e righ ts h ave a cc rued un de r h im th e fo rm er m ay ,

be sub roga te d to th e righ ts of th e j ud gm en t c re d it or ; but


5 -

re ga rd m us t a lw ay s be h ad for th i rd pe rs ons wh o se righ ts

m igh t be affec te d by s uch s ub roga tion


5
.

1 33 . W h e re L a te r S ure ty is S ure ty fo r O ri gin a l S ure t ie s as

w e ll as fo r P rin c i pa l b q . y ca n If, h oweve r, th e s u s e ue n t s uret

fairly be re ga rd ed a s a surety for th e origina l sureties as ,

well as for th e prin cipa l th en h e m ay be s ubrogate d aga inst ,

th e origi n a l s ureties as we ll a s a ga in s t th e p rin c ipa l 5


Thus .
,

wh e re afte r th e rec overy of a j ud gm ent again st both p rin c i


,

p a l an d s ur e ti e s a t h i rd p e rs on b e com e s s ure ty, for t h e a


p y
m e n t of th e d ebt up on th e c re d i tor s p rom i s e to gi v e h i m
’
,

th e ben e fit of th e j ud gm en t for h is s atis fac tion an d in de m


n ity s uch n e w s urety h as a s up eri o r equi ty ove r th e old
,

s uretie s a n d m ay afte r p ay m e n t en forc e th e


,
j udgm ent
aga in s t th em for h is own p rotecti on ; h is agree m en t m a d e
h im th e con d iti on al as s ign ee of th e j udgm en t 5 Th e s am e .

prin c iple h as been appl i ed to th e s ureties upon bon d s an d


n ote s 7
S o if a j ud gm ent a ga ins t t wo is a m rm ed on th eir
.
,

Opp 0 Wa rd, 1 25 Ind 241 ; 5


Arm strong s Appeal 5 Watts
1 ’
. .
,

Mitc hell v De Witt, 25 Tex Sup . . . Serg ( Penn ) 3 5 2 ; U nited S tate s


. .

180 . Bank 0 Wins ton, 2 B ro ck ( C C )


. . . .

5
B urns v H untington Bank , 1 . 25 2 ; Barlow v Deibe rt, 39 I nd 1 6 . . .

W ( Penn ) 39 5 Pott v Na Coflm an 0 H opkins, 75 V a 6 45 ;


'
5
Pen . . . . . .

tha ns, 1 Watts Serg ( Penn ) 1 5 5 . . Dessar 0 King, 1 10 Ind 69 ; S tinnett


. .

Fletc her v Menken 3 7 Ark 206 .


, . . e Crooks hank, 1 H e is k ( Te nn ) 49 6
. . .

5
La Grangc v Merrill, 3 Barb . . Chas e 0 Welty, 5 7 Iowa, 23 0; Dillon
.

Oh ( N Y ) 625 Brewers Appeal 7 o Scofield, 1 1 Nebraska, 4 19


’
. . .
. .
,

Penn S t 3 3 3 ; Peirce v H iggins 101


. .
,
5
La Grange v Merrill 3 Barb .
, .

Ind 1 78 Black 0 Epperso n 40Tex


. . . . Oh ( N Y ) 625
. . . .

7 Whitin
1 62 .
g v B urk e, L R 6 Cl : . . .
202 m s LAW or s onnoou xon.

a ppe a l aga ins t th em an d th eir suret y on th e a ppea l


, an d on

furth er a ppea l is a gain a fli rm e d aga ins t th e th ree an d th e ir


s uret y on th e s ec ond a ppea l th e firs t an d sec ond s urety are ,

re l ate d to e a ch oth er n ot as c c s ureties but as p rin c i p a l an d


,
-

s urety an d if th e firs t s ure ty p ays th e fin a l j ud m e n t h e


g
h as n o rec ourse aga in s t th e sec on d 1
A n d if a j ud gm ent .

aga in s t a p rin c ipa l d e btor a n d h is s ure ti es is s upe rs e d ed by

th e d efen d a nts w ith two o th e rs a s th e ir s ureti es a ll th e de ,

fen d an ts in th e o rigina l j ud gm ent a re pri nc ip a l s as to th e


s ure ties in th e m ersed ea : j ud gm en t 5
p .

13 4 . E x c e pti o n s to U s ual R ul e of B nb rog a t lo n b e tw ee n S uo

c on i v e B ure a u . In Lo uis ia n a it h as
been h e ld c on trary to ,

th e ge n era l rul e th at th e s ec on d s urety is en title d to s ubro


,

g a t io n a g a i ns t th e fi rs t s ure ty on th e p re s um pt i on th a t th e ,

se c o n d s urety wa s in d uc e d to b in d h im s e lf i n c ons eq ue nc e of

th e res pons i b il ity of th e p rin c i p a l h av in g b een gua ranteed by


th e fi rs t s urety ; an d a c c ord in gly t h e s urety in an a ppea l
bond after payi ng th e am oun t of a j ud gm en t aga inst his
,

prin cipal was a llowed to en force th e j udgm en t agains t th e


,

origin al ba i l in the suit for th e wh ol e am ount s o pa i d by


h im 5
. A l ik e d ecis ion was re n dered un de r s pec ial c ircum ,

s t an c e s i n Mis s ouri
,
5
In V irgi n i a a s urety wh o bec om es
.

s uch i n the c ours e of j ud i c ia l p roc ee d in gs for th e c o llec

ti on of th e d eb t from th e p ri n c i p a l is s ub rogate d l ik e any


oth e r s urety for th e d eb t to a ll th e re m e d ies of th e c red it or
,

even ag ain s t th i rd pers on s wh ose righ ts th ough s ubj ec t to , ,

th e c re d ito r s l ien h a ve ac c rue d before th e obl iga ti on of th e


’
,

s urety wa s e nte re d in to ; h e wi ll b e s ub ro gate d to th e c red

itor s j ud gm ent l ien up on l ands a l ien ate d by th e deb tor


’
-

342 ; H arrison 0 Lane, 5 Le igh . Hartwell v S m ith, 1 5 Ohio S t 200;


. .

41 4 ; Adam s 0 Flanagan, 3 6 V t 400;. . B radford 0 Mooney, 2 Cincin ( Ohio)


. .

H a rris 0 Warner, 13 Wend ( N Y )


. . . . 46 8 . See Monson v Drakeley, 40 .

400 . Conn 5 5 2
. .

1
Cowan 0 D uncan, Meigs .
5
H owe v Frazer, 2 Rob ( L1 )
. .

470 . 424 .

Yeager s Appeal, 8 Atl Re p 225 ; 5


State 0 Farm , 77 Mo 1 75
5 ’
. . . . .

Sm ith 0 Anderson, 1 8 Md 5 20;


. .
sus a os u ros In c a ses or s ua s rrsm p '
. 203

after j ud gm en t but before th e s urety bec am e such


th e , .
1

Wh ere on an appea l from a j udgm en t a ne w j udgm en t was


, ,

re n d ered for a m uch l arger sum a nd was p a id by th e s urety ,

in th e a ppe a l bon d this s urety was s ub rogate d t o th e c red i


-

tor s j ud gm en t l ien a ga in s t m es n e p urch as e rs of th e d eb tor s


’ ’
-

rea l es ta te n ot on ly for th e am oun t of th e ori gin a l j ud gm en t


, ,

but a l s o for th e in c rea se d am oun t wh ic h th e s urety h a d b een


c om pe ll e d to pay an d th e o rigin a l s urety c a nn ot h a ve c on
5
,

t ributi on from s ureties given in th e c ourse of s ubs equen t l iti

g a t i on 5
B u t
. a j u d g m e n t s ure ty fo r th e p rin c i p a l d e btor w-
i ll
n ot be s ub roga te d to th e c red itor s l ien upon th e property of
’

on e wh o s ta n d s in th e p os ition of a p ri or s urety for th e j ud g

m en t d eb to r-
5
In Ma i n e a n d Mas s ach usetts it h as be e n h e ld
.

th at th e doc tri ne of sub rogatio n i s n ot a ppl ie d at a l l a s


b etween s uc ces s ive s ureties tak en in th e c ourse of j ud ic ial
proceed in gs again s t th e prin c ipa l debtor an d neith er th e
prior n or th e s ubse quen t s urety is a ll owed an y rem edy at law
a ga in s t th e oth er
5
A n d in Maryl an d th e p rin ci ples of c on
.

tri bution b etwe en c o s uret ies are n ot to be a ppl ied to such -

s uc c es s i ve s ureties
5
.

135 . W h e th e r Ori gi n al O b li ga ti on e x tin guis h e d b y S uret y


’
s

P ay m en t th e re o f R ul e i n E n gl a n d .
—Al th ough it is a gen era l
l
ru e th at in e quity 9. s uret y is b ogated
su r to th e benefit of all

th e s e curiti es d itor h olds aga inst


for th e debt wh ich th e c re

th e prin c ip a l yet it wa s fin a lly s ett l ed in En gl a n d th at th is


,

s ub roga ti on m us t be l im ite d to s uch se curi ti es o n ly a s c on

tin ue to e x is t a n d a re n ot ipso fa cto ex tin g uish ed by th e a ct


of paym en t an d th at paym ent of a bond or oth er spec ial ty
7
,

1
Hill 0 Mauser, 1 1 Gratt ( Va )
. Douglass v Fagg 8 Leigh ( V . .
5
.
,

5 22 ; Rodgers v Mc Cluer, 4 Gratt 5 88 . . .

( V a ) 8 1 ; Leaks o Fe rguson, 2
.
5 H olm es 0 Day, 1 08 Mass 5 63
. . .

Gratt (V a ) 419
. . Morse v William s, 22 Maine , 1 7
. . .

5
Mc Lung v Beirne , 10 Leigh 5
Sem m es v Naylor, 1 2 Gill
. J . .

394 .
( M d ) 3 5 8 . .

5 Ro
senbaum v Goodm an, 78 V a
7
Co pis v Middleton, Turn
. . . .

1 21 . B ass 224 . .
204 THE LAW or susa oc u ron.

or of a j udgm ent ex ecuted by or rec overe d aga in st both pri n


c ipa l a n d s urety or th e p rin c i p a l a l on e
, e x tin g ui sh e d th e ,

obl igatio n s o a s to p reven t an y sub ro ga ti on of th e s ure ty


,

th e reto 1
B ut th e te ch nic a l re as on in g of th ese d e c is i ons
.
,

n ever en ti re ly s atis facto ry h as n ow been d on e a w ay w ith in ,


“
E n gl an d by a statutory prov is ion th at every pe rs on wh o ,

b ein g surety for th e debt or duty of a n oth er or b eing l i a ble ,

with a n oth er for a n y debt or duty sh a ll pay s uch debt or ,

perform such d uty sh a ll be entitl ed to h ave as s ign ed to h im


,

or to a trus tee for h i m e v ery j ud gm en t s p ec i a l ty or o th e r , ,

s ec uri ty wh ic h s h a ll be h e ld by th e c re d itor in res pe c t of


,

s uc h d eb t o r d uty w h eth e r s uc h s pec i a l ty j ud gm e n t or oth er


, , ,

s e c uri ty s h a ll or sh a ll n ot be d eem e d a t la w to h ave b een

s a tis fied by th e p ay m en t of th e d ebt or p e rfo rm a n ce of th e

duty ; a n d s uch person s h all be entitl e d to s tan d in th e pl ace


of th e cred itor an d to us e all th e rem ed ies a n d i f n eed be
, , ,

a n d up on a prope r i n d em n i ty to us e th e n a m e of th e c re d i ,

tor in an y a ction or oth er p roc e e d in g at la w o r in equity in ,

orde r to obtai n from th e p rin c ipa l d ebtor or from an y cc ,

s urety c c c on tra c tor or c c d eb to r a s th e c as e m a y b e in


,
-

,
-

, ,

d em n i fic a ti on for th e los s s us ta in e d a n d a d van c es m a d e by


th e pers on wh o s h a ll h av e s o p a id s uch d ebt or pe rform ed
s uch d uty ; a n d s uc h p a y m en t or p e rf orm an c e s o m a d e by

s uc h s urety s h al l n ot be pl e a d a bl e in b a r of an y s uch a c ti on

or oth er p roc ee d in g by h im ; p ro vid e d a l ways th at n o cc

s urety c o c o n tra c tor or c c d ebtor s h a l l b e e ntitl ed to re c over


,
-

,
-

f rom a n y oth er c o surety c o c ontractor or c c de btor by th e


-

,
-

,
-

m ean s a fores a id m o re th an th e j us t p ropo rti on to wh ic h


,
as ,

b etween th e parties th em selves such l ast m ention ed pa rties ,


-

s h a ll be j us tly l ia bl e
” 5
Th is statute wi ll be appl ied to pro
.

te ct a c c surety or cc d eb tor from wh om th e c re d itor h as


- -

1 J ones v. Davids , 4 R us s . 277 ; 00 Exch 462 ; H odgs on 0 Shaw, 3


. . .

Copis v Middleton, Turn


. . R uss Mylne K 1 8 3
. . .

224 ; Arm itage 0 Baldwin, . 5 Beav 5


Mercantile Law Am endm ent Act,
.

278 ; Dowbiggen v Boum e, . 2 Yo 19 20 Vic , c 9 7, 5 5


. . . .
s us a oc a rr
on m
'
c a ses or sua m rsm r . 205

o
c e rc ed paym en t on ex ec uti on an d is h e ld to be a ppl icabl e ,
1

to a c on tra ct m ad e b ef ore th e p as s age of th e statute wh e re ,

th e b re a ch of th e c ontrac t h as tak e n pl a c e an d th e p ay m en t
by th e s urety or cc debtor h as b een m ade afte r its pa s s age
-
5
,

an d th e righ t of a s ure ty wh o h a s pa i d a j ud gm en t obta in e d

by th e c red ito r agai ns t th e prin ci pal d ebtor an d a ll th e sure


tie s to s ta n d in th e pl a c e of th e j ud gm en t cred itor w ill n ot -

be d im in ish e d by th e fa c t th at h e h as not h im s elf p a i d th e


wh ol e j ud gm ent 5
.

1 36 . P res e n t E n glis h R ul e g e n e ral l y a d o pte d in t h e U n i te d

B t a t es .
— W ith m ore or l ess
from l egis l at ion th e rul e a id ,

l ai d d own in th is statute h as b ee n p retty gen era lly ad opte d


in th e Un ite d S tates ; an d th e d ist in c ti o n th at equity w i ll
5

n ot s ub ro ga te th e s uretic s in th os e c a s es in wh i c h p ay m en t

d is ch a rges or ex tinguish es th e security at law s uch as bon ds ,

an d j ud gm e n ts w h i c h b in d th e p ri n c ip a l a n d th e s urety

jointly or bon ds or jud gm en ts wh ic h c on stitute or m erge th e


,

debt a lth ough th e surety be n ot boun d by th em h as b een


, ,

lly d d y d by N zsbet
'
5
g e n e ra e n i e i n th i s c o un t r A s wa s s a i .
,

J i n d ec id in g th at a s urety wh o h a d p a id a bon d d eb t of h is
.
,

pri n c i pa l w as by subrogati on to th e righ ts of th e c red itor


, ,

e ntitl ed t o ra n k as a s pe c i a l ty c red itor of h is p ri n c i p a l ,

th e sub stitution of th e s urety i s n ot for th e c red ito r a s h e


sta n d s re l ate d to th e d ebtor afte r th e p ay m en t but a s h e ,

sto od re l ate d to h i m b efo re th e p ay m en t H e is s ub rogated to .

such ri gh ts as th e c red itor th en h ad a ga i ns t th e p rin c ip a l on e ,

of wh ich un ques tion ab ly wa s to enforc e h is b on d aga ins t th e


pri n c ipal an d if h e wa s ins olven t to be let in as a b ond
, , ,

c red itor Wh at d ifferenc e is th ere b etween pe rm itt in g th e


.

Batc hellor 0 Lawrence, 9 C B


1
. . . Lidderdale
5 v Robinson, 1 2 .

5 43 .
Wheat 5 94 : s c , 2 Brock 1 5 9
. . . .

5
De Wolf 0 Lindsell, in re . B rown v . 477 ;
Cochran s Estate, L R 5 Eq 209 Miller v O Kain, 1 3 H un (N
’
5 94
’
. . . . .

Lockhart v R eilly, 1 De Gex P actea, § 1 3 7


J
. .

ones , 46 4 .
5
Am note to D aring v Winchel
. .

5
McMyn, in re, Lightbrown 0 . sea, 1 Lead Cas Eq 43 4 . . . .

McMyn, 3 3 Oh D 5 75 . . .
206 m s m m or sus aoourton .

s uret y to reim burse h im self out of a m ortgage l ien h eld by the -

c re d itor an d perm ittin g h im to ta ke out of th e es ta te gen e


,

ra lly of th e de btor th e am oun t th a t h e h as p a i d ? If b e rea l

i zes upon th e m ortgage h e ab s tra cts th e a m oun t wh ich h e h as


,

pa id from th e es tate of th e p rinc ipa l ; if h e rea l iz es on th e


bon d th e m ortgage d prope rty goes back into th e c om m on fun d
, ,

an d th e res ul t to h i m a n d th e oth e r c re d ito rs i s th e s a m e Th e .

ve ry fact th at the s urety c ould n ot enforce th e bon d at la w is


a reas on in e quity w hy h e s h ould be a llowe d to c om e in to th e

d istributi on as a bon d c red ito r 1


But th e rec ove ry of a j u dg
-
.

m en t in on e S tate upon a j ud gm en t p rev i ous ly re c ove re d in

a n oth e r S ta te or in a n o th e r c ourt h as been h e ld s o fa r to e x

tin guish th e firs t j ud gm en t th at a s ure ty c an n ot up on p ayi ng ,

th e l ate r be s ub roga te d to th e ea rl ier j ud gm en t


,
5
.

13 7 . R ig h t of S ure ty t o b e s ub s t i t ute d to th e B on ant of th e

Origin al O b ligat i o n followin g S ta te s th is


m ai n ta i n e d In th e
righ t of th e s urety h as b e en m ore or l ess d istin c t] y a m rm ed .

In N ew H a m ps hire i t is h eld th at th ough p ay m e nt of a


,

joint d ebt by e ith er of th e d ebtors is a d isch a rge of th e d ebt 5

an d of any a c t i on j ud gm en t or e x e c utio n foun d e d upo n it


5
, , , ,

y et, if th e d e b t i s p a id by a s urety a n d th e c re d i to r u po n h is ,

paym en t as s ign s to h i m an y c oll ate ra l sec urity th e d ebt wi ll ,

be re gard ed as s till s ubs is tin g a n d un d is ch a rge d s o far a s is ,

ne c es s a ry to prote c t th e s ecurity A n d an atta ch m en t of th e .

property of th e prin c ipal in an acti on pen din g for th e re


c ov ary of th e d eb t i s s uc h a c ol l ate ra l s ec uri ty ; a n d a c co rd

in gly th e surety afte r h is pay m ent m ay ta k e a n a s s ign m ent


, ,

of such an ac tion pros ecute it to j ud gm en t a n d ta ke out


, ,

e x ec uti on th ere on for h is own use A nd if a joi n t a nd


5
.

1N iebel J , in Lum pkin v Mills ,


,
. . 240; Hanna 0 Guy 3 B us h ( Ky ),. ,

4 Ga 3 43 , 3 49
. . 9 1 ; Co ok 11 Arm stro ng 25 Miss 63 ;
.
,
.

5
U nited States Bank 0 Patton , . Purdy v Doyle, 1 Paige ( N
. 558 . .

5 Davis 0 Steven s 1
5 H ow ( Miss ) 200; Frazie r 0 Mc
. . . .
, 0 N H 186 . . .

Q ueen, 20 Ark 68 ; Whiting v Beebe,


5 S nle
. . ta y v N utt er, 1 6
. N H . .

1 2Id 421 , 5 49 ; Gould 0 Hayden, 63


. .

. D
Ind 443 ; eneg re v Ham , 1 3 Iowa, .
5
Brewer 0 Franklin Mills , 42 N
. .
sus a os u xon In ca ses or suanrrsm p . 207

v
s e e ra l prom iss ory n ote is tak en up by on e of th e s ign e rs

th ereof wh o is m ere ly a suret y , n ot with th e inte n ti on to pay


an d d isch arge it but to purc h ase , it, th is wi ll n ot be a d is
c h a rge of th e d eb t a nd an ac ti on m ay s ti ll be m a in ta in e d
,

upon th e n ote in th e n am e of th e p ay ee for th e ben efit of th e

re a l pl a inti ff 1
.

N ebrask a Th e New H am p sh ire rul e a s to a n a ttach m ent


.

pen d in g again st th e princ ipa l wh en pay m en t is m a de by a


s urety h as b een fo llowe d in Ne b ras k a Th e s ure ty m ay
5
,
.

upon p rov in g h i s s urety sh ip in th e origin a l ac t ion but n ot ,

oth erw is e h ave a j udgm en t aga inst h is princ ip a l an d h im s e lf


,

as s i gn e d to h im se lf on h i s pa y m en t a n d en fo rc e it aga in s t ,

th e prin c i pa l for h is own in d em n ity 5


.

In N ew York a s urety upon th e perform anc e of h is c on


,

tra c t is en titl ed to th e ori gin a l evidenc es of in deb ted n ess


h el d by th e c re d itor an d to a ny j ud gm en t in wh ich th e d ebt
,

h as b een m erged ; th e surety h a s n ot on ly a righ t of s a b ro


g a ti on p ure a n d s i m pl e but m a y a l s o d e m a n d a n as s i
, gn m en t
from th e cred itor ; an d th ough th e obl iga ti on is d isch arged
so fa r as th e c red ito r h as a ny interes t th erei n yet th e origi ,

n a l d ebt i s k ept a l iv e for th e be n efit of th e s urety a ga ins t ,

th e p rin c ipa l d e btor 5


A surety pay ing a j ud gm en t aga inst
.

h im se lf an d h is p rin c i pa l h as th e righ t to h av e it ass i gn ed to


h im se lf an d m ay th en enfo rce it a gain st th e p rin c ip a l or h is
,

es ta te
5
.Th is rul e originally restric ted to equity is n ow
,
5
,

a ppl ie d a l s o at law 7 .

H 292 ; Edgerly v Em erson, 23 N


. . . Clason 0. Morris 1 0 ,
Jh o ns .
(N Y) .

H 5 5 5 ; Low 0 Blodgett, 21 N H
. . . . 5 24.

121 .
5
Goodyear 0 Watson, 14 Barb . .

1 R ockin ham Bank 0


g C h t
gg ,
e t .
( N Y )
. 48 1 ; T ow n se nd 0 W h itne y, .

29 N H 29 2. . . 1 5 H un ( N 9 3 ; s c 75 N Y
. . . . .

5
Wilson 0 Barney, 8 Nebraska,
. 425 ; Waller 0 Harris , 7 Paige (N . .

1 67 .

Potvin o Myers, 27 Neb 749


5 . . .
5
Ontario Bank Walker, 1 H ill
5
Townsend 0 Whitney, 75 N Y N d i
’
. . .
( . 65 2 an r e po rte r s n ote c t
J
,

425 ; Fielding 5 Waterhouse, 8 ones . ing New York Bank 0 Fletcher, 5 .

S pencer ( N 424 ; Cuyler v


. . Wend (N Y ) 8 5 , 89
. . . .

Ensworth, 6 Paige ( N 32 7 Alden v Clark 1 1 How Pr


, .
( N . .
208 m s LA W or s us aoou l ox .

In P en n sylva n ia , debt se cure d by a s uret y wh o h as p a id a

a j ud gm en t a ga in st h is prin c i p a l a n d wh o is in oth e r re s pe c ts ,

e n titl e d t o sub roga ti on m a r v i ve th e j ud gm en t w ith out fi rs t


y e ,

ob t a in i ng a d ec ree of s ub stituti on a n d m a h a v e h is ri h t
y g s ,

tried on a scire fa cia s e ven th ough a n e ntry of s atis fac t ion


1
,

h as b een m a d e up on th e j udgm e n t if th is wa s n ot d on e at ,

th e i n sta n c e of th e s urety 5 A c tua l pay m ent d is ch a rges a .

j ud gm en t or oth er i n cum b ran c e at law but wh ere j us tice , ,

req uires i t i t is s t i ll k e p t on foot for th e p rote c t ion of t h e


,

s ure ty wh o h a s p a i d i t H e w i ll be s ub roga ted to a l l th e


5
.

c re d itor s ri gh ts i n th e origi n al obl igat io n wh ich h e h as


’

p ai d 5 n t
o, on ly a gai n s t h i s prin c ip a l for i n d e m n ity but ,

a ga in st h is c c s ureti es for c on tri buti on a n d n ot on ly to t h e


5 -

ben efit of a d i rec t obl igation s uc h as a j ud gm en t or pen d in g ,

a c tion but of s uch a n in c id en ta l rem edy a s a d is tre s s for


,

ren t
5
Th e s urety wi ll n e ed n o form a l as s ign m en t
.
"

In N ew J ersey a c o d e fen d an t wh o h as b een c om pe ll e d to ,


-

p y
a a j ud gm e n t upo n w h i c h th e oth e r d e fe n d a n t w as p rim a

ri ly l i abl e m ay h a v e th e be n efit a n d c on trol of th e j ud gm e nt

a n d e x ec utio n for h is re i m b urs e m en t a ga in s t h is c o d e fe n d an t -

th e pri m a ry d eb to r Th e righ ts of th e p arties a re s e tt l ed by .

5
s ta tute .

In D ela wa re, th e suret y upon a b on d m a y, on te n d e r of


th e debt dem ,
an d a n as s ign m en t of th e b on d ,
th at h e m ay

Y ) 209 Dunford v Weaver, 8 4 N


. . .
5
W right 0
Grover Baker 8 M . . .

Y 445
. . Cc 8 2 Penn S t 80 ; Brown 0 Blac k, . . .

1
Cottrell s Appea l, 23 Penn St 96 Penn St 48 2 ; Bank 0 Ha rpe r, 8
’
. . .
.
.

29 4 ; Richter v Cum m ings , 60 Penn . . Penn St 249 . . .

5 S rin er v S rin er 43 Penn


St 441 ; Cochran v S hields 2 Grant
. .
, p g p g , . .

(P e n n Gas ) 7 4 3 . St 5 18
K
. . .
,

5
Baily e Brownfield, 20 Pen . .
5
ing v Blackm ore , 72 Penn St . . .

S t 41 . . 3 47, distinguishing uinn 0 W allace, Q .

5
Woodwa rd J , in Cottrell s Ap
’
. . 6 Wheat 45 2 . .

p ea ] , 23 Pe nn S t 29 4 29 5 ; Fl em ing . .
,
7
Dulfield 0 Cooper, 8 7 Penn St . . .

v. Beaver, 2 Ra wle 1 28 443 .

H im es v eller, 3 W . K
S 401 ; . .
5 D
urand v Trusdell, 44 N J L . . .

Erb s Appeal, 2 Pen


’
W 296 . . . 5 9 7 White 0 B row n , 29 Id 307 . . .
S U BROG ATION m c a ses or s ua nrrs m p . 209

enforce it aga in s t l d to th e origi


th e prin cipal .
1
H e is en tit e

n a l ev ide n ce s of d eb t an d to an y j ud gm en t in wh i ch th e d e b t

h as b een m e rge d as w e ll a s to a ll c oll a tera l se c uri ties h e ld


5
,

by th e cred itor 5 .

In Ma ry la n d a surety upon pay in g a j udgm e n t d ebt of


, ,
-

th e p rin c ip a l m ay i n equity com pe l th e c re d itor to ass ign to


,

h i m th e j udgm ent w ith a ll l iens gi ven by th e pri n c ip a l ,

d ebtor to s ecure its paym en t Th e paym en t in full by th e


5
.

s urety wi ll of i tse lf op erate if n ot at law yet i n eq uity


5
as , , ,

a n as si gn m ent s o a s to en ab l e h im to us e th e n am e of th e
,

c re d itor for th e rec overy of th e m on ey fro m th e p rin c i p a l


5
or ,

to l e vy th e ex ec ution for h is own us e upo n th e p rop erty of


th e p ri nc ipa l 7 a n d th ough a p a rtia l pa y m en t by th e s urety

wi ll n ot op e rate as a n a s s ignm en t pro ta n ta 5


s o as to gi ve ,

h im a n y c ontrol ove r th e j ud gm en t or ex e c uti on ye t it wi ll ,

n ot d is ch a rge th e prin c i p a l to th e p re j ud ic e of th e righ ts of ,

th e s urety with out th e l atte r s c on s ent a n d wi ll give th e


’
, ,

surety to th e e x ten t of h is p ay m e n t an e quitabl e in terest i n


, ,

th e j ud gm e n t wh i ch h e m ay re l e a s e or trans fer
,
5
But to .

en titl e a s urety to a n a ss ign m en t as a ga in s t h i s c c s ureties -

h e m ust n ot on ly s atisfy th e ori gin a l j ud gm ent but m ust ,

h im s e lf pay th e wh ol e am oun t of it 1o
.

In Vi rgin i a th e surety s p aym ent of a j udgm en t again st


,
’

h im s e lf an d h is prin ci pa l does n ot ex tin guish th e j ud gm en t ,

as b etwee n th e p ri nc i p a l a n d th e s urety but th e surety w i ll ,

be s ub rogate d to al l th e l ie n s a n d rem ed ies wh ich th e c red i


tor h a d by rea son o f h is j ud gm en t 1 1
an d wh ich h ave n ot be en ,

1 Merriken v. Godwin, 2 Del Oh . .


7
Sotheren 0 . Re ed, 4 Herr . J .

23 6 .
(Md ) 3 07
. .

5
Dodd 0 Wilson
4 Del Oh 399
.
,
. . .
5
5 127 ; H
Antea ,o llin gs w orth v .

5
Miller v Stout, 5 Del Oh 25 9
. . . . Floyd 2 Han , Gill 8 7, 91
. .

5
Creager o Brengle, 5 Herr . . J 5
Grove 0 B rien, 1 Md 43 8 . . .

Md 3 15 Wils on 0 R id el M d 3
( ) 2 4. .
g y , 4 6 .2 5 . .

5
C ris field v State, 5 5 Md 1 92 11
Coflm an H opkins, 75 V a 645
’
. . . .

5
H ollingsworth v Floyd, 2 B arr . . Bank 0 Allen, 76 V a 200 ; Leaks v
. . .

Gill 8 7, 9 1 Cf Morgan 0 . . . Fergus on, 2 Gratt ( V a ) 419 ; Hill v . . .

D avis, 2 B art McH 9 . . . Mauser, 1 1 Gratt (V a ) 5 22 Watts 0 . . .

14
210 THE LAW or sus aooi n on .

a lrea dy los t an d th e s am e rul e is appl ie d to spec i al ties or


1

oth e r obligations Nor w ill th e surety lose th is righ t by


5
.

h a v in g ta k en oth e r security from h is pri n ci pa l 5


.

In N orth Ca rolin a a s ure ty wh o pa ys a j udgm en t for the


d ebt recovered agains t h is princ ipa l m ay h ave th e j ud gm ent
ass ign ed to a trus tee for h is re im b ursem e n t an d m ay purs ue ,

th e b a i l of h is princ ipa l even th ough a rec eipt be gi ven by


5
,

th e c re d itor to th e p rin c ipa l 5


But th e surety to p rotec t h is .
,

righ ts; m us t tak e such a n a ss ignm ent ; if h e does n ot th e ,

debt will be extinguishe d both as to h is p rin c ipa l an d h im ,

se lf A n d th e as s ignm en t m ust n ot be m a de to h im se lf but


5
.
,

to one wh o was n ot a p arty to th e rec o rd 7 S uch an as s i gn .

m en t wi ll p reserv e th e ori gin a l obl iga ti on an d ena bl e th e ,

s urety to e nforc e a ll th e re m e d ies wh ic h th e c re d i tor m i gh t

h ave use d agains t th e prin c ipa l ; a nd th e surety m ay c ontrol


5

th e j udgm en t e ven aga ins t th e n o m in a l as s i gn ee 5


Th e .

s urety upon a s pe c i a l ty deb t wh o h as p a i d it w i ll be de em e d , ,

a s pec ial ty cred i tor both of h is p rin c ip a l and of his c o ,

sureties ” B ut th e surety s righ t if c on tes te d can be e n


’
.
, ,

forced on ly in an in depen dent a cti on 11


A m ere jo in t debto r .

h as n ot th e s am e equity of s ub rogation aga ins t h is as s oc i ates


th a t a surety en j oy s again s t h is prin cip al
15 .

Ki 3 Leig h
nney, 272 ; Rodgers 5 21 Sherwood v Collier, 3 Dev Law . .

0 McCluer, 4 Gratt ( Va ) 8 1 ; Mc
. . .
( N o r 3
. 8 0 .

Lung v Beirne, 10 Leigh


. 394 .
7 Br iley o 3 088 , 1 Dev Bt l
. .

1
Carr v Glasscock, 3 Gratt ( V a )
. . .
EQ ( N05 03 13 ) 3 5 5
343
5
Hodges 0 Arm strong, 3 Dev . .

5
Lidderdale 0 Robins on, 1 2 .
Law (Nor 25 3 ; B rown v
. .

Wheaton, 5 9 4 ; fi naley 0 Oliver, 5 .


Long. 1 Ired Eq (N or Car ) 190 . . . . .

Mon! ( V a ) 419 ; Powell 0 White,


. .
5 Rice 0 lIearn 10
, 9 N or Car 1 5 0
. . . .

1 1 Leigh 309 ; Eppes v Ba n .


1°
H owell v B eam s , 73 N or C ar . . .

dolph, 2 Call 1 25 ,
39 1 D rake e Coltrane, 1 B ushes .

5
Miller v Pendleton, 4 B en ( N 3 0 0 S t t Nor Car
‘

. .
o r . ; a . . .

Ma af ( V a ) 436 1828, c 1 10, 4 . .

J
. . .

5
B anner 0 Dougla s, 4 ones Eq . . .
11
Calvert v Peebles, 82 Nor Car . . .

( N o r C ar ) 26 2 . .
3 34 .

5“J071
.

5 New bern v Dawson 10 Ired 65 0 McKinnon, 8 7 Nor .

J
, . .

Law ( Nor 43 6 . .
Car 994 ; Towe v Felton, 7 ones
. .

5
Bledsoe v Nixon, 68 . Law, 216 .
sus aoou r
os m ou rs or sunm sm p . 211

In S outh Ca rolin a , y wh o pays a jud gm ent rec overed a suret

a ga in st h im s e lf an d h is pri n c i pa l or a s pec i a l ty ex ec ute d by ,

him se lf an d h is p rin cipa l does n ot th ereby ex tinguish it but , ,

m ay i n equity en force it a ga ins t h is p rin c i p a l s es tate


1 ’
,

th ough this privi l ege h as b een d en ied as betwe en cc sureti es 5 -


.

But th e l ien of a j ud gm en t wh ich h as been p a id by one s urety


h as b een k ep t a l ive for h is p rotecti on a ga ins t th e i ns olven t
es ta te of h is c o s urety 5 Wh ere afte r s eparate j udgm ents
-
.

aga in s t p ri n c i p a l an d s urety for th e s am e debt th e l atte r ,

paid th e j udgm ent aga in s t h im self and th ereupon th e sh eriff ,

en te re d sa tis facti on up on both j ud gm en ts th e s urety wa s a l ,

lowed to vaca te th is en try upon th e j udgm ent aga inst th e


prin cipal and to s et it up as a l ien upon h is estate Th e
,
5
.

sam e r igh t of s ub rogation h a s be en a ll owed to a son wh o at ,

th e request of hi s fath er h a s pa id a j ud gm ent a gain st th e ,

latter 5
.

In Georg ia 9 surety wh o h a s pa id th e d eb t of h is pri n c i pa l


,
.

is in equity s ub rogate d to a ll th e rem e d i es of th e c red itor


, , ,

an d is en titl ed to o c cupy th e pl ace of a nd be s ubs tituted for

th e cre ditor upo n th e o rigi n a l evid en ce of th e d ebt ; a n d th e


5

s urety upo n h is p aym en t of th e debt m ay requi re a n as s i gn

m en t th e re of from th e c red itor 7 If a surety pays a j ud gm ent .

ren de red again st h i m s e lf an d h is p rin c i p a l h e is en titl ed to ,

c on trol s uc h j ud gm ent a nd th e e xe cution th ereon 8


a n d th is ,

righ t w i ll pas s up on h i s d ec e as e to h i s pe rs ona l repre s en ta

1
Garvin v Garvin, 27 8 0 Car Burrows v McWhann, 1 Desaus 5 . .

K
. . .

472 ; ina rd v Baird, 20 So Car Eq ( So Car ) 409. . . . . . .

3 77 ; Thom pson 0 Palm er, 3 R ic h 5


Perkins v Kershaw, 1 Hill, Eq
.

K
. . .

Eq ( So Car ) 1 39 ; ing 0 Aug h


. . .
( So C a r ) 4
3 4 . . . .

t y,
re 3 S tro bh Eq ( So Ca ) 149 ;
r .
5
S utton 0 Sutton, 26 8 0 Car
. . . . . .

Ware, ex pa rte, 5 Rich Eq ( So Car ) 3 3 . . . . .

473 ; S m ith v Swain, 7 Rich Eq .


5
Lum pkin v Mills, 4 Ga 3 43 . . . . .

( S o C ar .
) 11 2 ; Sc
. hultz 0 Carte r,
7
M cD ou g ald v D ough erty, 1 4 Ga . . .

Spears Eq ( So Car ) 5 3 4 ; Lo Noir 674


. . . .

v Winn, 4 Desans 65
.
5
Burke 0 Lee, 5 9 Ga 1 6 5 ;
. . . .

5
8 0 Car Bank 0 Adger, 2 Hill Daven port v Hardem an, 5 Ga 5 80
. . . . . .

Eq ( So Car) 262 ; Cunningham v


. . . .

S m ith, H arp Eq ( So Car ) 90 . . . . .


21 2 TH E LAW or sus aoou ron
'
.

ti yes .
1 B ut th is q y n ot at law; a n d wh ere
righ t i s in e uit ,
5
,

pen d in g a s uit brough t j ointly agains t th e m ak er an d th e in


dorser of a prom iss ory n ote th e in do rser pa id th e n ote it , ,

was h e ld th at th is p ay m ent m a d e befo re j ud gm en t b a rred , ,

th e furth e r p ros ecuti o n of th e suit e ve n at th e ins ta n c e an d ,

for th e benefit of th e in d ors e r; his re m e dy was by ac ti o n in


h is own n am e 5 A n d th is ri gh t of sub roga ti on to th e o rigi
.

n a l in d eb tedn es s i s a llowed on ly to a surety ; i t w i ll n ot be

e xten d ed to a m ere join t d ebto r 5


Th is righ t of subroga t ion .

is a flirm ed a n d regul ate d by statute 5


.

In Ohio 9 s urety wh o p ay s a j ud gm ent re n dered a ga ins t


,
.

h im s elf a nd h is p rin c ipa l w i ll be s ub roga te d to th e ri gh ts


th e rein of th e c red ito r ; th is p ay m en t w ill n ot ope ra te as
5

a n ex t in guis h m ent of th e j ud gm ent for th e ben efit of th e

p rin cipal If one of s evera l c c sureties pa ys a j ud gm ent


7 .
-

a ga i ns t th em with th e in ten tion of s a v in g h is righ t to be


,

sub roga te d to th e rem ed ies of th e j ud gm e n t c red itor h e m ay -

a fte rw a rd s b e sub ro gate d to th e j ud gm en t n otw ith s t a n d ing ,

its l ega l e x ti n c ti o n ; an d s uch in te ntion on h is p a rt w i ll be


presum ed from th e bare fact of paym ent un til th e c on tra ry is
sh ow n Th e rem edy aga in s t th e cc s urety is l im ited to s ix
5 -
.

years l ik e a s im pl e contrac t ; th at a ga in s t th e princ i pa l is


,
5

e xten d e d to te n y ears
1°
.

In K en tucky a s urety a dvan c in g to th e c red itor th e am ount


,

of a jud gm en t aga inst h is prin c ip al m ay s tipul ate for s ubs ti


tution a n d th e c o ntrol of th e j ud gm ent a n d e x ec uti on a ga i ns t
h is p rin c ipa l for h is re im b urs em en t ; an d a c ourt of la w w i ll
prote ct h im th erein 11 A n d un der th e s tat utes a surety upon
.
,

1 Hi arr s 0 .4 Ga 5Wynne
21 N ea l o N ash 23 O.h io S t 48 3 . ~ 7 .

K
.
, ,

night v Morris on , 79 Ga 5 5 ; Dem sey 0 Bush , 1 8 Ohio St 3 76


5 .
p . .
. .

Elam v Ra son, 21 Ga 1 3 9
w.
5 Neils on 9 Fry, 16 Ohio S t 5 5 2
. . . . .

5 Grima 0 Ham ton 2


p .
, 1 Ga 1 98 5
N eils on 0 F r u
y, p ra . . . .

5
Adam s 0 Keele r, 3 0 Ge 8 6
.
1° Nea l v Nash 23 Ohio S t 48 3
. . .
,
. .

5
Code , 21 6 7, 2171 Thom ason 11
Morris v Evans, 2 B
. . .

v Wade, 72 Ga 16 0
. . 8 4 ; Ro berts 0 Bruce, 1 5 S o W Re p
. . . .

5
Ohio Civil Code, 5 449 Peters 8 72 . .

o Mcwilliam s, 3 6 Ohio S t 1 5 5
. . .
sus a oc u rou m ca sns or sua s rrsm p
'
. 21 3

payin g th e am ount of a j udgm en t aga i nst him s elf an d h is


p rin c ip al m ay com pe l th e c red itor to a ss ign th e j udgm en t to
,

hi m se lf 1
S o if th e s urety h as pa id a preferre d d ebt of th e
.
,

prin c ipa l h e is en title d to th e ben e fit of th e p referen c e But


,
5
.

th e s urety of an in testate wh o h as p ai d a j ud gm en t or s pe c ia l ty
debt of h is does n ot th ereby bec om e ipso f a c to an d w ith out
, ,

a n as s ign m en t a j ud gm en t or s pe c ia l ty cre d it o r of th e es tate ;


,

h e is prim a fa cie a s im pl e c on tra c t c red itor m e re ly 5 -


.

I n Ten nessee th ough p ay m en t by a m ere j oin t d e btor dis


,

c h a rges th e ori gin a l obl igatio n a s urety wh o p ays a j ud g


5
,

m en t a ga in st h is prin c i p a l is s ub rogate d to th e j ud gm e n t l ien

a n d to a ll th e righ ts of th e c re d i to r a ga in s t th e p ri n c i p a l
5
.

E ven a p arti a l p ay m en t by th e surety will gi ve him pro ta n to


th e ri gh ts of a j ud gm ent c red itor as aga in st h is prin c i p a l-
5
.

Th e pa ym en t by th e s urety th ough it m ay des troy th e rem edy ,

or e x tin guis h th e s ecurity s o fa r a s th e c re d i to r is c on cern ed ,

h as n ot th at effec t b et we en t h e prin c ip a l a n d th e surety As .

to th e s urety it ope rate s in equity a s an a ss i gn m ent of th e


,

debt a nd of all legal rem ed ies upon it ; an d in h is favo r th e


debt an d a ll its l ega l obl igati on s a re regard ed as subs is ting .

Th e s urety is n ot s o far sub rogated to th e righ ts of th e j udg


m en t c re d i to r th a t an e x ecution c a n be is sue d on th e ori i n a l
g
-

j ud gm ent in h is favor as an as sign ee of th e j udgm en t ; but


h e m ay be subs titute d to th e l ien wh ic h th e j ud gm en t c red itor -

h ad upon th e property of th e p rin c ip a l an d to all th e re m ed ies


of th e cre d itor 7
an d by c o ntra c t w ith th e cred itor th e s urety
,

m ay after p ay in g th e jud gm en t c a us e th e e x ec uti on to be eu

force d aga ins t th e prin cip a l debtor 8


.

1
V each v . Wickersham , 11 B ush McNairy v Eas tland 10 Yerg
5
.
, .

K
( y ) 26 1 ; Alexander v
, . Lewis, 1 ( Tenn ) 3 10;
. Rhoda v Crockett 2 .
,

Met ( Ky ) 407
. . . Yerg 346 . .

5 Sc
hoolfield v Rudd, 9 B Mon . . .
5
William s v Tipton, 5 Hum ph . .

K
( y ) 29 1 .
( Te n n ) 6.6 .

5
Buckner 0 Morris, 2 J J Marsh . . . .
7
Deaderick, J , in Bittick v Wil . .

K
( y) 12.1 . kins, 7 B eis h ( Tenn ) 307 et seq
. . .

5
Baldwin 0 Merrill, 8 H um pb . .
5
Floyd 0 Goodwin, 8 Yerg 484
. .

1 32 .
21 4 m s LAW or susaoc y n on .

In Mi n ias ippi, d
un er th e form e r sta tutes, 9. s urety wh o h ad

pa i d aj udgm ent for h is principa l was in eq uity en t itled to


be s ubrogate d to al l the righ ts of th e c re d itor i n th e j udg
m en t ; but at la w h is paym en t e x tin guis h ed th e j ud gm ent ,

an d h e bec am e m ere ly a s im pl e con trac t c re d ito r of th e prin -

c ipa l
1
. Th e present s tatute protects th e ri gh ts of th e s urety
5

a t l a w ; an d h e is s ub rogate d to th e j ud gm ent l ien a n d to


5 -

a ll th e righ ts of th e j udgm ent c red itor a n d m ay tak e out -


,

e x e cuti on upon th e ori gin a l j ud gm en t Th is subrogati on .

ta k es pl ac e by op erati on of la w upon th e s urety s pa y m en t


’
,
.

with out any entry upon th e judgm ent roll or e l se wh ere Nor -
.

wi ll th e surety s j udgm ent l ien upon th e l an ds of th e pri nci


’
-

p a l d e b to r e,
ve n in th e h a n d s o f b on a fi d e p u rc h ase rs th e r e of ,

be affecte d by th e fa ct th at upon h is p a ym en t th e j udgm ent


was m a rk ed sett l ed by th e pl ai nt iff s attorney upon th e j ud g
’

m ent roll an d e xec ution dock et if th e entry was m ade w ith


- ~
,

out th e s urety s a uth ority or c onsen t


’ 5 .

In A la ba m a th ough i t was firs t h e ld th at an exe cut ion


,

a ga ins t th e pri n c ipa l m igh t be enfo rce d for th e be nefit of a


s urety wh o h a d pa id th e j ud gm en t w d
5 i w s afte r ar s con
t a ,

s ide red th at th e s ure ty c ould n ot after h is p aym ent kee p th e

j udgm en t al ive again st eith erh is prin c ipa l or h is c o s ureties 5 -

th a t even th ough h e took an as s i gn m e nt of th e j ud gm e n t h e


would h ave n o rem e dy at law ex ce pt as a s im pl e c on tract -

c red itor of th e p rinc i p a l ; th at h e c ould as se rt n o l i en by


7

v irtue of th e instrum ent upon wh ich h e h ad been s urety as ,

th at ec b am e f un c tm ofi ic i o by p ay m e n t o f th e d e b t w h i c h it

s e cure d 5
. B u t i t i s n o w p rov i d ed by s ta tu t e
5
th a t t h e s u re ty

u po n p a y i n g s u c h a j u d gm e n t m a y h a v e i t ass i gn ed t o h i m

1 Dinkins v Bailey, 23 Miss 284 ;


. Morrison 0 Marvin, 6 All 79 7 ;
.
5 . .

Co w S tr n 2 4 M i s 6 6 5 P res lar v S tall wo r th 3 7 A l a 40 2


n a y v o g s ,
. . . . .
.
,

5
C od e, 1 8 71 , 5 2 2 5 8 .
7
S an d ers 0 W a ts o n , 1 4 A la 1 9 8 ; . .

5
S w an v S m .ith , 5 7 M is s 5 4 8 S m ith v . H a rrison , 3 3
. A la 70 6 .
.

5
Y s
ate o M e .a d, 6 8 M iss 7 8 7 5
F
. o s te r 0 A t
. h em e u m , 3 A l a 3 02 .
. .

5
Clem e sn v P r o u t, 3
. S t ew P 5
A l ab a
.m a C iv il C od. e , i 3 15 7 .

345 .
sum om rron m
'
01 8 3 or sc am sm p . 215

se lf , an d m a y en f rce o it for h is in dem n it y aga ins t th e prin


,

ci pa l d ebtor at la w or in equity as , ,
fully as th e cre ditor
h im s elf m ight h av e don e 1 .

In M ichiga n, th e p ay m en t of a j udgm en t by a surety wi th


,

th e inten t to avai l h im s e lf by s ub rogati on of th e l i en of th e , ,

j udgm ent wil l n ot in equity e x tinguish th e d ebt or destroy


,

th e forc e of a l evy upon th e e x ec ution Equity wi ll enforce .

th e righ t of s ubrogati o n by k eepi n g th e d ebt a l ive an d pre


s erv in g th e force of th e levy for th e protecti on of th e
surety 5
.

In I owa th e surety on hi s paym en t is in eq uity subrogate d


,

to th e righ ts of th e c re d itor in th e o rigin a l obl iga tio n an d 5


,

m ay en fo rc e th e s a m e as of th e c l as s to wh ich i t o rigi n a lly

be l on ge d 5
but at la w h is pay m en t of a j udgm e nt e xtin
g ui s h e s i t 5
an d h is r i g
,
h t of s ub ro ga t i o n i s n ot a v a i l a bl e u n t i l
enfo rced by p rope r l ega l p roc e ed in gs s eas on ab ly b rough t 5 .

He m ay tak e an a ss ign m ent of th e o rigina l obl igation and ,

th en en forc e th e cre d ito r s righ t 7 ’


.

In Ind ia n a th ough th e s urety m ay enforc e all th e righ ts


,

of th e c re d ito r in th e origin a l obl iga ti o n by h av in g it prope rly

as s ign ed to h im s elf w j d d d jo ly
5 h
y e t e n a u g m, e n t i s re n e,r e i n t
again s t two th ey are both to be rega rde d a s prin c ipa l s un ti l
, ,

on e of th em is s h ow n to b e a surety for th e oth e r ; a n d wh en


5

on e of such d efen dan ts c l a im in g to be m e re ly a s urety but


, ,

w ith out any judic ial determ in ation as to h is suretysh ip pays ,

th e j ud gm ent h e can n ot h a ve ex ecution th ereon for h is own


,

us e 1°
. Th e s urety sh ould es tabl ish h is righ t by proper pro
'

ce edi ngs in th e origina l sui t or by s ubs eq uen t p roce ed in gs ;


11

Bragg v Patterson, 8 5 Ala 23 3 ;


1 Johnston v Belden 49 Iowa, 301 .
5 .

J K
. .
,

Blackm an v oiner, 81 Ala 3 44 ; V an


.
7
Schleis sm an v allenberg, 72
. .

derveer v Ware, 65 Ala 606


. Iow a, 33 8 . . .

5
Sm ith 0 R am sey, 3 3 Mich 18 3 5
Manford v Firth, 68 Ind 8 3 . .

K
. . . .

5
Hollingsworth 0 Pearson, 5 3 5
lippel v S hields, 90 Ind 8 1
. .

K
.

Iowa, 5 3 . So in the case of bail ane 0 State, . .

5
Searing 0 Berry, 5 8 Iowa, 20; 78 Ind 103
. . .

Braught v Griffith, 1 6 I a,
o w
. 2 6 1°
L a val v R o w ley , 1 7 Ind 3 6 . .
.

5 Drefahl e Ta ttle 42 Iowa 1 77


, ,
Evans
.
M oore, 8 4 1n d 440 . .

11 Sc hererv Schutz 8 3 In d 5 43
Bones 0 Aiken, 3 5 Iowa, 5 3 4
.
, .
. . .
21 6 m a Lu v or sunnoc a n on '
.

th e n h e m ay be su r b ogate d to th e cred it r s o ’
righ ts , afte r

paying th e debt .
1

In Wisc on sin, j udgm en t aga ins t


a s uret y upon pay ing a

him s elf h is p rin c ipal an d h is c c —


, s ureti es m ay be s ub roga te d
, ,

to th e cre d i to r s righ ts th ere in ’


aga ins t th e prin c ipa l for , ,

th e full am oun t of th e d e bt an d a gainst th e s ureti es fo r th e ir ,

proportions th ereof Th e j udgm ent—


5
li en m ay be k e pt a l i ve
.

aga in s t th e o th e r j ud m en t debtors e ith er for re im b urs em e nt


g
-

or for c on trib ut ion 5


.

In Min ne sota a s urety wh o h as pa i d a j ud gm ent a ga i n s t


,

h i s p rin c i pa l an d h i m s e lf m ay n ot only m a in ta in a n ac t i on
a t la w aga in st h is prin c ipa l in h is own n am e but m a a l s o
y ,

enf orce th e c red ito r s o ri in a l j ud m ent l ien a a ins t th e


’
g g g
-

prin c ipa l debtor 5


.

In K a nsa s by s tatute sureties wh o h av e p a i d a j udgm e n t


, ,

ren dered aga ins t th e i r p rin c i pa l s an d th em s elv es m ay ta ke

an as si gnm en t f rom th e j ud gm e n t c red i tor an d enf orc e th e -

e x e cuti on aga inst th eir princ ip a l s 5


.

In I llin ois th e surety upo n p ay in g a j ud gm en t aga in s t h is


,

princ ipa l m ay tak e a n ass ignm ent of it and h ave it ke pt


, ,

a l ive for h is be nefit an d m ay en forc e a ll th e s ec urit ies h e ld


5
,

by th e j udgm ent c red itor H e h as a n e lection to k ee p th e


7 -
.

j udgm en t a l ive again st h is prin c ipal or to treat it as e xtin ,

g u is h e d a n d s ue h i s p ri n c i p a l fo r re i m bu r s e m e nt 5
If h e .

ta k es a n as s ignm ent to a th ird pers on h e m us t, b efo re s uto r


c in g e xe c uti on a ga ins t a cc d efen d an t p rocure an d file a n -

as s ign m en t to h i m se lf
5
.

In M asouri a s urety wh o p ays th e d ebt of hi s pri n c i pa l i s


,

en tit led to an ass ignm en t of th e ins trum en t pa id Th ough .

1 Jh o nson v . Am ano Lodge, 9 2 5


Harris 0 Frank 29 ane 20 .0 , K . .

Ind 1 5 0
. .
5
Alle n 0 Powell 108 1113 5 8 4
.
. . .

5
Germ an Am crican Savings Bank 7
Rice 0 Rice, 108 Ills 1 9 9
. . .

0 Fritz, 6 8 Wise 3 90 Kat: v Moes s inger, 110 1113


5 .
. . . .

5
Mas on 0 Pierron, 69 Wise 5 8 5
. . . 3 72 ; Chandler v H iggins, 1 09 Ills . .

Wise R ev Stats 5 3 021 .

K
. . .
,

5
im m el v Lowe, 28 Minn 265
. . .
5
Farwell 0. Becker, 1 29 Ills 261 . .
ou m
sus aoc u r CAS ES or sunm rss r
r . 21 7

h is p ay m ent extinguish es th e obl igation s o far as th e cred ‘

itor is c on c ern e d th is w i ll n ot affe ct th e righ ts wh ich th e


,

s urety h a s a cquire d by h is pay m en t It s ti ll sub s ists for h is .

ben efit as a gain s t h is p rin ci p a l 1


B ut th e fac t of s urety shi p .

m us t be j ud ic ia lly s ta bl is h e d h is rem edy is n ot a m atte r of


c ours e
5
S o th e l ien of a j ud gm ent th ough s a tisfied by one
.
,

s urety w i ll in equity be k e pt a l i ve as be tween cc s ureties


5 -
.
,

In A rka n s a s wh en a s urety p ay s a j ud gm ent ren d ere d


,

join tly aga in st h is prin c ipa l and h im self it is e x tinguish ed ,

a t law ; an d th e surety c an a v a i l h i m self of it a gai nst h is

p rin c ipa l on ly in equity Nor can it be kept a l i ve agains t


5
.

a c o s urety
-
5
.

In Texa s th e s urety upon h is paym ent of th e d ebt of th e


, ,

pri ncip al is en titled n ot on ly to th e benefit of all th e s ecu


, ,

ritie s b oth l ega l an d equitabl e wh ich th e cred itor h olds in


, ,

ple dge for th e d eb t but to be substitute d for th e cred itor as,

to th e ve ry d eb t its e lf a n d to h a v e th is as s ign ed to h i m ; ,

a n d eq uity w i ll rega rd th a t wh ic h ough t to be don e as don e

a l ready wh e re th is is n ec e ss a ry to sus ta in an ac tion If


5
, .

th e c red ito r h a d a fi rs t a tt ac h m en t on th e p rin c ip a l s p rop


’

a rty th e s urety a fter pay m en t i s e ntitl ed to th is


,
7 But th e .

is s ue of s urety sh i p m ust be m ade an d sett l ed i n th e origin a l


s uit
8
.

In L ouisi a na , th ough it is o d d th at at th e com m on c n s i ere

la w a surety w ould n ot be sub ro gate d to th e righ ts of th e


c red ito r upon h is p ay i n g a jo in t j udgm en t a ga i ns t h im s e lf

a n d h i s p rin ci p a l but th at th e j udgm en t would be extin


,

g u i s h ed by s uc h p a y m ent 5
yet un d e r th e i r c od e a s ure ty wh o ,

1
Bonus 0 Schnecko 100Mo 25 0; . Sublett v McKinney, 19 Tex
,
5 . .

J
.

Cam pbell 0 Pope, 96 Mo 468 Ber 43 8 ; ordan v Hudson, 1 1 Tex 8 2


. . .

K
. .

tbold v Berthold, 46 Mo 5 5 7
.
7
rall 0 Ca m pbell Printing Press
. . .

5
H ull v Sherwood , 5 9 Mo 1 72 ;
. 79 Tex 5 5 6 . . .

Mc Daniels v Lee, 3 7 Mo 204 .


5
Fort Worth Bank 0 Daugherty, . . .

5
Fum old v Missouri Bank, 44 81 Tex 301 . . .

Mo 3 3 6
. .
5
McKee v Am c nett, 6 La Ann . . .

5
Newton 0 Field, 1 6 Ark 21 6 207 . . . .

5 Chollar a Tem le 39 Ark 238


p , . . .
218 m s LAW or sus aoe u r
os .

pa y
s a j udgm ent rec overed against the prin c ipa l debtor is
th e reby s ub roga ted to th e righ ts of th e c re d itor a n d m ay ,

is s ue an exec ut ion on th e j udgm ent in th e n am e of th e cred


i tor for th e rec ove ry of th e am o unt wh ic h as surety h e h as
pa id ; a n d s in ce th e surety h as an equi table inte res t in th e
1

paym ent of th e d em an d by th e p rin ci pa l th e c re ditor m ay ,

perm it an execution to issue at th e i ns tan ce of the s urety 5


.

In Ca liforn ia on e of tw o co d efen d an ts pay in g th e w h ol e


,
-

of a j ud gm en t aga in s t th em is e ntitl ed to be s ub roga te d to

th e righ ts of th e pl a in tiff in th e j udgm ent to th e e x te n t to


wh i ch h is pay m en t ac crue s to th e ben efit of his co d efen da n t ;5 -

but th i s righ t does n ot a rise un ti l h e h as fully s a tis fied th e


j udgm ent A h as sign m ent h owever th ough m ade be fore
5
.
, ,

m aturity of a jo in t an d s e vera l prom is s o ry n ote to on e of its


,

m ak e rs from the payee th ereof c ons titutes a p aym en t a n d ,

d isch arge of th e obl igation 5


.

138 . R i gh t of th e S ure t y t o b e s ub ro g a t e d t o th e B e n efi t of

th e Origin al O b lig a t io n c om a — O u th e oth er h a n d it h as been .


,

m ain ta ine d in s om e j uris dic tion s th at al th ough th e s urety is ,

en titl ed upon h is pay m en t of th e d eb t to ta k e by s ub ro gation


, ,

a ll th e s ec uritie s wh ic h th e c redito r h eld for th e d ebt th is ,

does n ot m ean th at th e origina l obl igatio n which is dis ,

c h arged by the pa ym ent s h a ll be as s ign ed to o r ve s t ed in ,

th e s urety but refe rs on ly to s uch s ecurities as are co ll a te ra l


,

to th e p rin cipal obl igation 5


A j udgm ent again st prin c ipa l .

a n d surety is ta k en to m erge th a t rel atio n betw ee n th e de b t

ors 7 an d c an n ot afte r a pay m ent by the s ure ty be k e pt a l ive


, , ,

a gain s t th e princ ipa l for th e ben efit of th e s ure ty


5
Th is rule
,
.

is followed in
1
C n ely v Bourg 16 La A n
o n 5
Dennis v Rider 2 11c
.
, C C . n . .
,
. .

1 08 ; Ta rdy 0 Allen, 3 La Ann 66 . . . . 45 1 ; U nited States 0 Preston, 4 .

5
Fluker v Bobo, 1 1 La Ann . . . Wash C C 446 . . . .

609 .
7
Findlay v U nited S ta te s Bank, 2
.

Co flee v Tevis , 1 7 Calif 23 9 McLea n, C C 44


'
5 .
. . . . .

5
Mc Derm ott 0 Mi tchell, 5 3 Calif . .
5
McLea n v . Lafa yette Bank, 3
6 16 . McLean, C C . . 5 87 .

5
Gordan v . Wansey , 21 Calif 77 . .
sus aos arx
os m ca ses or sum m m r . 219

Verm on t, where it is h eld th at when a deb t is pai d though ‘

by a s urety a ll liens and sec urities tak en or obtain ed in l egal


,

p roceed ings to enforce its c ollection are als o extinguished 1


.

The origin a l obligation is ex tinguished as to all th e de btors


by one debtor s paym ent thereof 5 ’
.

In M a as a clm s ette a d ebto r whether prin cipal or surety , , ,

w h o p ay s a de bt for wh ic h oth e rs are boun d with h im th e re ,

by e xtinguish es its obl igation and can obtain in dem nity or ,

con trib ution from the oth er debto rs only by an in d epen de nt

ac tion a gain s t th e m Th e original debt is exting uished an d


5
.
,

n o furth er ac tion c a n be m ainta ine d upon it th ough th e ,

tran s a cti on be in form a purch ase and an ass ignm en t be m ade


of th e d ebt 5
.

In Ma ine the sam e rule prevails as th at adopted in


,

Ma ss ach usetts .
5

In N eva d a , a suret y wh o h as paid a n ote and h ad it ass igned


to h im lf th ough he m ay m ain tain an action agains t th e
se ,

princ ipal debtor for his paym ent h as n o rem edy upon the ,

n o te its elf
5
.

But the rule gen era lly a dop ted ex cep t in th ese States is , ,

th a t a pay m en t by a s urety doe s n ot necess arily in equity


e x tin guis h th e orig in al obl iga tion as between th e s urety and ,

h is princip al but on ly so far as th e righ ts of the c reditor are


,

c on ce rn ed 7 .

13 9 . I n d em ni t y h el d b y a S urety d i s c h a rged b y hi s R e l e as e

fro m w h at” A m o rtgage given


. to th e suret y for h is in
dem n ity by the principal debtor is e xting uished by the

1 Moore 0 Cam pbell, 36 V t 36 1


. . . Hathaway, 13 4 Mas s 69 ; Gardner .

Dana Conant, 30 V t 246 ; 0 Wa , 5 Allen, 45 2 ; Cha m an 0


5 11. . .
y p .

Allen v Ogden 12 V t 9 ; Porter 0


.
, . . C ollins , 1 2 Cash 16 3 ; Bryant 0 . .

Gile 44 V t 5 20
, . . S m ith, 10 Cash 169 ; Pray 0 Maine,
. .

5
Adam s v D rake 1 1 Cas h (Mesa )
.
,
.
7 Cash 25 3 . .

5 04 ; B rackett v Wins low, 1 7 Mas s . .


5
Whittier v Hem inway, 22 Me .
.

15 3 ; Ham m ett v Wym an, 9 Mass . . 23 8 ; Morse v William s, 22 Maine .

13 8 . 17 .

5 Slade v Ma tt ie 1 5 6 Mas s 19 5
, . . Frevert 0 Henry, 1 4 Nev . .

New Bedford Savings Ins titution 0 .


7
Az tecs, 95 13 5 , 13 6, 13 7 .
220 rm : LAW or sm oou r
on .

s ure ty s disch arge from l iability If th e original debt is


’
.
1

paid an d the s urety accordin g]y disch a rged by the ex ecution


, ,

of a new note with a n e w s urety s uch a m ortgage is e xtin ,

u ish ed 5
a n d it c an n ot be k ep t al ive by an as s i n m e nt
g g
th ereof to th e new s urety ; th ough a c o ntem po ran eo us ve rb al
5

a greem en t be tw een th e m o rtga go r th e m ortgagee a n d th e , ,

n e w s ure ty th a t a m o rtga ge of p e rs on al p rope rty s h oul d

s ta n d a s sec urity to th e n e w s urety m igh t of itself a s be twee n , ,

th e p arties c on s titute a v al id m ortgage of th e prope rty


,
5
If .

a s urety wh o h old s s uch a se c urity b ec om es in d ebte d to h is

prin c ipal upon a d ifferent transac tion a nd in c on s ide ra tion ,

th ere of as s um es th e pay m en t of th e d ebt for wh ich h e was a


s urety this a rran ge m en t w ill rel eas e th e s e curity in h is h an d s
5
, .

B ut a m ortgage given to a s urety for h is in dem n ity w as


all owed to p as s to a th ird pe rs o n wh o paid th e m oney for th e

s u1 ety on th e fa ith of a n a gree m en t th at th e m o rtga ge sh o uld

be as s ign ed to h im 5
A n d if th e n ote wh ich c on stitute d th e
.

o rigin al in d ebted ness is after p rotest for n on paym ent paid ,


-

out of th e p ro ceed s of a ne w n ote m a de by th e m o rtg a gor

a n d in do rs ed by th e m o rtga ge e for th a t eX press purpos e th e ,

m o rtgage w ill n ot th e reby be d isch a rge d but will c on tin ue ,

in fo rc e a s a p rote c tion to th e m o rtga gee aga ins t hi s lia bil ity

up on th e sec ond n ote The m ere c h an ge in th e fo rm of the


7 .

d ebt does n ot d isch arge th e s ecurity 5 .

140 . R i gh t of S ub ro ga ti o n am o n g Cc -
e n re fl e a . On e Of two
or m ore co s uretie s -
wh o h as p a id th e d ebt o m m on
to th eir c

c re d itor m ay be su r b ogated to th e righ ts of th at c red itor

a ga in s t h is c o eu reties ,
-
to en a ble him to rec over c on trib utio n

1
New sam Finch, 25 Barb ( N v . . . U nited States Bank 0 Stewart, 4
5 .

Y ) 1 75
. Yelverton 11 Sheldon, 2 . Dana 27
S a n di O h ( N Y ) . 48 1 H un te r 0 . .
.
5
Brien v S m ith, 9 Watts. Serg .

7 H 11 Foley, 1 8 Mo
R ichardson 1 Duv ( X y ) 247
,
. .
( Pe nn ) 8 ; . aven . .

5 Albert v U ton 19 Pick Mass


p ( ) 13 6
J
. .
, .

43 4
7
Chapm an 0 enkins, 3 1 Bat h . .

Bonham v Galloway, 1 3 Ills 68


5 . .
( N Y
.
) 1 6 4. .

Bobbitt 0 Flowers , 1 S wan


“ 5
Brooks 0 B ull 1 Ala Sel Gas 409
.
,
. . . . .

4
( Te nn 5 1 1 .
S UBBOGATION 111 ca s es or sua m rsm p . 21

from th e m .
1
He will be su r b oga ted as a ga in s t h is c o s ureties
-

in ost of th e States as
m un d e r th e Merca ntil e ‘
, in En gl an d
Law A m en d m en t A c t to all th e righ ts of th e c red ito r a n d
5
, ,

en titl e d to enforc e a ll th e c red ito r s l ien s p rio rities a nd ’


, ,

re m edies as w ell aga inst h is c c s ureties as a ga inst th e prin


,
-

cipal d ebtor
5
This righ t will pas s to th e c reditors of a
.

c o s urety wh os e m ea ns of ob ta in in g th eir d e m a n d h a ve been


-

lost by th eir debtor s prope rty up on which th ey h ad a subo r ’


,

din ate l ien h a v in g been tak en to pay th e wh ol e obl iga tio n of


,

wh ich h is cc sureties sh ould h a ve paid a pa rt a nd to a -


5

g ra n tee of o n e of th e c o s uretie s wh o to s a ve th e p rope rty -

, ,

which h e h a s purch ased h as been obl iged to pay a j udg m en t ,

wh ich wa s a l ien upon th e prope rty of all th e s ureties aga in st ,

both th e cc sureties th em sel ves a n d th eir grantees of th e


-

oth er p roperty upon wh ich th e j udgm en t was als o a lien 5 .

One s urety in a join t an d severa l obl igation in which th e re


was a wa rrant to confes s j ud gm en t h avin g p aid th e wh ole ,

in debte dn ess m ay en te r j ud gm ent upon th e obligation to h is


,

own use a n d h ave e x ec utio n a ga in s t h is c o s urety for th e


,
-

latte r s propo rtion On e of t wo c o sureties wh o h as pa id th e


’ 5 -
.

full am oun t of a civil recogn iz ance w ill be allowe d to use


th e rec o gniz an ce for th e purpo se of rec overing out of th e es tate '

of s c s e y one h alf of th e sum so paid by h im


hi c u r t - 7 If on e .

s urety h as re ceive d p roperty or sec urity for or to be appl ied

upon th e d eb t an d an oth er surety is t hen com pell ed to a th e


, p y
wh ol e d ebt th e l atte r can foll ow th is p roperty in eq uity and
,

Hess
’
1 Estate, 69 Penn St 272 ;
s . . 2 Rawle 1 28 ; H owell v .

Croft 0 Moore, 9 Watts


. 45 1 B eam s, 73 Nor Car 3 9 1 . . .

C ris field v Murdoc k, 1 27 N Y 3 1 5


. . .
5
Moore v B ray, 10 Penn S t 5 19 . . . .

Cuyler v Ensworth, 6 Paige ( N


. .
5
Furnold 0 Missouri Bank, 44 .

3 2 ; Felton v Biss el, 25 Minn 15 . . . Mo 3 36 . .

5
St 19 85 20 Vic , c 9 7, 5 5
. . . .
5
Wright 11 Grover Baker 8 M . . .

5
Stokes , Ea pa rte, De G ( Bnkcy ) . . . Cc 8 2 Penn St 80 . . .

6 8 ; Burrows v McWhann, 1 Dess us . .


7
Swan s Estate, Irish 11 4 Eq
’
. .

Eq ( 80 Car ) 409 ; Sm ith 0 Ram sey,


. . . . 209, overruling Salkeld v Abbott, .

3 3 Mich 183 ; Hess s Estate, 69


.
’
H ayes ones Ir J
i sh Eq 110, and .

Penn St 272 ; Flem ing 11 Beaver,


. . . Onge v Trnelock, 2 Molloy, 42
. .
222 m s LA W or s us aoc a u ox.

h ave th e benefit of 1
it, or h e m ay at law o
re c ve r its value from
th e suret y wh o h as rece i e vd it
.
5 In Mas sach usetts th e en

forcem ent of th is rule has bee n refused at law , but it is 5 fully


rec o gn ized as a doc trine of equity
'

5 .

by A fun d deposited by th e prin cipal deb to r with


e a c h o th er .

one of his s ureties as a sec urity agains t th e l atter s lia b il ity


’

will in ure proportion ally to th e benefit of all th e cc s ure ties 5 -


.

In th e absence of s pe c ia l c irc um s ta nces a ll th e sureties are


en titl ed to s h are in th e b en efit of any in de m nity wh ic h th eir

co s urety m ay h a ve ta k en f ro m
-
th e prin c ip al debto r even
5
,

th ough such in d em nity m ay h ave been in ten de d by th e p rin


c ipa l for th e be nefit of th e l a tter s urety alo n e 7 A ny s ec urity .

iven to one s ure ty a n d c o n d itione d for th e y t of th


g pa m e n e

c om m o n in d ebted ness will in ure to th e be ne fit of all th e co

s ureties
5
Pers on s wh o are subj ect to a c om m on b urden
.

sta n d to eac h other upon a c o m m on g ro un d o f in tere st a n d


.

of right ; and wh atever ind em nity is furn is hed to one of th em


by him for wh om th e burden is ass um ed m ust be a ppl ied
equally for th e relief of all th e as soc ia tes If one s urety
5
.

1 Hinsdill 0 Murray, 6 V t 1 36 S tate Bank, 6 Ind 3 5 7 ; . Com egys v

J
. . . .

5
Parham v Green, 64 N or Car
. acoc ks, 4 De v Law ( N or . . Pagan v . . .

436 . 26 3 ; Gre go ry 0 Murrell 2 .


,

5
Bowditch 0 Green, 3 Met (Mass ) Ired Eq ( Nor Car ) 233 Bobbitt
. . . . . . .

360 . Flowers, 1 Swan 5 11 ; Mo


5
New Bedford Savings I nstitution Mahon v Fawcett, 2 Ran d ( V a ) . . .

0 H athaway, 13 4 Mas s 69, 72, per 5 14 ; Elwood v Deifendorfl, 5 Barb


'

J
. . . .

Devens, ( N Y ) 3 9 8 . . .

5 Berrid e v Be rrid e 44 Oh D 7 Steel 0 Dixon 1 Oh Div 825


g g . .
, 7 . . . . .

16 8 ; Scribne r v Adam s, 73 Maine, Cannon v Connaway 5 Del Ch 5 5 9


. .
,
. .

5 41 ; S hae fler v Clendenin , 100 Penn Hartwell v Whitm an, 3 6 Ala 71 2


'

. . . . .

St 5 65 ; Sm ith v Conrad, 15 La
.
5
Logan 0 lh lbot, 5 9 Calif 6 5 2 ;
. . .
.

Ann 5 79 ; H all v Robinson, 8 Ired


. Paul 0 Berry 78 Ills 1 5 8 ; S ta te v
. . .
, . .

Law ( Nor 5 6 ; Hayden v


. Be rning, 74 Mo 8 7 9 8 ; Dye v Mann, . .
,
.

Cornelius , 1 2 Mo 3 21 ; Aldrich v 10Mich 29 1 ; Bell 0 Lam kin , 1 Ste w


. . . . .

H apgood , 3 9 V t 6 1 7 ; Fis hback v P ( Ala ) 46 0; Low 0 S m art, 5 N


. . . . .

Weaver, 34 Ark 5 69 H 3 5 3 ; Lane 0 Stacey, 8 Allen


. . . .

5
Brown 0 Ray, 1 8 N H 102 ; ( Mass ) 41
. . .
,
.

Whitem an v Harrim an, 8 5 Ind 49.


5
Nally 0 Long, 5 6 Md 5 67 ; . . .
susaos u m n i n c a s es or sm rrs m r
'
. 223

ge ts possession of a fun d belonging to the prin cipal h e m ay ,

n ot ta k e th e en tire ben e fit of it but m ust sh are it with ,

hi s cc sureties-
1 If on e who is a surety for th e sam e prin c i
.

l o n various liab il ities on s o m e of wh ich h e h as c c sureties


p a
-

, ,

ta k es from his prin cip al sec urity gen erally for h is prote ctio n ,

this is for th e ben efit of h is c c suretie s to be a ppo rtion ed


,
-

am o n g all th e dem an ds pro ra ta B ut if on e s urety takes


5
.

from his prin cipa l a m ortgage for h is protection again st a


p a r t ic ul a r d e b t thi s w ill in ure to th e ben e fit of h is cc s ureties
,
-

on th at d ebt an d th e m o rtgagee w ill h a ve n o righ t to apply


,

th e pro c eed s of th e s ecurity to th e pay m en t of any oth er


debt to th e prej udice of h is co s urety
,
5
T o prevent circuity -
.

of ac tion an d attain th e en d s of n atural j ustice a court of ,

eq uity wi ll c om pletely in d em n ify on e of th e s ureties upo n a


'

bon d by m ean s of a lien upon th e property of th e p rin cipal


ex is tin g in fa v or of an oth er surety n otw iths ta n d in g the ,

form er surety h as him self relin quish ed an oth er l ien upon


th e s a m e property o rigin ally c rea te d for h is indem nific ation
,
5
.

A m ortgage ex ecuted to one or m o re of th e sureties upon th e


offic ial bo nd of an ofiicer will in ure to th e ben e fit of all th e

s ureties as well th o se wh o subs eque ntly bec om e s uch un der


,

a prope r a nd l awful ord er of c ourt requirin g a dd ition al s ure

ties upon the bon d as th os e wh o were s ureties at th e d ate ,

of th e m o rtgage Th e s am e rul e will be a ppl ied to p roperty


5
.

or securities de po sited by one c o surety with an o th er for -

th eir join t ben efit as to sec urities furn ish ed by th e prin cipa l ;
,

Neely 0 Bee , 3 2 W V a 5 19 ; Mc
. . . 222 ; Pinkston v Taliaferro, 9 Ala .
.

Lewis 0 Fnrgerson, 5 9 Ga 644 ;


. . 5 47 .

Reinhart 11 ohnson, 62 Iowa, 15 5 ;


. J 5
Brown 0 Ra y, 1 8 N H 102 .
. .

Miller v Sawyer 30 V erm ont 41 2 ;


.
, Goodloe v Clay, 6 B Mon ( Ky )
. . .

Agnew 0 Bell, 4 Watts ( Pennsylva


. 236 .

nia), Steele 11 H ealing, 24 A111 28 5


.

J
. .

5 W t
es 0 Belches, 5 Mnnf ( V a )
1 Lear v Cheshire 3
y , o nes , .Eq . . . .

( N or Ca
.r ) 1 70; Whipp le o Br igg ,
s . 1 87 .

28 Vt 65 ; Boughner 0 Hall, 24 W
. . . Farm ers
5 ’
Bank 0 . Testers, 31
V a 249 ; Robinson 0 Brooks 32 Ala
. . . Ohio St 36 . .
224 m s LAW or susa oou x
on .

e ach is en tit e l d to h is p roportion ,


and onl y to h is proportion
th ereo f .
1

142 . A S ure ty c an n o t h a v e C o n t ri b uti on from his C c -


s nre fi ee

w i t h o ut a c c o un t i n g A surety Wh o be in g in
fo r s uc h S e c uri ty .
,

deb ted to h is p rinc ipal or h aving received property o r se c uri ty


from th e p rin cipal h as paid th e w hole debt c an n ot re q uire
, ,

c ont rib ution f ro m h is c c s ureties w ith out sh owin g th at th is -

ind eb ted n ess o r sec urity h a s been prop erly d is p os e d of an d ,

is in s uflic ien t to s atisfy th e d ebt for wh ich c ontributio n is


de m an ded If h e h as approp riated th e security to h im se lf
5
.

by m ean s of a coll usive s ale h e m us t accoun t for it at a fair ,

val ue 5
. If th e s ec urity h as n ot yet bee n d is pos ed of h is ,

rem edy is in eq uity 5


B ut if th e s urety wh o h as pa id th e
.

debt h as received on ly a partial indem nity from his p rin c ipal ,

h e m ay rec over f ro m h is c c s urety th e latter s proportion ate


’
-

sh are of th e ba l an c e A n d if in dem n ity oth er th an m on ey


5 .

h as been p rovided by th e p rin c ipal for h is s ureties but n o ,

s a tis fac tion h as been real iz ed th e re f ro m th is w ill n ot p re vent ,

th e surety wh o h as p aid th e d ebt f rom re c ove rin g c ontribution


fro m h is cc sureties Th e prin cipal debto r h avin g m o rtga ged
5 -
.

to one of h is sureties a s security a gain s t h is s urety sh ip l an d


worth les s th an h a lf of th e debt and th en b ec om e in s olve nt , ,

th e uns ec ured s urety ga ve to th e m o rtgagee h alf th e am oun t


of th e d ebt a nd th e m o rtga , ge e a g re ed t o py
a t h e d eb t a n d to ,

i ve to th e oth e r s urety h alf of a ll th at h e m i h t rec eive f rom


g g
th e prin cip a l d eb to r ; a nd it w a s h eld th at th is p rom ise ih
c l ud e d wh ate ver h e m igh t rea l iz e upo n th e m ortgage p rev

iously given to h im by th e p rin c ipal 7 B ut a m ere in debte dn es s .

1
Mitchell 0 Bass 24 Tex 39 2 .
, . .
5
Morrison v . Poyn tz, 7 Dan
5
Davis 0 . Toulm in, 77 N Y 28 0; . . 8 07 .

Neely 0 Bee, 32 W V a 5 19 ; Mor


. . .
5 Bachelder v . Fiske , 1 7 Mass .

risou v Poyntz, 7 Dana


. 3 07 46 4 .

Chilton v Chapm an 1 3 Mo 470 Anthony 11 Perc ifull, 8 Ark ( 3


.

J
. . . .
,

5
Sanders v Weelburg, 1 07 Ind . English) 49 4 ; ohnson v V aughn,
v
. .
,

26 6 Owen Mc Gehee 61 Ala 440 ,


. 65
H all 0 Ro binson, 8 Ired Law ( N or
. . .
7
S heldon v Welles, 4 Pick . .

56 .
( Mass ) 60 . .
sus aoou xos In c a ses or suam rs m r . 225

of th e suret y
k s contrib ution to th e p rinc ipal is not
wh o s ee

a v ailable to th e cc s ureties
1 an d wh ere l a n d s of th e p rin c i
-

p a l d eb to r are s old un d e r an e x ec ut ion agains t h im a n d a re ,

purch ased by one surety with m on ey belonging to h im self


an d a sec on d cc surety as th is is n ot a f un d c om in g f rom
-
th e
,

principal a third cc s urety cann ot m aintain a claim to parti


,
-

c ipa te in th e be ne fit of th e purch as e as in d em nity aga in s t his

liability with the oth er s ureties 5


.

1 43 . A S ure ty h ol d in g S e c uri ty re g ard e d as a h '


ns tee t h e re o f

fo r h is C o—A
s nre ti es . s ec urit y obtained by on e c c s uret -
y for
th e pay m ent of th e d ebt is h eld by h im for th e ben efit of all

th e s uretie s ; h e is a trus tee for h is c o s ureties -


as to s uch

s ec urit y ,bj ect to th e d uties wh ich arise from th at


5 an
d is su

rel a tion 5
a n d m us t refrain f ro m
, any ac t or volunta ry o m is

s io n by wh ic h such s ec urity w ill be d eprecia te d or lo s t but


, ,

m us t faith fully a pply it to th e p ay m en t of th e debt or h e

will be ch argeabl e to his cc sureties with the am ount of th e -

s ec urity i n th e adj us tm ent of th eir pro o rtions of th e d ebt 5


, p .

H e m ust us e rea s on abl e diligence to secure th e a pplic ation of


th e p ro perty to th e p aym ent of th e d ebt 5 All th e cc sureties . -

a re l iabl e a m on th lv f r t ib t io t th x t of
g e m s e es o c on r u n o e e e n t
a ny bal an c e th at m a r i d u ft ch a ppl o
ic ati n 7 If
y em a n e a e r s u .

one surety ta k es fro m th e p rin c ipal a m o rt a e or oth er se


g g
c a rity to ind em nify h im for bec om in u h u ty d fte r
g s c s re a n a ,

wards disch arges the s am e it b eing of sufiicient v alue to h ave ,

paid th e debt h e will by th at act be prevented from call ing


,

1
D avis 11
Toulm in, 77 N Y 280
.
Sim m ons 0 Cam p, 71 Ga 5 4
. . .
5
. .

5
Crom pton v V assar, 1 9 A111 25 9 Mandi o v Mandi o 26 Mich 3 49
g g
.
. . .
.
,
5
Hall 0 Robinson, 8 Ired Law Schm idt 0 Co ulter 6 Min
.
492 ;
.
, . .

( N o r 5 6 ; Sayles v Sim s 73 Roberts 17 Sa er 6 T B Mon K


.

y
.
( y)
J
, .
, . . .

N Y 5 5 1 ; Hilton 11 Grist, 5 Dana 1 88 ; Fieldin 0 Waterhouse 8 ones


g
. . .

, .

3 84 ; Leggett v McClelland, Spencer ( N 424


K
.
.

39 Ohio St 624 Carpenter 9


.
elly, 5
Goodloe 0 Clay, 6 B Mon (Ky )
. . .

K
.

9 Ohio, 1 06 .
23 6 ; erns 0 Cham bers, 3 Ired Eq . . .

5
Taylor v Morrison , 26 Ala 728 ; ( Nor Car 5 76
.
) . . .

J J
.

f
v Lewis, 30 Barb N
am e
y .
( Y ) 7
ohn v ones , 1 6 A111 45 4
. . . . . .

oS
6 m a LAW or sunaoos ro
'
.

on his c c s ure ties


-
b o But if th e sec urity d is
for con tri uti n .
1

ch arged is of una scerta ined val ue it h as been sa id th a t th e ,

only rem edy of th e co s ure ties is in equity ; th ey will still be -

lia ble for contribution at law Whe re one cc surety h aving


5
.
-

rec eived sec urity from th e p rin c ipa l debtor c ause d th e s a m e ,

to be s old for e n ough to pa y th e d ebt b ut n eve r c oll ec ted ,

th e m oney it was h eld th at h e c ould not upon afte rw a rds


, ,

payin g th e debt rec over any con tribution th e reto f rom h is


,

co s urety ; n or ii h a vin g c oll ec te d th e m on ey h e h a d th en


- 5
, ,

procured th e original d eb t to be as s ig ne d to a th ird pe rs on for


h is ben efit w ould s uch as signee b e a llowed in equity to c o ll e ct
,

any th in g f rom th e c c surety 5 -


.

1 44 .
m . m m : an d m em e . t o w ard s Cc -
s n re t is s .

Th e y wh o h old s securities from h is princ ipal w ill be


s uret

p rotec te d f ro m l oss if h e m a n a g e s th e m w it h p ru d e n c e g o od ,

faith and integ rity ; a m ere ch ange of th e security m a de in


, ,

g o od f a ith a n d n o t r e
, s ul tin g in l os s w i ll n o t d is c h a r g e hi s ,

c o s ure ties f ro m l ia bility fo r con trib ution


- 5
If h is s e c urity is .

a ch atte l m ortg age h e is n ot b ound to ta k e po s s es s io n of t he


,

p rope rty until he h as pa id th e debt or h a s reas on to a ppre ,

h end th at h e w ill be c alled upon to pay it a nd th a t th e p ro p ,

e rty will be s q ua n dered ; th en if h e fa il s to tak e th e p ro er


p ,

s teps to p res e rve th e s e curity h e m a b c h r d by h i cc


y e a g e s ,

sure ties with th e val ue of th e prope rty w h ich by th e e x e rc ise

of d ue d il ige n c e h e m i h t h a ve sec ure d 5


I f h h t k
g e as a e n a .

m ortga ge as sec urity w ith an a ree m e nt th a t it sh a ll n ot be


g ,

rec orde d h e can n ot be ch a r ed by h is c o s ureties fo r fa i l in


, g g
-

to ave it re c ord ed
h 7 H e m ay as again st his c o s ure tie s be
.
,
-

all ow ed for h is nec essa ry a nd reas on abl e e x e n ses in c urre d


p

1
Taylor v Morri son, 26 A111 728 ;
.
5
Chilton e Chapm an , 1 3 Mo . .
.

R am sey v Lav is 30 Barb ( N Y ) 470


.
, . . . .

403 . 5 Sil
vey e Do wel], 5 3 Ills 26 0
K
. .

K
.

5
Panlin a aighn, 27 N J Law, 5 Ca r n
t r elly, 9 Ohio , 1 06
pe e 0 .

J
.
. .

5 03 ; ohnson v V aughn, 65 Ills 5


Teeter 0 Pie rc e, 11 B M on
. . . . .

425 An thony 0 Percifnll, 8 Ark ( 3 ( K


y) 39 9
. .
.

Kagheh) 494 . 7
White 0 Carlton, 5 2 Ind 3 71 . .
sm os u x
ou m cs s m or em . 27

in protecting the seeurity but not for any ex penses unnec es ,


1

sa rily in curred with out th e con sent of th e c c s ureti es


5
Wh ere -
.

on e of tw o sureties recei v e d f rom th e p rin cipa l d eb tor th e

latter s note for one h alf of th e deb t p ay a bl e on d em a n d by


’
-

, ,

wh ich h e m igh t sec ure h im self wh eneve r b e pl eased an d ,

a fterward s took a n oth er n o te f ro m th e p rin c ipa l for goods


s old to h im a nd t hen rec ove re d j udg m e n t upo n b oth n ote s
, ,

an d c oll ec te d on th e e x e c ution en ough to pay th e w h ol e of

th e firs t n ote a nd p art of th e s ec on d a nd th en th e prin c ipal , ,

h a ving bec om e in sol ven t th e s ure tie s pa id eac h on e h alf of ,


-

th e d e b t for w h ich th ey w e re b oun d th e se c on d s urety be in g ,

ign ora n t th at th e firs t h a d receive d a ny ind em n ity f rom th e

p rin c ip al it w a,s h e ld on a b ill in e q uit y b rough t by th e


,

se c on d s urety a gain s t th e firs t th a t th e fi rs t s urety m us t ,

ac c o un t to th e s e c on d for o n e h a lf of th e a m oun t of th e in -

d em n ifyin g n ote th a t h e h ad th us rec e ive d from th e prin c i

p al
5
. W h e re on e surety p rom is e d th e p rin c ipa l de bto r if th e ,

la tter would c ons en t to th e s a l e of c erta in p rope rty m ort


a ge d by h im to th e c re d itor for th e pay m e n t of th e d ebt
g ,

th e c red ito r b ein g un w ill in g to s ell it with out s uch c on sent ,

to b uy it if it s ho uld be s old for l es s th a n its val ue a n d h ol d ,

it for th e c o m m on ind e m n ity of h im s e lf a nd h is co s ureties -

it was dec ided on th e purch as e be in g m a de in a c c ord an ce


,

w ith th e a greem en t th at a trus t im m ediately arose in favor


,

of t h e c c sure ties w h ic h c ould be en forc e d a t th e ir in s tan ce ;


-

th a t th e s ure ty s o purch as in g w ould be res pon s ibl e fo r th e


p roperty with its p roceeds an d profits an d for all l os s es th a t ,

c ould be pre ven ted by th e c a re a n d d il igen c e w h ic h t rus te es

a re b ou n d to e xe rc is e a n d sh ould b e a ll owed th e p ric e wh ic h


,

h e pa id for th e p rope rty 5


.

1 45 . S ure t y m ay in E q ui t y pre v e n t D is c h a rg e of S ec uri ty

h e ld b y h i s C c -
s n re t y . — On e s uret y h as n o righ t to d isch arge
1
Livings ton 11 V an R ens selaer 6 .
,
5 Jh
o n 0. J
1 6 Ala 45 7
ones , .

Wend ( N Y ) 63 ; Com egys v State


. . . . Com egys v State Ba nk 6 Ind 3 5 7
.
, . .

Ba nk, 6 Ind 3 5 7 . .
5
Miller v Sa wyer, 30 V t 412
. . .

5 Steele 11 Brown, 18 Ala 700


. . .
228 m s LAW or sus a oos rxon .

to th e prej ud ice of h is cc surety a s ecurity taken for th e in -

de m nity of both 1 In a c as e in Mas sa ch us etts it appeared


.
,

th a t A s old g ood s to B wh o m o rtgage d th em to G to s ec ure


. .
, .
,

th e l atter a ga in st liabil ity upon a prom iss ory n ote s ign ed by


B a s p rin c ip a l an d by C and D as s ure ties
. Th e m ortg aged
. . .

g oo d s w e re l e vie d u po n in a s uit a ga in s t A as h a v in g b e e n .
,

s old by h im in f raud of h is c red ito rs C th en b rough t a s uit . .

a ga in st th e a tta c hin g ofiice r for a con vers ion of th e oo d


g s ,

but afterw a rds a gre ed w ith th e office r to d isc o n tinue th e suit


a nd d is c h a rge h is m ortga ge upon th e o flic er s ag ree ing to
’

p y
a p a rt of t h e n o te an d to c oll ec t th e b al an ce th ere of fro m

D ; and it was h eld th at D c ould m a intain a b ill in e q uity


. .

agains t th e offic e r and G to restrain th e d isc on tin uan ce of


.
,

th e suit an d th e d is c h arge of th e m ortga ge an d for l ea ve to ,

h ac tion in h is own b eh a lf
5
p r os ec u te t e .

§ 1 46 . S e c uri ty h e ld b y one w h o is b o th a C re di t o r and a

S ure ty . If on e wh o is both
d itor an d a s urety ta kes a c re

s ec urity for th e d ebt d ue to h im self a s well as to in d em n ify ,

h im s elf from h is liabil ity upon h is s urety sh ip h e is en titled ,

to a pp rop riate s o m uch of it as is neces s a ry for th e p aym en t


of h is own c l aim in full B ut h e c annot h old it aga in st h is
5
.

c o s ureties on a cc o unt of d em a nd s a ga in s t th e d e bto r w h ic h


-

h e h as obtain e d after ta k in g th e se curity un les s it was agree d ,

wh en h e took th e sec urity th at h e s h ould obta in the oth e r de


m an d s a n d h old th e security for th em a ls o
5
Th ough it is .

s ettl ed in equity th at if on e s urety ta k e s a s e c urity from th e

c om m on p rin c ipal for h is o w n in d em nity th is w ill inure to th e ,

be nefit of a ll h is c c sure ties yet if h e h as a security fo r in


-
, ,

divid ual cla im s of h is own again st th e sam e principal he m ay ,

h old th is for h is own b enefit 5 .

1
H ayes 0 Davis, 1 8 N H 600
. . . . In Miller v S awyer 30 V t 412,.
, .

5
Sheehan v Taft, 1 10 Mass 3 31
.
. . the second note was for an indebted
5 Wallace 11 Greenlaw, 9 Lea . ed aft er the taking of th e
ness incurr

11 5 . security .

5
B rown 0 R ay, 18 N H 1 02
. . . .
5 Mc e a Belt, 45 Mo 1 74 . . .
sus a oc u rox 111 01 8 13 or suas rrsn r
p '
. 229

147 . S ure ty m us t c o n t ri b u t e t o C os t of S e c uri t y o f w hi c h h e

s ee k s th e B e n e fi t . W a iv e r . y c an not cl aim th e bene


On e s uret

fi t of in dem nity ob ta in ed by h is c o s urety f rom th e prin c ip al-

with out payin g h is proportion of th e c ons ideration th e refor ;


an d if an o ffer of in d em n ity is m a d e to th e s ure ties by th e

p rinc ipal on th e con d ition th at th ey sh all give h im a rel eas e


, ,

which offer is accepted by th e one and refus ed by th e other ,

th ough th e l atter c ould ins ist th at t he proc ee d s of th e sec uri


ties th us obtain e d by th e fo rm er sh ould be a ppl ied in re d ue
tion of th e c o m m on d ebt yet th ese sec urities c ould in n o
,

oth er way in ure to h is benefit ; an d th is appl ication would dis


ch arge th e fo rm e r s urety fro m c o n trib utio n to th e l atte r if ,

it am oun ted to h is propo rtion of th e c om m on d eb t 1


Th e .

—
c o m pl ain an ts an d th e d efen d a n t b e in g c c sureties for a d eb tor

to wh om th e d efen d a n t wa s a l s o in d ebted th e p rin cipal pro ,

posed to rel ieve th e defend ant from his l iabil ity as s urety by
g i v in g a n ew n o te w i th ot h e r s u re ti es if th e d e f,e nd a n t w o uld
g iv e hi m a s ig h t d ra ft fo r th e a m o u n t o f h is i n d e b te d n e ss o r , ,

if h e failed to proc ure th e defen d a nt s rel ea se from h is s urety ’

sh ip th at h e would th en pl a c e th e d efe nd an t s n o te s in th e
’
,

h a n d s of a th ird pe rs on for th e in de m nity of th e d efen d an t


,

alo n e : th e c om pl a in a nts as s ent to th is a rran gem en t w a s h eld


’

to be a w aiver of the righ t wh ich th ey wo uld oth erwise h ave


e njoy e d to p artic ipate in th e in d e m n ity th us iv n t t h d
g e o e e

fen dant But th e facts that th e c om pla in ants obj ected to th e


.

p r i n c ip a l s
’
m a k in
g a n ass ig n m e n t f o r th e be n e fi t of h is s ure
ties b ec aus e th is w ould inj ure h is c re d it a n d a ree d th a t h e
, g ,

m igh t pro c ure th e rel ea s e of th e d efen d an t f ro m h is s urety sh ip


,

i f th e l atter would pay h im th e a m ount of h is in d eb ted ness ,

a n d th a t th e d e fen d a nt th en sa id in th eir h ea ri n t h t if t h
g a e

p r in c ip a l f a ile d to carry out th e arran gem ent for h is relief


h e s h ould ta k e m easures to protec t h im s elf are n ot s uffic ient ,

to establ ish a waiver on th e part of th e c o m pl ain an ts of th eir

1
White 0 . Banks , 21 Ala 705 . .
28 0 m x a m or sum oou r
os .

legal righ t to s h a re in any ind em nit y or se curit y w h ich th e


d efend ant m igh t a fterwa rd s obtain from th e prin cipa l .
1

1 48 . R i gh t o f on e S ure ty t o s t ipula t e, o n b e c om i ng s uc h , fo r

3 S e pa rat e I nd em nity t o h im s ei t B ut if one suret y on bs c om


in g p l fo r and receives from h is princ ipal a s epa
s uc h sti u a tes

ra te in dem n ity th is is h is e x c l usively ; a nd h is c a s ureties c an


.

c l aim fro m h im on ly th e surpl us of th e p rocee ds th e re of o ve r

what is ne ces sa ry for h is indem nification ; s o al s o if th e


5
,

co s urety ob ta in s in d em n ity fro m a thi rd p arty


5
-
H e h as th e .

righ t s o to s tip ul a te for a s ep a rate in dem nity to h im s elf and ,

to apply th at indem n ity upo n h is po rtion o f th e com m o n lia


bility to h is own rel ief ; a nd such an in dem n ity c an be
rea ch ed by h is co s ure ties only wh en it was taken in fra ud of
-

th eir righ ts or for th e ir c o m m on benefit 5


A nd one s urety is .

n ot en titl e d to th e ben efit of a m ortgage wh ich was give n a nd

is c o n d itione d m erely to indem n ify h is c c surety afte r th e cc -

sureties h ad a dj us ted the ir l os s by each of th em pay in g one

hal f of the sum for wh ich th ey we re bound 5


Th ough wh ate ver .

pay m en t one s urety m ay receive from th e principal m us t in


g e n era l in ur e to th e b en e fit of a ll ye t w h e re pa y m e n t o f th e , ,

debt for w hich all were liable h as been m ade by one an d the ,

cl aim aga in s t each for c ontribution h as becom e fixed each ,

m a y on h is se para te ac c o unt look to th e p rin cipal fo r th e

reim burse m ent of h is o wn s h are 5


A n d one of t wo s ureties .

wh o h a s ac tually pa id the wh ol e d eb t for w h ich bo th were


l iable m ay recover from th e oth er s urety half of th e am ount
th ereof a l th ough s in c e s uc h pay m en t h e m ay h ave re ce ived
, , ,

fro m th e princ ipal th e oth er h alf express ly for h is sepa rate


in d em n ity 7 .

1
Tyus a, De Jan ette , 26 A111 . Thom pson 0 Adam s , 1 h e m
5 . .

280 .
( Mi sa ) 29 5 .

Titcom b e McAllister 8 1 Maine,


5
.
,
5 H l v
al Cushm an, 16 N H 462
. . . .

39 9 ; Moore 0 Moore, 4 Hawks ( Nor . .


5
Gould 11 Fuller, 18 Maine, 36 4 ;
.

35 8 . Messer v Swan, 4 N H 48 1
. . . .

5
Leggett v Mc Clelland, 3 9 Ohio 7
Gould 11 Fuller, supra ; Panlin .

K J
.

St 624
. . v. eisha , 27 N Law, 5 03 . .
sns noos rr
os '
1s C AS ES or svas rrsm r '
. 231

149 . A Cc -
s ure ty c all e d up o n fo r C on t rib ut i o n b ec o m es

th ere b y en t it le d to S ub ro g e t i o n . If on e s ure t y ca lls upon h is


cc s uret
-
y for c o ntribution , he m ust a t th e sam e tim e perm it
th e latter to sh a re in all th e righ ts to wh ich h e h as h im
self been s ub rogated by his pay m e n t S o one s urety for
1
.

th e p aym ent of a j ud gm en t if h e is h e ld to c ontribute for ,

th e ben efit of a c o s urety wh o h a s p aid th e j ud gm en t will-

th ereupo n be s ub ro gated to th e l ien of th e j ud gm en t upo n


th e l an d of th e j udgm e nt debto r 5
A nd if th e s urety who -
.

h as paid th e d ebt h as d isch arge d the p rinc ipal fro m l ia bility


th erefo r th en as th is wo uld pre ven t th e s ubro gation of th e
, ,

cc suretie s aga ins t th e princ ipal they can not be c om pe lle d


-

to c o n tribute for th e relief of th e sure ty wh o h as m ade th e

pa y m en t 5
.

1 5 0 B a b ee q uen t S ureti es
. n o t e n t itl e d t o I n d e m n i ty pro v i d e d

for Pri or S Alth ough th e righ ts of co s m etics a ga ins t


ure ti es .

eac h oth e r a re not afi ec te d by th e fa ct th at th ey b ec a m e s ure

tie s at d ifi erent tim es by d ifferen t ins trum en ts or e ven


5 5
, ,

with out each oth er s k n owled ge if on ly th ey are as am on g


5 ’
,

th em selve s cc s ureties 7
ye t s ur e ties w h-
o b in d th em s el ve s ,

afte r th e lia b il ity of th e o riginal s ure ties h as be c o m e fi xed

are n ot entitled to sh a re in th e bene fit of a n in d e m n ity pro

vided for th e original sureties 5


Parties to a p rom iss o ry n ote .

Arcedec kne, in re, 24 Ch D


1 . . 46 5 ; Yo ung 0 Shunk, 30 Minn . .

709 : Stanv Od v Clam pitt, 23 Mis s . . 5 03 .

3 79 .
0
No rton 5 Coons, 3 enio ( N
. D .

5
Gree n 0 Mi lbank, 5 6 How . . 1 3 0; Chaflee v ones, 19 Pic k
'
. J .

Pr . 3 82 .
( M ass ) 2 6 0; C ra y th om e v S w in

J
.

5 Fle tchere ackson, 23 Verm ont,. burns , 1 4 Ves 1 60 . .

5 81 .
7
Bla ke 92 Pick ( Mass ) .

5
Werner v Morrison, 3 Allen . 97 ; Taylor v Savage, 1 2 Mas s 9 8 ;
. .

( M a ss ), 5 66 ; Pow ell 0 P ow ell, 48 . Wells 0 Mille r, 66 N Y 25 5


. . .

Ca lif 235 ; Monson v Drakeley, 40


. . Mc Pherso n 11 Talbot, 10 Gill . J .

Conn 5 5 2 ; Bosley a Taylor, 5 ana


. . D ( Md ) 499 ; Roberts on v Deatherage,
. .

15 7 . 82 Ills 5 1 1 ; S alyers 17 Ross, 1 5 Ind


. . .

5 Arm ita e o
g Pu lver ,
3 7 N Y . . . 1 30 .

494 ; B ell v 1 aspe r, 2 Ired Eq ( Nor 5 M 3


. a, Q 1 1 et se
q H a m s

J
. . .

Car) 5 9 7
. ones v Blanto n, 6 I d . . berger e Yancey, 3 3 Gratt ( Va )
. . .

1 15 Loring v Bac on, 3 . 5 27 .


23 2 m m m m or s uns oorn on .

are prim f
a l ia bla c ie
e s ucc e ss iv e ly in th e orde r fixed by th e

n o te Acc ord ingly the acc om m odation m aker of a n ote cann ot


.
,
-

treat a m o rtgage given to th e s ubseq uent acc om m od ation in


d orser th ereof by th e party for wh ose benefit th e n ote was
m ade c on d itioned for th e in d em n ity of th e in d orse r as a
, ,

sec urity tak en by th e in d ors er for th e be n e fit of bo th of th em ,

e ven th o ugh th e in do rse r h as sin c e p urc h as ed th e e q uity of

rede m ptio n in th e m o rtga ged p rop e rty ; th e m a k e r is l ia bl e

to th e in do rse r on th e l atter s ta k in g up th e n ote for th e


’
,

a m oun t th e reof l e ss o nly th e a c tual va l ue o f th e se c urity


l
, .

If h o wever the re are two s uccess ive ac c om m od atio n in d o r


, ,

sers of a n ote a n d th e s ec on d indors e r h a v in g been furn is h ed


, ,

by th e m ak er with m eans to pay the note p rom ises the firs t ,

in d ors er to a pply th es e m ea n s for th at p urpose a nd th e reby ,

l ulls th e first in dorser in to in actio n wh ich would result in his


inj ury if h eld to pay th e n ote th is prom ise c re ates a n eq uity
,

in favo r of th e l a tter wh ich will s upp o rt an action by h im


aga in s t th e s ec o n d in do rs e r
” Th e prin c ipal in a bon d as
.

s ig ned a cl a im to a trus te e for th e in d e m n ity of h is s ureties ,

in trus t to c oll ec t th e cl aim a n d apply its p roc eeds to th e


pay m ent of th e bon d B efore the c la im was c ollec ted a suit
.
,

was b rough t upon th e bon d ; an d th e s ureties c ontrib uted


ratably to its p ay m en t One of th e s ureties h a vi n g obta in ed
a d ec ree again st th e p rin c ipa l for w h at h e h a d pa id too k th e ,

princ ipal in e x ecution a n d ob tain ed from h im a bon d with


, .

s ureties wh ich was afte rw a rd s forf e ite d a n d th e n e w s ure ties


, ,

p aid th e am ount of th e dec ree Th e trus tee h aving after .

wa rd s c ollecte d th e c laim as sig ned to h im it was h eld th at ,

th e n e w s uretie s c ould n ot p a rtic ipate in th is trus t fun d by ,

s ub rogati o n to th e righ ts of th e o rigin a l s ure ty wh o m th e y h ad

s atis fied ; th a t th e surety wh o h ad ob ta in ed th e n ew bo n d w as

boun d to proc eed th ereon aga ins t th e s ure ties th e rein an d ,

c o uld c o m e upo n th e trus t f un d on ly for an y defic ien cy i n


-

Post 0 Tradesm Bank, 28 Truesdell, 28 N J


’
1
. an s Rice 0. . . Eq .

Conn 420 . . 200 .


sus nool n on m '
CA S ES or s unm rsm r . 23 3

h is overy from them ; an d th at th e sureties in th e new


rec

bon d could n ot res o rt to th e trust fun d for th eir reim b urse -

m ent e x c e p t to th e ex ten t of a ny s urpl us th at m igh t t e

m ain a fter th e full in d em n ification of th e o rigin al s ureties


l .

B ut th e o rigin al s ureties w o uld n ot lose th eir righ ts by


afte rward s bec om in g s ureties for th e p ay m ent of a j ud g

m en t rec ov ere d for th e o rigin a l d eb t ; if th ey we re th en

c o m pe ll ed to pay th e j ud gm en t th ey would be s ub roga te d ,

as if th ey h a d b een h eld on th eir o rigin al obl iga tion so ,

fa r as th eir inte rposition h ad n ot res ul ted inj uri ous ly to


’
th eir c o s ure tie s
-
.

15 1 . E x te n t of —
th e R igh t of S ub roga t lo n am on g C c
s ure tle s .

C red it o r I n te rfe re nc e w i th t h e R igh t


. Th e sub rogation of a .

s ure ty aga in st h is cc sureties is th e eq uitabl e righ t of th e


-

surety h im s elf a n d is n ot a ffec ted by th e rel a tion s e x is ting


,

between th e principal debtor and th e co sureties against -

wh om th e righ t is sough t to be ex ercised It wil l be carried


8
.

only to th e ex tent of recoverin g from them th eir reas onable


p roportions of wh at he h as paid not ex ceeding h owever
4
, , ,

th e am oun t of th e obligatio n ; for wh en ever two pers on s a re


Is

c o m pelled to c on trib ute to a c o m m on b urd en all th e advan

tages ac quire d by one in dealing w ith th e c om m on c redito r


will be m ade to inure equally to th e ben efit of all A s urety “ .

wh o h as pa id th e princ ipa l obliga tio n by a c on vey an ce of real


es ta te c an rec ov e r c o ntrib utio n from h is c o s urety on ly upon -

th e b as is of th e real v alue of th e l an d th o ugh the p ric e a t


7
,

1
Givens 0 N elson, 1 0 Leigh . Mass 69 ; Apperson v Wilbourn 5 8
. .
,

3 82 ; Longford v Perrin, 5 Leigh . Miss 43 9 ; R utherford v B ranch


. .

552 . Bank 1 4 Ala 9 2


. . .

Preston v Preston, 4 Gratt . . Fuselierv Babineau, 1 4 La Ann . . .

( Va ) 8 8
. . 76 4 ; Sinclair o Be dington, 5 6 N H . .

K
.

Him es 0 eller, 3 Watts & Be rg. 146 ; Ed m onds v S healm n, 47 Tex


J
. . .

( Penn ) 401 ;.B rough ton 0 Ro binso n, . 443 ; ordan 0 Adam s, 7 Ark ( 2 . .

11 Ala 9 22 . . Englis h) 3 48 .

See S nowdon, ez parta, S nowdon, Steel 0 Dixon, 1 7 Oh Div 825 ;


. . .

in re 17 Oh Div 44 ; New Bedford . Owen v McGehee, 6 1 Ala 440


.

J
. . .
,

Savings I nstitution 0 Hathaway, 134 . Hickm an v McCurdy, 7 J . .


234 m s m m or sum m on .

wh ich it was ta ken by th e c re ditor m ay be evidence of this


One of of
l
va lue . th e s ureties an ad m ini stra tor wh o has
bought le gac ies for the paym ent of wh ich
up at a dis count ,

th e s ure ties were boun d w ill be allowed to ch arge h is co ,

s urety o n ly w ith h is p ropo rtion of th e e xpen se ac tual ly ih

curre d th e refor A surety cannot by m eans of an ass ign


a
.

m en t of th e c red ito r s re m e d ies re cove r f ro m


’
h is co sure t ies -

m o re th a n t heir reasonabl e proportion s of wha t h e has h im

self pa id Nor w ill s ureties up on on e obl igatio n h a ve an y


a
.

eq uita ble righ t to sec urities giv en by th e s am e d ebto r to h is

s ure tie s upon a d ifi e rent obl iga tion A surety will n ot as


‘
.
,

aga in s t h is c o s uretie s be s ub rogate d to a ny rem ed ie s for a-

, .

d ebt wh ich h is co s ure ties h ad th e righ t to req uire h im to -

di s ch a rge 6
Th e doc trine of c ontrib utio n between co s ureties
.
-

is n ot fo un d e d upon c o ntrac t b ut is th e res ult of ge n eral ,

eq uity A n d a n y inte rferen ce by th e c re ditor with th e s ure


6
.

ties righ t of s ub rogation a ga ins t ea ch o th e r will to th e e x


’
,

t en t of th e inj ury rece ived th ereby d isch arge th e s ureti es wh o ,

a re s o in j ured 7 j ust as a s im ilar interferen ce with th eir righ t


,

of subrogation agains t th eir p rin c ipal woul d h ave dis ch a rged

Marsh ( Ky ) 5 5 5 ; Edm o nds v S he a oh n s 1 7 4 ; M c K im o Dc m m on , 13 0 J


J
. . . . .

han 47 Te x 443 ; ordan 0 Adam s 7 Mass 404 ; Greenfield Savings Bank


, . .
,
.

Ark ( 2 English) 3 48 v Stowe ll, 123 Mass 19 6 ; H owe o .

J
. . . .

1
ones 0 Bradford, 25 Ind 3 05 Peabody 2 Gray ( Mass ) , 5 5 6 ; S m ith
. . .
,

Tarr v Ba vens croft, 1 2 Gratt v United Stein , 2 Wallac e, 219 ;


. . .

( V a ) 6 4 2. . S h oc k 0 M ille r, 1 0 P enn S t 4 01 ; .

K
. .

N e w Bedford Savings Institution lingens m ith v Klingensm ith, 3 1


K
.

v H athaway, 1 34 Mas s 69 ;
. ell v
y P enn S t 4 6 0 ; I d e v C hurchill 14 . . . . .
,

Page 7 Gray ( Mass ) 213


,
Ohio St 3 72 ; S tate 0 V an Pelt 1 ,
. . .
,

Lac y v Rollins , 74 Tex 5 66 S m ith


. 11 8 ; Martin 0 Taylor, . . .

Mc C ro ry 0 Pa rks 1 8 Ohio S t 1 8 Bush . 3 8 4 ; Mitc hell a B ur


, . . .
.

Dering v Winchelsea, 1 Co x ten, 2 H ea d ( Tenn . 6 13 ; J em ison ,

Oh Gas 3 1 8 ; Dennis v Gilles pie 24 v Governor 47 Ala 3 90 ; Lower v


. . .
,
.
,
. .

Miss 5 8 1 ; B rindle v Page , 21 V t Buchanan Ban k, 78 Mo 67 State v


. . . . .

9 4 ; Fletc her v Grover, 1 1 N H Matson 44 Mo 305 ; Dodd v Winn.


. . .
,
. .

3 68 . 27 Mo 5 01 R ice 0 Morto n 19 Ma . .
,

S tirlin g v Forres ter, 3 Bligh, 263 Contra , whe re the sureties were
K
. .

5 75 ; Hodgso n v H odgson 2 een , under a several lia bility, Te uto nia


.
,

704 ; Evans 0 B re m ridge , 2 Kay Bank a Wagner, 3 7 Ll An n 73 2


. . . .
sus s ooa n ou IN CA SE or s m sm r . 23 5

th em .
1 Th e ween co s ureties to be re
sam e right e x ists bet -

lieved to th e ex ten t of th e sh are of each in th e debt by the


ac ts of th e c red itor as ex ists between th em an d th eir prin c ipal

to be rel ieved of th e wh ole debt by sim ila r ac ts of th e c redito r


with th e ir prin c ipal ; an d wh e n th e c reditor by h is acts dis
3

c h a rges on e surety or aban d on s a l ien upon h is p rope rty for


,

th e debt h e c a n h old th e oth er s urety o n ly for a pro ra ta


,

s h are of th e d ebt
3
Th is doctrine is to be lim ite d in th e
.

s am e m an n er a n d with s im il ar d iv ers ities of the d ec is ions


, ,

as is th e cas e with the sim il a r do c trin e of th e re l ea se of th e

sureties by th e c red itor s in terfe ren c e with th eir righ ts aga in st


’

th eir p rin c ipa l ‘


.

15 2 . O ne S ure ty h o l di n g S ec uri ty fro m t h e P rin c i pa l h o l d s

i t fo r th e W h o le De b t . As one of se era v l s dreties w h o h olds


s ecurit y from the principa l debtor to s ec ure h im a gains t h is
s urety s h ip h olds it prim a fa c ie for th e b ene fit of h is co

s ureties a s well as of h im se lf s o h e h as a v a l id lien upon it , .


,

as a gain s t h is p rin c ipa l for th e wh ole deb t


“ Ac c ord in gly , .
,

wh ere th e princ ipal m ak er of a n ote which was also signe d by


th ree oth e rs as his s ure ties m ad e a m o rtga ge of pers o n a l pr0p
e rty t o on e of h is s ure ties c on d ition ed to in d e m nify h im a ga ins t

h is l ia b il ity for th e debt th e m o rt gagee was a llowe d in a n , ,

1
5 1 1 9
A ntea , et seq C res s 6 8 2 ; s c 3 owl
.
Ry 1 12 . . .
,
D .
.

Le wis 0 Arm strong 8 0Ga 402 ; Thom pso n v Lac k 3


.
,
Gr Se . .
,

Waggo ner v Walrath, 24 H un (N 5 40 ; Hood 0 Hayward 26 Abbott


. .

.
.
,

443 . N e w Cas ( N Y ) 271, a fi rm in s c


g
. . .
.

E: pa rts Giffo rd 6 V esey, 8 05 ; 48 H un , 3 3 0 ; Wilbur v W illiam s 1 6


, .
,

Stirlin g v Forres te r 3 Bligh, 5 75 ; R I 242 ; Chi pm an 0 Todd 60


.
, .
.
,

Rice 11 Morton , 19 Mo 263 ; People Maine , 28 2 ; Frede rick 0 Moo re 13


. .
.
,

v B us te r, 11 Calif 21 5 ; Go rdon 0
.
B Mon ( Ky ) 470; H ewitt 9 Ada m s
. . . . .
.
,

Moore 44 Ark 3 49 ; N orth Am e rican 1 Patto n


, .
Hea th 34 ; Ide v .

Ins Co 0 H andy, 2 Sandf Oh ( N Churchill, 14 Ohio St 3 72


. . . . . .
. .

Y ) 492 And see S m ith v State , 46


. .
McW horter v Wright, 5 Ga .
.

Md 6 1 7 ; State v Atherton 40 Mo 5 5 5 ; Bellune 0 Wallace 2 R ich


.

. .
, . .
.
,

209 ; Al exander v Byrd 8 5 V a 690 Law ( 8 0


.
80; Pringle v Size r
, . . .
.
,

A d ea 5 1 19 at seq, An d see 2 Ric h u 8 ( 8 0 Car ) 5 9 ; Tunnel]


. . . . . .

Ward 0 New Zealand Bank 8 App v Je flerson, 5 Ha rringt Del 206 '
.

( ) ,
;
. .
. .

Gas 75 5 ; Clarke v B irle y 41 Oh D Miller v Howr , 3 Pen Watts


y
. . .
, . .
.

422 ; Collins v Pros se r, 1 Ba rn 6: .


374 . .
23 6 THE LAW or sus aoe u x
ox .

a c tion again st ortgagor s ass ignee in ins olven cy wh o


th e m
’

h ad sold th e p roperty to rec ove r th e p roceed s of th is p roperty


,

to th e e x tent of hi s lega l liab il ity upon th e n o te a lth oug h h e ,

h ad p aid n o pa rt of th e a m oun t due th e reon an d h is c o ,

s ureties we re e q ually l iable with h im s elf for th e p ay m e n t

th ereof an d a l th ough th e c o ns ideratio n n am ed in th e m ort


,

g g
a e w as o nl y o n e th i rd of th e a-
m oun t of th e n ote ; a n d pa rol
e vid en ce wa s h eld to be in a d m is sibl e to s h o w th a t th e p rin c i

p a l d e b to r h a d i n te n d ed in gi v in g th e m o rt a e to s ec ure th e
g g
m o rtga gee on ly to the e x tent of one th ird of w h a t wa s du e -

upo n th e n ote un d er th e be l ief th at th is wo ul d be a full


,

in d e m n ity for h is liability l


.

15 3 . Cc -
s ure tles
’
R igh t of B n b ro g a t lo n s ub e c tj t o L e g a l R i gh t s

of Thi rd P a rti es quitabl e righ t of on e s urety upon h is


. Th e e

pay m en t of th e d ebt to be subrogate d to th e ben efit of sec uri


ties or p rope rty of th e prin c i p a l in th e h a n ds of a c o s urety -

m us t y ie ld to righ ts wh i c h h a v e a c c rue d t o oth e rs up on th e

s tren gth of th e a pp aren t lega l t itl e to s uc h p roperty Ao .

c ord in gly wh e re an abs ol ute d ee d of l a n d w as m a d e to th ree


,

pe rs ons for th e rea l purpos e of s ecuring th em aga inst th eir


,

l iab il ity as s ureties for a deb t of th e gran tor an d th ey agreed ,

to rec on v ey th e l an d to h im upo n h i s p ay m en t of th e d ebt ,

a n d th e n tw o of th e s uret ies w e re c om p e ll e d to pa y th e d e bt ,

th e gra n tor a n d th e o th er s urety h a vin g bec om e in s olv en t ,

i t wa s h eld th at th e l e vy of a n e x ec ution by a c re d itor of th e


in s ol ven t sure ty upon th e l atte r s un d iv id e d port ion of th e
’

l a n d veste d in suc h c red ito r th e titl e to th at portion un ai ,

fe c te d by an y equita bl e c l a i m s of th e s uretie s wh o h a d p a id
th e d eb t “ .

15 4 . Th e C re di t o r m ay be s ub s ti t ut e d t o th e B en efi t o f S e

c a ri t y fo r th e D e b t h ol d b y a S ure ty . A c re d itor h as a s l o an

e quita ble righ t to be s ubs tituted to th e ben efit of any col


l ate ra l s e curity for th e deb t wh ich th e p rin ci pa l debtor h as
1
Barker 0 Buel, 5 Ca sh
. .
( Mes a ) J w tt
e e o . Bailey, 5 Grcanl (Ma ) .

5 19 .
suns oau xon m CAS ES or S R ETYS HIP U . 237

giv en to h is wh ere prope rty h as been con vey ed


s ure ty ;
l
a nd

i n trus t for suc h a purpos e th e c re d itor a l th ough h e wa s n o , ,

pa rty to th e c onvey ance m ay by a b i ll in equity h ave th e ,

property appl ied to th e p aym en t of h is d em an d Th e c red !

i tor w i ll b e e n titl ed to th e benefit of a m ortga ge as s igned by


th e pri n c i p a l d ebtor to a trus tee for th e p rotec tion of h is
s urety w ith auth ority on d e fa ul t in th e pay m en t of th e d eb t
, , ,

t o c oll e c t th e m ortgage n ote s a n d pay th e d eb t out of th e pro -

c e e ds .
8 A n d a trus te e wh o h old s p roperty wh i c h h a s been
as s i gn ed to h i m by th e p rin c ipa l d ebtor with auth ority at ,

th e re quest of th e s urety on th e l atte r s b e in g th re aten ed w ith


’

l os s by reas on of h is s ure ty sh ip to s ell en ough of th e prop ,

e rty t o s a ve th e s urety h a rm l es s is n ot b oun d to w a i t un ti l ,


‘

th e s urety s h a ll h av e b ee n a c tua lly c om pe ll e d to pay th e


m o n ey but sh o uld re l iev e th e s urety from
, res p on s ib i l ity ,

wh ene ve r h e h as th e fun d s in h an d for th at purp ose Th e


’
‘
.

c re d i tor is in equity en titl e d to th e ben efit of c oll ate ra l sec u

rity for th e p ay m en t of th e d e bt tak e n by a s urety from th e

p rinc ip a l debtor a lth ough h e d id n ot origin ally rely upon


,

s uc h s ec urity or e ve n k n ow of i ts e x is te n c e Th e c re d itor
5 6
, .

a n d th e s ure ty h a ve c o rre l a ti v e ri h ts ; e a c h is en ti tl e d to
g
th e ben efit of th e s e c uritie s h e ld by th e oth er for th e pay m ent
of th e d ebt 7 Th e c red itor m ay if n ec es s a ry c om p e l th e
.
, ,

1
Maura v H arris on 1 Eq Cas Ah
. Daniel 0 oyner 3 Ire d Eq
, . . . . J ,
. .

9 7 3 Owens 0 Mille r 29 Md 1 44 ; ( Nor Car ) 5 13 ; Morton v Lo well


, . . .
,

R oberts 0 Co lvin 3 Gratt (V a ) 3 5 8


.
5 6 Tex 643
, . .
. ,

Loehr v Colborn, 92 Ind 24 ; Ala


. COOper v Middleton 9 4 N or . .
, .

bam a Ins Co 0 An ders on, 6 7 Ala


. . . . Car 8 6 ; Daniel 0 H unt, 77 Ala
. . .

425 ; Safiold v Wade, 5 1 Ala 21 4 ;


'

. . 5 67 .

Troy 0 S m ith, 3 3 Ah 469 ; Seibert v


. . . H iggins 0 W right 43 Ba rb ( N .
,
.

True, 8 Km 52 . . Y ) 46 1 ; Morehead 0 D unca n 8 2


. .
,

U nited States Bank v Stewart, 4 Penn St 488 ; Rice s Appeal 79


’
.
,

K
. .

Dana 27 Ray 9 Profiett, 1 5 Penn St 1 6 8 insey v Mc Dearm on


'

K
. . .

Lea 5 17 insey v Mc v . 5 Coldw ( Te nn ) 3 9 2 ; Carpenter 0


. .
.

m on, 5 Coldw ( Tenn ) 39 2 ; Miller


. . Bowen 42 Miss 28 ,
. .

0 Lancaster 5 Coldw
( Tenn ) 5 14 ; United S tate s v Sturges 1 Paine , ,

K
. . . .
,

ing 0 Harm an, 6 La 607


. . . 5 25 ; Saylors v Saylors, 3 B eish .
.

Cullum 0 Mobile Bank, 23 Ala. .


( Tenn ) 5 25 ; O s born. v N oble,
46 .

797 Miss 449 . .


8 m a LAW or S UBW GATION .

s uret y d to h im any pecul iar m eans wh ich h ave


to surren e r

been intrus ted by th e princi pa l d ebtor to the surety for


th e purpos e of securing th e p ay m ent of th e de bt s uch as a ,

m o rtga ge on rea l or pe rs o n a l p roperty or a n o th r oll t r l


y e c a e a ,

sec urity h e ld b y th e s urety 1


.

15 5 . S e c uri ty h e l d b y a S uret y re ga rd e d as a Tr
u s t fo r t h e

P ay m en t o f y for th e deb t in wh os es o
th e D e b t . Th e s ec urit ,

e ve r h a n d s it m ay be is tre a te d as a fun d h e ld in t rus t for ,

th e p ay m en t of th e d eb t 3
if in th e h an ds of th e c re d ito r th e ,

s urety upon p ay in g th e d ebt w i ll be s ub rogate d to it fo r h is


, ,

in d em n ity ; if in th e h a n d s of a s urety th e c red ito r m ay re ,

s ort to it to s ec ure th e p ay m en t of h is d e m a n d a
A c c ord .

i n gly such a s ec urity m ay by agreem en t of th e part ie s be


,

passed to a stranger upon h is pay ing th e origin al d ebt at th e ,

req ue st of th e d e bto r an d w i ll be e nf o rce abl e in th e h a n d s of ,

s uch s tra n ge r
‘
All d em an d s rece ive d by th e s urety from
.

th e p rin c ip al debtor for th e purpose of d i s c h a rgin g th e d ebt ,

e ith e r by th e ir tran s fe r to th e c red ito r or by th e pa ym en t of

th eir proc ee d s to th e c red itor a re h e ld by th e s ure ty in trus t ,

for th e c red ito r ‘


5 Eq uity rega rd in g th e s ec uri ty a s a trust
.
,

f un d c reated for th e pay m en t of th e d ebt wi ll c om pel th e ,

s urety to a pply it for th at purp os e an d a vo l un ta ry tran s fer


6
,

of s uch a s ecurity by th e surety to th e c re d itor w ill be uph e ld


as if i t h a d b een m ad e un d e r a d ec ree of th e c ourt
7 Th e .

1
Rc dfield , Ck , in McCollum v. First National Bank of Ma dison
H incl dey, 9 V t 1 43 , 1 49 ; V am ey . v .
v. Sc hlusser, 2 S W Rep 1 45 . . . .

Ha wes 6 8 Maine , 442 ; Matthew s v Barton o Croydon 63 N H .


, . .

v
, .

Joyce 8 5 Nor Car 25 8 ; Cann on v . 41 7 ; H olt Penacook Savings Ba nk,


K
.
,
.

Mc Dan iel 46 Tex 304 , . . 62 N H 5 5 1 unkel v Fitzhugh,


. . .

2
Fratt a Thornto n 28 Maine 3 5 5 ;
.
, , 22 Md 5 6 7 ; Mast v Ra per, 8 1
. .

Clark a Ely, 2 Sandi Oh ( N Y )


. . . . . N or Car 33 0 ; Green 0 D odge, 6
. . .

1 6 6 ; Price 0 Tm sdell, 28 N J Eq Ohio, 80


J
. . . .

200 ; D an iel 0 oyner, 3 I red Eq . . . United S tates v S turges , 1 Paine, .

( N or C a.r ) 5 1 3 ; M on
. tgom e ry
’
s Suc C C 5 25 ; Pa ris 0 H ulett, 26 V t
. . . .

cess ion 2 La Ann 46 9


, . . . 3 08 ; V ail 0 Foster, 4 N Y 3 1 2 ; . . .

New London Bank 0 Lee 1 1 .


, R oss 0 Wilson, 7 S m . M ( Miss ) . .

Conn 1 1 2 ; H olm es 0 Bacon, 28 Miss 75 3 .

J
. . .

607 ; R eid 0 V reeland, 30 N . Eq . . Paris 0 Hulett 26 V t 3 08 .


,
.

591 . Carlisle 0 Wilkins , 5 1 Ala 3 71


. . .
sum oeu x
ox m
'
CASES or sum rs nr
p . 23 9

effe ct of a m ortgage or oth er security given by th e prin cipa l


d e btor to h is s urety c on d iti on ed th at th e p rin c i pa l w i ll h im
,

s e lf pay th e d ebt an d h old th e s ure ty h a rm l e ss th e re fro m is ,

t o c rea te a trus t an d a n e qui ta bl e l ien for th e cre d itor 1


an d

th e s urety w i l l h old th e p rope rty s ubj ect to suc h trus t e ven ,

th ough h is own l iab i l ity m ay h av e bee n defeated by h is


deceas e or by th e opera ti on of th e Statute of Lim ita ti on s or 2
,

by th e cred itor s in dulgen c e given to th e prin cipa l debtor’ 3


.

Th e s urety c ann ot d efe at th i s trust by a c on vey an c e of th e


property e x cept it be to a bon a fid e purch a se r for va l ue with
,

out n otic e an d th e rec o rd of s uc h a m o rtga ge of rea l es tate


1 ‘

w ill be c on structive n otice of th e trus t s o th at c red itors of


‘
1
,

th e s urety or purch as e rs from h im e ven after h is forec los


, ,

a re of th e m o rtga ge c a nn ot by m ea n s of a n a tta ch m en t or , ,

c on vey an ce of th e prop erty ta k e it d is c h a rge d of th e trus t 6


,

n or will it be defe ate d by th e s ub s eq uen t in s ol ven cy or b an k

ruptc y of th e p r in c p l an d t e s urety
i a h or e i th er of th em 7
, .

By such a m ortgage th e p roperty is pl ed ged to th e surety for


.

th e p aym en t of th e m ortga gor s d e bt ; a n d th e pl ed ge is n ot


’

re d eem ed n or th e eq uitabl e l ie n d i s c h arged un ti l th e d eb t is


, ,

a ctua lly p a id Th e s urety c a nn ot h i m s e lf d isch a rge th e


8
.

trus t or rel ieve th e p roperty from th e burden to th e pre j ud ic e


of th e cred itor H e m ay obta in securi ty for th e c red itor
9
.
,

but h e c ann ot d isch arge it 1°


.

1
Markell v Eichelberger 1 2 Md
.
, Ijam es o Gaither, 9 3 Nor Car
J J
. . .
.

79 Mc Mullen 0 Neal 60 Ala .


, . 35 8 , Blac kwood v ones 4 ones . .

5 5 2 ; Richards 0 . Yoder, 10 Neb . Eq ( Nor Car ) 5 4


. . . .

Eastm an 0 Foster, 8 Met (Mass ) . .

Crosby o Crafts, 5 H un ( N Y
1
. . . 1 9 V ail 0 Foster, 4 N Y 3 1 2
. . . . .

3 27 Eastm an 0 Foster, 8 Met


°
. .
7
Carlisle 0 Wilkins , 5 1 A13 3 71 ;
. .

( Tenn .
Blake, 13 4 Mas s Aldrich 0
. .

Helm 0 Young, 9 B Mon (Ky ) Sta » , 0 J , in Eas tm an 0 Foster,


. . . . . . .

39 4 . supra , Graydon 0 Chur c h, 7 Mich 3 6 . . .

McRady 0 Thom as, 1 6 Les Osborn v N oble, 46 Miss 449 ;


. . .

1 73 ; Carpenter 0 Bowen , 42 McMullen 0 Neal, 60 A1a 5 5 2 . . . .

Miss 28 ; Ross. 0 W ilson, 7 Sm 1°


Sim son v Brown, 6 Hun (N
.
. .

M ( Miss 75 3 ; Seibert 0 Thom pson, 25 1


. . . .

8 I nns 65 .
240 m a m v or sunnoon x
ox .

15 6 . C re d it o rs R ig h t t o B eoufl ty h e ld b y '
a S ure ty w h o i s a ls o

a C red it o r of th e o b een h e ld in
P rin c i pal .
— It h as s m eti m es

Ke ntucky an d in Miss is s ipp i th at a m ortga ge given by a prin


c i pa l debto r to h is s ureties both to p rote c t th em a ga ins t th e ,

deb t for wh ich th ey are sureties an d to secure a d ebt due to


th em f rom h i m se lf w i ll be a ppl ie d to th e p ay m en t of b oth
,

deb ts pro ra ta 1
Th e rul e h as b een l a id down th at s in c e th e
.

sure ties a re qua si t rustee s for th e c re d ito r i n re s pec t to s uc h

s ec urity th ey a re boun d to pay ov e r th e firs t p roc ee d s th e re of


,

to th e c om m o n c re d ito r i n s tea d of a pply in g th e m upon th e ir ,

own d em a n d or pa y in g th em to th e i r o wn gen e ra l c re d itors


“ .

If th e c ircum s ta nc es of th e c a s e a re s uch as to sh ow wh a t
w a s in te n d ed to be th e p rio rity of th e res pe c tive p a rt ie s th a t ,

inte nt w i ll b e c a rrie d out 8


Ne ith e r th e c red itor n or th e .

s ure ty c a n d es troy th e righ ts of th e o th er i n s uch a s ec urity ;

e ac h w i ll b e p rote c te d f rom in j ury by th e a c ts of th e o th er


‘
.

Th e righ t of th e s urety to apply th e s ecurity to th e pa y m e n t


of h is own d em an d b efore m eeting th at upon wh ich h e is
l iabl e as surety h a s al s o been m aintaine d Th e c l ai m of
,
11
.

th e p rin c ipa l c re d ito r to th e ben efit of s uch a se c urity m us t


be s eas on ably a ss e rted °
Th e nrin c ipa l d eb tor on a p ro m is . .

s ory n ote ga ve t o th e s ure ty a m ortgage c on d i ti on ed t h a t th e

p rin c i pa l sh ould pay th e n o te to th e prom isee th e re of a nd


h ol d th e s urety h arm l es s th e ref rom a n d s h ould a l s o pay a ,

deb t due from h im s elf to th e m ortgagee ; but th e pay ee of th e


n ote d id n ot m a k e h i s l oa n un d er th e in duc em en t of th e

m ortgage ; n or was th e m o rtgage m a d e for h is b en efit or at

h is req uest Th e prin c i pa l pa id th e in te res t on th e lo an for


.

Willis v Caldwell 10 B Mon


1 . Parsons v 01ark 1 3 2 Mass 5 69 ;
,
. .
1 .
, .

K
( y) 1 9 9 ;.H elm a Y oung 9 B W a ll er v O glesby . 8 5 T en n 3 21 ; , . .
, .

Mon ( Ky ) 39 4 ; Moore v Moberly Cannon v McDaniel 46 Tex 3 04


. . .
,
.
, . .

7 B Mon ( Ky ) 29 9 301 ; Ross


. .
1 Edw
ards v H elm
.
,
4 Scam ( Illa ) .
, .

0 Wilson 7 S m
. M ( Misa ) 75 3
,
142 . . . .

Fourth National Bank s Appeal,


1 ’
Firs t Congregational S oc iety a .

1 23 Penn St 473 ; Skillm an 0 Tee


. . S now, 1 C ash ( Mass ) 5 10; a ntes ,
.

J
.

l
p ,e 1 N E q 23 2
.
; Ten Eyck v . .
Q 1 46 .

Holm es, 3 Saudi Oh ( N Y ) 428 . . . . Waller o Oglesby, 85 Tenn 3 21


. . .
sus aoou xou m c a sas or s ua s rrsm p . 241

v
se era l years part of th e prin ci pa l sum or of h is debt
, but no ,

to th e s urety a n d afte rw ard s d i ed in tes tate an d in s olv ent


, ,

an d h is estate w a s n ever a d m in is te red up on Th e m ort .

g g
a e e w a s n e v e r c a ll e d upo n to p y
a a n d n e v e r p a i d e i th e r , ,

th e interest or a ny pa rt of th e p rin c ipa l of th e n ote ; a n d his


li ab il ity upon th e n ote beca m e ba rred by th e S tatute of Lim i
tation s . Th e m o rtgagee afte rw a rd s s old a n d c on veye d h is
i nte res t un d er th e m o rtga ge for a v a l uabl e c ons i d eration
with out n otic e to th e purch aser th at th e paye e of th e n ote
c l a im e d a n y i n te re st in th e m o rtga ge by w ay of trus t or

equi tab l e l ien or oth erw is e ; an d s ub s e quen t d i s pos iti on s of

th e m ortga ged prem is e s w ere m a d e w i th o ut n otic e of any


s uch c l a im Th e p ay ee of th e n ote th en brough t a b i ll in
.

e q uity a ga in st th e m o rtga gee an d th e purch as e r fro m h i m ,

pray ing th at th e m ortgagee m igh t be d irected to turn over to


h im as equitably en titl e d th e reto th e p roce e d s of th e s a l e
, ,

to such purch as e r and th at th e purch a s er m igh t be d ec ree d


,

to h old th e p rem is es as a trus tee for th e pla in tifl subj ec t to ’


,

an e quita bl e l ien for th e p ay m en t of h is n o te an d to pay t o ,

th e plain tifl th e b a l an ce due fro m such p urc h as er to th e


’

m o rtgagee on h is purch ase ; an d it w as h e ld th at h e w as n ot

e n titl e d to such re l i ef 1
.

15 7 . C re d i tors ’
R i gh t t o S e c uri ty h e ld b y S ure ty m eas ure d

b y th a t of S ure ty . It i s genera lly c on s ide re d th at wh i l e th e


c re ditor m ay be s ub s ti tuted t o th e pl a c e of th e s urety in a

c as e in wh ic h th e c re d itor h as gi v e n s e c urity to th e s urety,


1

y et th e c re d itor s ’
ri gh t m us t be m e a s ure d by th at of th e

s uret y ; an d y s righ t to wh ich th e cred itor wi ll be


th e suret
’
,

s ub s titute d m ust b e d ete rm in e d by th e in s trum en t wh i ch


,

c rea te s i t
1
A cc ordin gly th e c red itor m ay usually h old se
.

c urity gi ve n by th e p rin c ip a l d eb to r to th e surety but n ot ,

1 First Congregational Society 0 .


1 Bush 0Stam ps , 26
.
Miss 463.

S now, 1 C ash ( Mas s ) 5 10


. . . Bibb 0 . Martin, 14 Sm . M ( Mica )
.

1
Thom pson 0 White, 48 Conn . . 87
.

5 09.
242 m s L AW or snanom rron .

a b are in d e m n it y g i v en to th e surety by a strange r, by1


or

on e c o suret -
y to an oth er
1
W h en th e
. suret y was s ec ured by

a pl edge ofof c ertain prope rty and afte rwa rds


th e re n ts ,

becam e th e h older of th e l ega l title to th e property ope rat ,

i n g a m erge r of th e pl ed ge as be tween th e prin c i pa l a n d th e


s urety it was h e ld th at th e c re d ito r h a d n o lo n ger a n y ri gh t
,

of sub stituti on to th e m erge d security ; b ut if equity w ould


1

preven t a m erger th en th e c re d itor s righ t would rem ain


,
’

’
un a fl e cted ‘
It th e c o n d ition of th e s urety s in d em n i ty was
.
’

th a t th e prin c ip a l sh ould th us s a ve th e surety h a rm l e ss by


pay ing th e d ebt in c as e h e sh ould be requi red by la w to pay
it an d i t a ppe a rs th at th e p rin c ip a l w a s n ot l egal ly l i a bl e
,

upon th e d e b t an d th at th e surety h as n ot been d a m n i fied ,

th e c red ito r c a n n ot h av e th e ben efit of th e s ec urity 6


S o if .
,

th e s urety s righ ts were c rea te d by a trust d e ed wh ic h pro


’
-

vi ded th at upon th e rec ove ry of j ud gm ent a g a inst th e s ure tv


,

a n d th e p rin c ip a l s fa i l ure to s a tis fy th e s a m e th e trus tee


’
,

sh o uld sell th e p rope rty th e c re d ito r c ould n ot subj e ct th e


,

trus t prope rty t o th e p ay m en t of h is c l a im with out fi rs t oh


ta in in g j ud gm e nt aga in s t th e s urety ‘
1
If th e l iab i l ity of th e .

s urety i s c on tin ge nt as is th at of an a cco m m od ati on in dorser


,

of a n ote th e c red itor c an not be s ub stituted to th e ben efit of


,

a s e c urity h e ld by th e s ure ty for h is i n d em n ity un ti l th is

l iabi l ity h as b ec om e fixed ; an d if th e in d ors er h as been d is ~

c h a rge d by th e l ach es of th e c re d ito r th e latter s righ t of


’
,

s ub s tituti on i s gon e If th e s urety h old s th e prope rty on ly


7 .

by a c onvey an ce wh ich is fraudul ent as a ga in st th e general


c red ito rs of th e p rin ci pa l d eb to r th e c re d ito r s ri gh t c an be
’
,

1
Taylor v Farm ers Bank, 8 7 Ky
.
’
.
1
Bibb 0. Martin 1 4 S m , . M .

39 8 . ( Miss ) 7
8 .

1
Ham pton o. Phipps, 108 U S .
1
Bush 0 St am ps, 26 Miss 46 3
.

J
. . .

260; Morgan 0 Francklyn, 5 5 How 1 Tilford v am es, 7 B Mon ( K


.
. .
y) . . .

Pr ( N Y ) 244
. . . .
3 36 ; Hopewell 0 C um berland Bank, .

1
Rankin v. Wilsey , 17 I owa, 46 3 . 1 0 Leigh 206 ; H iggins v .

1
d a ted , 57 et seq. D urham 9 . Wright, 43 Earl) (N Y ) 46 1 . . .

Craig, 79 I nd 117 . .
sus nos lm on m casts or sm u rsm r . 3

no better th an that of th e surety, and wi ll n ot prevail aga ins t


th e prin ci pal l d ito rs 1
’
s gen era c re .

15 8 . S ec uri ty d v en m ere ly t o in d e m n i fy S ure ti es c an n o t be

en forc e d a fte r S ureti es di s c h arge d A sec urit y g i ve n t o s ur e

t i es m ere ly to in d em ni fy th em a ga in st th eir s urety sh i p c a n

n ot be d after th e cred itor h a s d is ch arged th e s ureties


enf orce .

An d wh ere a d eb tor gav e to h is s ureties s uch a m o rtga ge to


protect th em a ga ins t th e ir s uretys h ip th e m ortga ge wa s h eld ,

to be ex ti n gui sh e d by th ei r a ss ign in g it to th e c re d ito r for


h is s ec urity a n d ta k in g f ro m h im a d is ch a rge of th eir liab il
ity ; for as it was gi ve n m e rely to p rotec t th e s ureties fro m
th eir l i a b i l ity an d as th at p rotecti on h a d bee n obtain e d by
,

th e i r d i s c h a rge th e c on d iti on of th e m o rtgage was fulfille d


,
1
.

S o wh ere th e s urety h avin g rece i ved from th e p rin c ip a l a


,

prom iss ory n ote for his in d em n ity h an d ed th is over to th e


-

c re d itor an d th e c red ito r b ro ugh t s ui t upon it aga in s t th e


,

pri n cipa l it was h eld th at if th e rem edy aga inst th e s urety


,

upon th e o ri gi n a l d ebt wa s b a rred by th e S tatute of Li m ita

ti on s th ere was a fa i l ure of th e c on s i d era t ion of th e n ote


, ,

a n d th e c re d itor c ould n ot rec ov er B ut if th e s urety h ad .

g i v e n th is n ote to th e c re d it or in p ay m e n t of h is l i a b il ity ,

th en it w ould b e n o defen c e to th e p ri n c ip a l wh e n s ued upon ,

th is s ubs tituted n ote th at th e rem e dy upo n th e p rin c i p a l


,

obl igation h ad n ow bec om e ba rre d by th e l a pse of tim e 3


.

15 9 . W h en th e S ure ty ’
s Tra ns fe r of h is In d em ni ty t o th e

C re d it o r d o e s n ot by a surety to
e x t i n gui s h it . Th e t ra n sfe r
th e c re d i tor of an in dem n ity rece ived by th e fo rm er f rom th e

p rin c i p a l w ill n ot a l w a y s e xt i n guish th e se c urity i n eq ui ty ,

i f th e t ra n s fe r is m a d e in p ay m e nt of th e d ebt or in c on s id
‘

c ra ti on of th e re l e a s e of th e s urety by th e c re d ito r A
5 .

j udgm ent gi ven by a prin c ipa l debtor to h is s urety a s a n


1
Th rall 9 S pencer 16 Conn 1 3 9
.
,
. .
1
H owe Freidheim , 27 Min n
v. .

1
S um ner v B achelder, 30 Maine,
. 29 4 ; Morgan 0 Dod 3 Color 5 5 1 .
, .

. 111c 11 0 Mc Intyre, 5 7 Calif 49


. . .

1
R ussell 0 . La Reque, 1 3 Ala .
1
Ca rlisle 0 Wilkins, 5 1 A13 371
. . .

1 49 .
244 TH E LAW or s unnoourx
ou .

ind em n it y aga ins t h is y


s uret sh i pm ay be ava i a l bl e before the
s uret y is actua lly dam n ified ; for th e s urety m ay us e it to
c o m pe l th e pa y m en t of th e d ebt by th e p rin c ip al ; an d upon

th e as s ignm en t of s uc h a j ud gm ent by th e s urety to th e c re d


i tor th e l atter m ay to th e e x ten t of h is d em a nd c oll e c t it
, , ,

from th e proce eds of th e debtor s rea l esta te upon wh ich it ’

was a l ien 1
If th e pri n c i pa l d eb tor gi ves to h is s urety a
.

m o rtga ge c o n d iti on ed th a t th e p rin c i p a l sh a ll s a v e h is s ure ty


,

from a n y trouble or e xpen s e by re as on of h is s uretysh ip an d ,

th e s urety a ss igns th is m ortgage to th e c red itor in con s id


c ra t i o n of h is re l ease by th e l a tte r fro m a n y oth er l ia b i l ity

th an th e us e of h is n a m e in th e c oll ec tion of th e o rigina l


d eb t this ass ignm ent will not e x tin guish th e s ecurity an d
,

th e c re d ito r c an h old th e m ort gage d p rem ises un ti l th e y a re


red ee m ed by th e p ay m en t of th e d ebt Th e s urety h as a
2
.

righ t for h is protec ti on to a pply th e prope rty to th e pay


, ,

m e n t of th e d eb t ; a n d th e c re d ito r m a y re q ui re th is a ppl i c a
1

t i on 1
. Wh en a n a gen t h a s un dertak en to obta in s ec urity
from a d ebtor of h is p rin ci pa l but h as s o n egl ige n t ly c on ,

d uc ted h im s elf th erein as to bec om e h im s e lf l iabl e for th e


loss to h is p rin c ipa l an d th e reupon procures fro m th e d e btor
,

a m o rtga ge to h im s e lf for h is prote c ti on a ga i n s t s uch l i a bil

i ty an d s ub s equen tly th e d eb tor h av in g b e com e in s olven t


, , ,

a s s i gn s th i s m o rt ga ge to h is p ri n c ip a l th i s a s s ign m e n t wi ll ,

n ot in equi ty e x ti n gui s h th e m o rtga ge for th e b en e fit of a

s ub s eq ue nt m o rtg a gee of th e s a m e p re m is es but th e c re d ito r ,

wi ll be a llowed th e full advan tage th ereof to th e e x te n t of ,

th e a gen t s l i ab il ity to h i m 5
’
.

1 60 . S ure ty s
’
I n d em ni ty n o t a v ai l a b l e t o t h e C red i t o r un l es s

I n s o lv e n c y i n te rve n e s . If th e o
c n tra c t u pon wh ich a s uret y

1
Bank v. Douglass , 4 Watts Sim m ons 1 0 . Goodrich, 6 8 Ga .

9 5 ; Phillips 0 Thom pson, . 2 75 0 Co oley v . Osborne, 5 0 Iowa,


J ohns Oh ( N Y ) 41 8 5 26
K
.
. . . .

Hayden v S m ith, 1 2 Met (Mass Hauser 0 ing, 76 V a 73 1


1
1 . . .
) .

:
.

5 11.
1
Grant 0 Ludlow, 8 Ohi o St 1
. . .
se ns oorn ou m c a ses or suanrrsm p . 245

h old s ortgage or oth er security f rom th e prin cipa l debtor


a m

is for th e person a l ben efit of th e s urety i n c ontrad is tin ct ion ,


,

to th e i dea of c rea tin g security for th e debt or of prov id i ng


m ea ns for its pay m ent th e c re d itor c an c l aim n o gre ater ,

ri gh ts or rem e d ies in th e s ec uri ty th an th e s urety him s e lf

e n joys If th e s urety h im s elf h a s n ot be en d am n ified an d


1
.

th e c on d iti on s of h i s c on tra ct of in d em n ity h a ve n ot b een


b rok en as th e s urety h im s e lf c ould h a ve n o re m edy s o th e
, ,

c re d ito r c l a im in g un d e r h im an d in h is s tea d c a n d e riv e n o


, ,

ben efit from th e s ec urity 1


A n d un ti l the cred ito r s in ter
’
.

feren ce th e s urety m ay dea l with it as h e m ay ch oose 3


.

Securi ty given by th e m a k e r of a n ote to h i s a cco m m od ation


in dorser to s ec ure h im aga in st h is l iab i l ity on th e in do rs e
m ent n ot be i n g an a c c e s s o ry to th e p rin c ip a l obl iga ti o n but
, ,

s im ply a p ers on a l i n d e m n ity d e p en d in g on th e p ay m en t of


.

th e n ote by th e in do rs er th e in do rs er c ould n ot enfo rce th e ,

security unti l h e sh ould actua lly h a ve b een h e ld to m ak e pay

m e n t on h is in do rse m en t ; a n d th e h o ld er of th e n ote c l a im ,

in g th rough th e in dors er a n d m ere ly s ta n d ing in h is pl a ce ,

c an ac c o rd in gly h a ve n o ben e fit of th e s e curity A m ortga ge


1
.

g i v e n n o
,
t to se c ur e th e d e b t b ut s i m ply to i n d e m n ify th e ,

s ure ty d oe s n ot in th e firs t in s ta n c e a ttach itse lf to th e d ebt


,

as a n i n c id e n t t o i t ; but wh a tever equity a rises in fa vo r of


1

th e c re d itor in rega rd to th e s ec urity c om es into e x isten ce


on ly upon th e in s olven cy of th e pa rties h olden for th e d ebt ;
an d un ti l th is e quity a rises th e s urety h a s a righ t in equi ty ,

as w e ll as at la w to re l ea se s uc h s ec urity ,
1
.

1
A t 9 1
z ec ,5 7 ; L wi S wy r J ev Q ui
s 0 ipi c B
. k 29 a e ,
1 ones . nn a an ,

44 Ma ine 33 2 ; S tuart 0 Mc Dougald


, .
, Conn 25 ; Hope well 0 C um berland
. .

35 Mai ne 3 9 8 ; Denny 0 Lincoln 5


, .
, Ba nk, 10 Leigh 206 222; Ran ,

Mass 3 8 5 ; Blac kstone Ban k v H ill


. .
, kin o Wiley, 17 Iowa, 46 3
. .

10 Pic k ( Mass ) 129 ; Greenleaf v


. .
1
Ho m er v New Haven Savings
.

Ludington, 1 5 Wisc 5 5 8 . . Bank, 7 Conn 478 ; Bowm an v Mo


. .

1
Walker, is re, S heffield Banking Elroy, 1 5 La Ann 6 46
. . .

Co 0 Clayton, 1 Oh D ( 189 2) 6 21 ;
. .
1
Logan 0 Mitc hell, 67 Mo 5 24
.

J
. . . .

Cam pbell Printing Press 00 0 Powell, . .


1
ones 0 . Q
uinnipiac Bank, 29
78 Tex 5 3 ; Pool 0 Doster, 5 9 Miss
. . . Conn 25 ; Thrall 0 Spencer, 16 Conn
. . .

25 8 ; Osborn v Noble, 46 Miss 449 . . . 1 39 .


246 m s L AW or s om au x
on .

1 61 . A ppli c a t ion 0! th es e P ri nc iple s i n C o nn ec tic ut . A


debtor m ortgaged certain rea l es tate to B to secure th e lat .

ter for acc ept ing h is b ill s to a la rge a m ount, th e c on d iti on of


th e m o rtgage be in g th at th e d e btor sh ould pay all s uch ac
ce ptan ces at th e ir m a turity an d s a ve B h a rm l es s th e ref rom
,
. .

Afterw ard s th e debto r d es irin g to obtain a loan fro m a ba nk


, ,

an arran gem ent was m ad e by wh ich B m o rtga ge d to th e .

b ank a ll h is interes t in th e p rem ise s as s ecurity for s uch


loan and th e bank m a d e a lo an to th e debtor upon th is s e c u
,

rity .B oth th e de bto r a n d B we re at th is tim e s olvent and .

i n good c red it ; but th ey both s oon afterw ards becam e in s ol


th e b an k s lo an be in g un pa id an d B s acc e ptan ces
’ ’
ven t , ,
.

being sti l l outs tan d in g in th e h an ds of pa rties to wh om th ey


h a d been n e got iated Th e h old ers of th es e ac ce ptanc es th en
.

c l a im ed th at th e m o rtg age d p re m is es s h ould be appl ie d to

th eir p ay m ent ; but it was h e l d th at th is m ortgage was to be


rega rd ed a s a pe rso na l sec urity cre ate d for th e in de m n ity of

B an d not to se cure th e p ay m ent of th e b ill s ; th at wh i le


.
,

th e pa rties were s olvent th e h old ers of th e b ills h ad n o e qui


ta bl e righ t to th e s ec urity ; a nd in th e m ean tim e unti l s uch ,

equitabl e righ t arose upon th e in s ol ven c y of th e d e btors B , .

h ad a pe rfect right to s urren der hi s se c urity or wi th the , ,

c on c urre nc e of th e d ebt or to tra n sfe r i t to th e ban k as a


,

s ec urity for a n e w lo an an d th at th e ri gh ts of th e ba nk to

th e s e curity we re n ot a fi ected by th e equity wh ic h afte rw a rd s ,

up on th e fa i lure of th e d eb tor an d of B a rose in favo r of th e .


,

h old e rs of th e b ill s 1 .

162 . Th e Cre d i to r h e n t it l e d to th e B e nefi t of th e S ure t y

I d
n ni t y
em w h e I n o l v e n c
n y s d it
in t erv en es o r W i.
ll Bil t th e c re

b e e n t it l e d u po n th ,
e i n s olv e n c y of th e p ri n c i p a l an d th e

s ure ty to th e be ne fit of s ec urity h e ld by th e s ure ty from th e


,

pri n c ip a l m ere ly for in dem n ity if th e cre d itor h as n ot


1
,

1 J ones a. Quinnipi c B a ank, supra . 72 Maine, 266 ; elly 0 H errick 13 1K .


,

Pierce, in re, 2 Lowell, 343 ; Foye,


1
Mass 3 73 ; Thom pson 0 Taylor 12
. .
,

in re, 1 6 N B R 5 72 ; Fickett, is re,


. . . R I 109 ; Keyes v Brush, 2 Paige
. . .
susaoe l n ox m c as r
s or suam rsm p . 247

waiv ed th is by proving his d em an d as an uns ecure d one


righ t

aga ins t th e estate s of th ose wh o are l ia bl e to h im th ere on


1
.

Wh e re an ass ig nm ent of p rope rty was m ade to sec ure an in


d ors er against th e paym ent of certa in n otes in dorsed by h im ,

an d h e s old th e pro perty a nd c onve rte d it in to m on ey an d ,

th en be c am e ins olven t th e n otes b ein g un pai d a n d th e m ake r , ,

be ing a l s o in sol vent it was h e ld th a t th is m on ey h a vin g , ,

be en k ept s eparate from h is o th e r p rope rty d id n ot pass to ,

h i s as s ignees in b ank ruptc y but th a t eq uity would foll ow ,

th e fund an d a pply it to th e p ay m ent of th e n otes


,
1
W h ere .

th e purch as er oi l an d proc ured a th ird p e rs on to give h is n ote


.

to th e ven dor for th e p ric e th ereof an d to s ec ure th e m ak er ,

of th e n ote gave h i m a bon d an d m ortgage on th e l a n d pur

ch a se d and th e m ak er of th e n ote be c a m e i ns olven t bef ore it


,

fell due th e vendor of th e l a n d was h e ld to be e nt itle d to


,

th e be n efit of th e bon d an d m o rtgage 1 T h e sam e rul e h as .

been a ppl ied upon th e ins olve n cy of th e p rin c ip a l a n d th e


death of th e s urety wh o h eld th e in dem n ity a nd a ls o upon
1
,

th e ba re insolven cy of th e p rin ci p a l 1 B ut to g iv e th is righ t .

of s ub stituti on to th e c re d ito r th e re l a tion of d ebto r a n d ,

cred itor m us t sti ll s ubs is t both between th e c red ito r and ,

th e surety and al s o b etw een th e c re d itor an d th e p rin c i pa l


1
,
1 .

A nd if th e s urety h as los t h is l i en th e c red itor s equita ble ,


’

righ t of substi tuti on th ereto is a l s o des troved 1


.

1 63 . S ure ty ’
s I n d em ni ty s o m e ti m es t re a te d as a Trus t for th e

(N 31 1 ; Chafle v Lisso, 33 La Truly, 1 S m


Dic k M (Mis s )
'
.
1 0 . .

K J
. .

Ann . 206 ; ing 0 Ha rm an, 6 La . . Oh 5 5 7 ; Tilford 0 am es, 7 B Mon


. . . .

6 07 K
( y) 3 3 6. .

1
New Bedford Savings I ns titution 1
Cons tan t v Matteson, 22 1113
J
. .

e Fairhaven Bank, 9 Alle n


.
( Mass ) , 5 46 ; Tilford v am es, 7 B Mon . .
.

1 75 ; Foye, in re, Morris , p ts, 1 6


a r K
( y) 3 3 6.
; Foy,
e is re , 1 6 N B R . . .

N B R 5 72 ; Loders Case, L R 6
. .
’
. . . 5 72 .

Eq 49 1 .
.
1
Watson
R os e 5 1 Ala 292 0 . .

J
.
,
1
Kipv New York Bank, 1 0 ohns .
. It was upon a nother point that this
( N Y 63
) , 65 . . case was overruled by S m ith v Gilla n , .

1 V
ail v Foster, 4 N Y 3 1 2 . .
80 Ala 29 6
J
. . . .

1 M
oses v Mur gs tm y d, 1 ohns . .
1
Boys , in re 2 Lowell, 424 ; s c , ,
. .

Oh (N Y ) 1 19
. . . . 16 N B R 5 72 . . . .
248 rue u w or sus noon l ox .

Paym en t o f b road doctrin e h as a l s o been often


th e D e b t . The
as s e rte d th at eq uity w i ll regard s ec uri ty gi ven by a p rin c i pa l

debtor to h is s urety th ough m erely for th e s urety s in de m


,
’

n ity as a trus t c re a ted for th e p ay m en t of th e d ebt an d wi ll


, ,

s ee th at it i s a ppl ie d for th at purpose by s ubs titutin g if , ,

n ec ess a ry th e c red itor to its be n efit S o it h as been h e ld


1
.
,

th at in ch a n ce ry on th e c red ito r s a ppl i c a ti on a fun d pl e dge d


’
, ,

by th e prin c ipal for th e in dem n ity of th e surety wi ll be a p


pl ied d irectly to th e paym ent of th e d ebt if th e s urety is ,

l iable for its im m ed iate paym e nt an d c ould upon h is pa y ,

m en t res ort at on c e to th is fun d for h is in d em n i ty


1
On th is .

princ iple an ac c om m od ation in dors er for a firm wh o h as ,

been h eld to paym ent upon h is in d ors e m ent, h as bee n s ubro


g a te d fo r h i s p ro tec t i o n to th e b en efit of b on d s g i ven by e ac h

pa rtne r to th e oth e r upon th e d is s ol ution of th e firm to pro ,

te c t ea ch res pec tive ly fro m th e d ebts th at w ere as s um e d by


th e oth e r 1 W h ere th e c red ito r re covere d j udgm en t aga in s t
.

both th e p rinc ipa l a n d th e surety an d th e oth er p rope rty of , ,

th e prin c i pa l b ein g in sufficien t to s atisfy th e j ud gm en t th e ,

s urety d i re c te d th e s h e rifi to l e vy th e e x ec uti o n up on p ro p

e rty m o rtga ge d by th e p rin c i pa l to h im for h is i n d e m n ity ,

wh i ch w as a c c ord in gly don e i t w as h e ld th at th e s a l e of th is ,

property upon th e ex ecution was va l id an d abs ol ute an d ,

th a t it e xtin guish ed th e l ieu of th e s ure ty s in d em n ify in g


’

m o rtga ge 1
.

1 64 . P a rti a l S ure ty n ot t o b e h a rm e d b y t h e S ub s ti t uti on

of th e C re d i t or t o h i s I n d e m y wh o is n ot n i ty . B ut a s uret

l iabl e for th e wh ol e d ebt i s n ot to be h arm ed by th e c re d i


1

tor s a pprop ria tion of h is in d e


m n ity ; it m us t b e a ppl ie d fi rs t
’

Burroughs v U nited States 2


1 Cons tant v Matteson, 22 Ills
.
,
1
. .

Paine, C C 5 69 ; B ranch v Macon 5 46 ; Baltim ore


. . O hio R R Co 0 . . . . .

R R Co , 2 Woods, 0 C 3 8 5 ; Trim ble, 5 1 Md 99


. . . . . . .

Thornton v Exchange Bank, 71 Mo .


1 Ingles v Wal ker, 3 7 Ga 25 6 . . . .

222 ; B reedlove e Stum p, 3 Yarg 1


Exline v Lowery, 46 Iowa, 5 5 6
. .

K
. .

M 0 H erric k, 1 3 1 Mass
1
( Te nn ) 25 7.
; a rtin 0 Bank, 3 1 See elly . . .

Ala 11 5
. . 3 73 .
sus aoc l rr
oa m cu m or s uam rs nm . 249

as m ay d d for his protection Th e m ortgagee of a


be nee e .
1

trac t of l an d wh i ch is subsequen tly s old to a th ird p arty


,
.
,

m ay e l ect to be subs tituted to th e righ ts of such th ird pa rty

in a m ortgage upon oth er p roperty wh ich th e l atter h as tak en


to ind em n ify h im s e lf agai ns t th e l ien of th e firs t m o rtgage ;
but in doin g so h e vac ates th e l ien of his ow n m o rtgage upon
the l a n d wh ich h as been s old to th e th ird party 1
Wh ere a .

s urety e x e cute d a m o rtgage upo n h is own l an d to s ec ure th e

pay m en t of h is prin cipa l s n otes w ith a prov is ion th at th e


’
,

s urety s h o uld n ot be s ubj ec te d to a ny furth er los s or l ia b il ity


'

th an th at wh ich was c reate d by th is m ortgage an d th e s urety ,

afte rw ard s took s ecurity f rom h is p rinc ipa l to in de m n ify


h im s e lf aga in s t an y los s th a t h e m igh t s ustain by reas on of
th is m ortga ge it was h e ld th at the s urety s l iabi l ity was
’
,

l im ite d to h is own p roperty m ortgage d togeth er with any ,

surpl us rem a in in g i n h is h an d s out of th e s ecurity re c eive d

by h im from the principal afte r fully in dem nify in g h im se lf


th erefrom for a ny los s res ultin g to h im from his m o rtga ge of
h is own p rope rty ; an d th at th e h olde rs of th e n otes c o uld
e ith e r enf o rc e th e m o rtgage or a b a n don th e m o rt a e an d
, g g
res ort to th e s ec urity receive d by th e surety from th e p rin c i

p a l d eb to r or h
, old th e m or t g g
a e d l an d s a n d a n y surpl us o f
th e security th at m igh t rem a in after fully in d em n ify in g th e
s urety for h is l os s by th eir res o rt to h is l an d s ; but th a t th ey

h ad n o furth er righ ts again s t th e surety eith er di rectly or ,

by s ub stituti on to h is security 1
A c red itor of a firm c on
.

s i s tin g origin a lly of two p a rtn ers on e of wh om , is dec eas ed ,

w i ll be c om pe ll ed to p rocee d a gainst property in the h ands


of th e survi ving partner before res orting to property wh ich
h as been depos ite d by th e de ce as ed partn er with h is s urety
to in d em n i fy th e l atte r aga ins t h is s uretysh ip upon b oth th is

1 Norton 0 Plum b, 14 Conn 5 12 ;


. .
1
Ro bertson 0 Baker, 1 1 Fla 192
. . .

Kassing v International Bank, 74 1118


. .
1 Van Orden 0 D urham , 85 Calif
. ,

16 Ky
e es o . Brush; 2 Paige ( N 13 6 .

3 11 .
25 0 wa s u w or suanoe rn ox .

an d oth er obl igations Wh ere a surety upon severa l prom


.
1

is s ory notes ta kes a m o rtgage f rom th e princ i pal c on d ition ed ,

th at th e p rin ci pa l sh a ll pay th e n otes an d s o save th e s m ty


h arm less th e refrom and s o h olds th e m o rtgage in trus t for
,

th e h olders of th e n otes and h e re m a ins pers on ally l i abl e ,

on on ly on e of th e n ote s and th e p rin ci p a l d ebto r i s in s ol ,

vent th e m o rtgaged p roperty if s ufficient to pay all th e n otes,


, ,

wi ll be appl ied fo r th at purpose and any s urpl us w i ll be ,

d istributed am ong t he gen era l c re d itors of th e m ortga gor


but if th e m ortga ge d pro pe rty is in s uffic ie nt to pa y a ll th e
n o tes it w i ll be firs t appl ie d for th e in dem n i fication of th e
,

s urety by pay ing in ful l if ne c e ss a ry th e n ote on w h i c h h e


, , ,

re m a ins l ia bl e an d th e s urpl us w i ll be appl ied to th e pa y m en t


,

of th e oth er notes pro ra ta 1


.

1 65 . Cre d it or c a nn ot b e s ub s t it ut ed to a S ec uri ty n o t c re a t ed

a g ai ns t Al th ough a c re d itor of a m ortgagee m ay


hi s D e b t ,

by s ubs titution in equi ty a vai l h im se lf of th e righ ts of the ,

m o rtgagee und er a m ortgage m a d e to se c ure th e de bt whi ch

h e is s eek ing to rec over and wh i ch i s d ue to h im se lf yet h e, ,

c ann ot do s o un l ess th e m o rtga ge w a s m ad e to s e cure th at

very debt ; and th e fact th at a m ortgagee h as j oined with


1

h is m ortga go r as th e latter s s urety in a bon d giv en by h im


’

to a s ec on d m o rtga gee of th e s a m e p rem ises gives th e s e c on d ,

m o rtgagee no e q uitabl e i nteres t in th e l ieu of th e p rior

m ortga ge ; n or in s uch a cas e would th e i ns olv en c y of both

th e m ortgago r and th e p ri o r m ortgagee en tit l e th e j un i or


m ortga gee in th e ab s ence of an y fraud p ra ctis e d up on h im
, ,

to be s ub s titute d to th e righ ts of th e p rior m o rtga gee


1
.

N or c an th e pl a intiff in an action for th e rec overy of a debt


h old m oney which h as been d ep os ite d by a th ird pe rs on with
a d ep uty s h erifi as se c urity to th e d eputy th at pe rs ons wh om

Newson v McLendon, 6 Ga 39 2 ton 9 4 N Y 1 04, revers ing s c 26


1 . . .
,
. . . .

1
Eastm an 0 Foster, 8 Met (Mas s ) Hun ( N
. 21 7, and dis tinguishing
.

Lawrence 0 Fox 20 N Y 268 . . . . .

1
Shackleford v Stockton 6 B 1
Brant v Clark, 27 N J Eq
.
,
. . . .

Mon ( Ky ) 390; Seward 0 Hunting 23 4


. . . .
sus noou l on IN ow n or sum rs m p . 25 1

he h as a cc e pte d as hai l of th e defen dant wi ll j ustify as s uch

ba il .
1

166 . m w h i ch a C re d it or h a s s o ugh t to b e s ub s t it ut e d

to S e c uri t i e s h eld b y a S urety or by one un d er a S ec o nd a ry

Li a b ili ty . princi pa l debtor an d two sureties h avin g


Th e
j oined in an obl igation to the c redito r th e principa l ga ve to ,

on e of th e s ureties a m o rtgage to s ec ure its p ay m ent and

s ave th e s ureties from loss Afte rwards th e m o rtgagor and


.

th e m ortgagee joi n e d to c onvey a n interest in th e m ortgage d


property to a strange r wh o reta ined in h is h an ds a portion
,

of th e purch as e m oney to m eet th e ch arges th ereon Th e


-
.

h older of th e o rigin a l obl igati on th en c l a im e d th a t h e wa s


en titl e d to be p a i d o ut of th e m ortga ged p rope rty by subeti ,

tution to th e bene fit of th e m o rtga ge ; and it was h e ld th at


h e h a d a righ t to be so p ai d ; an d th at th is equitabl e righ t of
h is w as n ot a ffec ted by th e m o rtga gee s h av in g join ed in the
’

c onv ey an c e to th e s tran ger e s pec i a lly a s th e l atte r h ad n ot


,

on ly h ad notice of th e m ortga ge and c on sequently of th e ,

righ ts of th e cred ito r th e reto but a l s o h ad actua lly reta ine d


,

i n h is h a n d s a po rtion of th e purc h ase m oney for h is proteo -

t i on th e refrom 1 A m ortgage wh ich rec ite d th at th e m ort


.

g g
a es h a d in do rs e d c e rt a i n n ote s for th e ac c o m m od a ti on of
th e m o rtgagor upo n th e c ond iti on th at th e m ortga ge sh ould
,

be given to s ec ure h i m f rom any l os s th at h e m igh t s usta in


in c on sequen ce of th e m ak er s n on p ay m en t of th e n otes at
’
-

th eir m aturi ty was c o nd iti on ed to be vo i d if th e m ortga gor


,

s h ould pay th e n otes or sh ould rep ay th e m ortgagee up on th e

latter s p ay in g th em and provi ded th at th e procee ds of a ny


’
,

s a l e of th e m o rtgaged p rem ises sh ould be a ppl i e d to th e pa y

m ent of all c l a im s of th e m o rtga gee un d er th e m o rtga ge ,

wh eth er th en or th ereafter pay a bl e wa s h eld to c onstitute ,

n ot m ere ly an in dem n i ty to th e i n dors er but a s ec urity for ,

th e pay m ent of th e notes so th at an y bon a fid e h old er of th e


,

Co m m ercial Warehouse
1
00 . v. 1 K unkel v . Fitzhugh, 22 Md 5 67 . .

Graber, 45 N Y 393 . . .
25 2 TH E LAW or sm ooun o x .

n otes m igh t m a in tain a b ill to forec lose it and h is rights ,

would n ot be afi ec te d by a re leas e given by th e m ortgagee 1


.

B ut i t h as b een decide d in Ne w J e rs ey th at a m ortgage given


by a gua rd ian to the s ureties upon h is guard ia ns h i p b ond ,

c o n d iti on e d to be vo i d if th e gua rd i an s h ould c o m ply w ith

th e c on d ition of th e bo n d by pay in g o ve r a ll th e m on e y in
h is h an ds to h is w ard up on th e l atter s a rriva l a t full age ’
,

c reates n o trus t for th e b en efit of th e m i n or but th e m o rt ,

g g
a e e s a re th e a b s o l ute ow n e rs of b oth t h e l ega l a n d th e

ben efic ia l inte rest i n th e m ortgage an d h a ve th e full ri gh t to ,

treat it as th ei r own ’
Th e c ont ra ry h as a l s o be en h e ld
.
1
.

1 67 . Cre d it o r s ub s t it ut e d to th e C l ai m of hi s D e b t o r for

R e i m b urs e m e n t upo n th e P arty ul ti m a te ly li a b le . A c re d itor


m ay a s l o be s ubs titute d to h is debto r s c l a im for re im b urs e ’

m en t upon on e wh o i s un d er n o l ia bi l ity for th e d eb t wh ere ,

th e l a tte r is th e p arty upon wh om th e b urden of th e d ebt


ough t ul tim ate ly to fall Thus wh ere a n in suran c e p ol icy
1
.
,

h a d b een p roperly as s igned by th e i n s ure d as s ec urity for a


loan of m on ey m ade to h im by th e as s ignee but afte r a los s ,

h a d o cc urre d th e in s ure d h avin g fai l e d an d th e in s ura nce


,

c o m p a n y h a v i ng an oth e r c l a im upon a b ottom ry bo n d a ga i n st

th e in s ured a nd a s urety upon th is bo n d th e c om pa ny be in g , ,

in dem n ified by th e s urety reta in e d th e a m ount of th is c l a im


,

out of th e lo ss upon th e as s ign e d pol icy in s te a d of c o ll ec ti ng

it from th e surety th e as s ign ee of th e pol icy was a ll ow e d in


,

eq uity to b e s ub s titute d to th e c l a i m of th e c o m pan y upo n th e

s ure ty to th e e xte nt of th e am oun t s o reta i n e d by th e c om


,

pany out of wh at was due to h im upon th e pol icy S o a ls o 1


.
, ,

th e pl a c in g of n ote s i n th e h a n d s of a n attorn ey as c oll ateral


s ec uri ty to c oll ect th em
,
a n d to a pply th e proc eeds u pon a
,

1Boyd 0 Parker, 43 Md 1 82
. . . 5 30; Miller 0. Lancaster, 5 Coldw .

1
Miller v Wack, 1 N
. Eq 204 . J . .
( Tenn ) 5 14
. .

1 Morrill v Morrill 5 3 V t 74
. .
, .

1
Antea , Q8 5 , and cases there cited . 410 .

J
Ac cording, one s 0 ohnson, 86 Ky . J .
sus s oe a rl os In ca ses or suam rs m r . 25 3

j udgm ent against th e pers on depos iting th em c reates an ,

eq uity in fa vor of th e j ud gm ent c red ito r wh i ch w i ll be eu -

forced upon h is a pplication a lth ough th e attorn ey s receipt ,


’

for th e n otes h as b een tra ns ferre d to a th ird pe rs on 1


Wh ere .

a m o rtgagor h a v in g p ai d th e am oun t due upo n th e m o rtgage


,

t o th e m ortga ge e after th e l atter h a d with out th e k n owl e dge


of th e m ortgagor as si gned his m ortgage took from th e m ort ,

g g
a e e a ft
,e r l ea rn i n g th e f a c ts a bo n d c on d i ti on e d th a
,
t th e

m o rtgagee sh ould to t h i n e of th e m o rt a
g g e th e
a
p y e as s g e

a m oun t th at w a s due th e re on a nd s av e th e m ortga gor h a rm

less th erefrom it was h eld th at th e a ss ignee of th e m ortgage


,

w as en titl ed to th e ben efit of th is b on d an d c ould en fo rc e it ,

aga in st one wh o h a d gua ran tee d it to th e m o rtgagor a l th ough ,

th e l atter h ad given an ackn owl ed gm en t of s ati sfacti o n th ereof


to th e m ortgagee th e c ourt s ayi n g th at th e m ortga gor c ould
,

obta in from th e m ortgagee (wh o h ad b ec om e th e pers on ul ti


m ate ly l i abl e i n equity to d b i y f h h old
a
p y t h e e t) s e cu r t or t e er

of th e m ortgage but c ould n ot as a ga i n s t th e c red itor de


, , ,

s troy th at s e c urity wh en obta in e d 1


.

1 67 a . B o n d h o l d er s ub s ti t ut e d t o B e n e fi t o f S e c urity gi v en

b y P arty ulti m a t el y lia b le . oWh ere, to ai d i n th e o


c n s tructi n

of a rai l road a S tate issued its bonds in ex ch an ge for th ose of


,

th e rai l roa d com pa ny un d er a sta tute wh ich c reated a m ort


,

g g
a e fo r th e p ro tec ti o n of th e S ta te th e h old ers o f th e S tat e ,

b on d s were h e ld to b e entitl ed to th e benefit of th is m ortgage ,

a fter th e Sta te b on d s h ad b een d ec i d ed to b e in v a l i d as h av

i n g b een is sued w ith out c on stitution a l auth ority 1


S o in th e .

c as e of bo n d s i s s ued by a c o un ty to a ra i lroa d c om p any for ,

wh i ch th at co m p any ga ve a m o rtga ge to th e co unty th e bon ds ,

h av i ng been s old in th e m ark et a nd th e c oupon s rem aini ng


un p ai d it was h e ld th at in equity th e ra i l roa d c om p any m ust
,

1
Dunlap v O Bannon, 5 B Mon North Carolina R R Co
’ 1
. . . . . . v
.

( Ky ) 3
. 9 3 . Drew, 3 Woods, 0 C 691 . . .

1
Sim eon v. Brown, 6 Ha n (N
25 1.
54 m s LAW or snsaos m on .

be rega r e d d
p rincipal debtor an d th e county as th e
as th e
surety an d th at th e bo n dh older
, s we re enti tled to be subs ti

tuted for th e p ay m ent of th eir c oupon s to th e benefit of th e


m ortgage Th e securi ty to th e S ta te or c oun ty was c ons i d
1
.

ere d to be n ot on ly for i ts own p rote cti on but for th e be tter


, ,

s ec urin g of th e bon d s But wh e re a c orporati on h as c onv eyed


1 .

l an ds to a S tate as a bare in dem n ity to th e S tate again st l oss


on th e S ta te s bon d s iss ued to th e c orpo rati on th e bon dh old
’

e rs c a nn o t as a ga i ns t th e S tate c om pe l th e l an d to be a ppl ie d
, ,

to th e p ay m en t of th e bon d a n d th e grantees of th e S ta te wi ll ,

tak e th e l an d free from any c l a i m of th e b on dh old ers 1


Th e .

ques tion (a part from any c on s iderati ons of s overeignty) h as


b een ta k en to be wh eth er th e rai l road c om pa ny or th e S tate
s h ould be rega rded as th e prin c i pa l de btor an d wh e th er th e
1
,

s ta tuto ry l i en was i nten d ed t o be ava i l a bl e for th e be n e fi t of

th e bo n dh old ers 1
B ut wh e re a town m a d e a l a wful a pp ro
.

p r i at i on to a ra i l r o a d c o m p an y a n d
. iss ue d i ts bo n d s th e re fo r

to th e c om pany th e purch a s e r of th ese b ond s fro m th e c om ,

p an y c ould n ot cla im to h ave p aid th e a pp rop riation by h is


p u r c h as e a n d t h e b o n,
d s b e in g i n d e fa,
u l t a n d h av i n g b e e n

h eld to be vo id in h is s uit aga in s t th e to w n was n ot s ub ro ,

g a t e d t o a n y gri h t o f t h e r a i l ro a d c om p a n y to e n fo r c e pya

m e n t of th e a pp rop ria ti on by th e town : h e was n ot a c red itor

ei th er of th e c om p an y or of th e to w n ; h e h a d pa i d n o d ebt of

1
Washington Railroad Cos o Schutte 1 03 U S
, Ohio 8: Western . .
,
. .

R R Co v Caze nove 8 3 V a 744


. . . 1 1 8 ; B ranc h 0 Macon B R
. 2 , . .
. . .

1
So in Tom pkins 0 Little Roc k Woods 3 8 5 ; Young 0 Montgom ery .
, .

R R Co 1 5 Fed Rep 6 1 8 H and R R Co , 2 Id 606


. . .
, . .
, . . . . .

0 Savannah
. C harleston R R 1
Tom pkins v Little Rock R R . . . . .

1 2 So Car 3 14 ; Gibbes v G reenville Co , 1 25 U S 109 ; s c 21 Fed


. . . . . . . .
,
.

Colum bia R R Co , 13 Se Car R ep 3 70 18 Id 344, and 5 Mc C rary


. . . . . .
, .
,

228 ; Forrest v Luddington 6 8 Ah 5 9 7 ; Stevens 0 Louis ville R R


.
,
. . .

1 Colt o Barnes 64 Ala 108 3 Fed Re p 6 73 ; C unningham 0 Ma . . .

K
. .
.
,

1
Cham berla in v St Paul R R c on R R 3 Woods, 41 8 ; elly
. . . . . .

92 U 8 299 . v Alabam a 6: Cincinn ati R R


. . . . .

1
S tevens 0 Louisville Nashville 5 8 Ala 48 9 ; Claws v Bondholders,
. . .

R R Co , 2 Flip C C 715
. . . See 5 4 Ga 3 1 5 . . . . . .
sus s oau x
on m '
c a srs or scarrrsm r . 25 5

ei th er, a nd h ad n o righ t of su r b ogation aga in s t eith er as h is


d e bt o r .
1

1 68 . S ub s t i t uti o n t o t h e S e c uri t i es h el d b y th e S ure ti es i n a

C rim i n a l R e oo gm z a n oe of th e cred itor to


. Th e b
su s tituti on

th e s ecurities h e ld by th e s ureties does n ot ex ten d to th e c as e


of a re c ogn i z an c e ta k en in th e c ourse of c rim in a l p ro c ee d i n gs

before th e l iabi l ity of th e sureties h as been fixed at law .

Th us wh ere th e prin c i pa l in s uch a re c ogn i z an ce ga ve a


,

trus t d eed to h is sure ties th ere in provi d in g th at if th e rec og


-

n izan c e sh ould b e forfeite d an d th e s uretie s b e c om e l iabl e

th ereon th e trus t p rope rty s h ould be a ppl ie d to pay th e


,

rec ogn i z a n c e s o fa r a s it w ould go it w as h e ld th a t th e S ta te ,

c ould n ot m a i nta i n a b i ll in e q uity to s ub j e ct th is p rop e rt y

to th e p ay m ent of th e am ount due upon th e re c ogn iz an c e be


fore obtainin g j udgm ent again st th e sureties Th e doctrine
1
.

of sub rogation d oes n ot apply in favor of sureties or ba i l to


b on ds ta ken in th e cours e of crim ina l proceed in gs 1
.

1
E tna Ins Cc . . v . Middleport , 1 24 Sta te, 78 Ind 103 ) seem s to be in
.

U S 5 34
. . . consistent with this, an d also with the
1
People v Skidm ore, 1 7 Calif 260
. . . usual rule as to the rights of succes
1
United States v R yder, 1 10 U S sive sureties Antes , 5 13 1 cl seq
K
. . . . .

729 Ah In diana Case ( ane 0


. .
25 6 m s u w or sus sos l n on .

CH A PTE R IV .

S UBROGATION AMONG JOINT DEBTORS .

Right of Joint Debtors to S a bro Applied to Mortgagees whose Es


gation as against each oth er ta te was s ubj ec t to a Prior Lieu
Wh ere one Joint Debtor h as as N ot applied wh ere Lien upon on e
sum ed th e Ultim ate Lia bility Sec urity e xti nguished
In Cases of Pa rt nersh ip Wh ere th e Ultim Lia bili ty is
a te

S ubstitution of a Part nersh ip Cred upon o ne of Se veral Own ers o f

itor t o S ec urity ta k en by a t e S ec urities h eld for t h e Sa m e


tiring Pa rt ner agains t th e Firm Debt
Th ese Principles a pplied to Join t
Wh ere Sec urities belonging to Dif Mortgagors an d to the Gra ntees
fe re n t Owners are h eld for th e of a Mortgagor

Sa m e Debt Extent of th e Righ t of S ubre gn


Where Land of two or m ore Own
ers is subj ec t to one Mortgage 1 73 Wh eth er Origin alObliga tion dis
This Prin ci ple a pplied agai n st o ne c h arged as to all th e De btors

c laim ing undera oin t Purchas e r 1 74 J upon Paym ent by one

1 69 . R igh t of J o i n t D e b t ors t o B ub ro ga tl o n as a g ai ns t each

o th e r . ri gh t of
b ogation a m on g partie s seve ra lly
Th e su r

b oun d as p rin c i pa l s h a s b e en d en ie d 1
but th e us ual ru l e is
,

th at one of several jo in t d ebto rs w i ll as a ga in s t h is c o ,

d ebtors ord inarily be subrogated to th e sec urities an d m eans


,

of paym ent of th e com m on c red itor wh om h e h as s atis fied s o ,

as t o en abl e h i m to re c ove r fro m h i s c o d eb tors by m ean s -

th ereof th e ir p ropo rt ion a l sh a res of th e i ndebte dn es s wh ic h


,

h e h as d is ch a rge d ; an d th is a s in oth er c a ses of s ub roga


1
,

ti on a ris es rath er fro m n atura l j us tic e th a n f rom c on tra ct


,
1
.

Each j oint debtor is regarded as th e p rin c i pa l debtor for th a t

Clark 0 Warren, 5 5 Ga 5 75 ;
1 .
, 45 Ohio S t 5 7.7 ; S um ne r s Walker .
.

Engles v Engles, 4 Ark 286 ; Benton R hodes , 1 4 Conn 1 3 5 S m ith 0 Le t


. .
. .

0 Bailey, 5 0 V t 1 3 7
. im er, 1 5 B Mon ( Ky ) 75 ; Shrop
. . . . .

1
Ackerm an s Appeal, 1 06 Penn shire v C reditors , 1 5 La Ann 705
’
. .
. . .

St .1 ; o byns v D R awley , 76 V a
1
. u rbin v K un y, 1 9 G reg 7 1. D .
. .

5 3 7 ; Baltim ore Ohio R R Co v . . . .


sunnos an on AMONG JOINT ns sros s . 25 7

part of debt wh ich h e ought to pay an d as a s urety for


th e ,

h is co d ebto rs as to th at part of th e deb t wh ic h ough t to be


-

d is ch arged by th em 1
Thus if th ree pers ons m ortgage th eir
.
,

joi nt property to in dem n ify th e d rawer of certa in b i lls of ex


ch an ge d ra wn for th eir a cc om m od ation ea ch of th e m o rt ,

g g
a o ra a g re e i n g t o t a k e u p a t h i rd p a rt of th e b i ll s on th ei r

return a n d th e n two of th em n egl ec t to tak e up th ei r two


,

th irds s o th at th e o th er m ortgagor is c om pe ll e d to pay th e


,

wh ol e of th e b i ll s in c on s equen c e of wh ich h e requests th e


,

d rawer n ot to re l eas e th e m ortgage but to h old it for h is ,

benefit an equitab l e l ien i s th ereby c reated upon th e m o rt


,

g g
a e d p rop e r t y to th e am o u n t of two th i rd s of th e b i ll s i n -

favor of th at m ortgagor wh o took up th e bi lls 1


Wh ere one .

of severa l proprietors of l an d p ays th e wh ole cost of a pave


m e n t l a id on th e requirem en t of th e m un i c i pa l a uth o rities ,

for wh ich th e property wa s b oun d an d th e prop rietors we re


i n d iv id ua lly l ia bl e h e w i ll be sub rogate d to th e righ ts of th e
,

pa y er to en abl e h im to rec over th eir proportion s from th e


,

oth er proprietors Wh ere tw o joint purch asers of rea l estate


1 .

g a v e to th e i r v e n do r a m o rt a
g g e th e re of t o s e cu re th e p y
a

m en t of th e purc h as e m on ey an d afte r th e de ath of on e of


-

th e m ,
th e s urv ivo r p a i d th e p urch ase m on ey th e l atte r was -

sub ro gate d to th e l ien of th e m o rtga ge an d a llo wed to h old ,

th e m o rtgage d prop e rty for th e ex c es s of th e j oin t deb t p ai d


by h i m above h is proportion th ereof against th e wi dow an d
h ei rs of th e d ec ea s ed purch aser 1
B ut th e c re d itor m ay of .

1
H enderson v MeDufiee, 5 N H . . . B Mon ( Ky ) 1 3 ; Owen v McGe
. . . .

3 8 ; Newton 0 Newton, 5 3 N H . . . hee, 61 Ala 440 ; Martin v Baldwin, . .

5 3 7 ; B atc h 0 Norris, 5 3 6 Maine


.
, 7 Ala 9 23 ; C hipm an v Morrill, 20
. .

41 9 ; Goodall v Wentworth 20 .
, Calif 1 30
. .

Maine 3 22 ; Se ward 12 Huntington,


, .
1
Pratt a Law, 9 Crunch, 45 6 . .

26 H un ( N 21 7 ; Sterling v
. .
1
Whitehead s Succession, 3 La
’
.

S tewart, 74 Penn St 445 ; Morrow . . Ann 3 96. .

v Pe to n, 8 Lei h
.
y g 5 4 ; B oyd 1
Wheatley e Calhoun 1 2 Leigh .
,

0. B oyd, 3 Gratt ( Va ) 11 3 ; Moore . . 264 ; Tom pkins 0 Mitchell, 2 .

v S tate, 49 Ind 5 5 8 ; H all 0 Hall,


. . . Rand ( Va ) 428
. . .

34 1nd 3 14 ; Collins v Carlisle, 7


. .

17
25 8 m s u w or s m os s n ou .

o
c urs e hold a ll debtors and a ll the securities
th e th at they
h ave gi ven, unti l h e s h a ll be fully s ati sfied 1
.

§ 1 70 W h s re.
‘

on e Join t De b t or h ss ass um e d t he m an u
m u nty . between j oin t debtors, it h as becom e th e
If, as

duty of on e of th em to pay the en tire debt th e others if , ,

th ey s h a ll be com m lled to pay i t wi ll be s ub roga ted to th e ,

s ec uritie s an d m e ans of paym e n t h e ld by th e c red itor aga ins t

the form er j us t as if th ey h a d bee n sureties of th e form e r


,

c o n om ine 1 Th us if two of th e three princ ipal obl igors in


.
,

a bon d put in to th e ha n ds of th e th ird th e m e an s to pa y i t ,

but h e fa i ls to do ao an d a j udg m ent rec overe d upon th e b ond


,

a ga ins t th e th ree is pai d by on e of th e two the l att er wi ll be ,

s ub rogate d to th e l i en of th e judgm ent upon th e l an ds of the

th ird in th e h an ds of h is gra ntees to wh om h e h as c on veyed ,

th em s ince th e j udgm e n t 1
The sam e prin c i pl e was a ppl ied .

in a ca se in wh ic h it a p peare d th a t th e plaintifi an d M be .
,

in g p artne rs agree d tha t M s h ould pay th e d efen d ant for


,
.

property which th ey h ad bough t of him an d M ac c ord in g ly , .

s en t his n ote to th e d efen d ant wh o de c l in ed to re ce ive it as ,

paym en t and dem anded and rece ived th e pric e of th e prop


,

erty from th e pl a inti ff Th e pl a inti ff and th e d efen d an t th en


.

a gre e d th a t th e d efend an t s h ould s ti ll h old M s n ote a n d


’
.
,

c on c e a l th e pl a inti ff s pa ym en t an d s h ould turn over to th e


’
,

p l a in t i ff w ha te v er M m i gh t a
p y o n th e n ot e. M h a v i n g . .

f
a ter arw d s m a d e a pa y m e n t o n th e n ote to th e d ef e n da n t, in

i gn oran c e of th e pl ain tiff s paym en t i t w a s h e ld th a t the


’
,

pla in tiff h a d by subrogation a righ t to a ll th e s ecurities h e ld


by th e e en d f d an t an d t h at M n o te
,
b e ing s u c h a se c u r i t y , .
,

Hall
1 0 How ar d 3 2 Ch S ch oe ns w ald e D i ode
.
s , 6 Ill s A pp . . .

K
. ,

ram er 0 Car ter 136 Mass 504 ; 3 8 9


.
,
. .

Frost 0 Frost, 3. S au df C h ( N Y )
1
S hin n
. a S hinn 9.
1 Ills 4
.
7 7 ; . .
,
.

1 8 8 ; H oye 11 P e nn , 2 H e rr
.
G W h e ele r
’
s E s ta te. 1 M d G h.
D ec 8 0 ; . . . .

( M d ) 473.
; Ma nn in g 0 Gas hu ie, 27 C ra fts 0 M
.
ott . 4 N Y 60 3 ; '
C he rry . . .
S UBBOGATION AMONG J em s M BTORS .

th e paym ent m ade th ereon bel on ged to th e pla intifi S o if .


1

o ne of t wo jo int d ebtors h as gi ven t o th ei r s ure ty for th e

d eb t ollate ra l s ecuri ty to protect h im agai nst h is suretyship


c ,

an d h as th en agre ed wi th h i s c o de btor for a val ua ble c on sid -


. o

e rati on h im se lf to pay th e wh ol e d ebt th e oth er j oi n t d ebt or


, , ,

if h e is afterwards c om pel l ed by th e c re d itor to pa y th e d ebt ,

w i ll be s ub roga ted to th e ben efit of th at sec urity in th e h ands


of th e s urety wh om h e h a s d isch arge d by h i s p aym e n t in
, ,

p re fe r e nc e t o th e c l a i m s of the j ud gm en t cred itors of th e -

d ebtor wh o sh ould h ave p ai d th e de bt 1 The s am e rule s w i ll .

be a ppl ied i f th e jo int d ebto rs are a h us b an d an d w ife wh o


h a ve b een d i vorc ed 1
But th e debtors cann ot by any a rran ge
.

m ent am on g th em s el ve s l es se n th e righ ts of th e c red itor

a ga in st a ll or an y of th em ; h e m ay in s is t upon be in g pa id

in full l eavi n g th em to a dj ust th ei r own e quities


,
1
A nd .

eve n a fte r fu ll s atis fac ti on of th e c red i tor as s ub rogati o n is ,

an equity t o b e en fo rce d on ly wh ere it w i ll ben efit a m e rito .

ri ons c l a im with out doing in jus tice to others it wi ll be 1


,

de n ie d it th e pers on c l aim in g it h as agree d for va l ue to waive


h is righ t or if h e is ind ebte d in a l arger am oun t to th e
,

p arty aga in st wh om h e seeks it 1


.

1 71 I n C as es o f P rt n r h ip
. A p artner wh o after the
a e s .
,

d iss olution of th e partn ersh ip pays a firm debt out of h is ,

p ri v a te p rop er ty m a y i n e q u ity e n fo rc e c on tri b ut ion th e ref or

from h is c o p artn ers by v i rt ue of th e pa rtnersh ip agreem ent


7-

to c ontribute to los s es ra th er th an by way of s ub rogati on ; 1

but h e cann ot c l a im an y l ie n upon th e se para te esta te of h is

1 Field Ham ilton, 45 V t 35


0
. . .
1
Greenlaw v. Pettit, 8 7 Tenn .

1
Butler 0 Birkey, 13 Ohio St
. . 46 8 .

5 14 .
33 Ills 46 4 ; 1
Down s 0 J ackson,

K
. .

1
Ste vens 0 Goodenough, 26 V t Eakin v
. nox 6 8 0 Car ( Ric h ) 14
. .
, . . .

6 76 .
1
Phillips 0 Blatchfo rd 13 7 Mas s .

J
.
,

ac kson 6 R ober
1
ts , 83 Ga 3 5 8 ; 5 10; Hogan 0 Reyn olds 21 Ala 5 6 ;
. . .
, .

B ards o Burton 79 Ills 5 04 B nettel Ba rtlett v McRea , 4 Ala 68 8 Contra,


. .

J
.
, . .

o Harm ount, 46 Minn 48 1


. Bells 0 H ubbell, 2 ohns Oh (N Y )
. . . . . .

1
Antea , 5 4 .3 9 4, 3 9 7 .
260 m s m m or sus s ool n on
'
.

partner in bank ruptcy for th e ba l an ce due to him self upon


s ettl em ent of th e pa rtnershi p ac c ounts by s ub roga ti on to th e ,

righ ts of a firm c red ito r wh o h as b een p a id out of th e firm -

p roperty ; for partnersh ip c re d ito rs h ave th em se lves no l ien


1

up on th e firm prope rty an d can s ecure its a ppl icati on to


1
,

th eir c l a im s only th rough th e righ ts of th e pa rtn ers 1 Th e .

c red itors of a p a rtner wh o i s en ti tl e d t o be s ub rogate d as

aga in s t th e firm wi ll s uc c ee d to h is righ ts a n d th e l eg a te e


1

of a partner subject to th e paym en t of h is d ebts w i ll oc c upy


th e s a m e po s iti on 1 If i n d iv idua l p rope rty of one of th e .

partn ers of a b an k rupt firm h as been pl edged for a firm de bt ,

th e c red i tor m ay a n d i f re quested by s epa ra te c re d ito rs of ,

th at p artn er m ust p rov e h is wh ole d ebt aga ins t th e fi rm as ,

s ets for th e re l ie f of th a t p a rt n er s se pa rate esta te th us i n


’
, ,

effe ct s ubroga t in g th at se para te es tate to th e c re d ito r s righ t


’

agai n s t th e firm
1
Th e s ub roga ti on of one pa rtn e r wh o h as .

p a i d a fi rm d eb t to t h e po s i ti on of th e c re d it o r as a ga i n s t h is

co p a rtn e rs c an n ot o rd in a ri ly be en forc e d wi th out a s ett le


-

m ent of th e p a rtn ers h i p ac c ounts 7 Nor c an th e b a il of on e .

In re S m ith, 1 6 N B R 11 3 ;
1 . . .
1
Hill 0 . H uston, 1 5 Gratt .
( V a .
)
Sing izer s Appeal, 28 Pe nn St 5 24 35 0
’
. . .

1
Case 0 Be aure gard, 1 Woods, .
1
Collie, is
3 Oh D 48 1 ; B o w re, . .

C C 1 25 ; s c 99 U S 1 19 ; Allen
. . . . . . den, a: pa rts , 1 ean Ch 1 3 5 ; D . .

a Centre V alley 21 Conn 1 30 ; Plum m er, in re, 1 Phillips, 5 6 ; R olfe


K
. .

S igler e nox County Bank , 8 Ohio


.
0 Flo wer, L
. R 1 P C 27 ; Englis h
. . . .

S t 5 1 1 ; Gwin v Se lby, 5 Ohio St


. . . Am erican Bank, as pa rts , L R 4 . .

96 ; Mayer v Clark, 40 Ala 25 9 . . Oh 49 ; H olbrook, is re, 2 Low ell,


.

Reese 0 Bradford, 1 3 Ala 8 3 7 . . . 25 9 ; Tho m as , is re, 8 Biss 1 39 ; May, .

1
Co uchm an o Maupin, 78 Ky 3 3 ; . . is re, 1 7 N B R 1 92 ; Bos ley e . . . .

O Bannon v Miller 4 Bush Lawre n ce, 1 1 Paige ( N 5 81;


’
.

K
.
,

Black 0 B ush, 7 B Mon ( Ky ) 210


. . . . Wilder o eeler, 3 Id 167 . . .

Guyton v Flack 7 Md 3 9 8 ; .
, .
1
B ittner v Hartm an, 139 Penn . .

Schm idtapp v Currie, 5 5 Miss 5 9 7 ; . . St 63 2 ; Fassler v Hic kem ell, 82


. .

Hawk Eye Woollen Mills 0 Conklin , . Penn S t 1 5 0; Baily o B ro wnfield, 20


. . .

26 Iowa, 422 ; Wate rm an 0 H unt, 2 . Penn S t 41 ; Shattuck v Lawson, 1 0


. . .

B 1 29 8
. . . Gray ( Mas a ), 405 ; Le Page 9 Mc .

1
Matter of S wayne, 1 Clark Crea, 1 Wend ( N Y ) 1 64 ; Barhydt . . .

5 7 Foot, in re 1 2 N B R , . . . 0. Perry, 5 7 Iowa, 41 6 ; Lyons v .

33 7 ; Ro yalto n Bank v Cashing, 5 3 . Murray, 9 5 Mo 23 McDonald 0 . .

V t 3 21 . . H olm es, 29 Pac Re p 735 . . .


S UBROGATION AMONG JOINT ns s ross . 26 1

partn er wh o h ave as such bail b een c om pell ed to pay a


, , ,

j udgm ent rec overed agains t th a t partn er for a firm debt re ,

c ov e r at law f rom th e o th er p artn e rs an y p art of th e s um


1 n or a fte r s uit b rou h t upon a p a rtn
th us pai d by th em g e r ,

sh i p d e bt an d its s ati s fa cti o n by on e of th e p a rtn ers s ued c an ,

e qui ty pres e rve or e x ten d th e v a l id ity of th e o rigi n a l s ec urity

un d er th e guis e of an as s ign m en t s o as to c h arge th e b a i l of ,

a n o th er pa rtn e r for th e fo rm e r s re im b urse m en t


1
B ut a
’
.

partn er wh o h as gon e out of th e firm an d ta ken for a va lu ,

a bl e c on s i de rat i on th e agreem en t of th e re m a in in g m em b ers

of th e firm to in d em n ify h im from th e p a rtn e rs h i p d ebts w i ll ,

in equity be regarded a s th e s urety of th e oth er partn ers 1


,

a nd w i ll if h e is c om p e lle d to pay a firm d ebt be s ub rogate d


, ,

to th e ri gh ts an d rem ed ies of th e c re d ito r th erefo r a ga ins t


th e rem a in in g m em be rs of th e firm 1 If on e p artne r buy s .

th e interes t of th e oth er in th e firm p rope rty an d a s s um e s th e ,

fi rm debts h e wi ll in equity be rega rd ed as th e prin c ipa l


,

d ebtor an d th e oth er as m erely h is s urety ; and a firm c red


,

i tor wh o h as n oti c e of th e fac ts h as b een s a id to be b oun d at


h is pe ri l to trea t th e form er pa rtn ers res pec ti ve ly as pri n c ipa l
a n d s urety ;
1
th ough an y s uch l i m ita ti on of th e c red ito r s
’

origin a l ri gh ts c a n s ca rce ly b e m a in ta in ed on p rin c i pl e 1


.

1 71 a . S ub s t i t uti o n of a P a rt n e rs h i p C re d i t o r t o A gree m ent

or S ec uri ty t ak en by a R e t iri n g P artn er ag a i n s t Fi rm D e b ts .

1
B owm an 0 B lodge tt, 2 Met . . O akeley v Pasheller, 10 Bligh,
1
.

( M a s s ) 3 0 8
.
; Os bo rn v C unning ha m ,
. N s
. 5 48 ; Colgrove v Tallm an , 6 7
. .

4 De v 8: Ba t Law ( Nor
. 423 . . . N Y 9 5 Morss v Gleason , 6 4 N Y
. . . . .

1
H inton v Odenheim er, 4 Jones, . 204 ; Millerd v Thorn , 5 6 N Y 402 . . .

Eq ( N or Car ) 406
. . . . Savage 0 Putna m , 3 2 N Y 5 01
. . .
°

1
Olson v Morrison, 29 Mich 39 5 . . D odd v D
reyfus, 1 7 Hun ( N
. 600, .

B urnside v Fetzner, 63 Me 107 ; . . William s v Boyd 75 Ind 286 ; S m ith


.
, .

W illiam s v Bush, 1 Hill ( N . 623 . . e Shelden, 3 5 Mi ch 42


.
; Co nwell v . .

1
S ham burg v Abbott, 1 12 Penn . . McGowan 8 1 Ills 28 5 ; Burnside v
, . .

S t 6 ; Scott s Appeal, 8 8 Penn St Fetzuer, 63 Mo 107 ; Leithauser v


’
.
. . . .

1 73 ; Fro w s Esta te , 73 Penn St 45 9 Ba um eister, 47 Minn 1 5 1


’
. . . .

Merrill 0 Green 5 5 N Y 270; Con


.
, . .
1
Rawson 0 Taylor, 3 0 Ohio St .

w ell 0 McGowan, 8 1 Ills 28 5 Contra ,


. . . 3 89 Gates 0 Hughes, 44 Wise 3 3 2 . . .

in Florida, Griflin v Orm an, 9 Fla 22 . . . Az tec , 5 25 .


262 m m or m om m a .

The C ourt of A ppe als of th e Sta te 9! New York an d the


S uprem e Courts of Penn syl van i a an d A rk ans as h ave refus e d
to ll ow the cred itor of a partn ersh ip to m a in tain an acti on
a

upon a bond given to a reti ri ng partne r by th e re m a in in g

m em bers of th e firm to secure h im aga ins t h is li abi l ity for


th e pa rtn ersh i p de bts upon the m an i fest groun d th at th e ,

bon d w as given no t at a ll for th e ben efit of th e firm c re d ito rs


, ,

but s ol e ly for th e p rotect ion of the reti ri ng pa rtn er ; but if


1

th e b on d is con d it ion ed both for the rel ief of th e re tirin g


partner an d for the paym en t of th e outstan ding firm debts it ,

has been c ons i de red to be m ore th an a m e re c ont ract of i n dem


ni ty an d b oth th e obl igee of th e bo n d an d th e firm c red itors
,

th em se lv es h a ve be en a ll owed to proc eed upo n it to en force

pa y m e nt of th e fi rm de b ts
1 Th e rem a i n ing partne rs b y .
,

the ir agreem e nt to approp riate th e firm property to th e pa y


m ent of the firm debts h ave be en h eld to be c o m e truste es ,

for th e c re d itors and wi ll be he ld by a c ourt of e quity to th e


1
,

proper di sch arge of th e trust Th e sam e princ iple wi ll be


1
.

1 Merrill
Green, 5 5 N Y 270; 0. . . Arnold v Nichols, 64 N 1 1 1 7 ;
. .

Mackintos h v Fatm an, 3 8 How Pr . . . Floyd 20 Kans 162 Sim ih r . .

( N Y
.
) 1 45 ; Se r
.viss o M c D ouell, . doc trines are m aintained in Rice 9 .

107 N Y 260; Berry 0 Brown, 1


. . . Savery, 22 Iowa, 470; Wiggins a Mo
O
.

Silvem ail s N Y Ct Appeals , 5 42 ;


’
. . . Donald, 1 8 Calif 126 ; Allen 9 . .

Cam pbell 0 Lacock , 40 Penn St . . . Thom as , 3 Met ( Ky ) 198 ; Hall a


. .

448 ; H icks v Wyatt, 23 Ark 5 5 . . . Roberts , 61 Barb ( N Y ) 3 3 Meet . . . .

1
H ood 0 Spencer, 4 Mc Lean, C . . of these decisions were m ade in S tates

0 168 ; Collier, is re, 12 N B R


. . . . in which the distinction between la w
266 ; Claflin v Ostrom , 5 4 N Y 5 8 1, . . . an d equity has been abolis he d, a n d the

5 8 4 ; Barlow v Myers, 3 Hun ( N . real party in inter est allowed to an: in

720 and 6 Thom p C ( N Y ) 18 3 ;


,
. . . his own nam e .

Wilson v Stilwell, 14 Ohio St 46 4 ; 1


Gorham , cs re, 9 Km 23 ; H ars h
’

. .
.

Ingles 0 Walker, 3 7 Ga 25 6 Dun


. .
v Bennet t, 5 McIma n, 1 1 7 ; Wilda 9
. .

lap v McNeil, 35 I nd 316 ; Devol


. . Chapm an, 4 Edwards, Oh ( N Y ) . .

6 McIntosh, 23 Ind 5 29 ; Fr
. ancis 0 . . 6 69 .

Sm ith, 1 Dur ( Ky ) 1 21 ; Ga rvin v . . .


1
Sedan s William s 4 McLean 5 1 ;
.
,
.
.

Mobley, 1 Bush 48 ; Meyer 0 . Wilson v 8 0per 1 3 B Mon ( Ky )


.
,
.
. .

Lo well 44 Mo 328 ; Poole v 41 1 ; Phelps 0 McNeely, 66 Mo . .

K
. .
,

H intm ger, 60 Iowa, 1 80 ; im ball 5 5 4 ; Beer 0 Wilkins on, 3 5 W V a


. . .

v Noyes , 1 7 Wise 69 5 ; Sande rs e


. . . 422 ; C onroy 0 W oods, 13 Calif . .

C lason, 1 3 Minn 3 79 S ee further . . 626 .


sus soe l n on Al one JOM uw ross 263
’
.

ap pl ied to th e deposit by th e reti ring partner of a sum of


m on ey wi th th e n ew firm wh ich by agre em e nt between him ,

an d th e m em bers of th e new firm is to be applie d to h is ,

s h a re of th e l ia b i l i ties of th e old fi rm it b ec om es a trus t


fun d for th e c re d itors of th e old firm an d th e ir rights will ,

n ot be afl ected by a ny s ubs eq ue nt eq uiti es th a t m ay a ris e in


’

fa vor of th e m em be rs of th e n ew fi rm 1 But a p rom is e by .

th e m em b ers of th e n e w firm t o th e retiri n g partn er upon ,

th e ir ta k in g m e re ly th e as sets of th e old firm to pay its ,

d ebts th ough it h as been h eld to give th e old cre ditors a


,

direct righ t of acti on again st th ese new m em bers or oth ers 1


, .

wh o h a ve m a de it un der th e l ib era l doc trin e th at on e for


1
,

wh os e be nefit a p rom ise is m a d e m ay enforc e it th ough not ,

a pa rty to it or p rivy to th e c ons id erati on


1
ye t g i ves th e re ,
~

tirin g partn er n o l ien upon th es e as s ets for th e enf orcem ent


of th e prom ise 1 an d gi ves th e firm cre d itors n o l ien upon th e
,

assets wh ich can be enf orc e d agains t th i rd pers ons to wh ose

h an ds th es e ass ets c om e with out n otice of any trus t a nd no 1


,

s pec ia l righ ts it is s om etim es h eld again s t th e rem a in ing


, ,

p a rtn er s p e rs on a lly 7 or a gai ns t th e ass et s in ,


th e h a n d s of th e

latte r even th ough th e fi rm and a ll the partners were ih


1
,

solven t wh en th e prom is e was m a d e Th e right of p artn er


1
.

sh i p cre d ito rs to h old th e pa rtn e rsh i p prop e rty d oub tl ess

a ri ses by w ay of subroga ti on to th e righ t of th e pa rtners to

h ave th e firm property appl ied to th e p aym ent of th e firm

1
Fries e . Ennis, 1 3 2 Penn . St
. Com m erc ial Bank 0. Lewis , 1 3 S m .

19 5 . M ( Misa ) 226
. .

1
Fagely, 19 Penn St
Belles v . Fulton e Hughes , 63 Miss 6 1 ; . .
1
. .

273 ; Weaver 0 White, 19 N Y Hapgood v Cornwell, 48 111s 64


. . . . . .

S upt 616 . .
1 Wild 0 ean, 3 Allen ( Mas s ), . D
1
Goldm an v Biddle, 1 18 Ind 492 ; 5 79 ; Fow le v Torrey, 1 3 1 Mu s 29
. . . . .

Maxfield v Schwartz, 43 Minn 221


.
1
Robb v Mudge, 1 4 Gray ( Mas s ).
. .

Le bow e Sim onton, 3 Color 346


. 5 3 4 ; Ric hardson 0 Tobey, 3 Allen
. . .

1 A ntes
, 5 85 81. .

1
Griflith 0 Buck, 1 3 Md 102 ; 1
. Howe 0 Lawren ce. 9 Ca sh . . .

Goenibel v Am ett, 100 Ills 3 4 ; ( Mass ) 5 5 3 ; Robb e Madge, 14 Grsy


. . . .

Andre ws 9 Mann, 3 1 Miss 322 ; ( Mm ), 53 4


. . .
264 m m v or s us a oo l rr
on .

debts but th ese ri gh ts are n ow a pa rt of th e law of partner


1

s h i p rath er th an of s ub rogat i o n .

§ 1 72 . W h ere S e c uri ti es b e l on gin g t o Dfl eren t Ow ners s re h el d

fo r th e S a m e D eb t . Wh ere s ec urities belongi n g to s e ve ra l


d ifferent pers ons are h e ld togeth er to sec ure th e paym ent of
a s in gl e de bt th ey s h ould be a ppl ie d pa ri pa n s to th e s a tis
,

faction of th e c re d itor so tha t ea ch of th e severa l own ers of ,

th e s e c uritie s m ay c on tribute h is j us t propo rti on of th e c om


m on b urden ; and if s uch c red itor s atis fies th e d em an d out
1

of th e s ec uriti es of o n ly o n e of th e own e rs l eavi n g th e oth e r ,

se curities un d i s turbe d equity w i ll so d is pose of these oth e rs ,

as to th row th e burd en of th e d e b t upon a ll in rea s on a ble pro

po rt i o n s
1 Th e on e wh ose p rope rty h as p a i d th e wh o l e de bt
.

wi ll to th e e x ten t of h is ac tua l p ay m e nt be s ub roga te d to


, ,

th e ri gh ts of th e c red ito r a ga i ns t th e oth e rs an d m ay h ol d ,

th e i r s ec urities to e nforce th e p ay m en t by th em of s uch s um s


as th ey ough t in equity to c on tribute If th e sec urity is a
1 .

m o rtgage an d th e wh ol e d ebt is pa i d to s a ve th e es ta te of
,

th e pa rty payi n g it by one of two te n an ts in c o m m on wh o ,

h ave s in ce th e giv ing of th e m ortga ge a cquired th e e quity


, ,

of redem pti on th e as s ign m en t of th e m ortgage to th is c o


,

ten an t w i ll n ot e x tingui sh its c l a im i n fa vor of th e oth er ,

wh o h as p a id n oth i n g 1
Th at sh are of th e m ortgage debt .
-

wh ich it be longed to s uch an ass ignee to pay is e xtinguis h e d ;


1
Manches te r Bank
, 12 ( N 734 ; s c , 6 Abbott Pr ( N 0: pa rts , . . . .

Oh D 91 7 ; Wiley, is re, 4 Biss C Y ) 99 , 101 ; Sem m es v Boykin, 27


. . . . . .

C 21 4 ; Ri ce 0 Barna rd 20 V t 479 ; Ge 47 So in ad m iralty, The De w


. . . . . .

Washburn v Bank of Bellows Falls, thorpe, 2 N otes of Gas 26 4 ; The


.
.

1 9 V t 278 ; Ri chardson 0 Tobey, 3 Constantia 4 Id 5 12


. .
, . .

Allen Howe v Lawrence, 1


Gould a Ce ntral Trust 6 . .

9 C ash ( Mass ) 5 5 3 ; Wate rm an v Abbott New Cas ( N Y ) 3 8 1 ; Mr


. . . . . .

H unt, 2 R I 29 8 ; Fargo v Am es , C m dy 0 V an Antwerp, 24 H un ( N


. . . . .

45 Iowa, 491 ; Schm idlapp 0 C urry, 3 22 . .

55 Miss 5 9 7 ; Grabenbeim er v
.
1
Aiken v Gale, 3 7 N H 5 01 ; . . . .

RindskOpf, 64 Tex 49 owdy v Blake, 5 0 Ark 205 ; Beck


. . D . .

1
Wright, is re, 16 Fed Rep 482 ; e Tarrant, 6 1 Te x 402 . . . . .

Hoyt o oughty, 4 Sandi


.
(DN Y ) 1
B a rker 0 F lood , 1 03 Mass 474 . . . . .

46 2 ; Paine v Bouncy, 4 E D S m ith Calkins v S teinbach, 66 Calif 1 17


. . . . . .
susa oc a rl os m os s JOINT nanroas . 265

his titl e to h is portion of th e m ortgaged property is perfected ;


an d h e i s s ub rogate d to th e righ ts of th e m o rtga gee as to th e

oth er sh are and m ay ca ll upon h is c o tenant to pay h im th e


,
-

proportion of th at sh are or be forec los ed of th e right to re


,

deem 1
.If th e cred itor h im s e lf purch as es th e s h are or th e
p roperty of on e of th e d ebtors subj ec t to th e b urd en a c or ,

re s pon d in g sh a re of th e d ebt is e x tin gui sh e d A s between


1
.

th e purch as ers in c om m on of a n es ta te b oun d by a jo in t l ien ,

e a ch s h a re i s obl ige d to c o n trib ute on ly its p ropo rti o n of th e

c o m m on b urd en an d bey ond th is am o un t is to be rega rd ed as


,

th e surety of th e oth ers 1 an d if th e own e r of on e sh a re is

ca ll e d upon to pay m ore th a n its due p ropo rti on of th e d ebt ,

s uch owne r or h is c re d i to rs wi ll be en titl e d to sta n d i n th e

pl ace of th e s atisfied c red itor to th e e xtent of th e ex cess


wh ich ough t to h ave b een pai d out of th e oth er sh ares 1
One .

ten ant in c om m on upon re deem in g th e e s tate from a ta x


,

s a l e th o ugh h e w i ll n ot acqui re a n a b s o l ute titl e yet i f h is


, , ,

p aym ent were n ecessary for th e protection of h is own estate 1


,

m ay h old th e es tate un d er h i s ta x titl e a ga in s t h is co te n a n ts- -

un ti l th ey pay or te n der to h im th ei r p ropo rti on of th e ta x es 1


.

A s h is re d em pti on w ill be d eem ed to h av e bee n m ad e for


th e ir be n efit if th ey s o d es ire on th e ir p aym e nt of th ei r pro

p o r ti on a te s h a res of th e in d eb te d n es s 7 so i t w i ll be f or h is ,

own ben efit un t i l th ey sh a ll m ak e s uch p aym ent 1


.

1Young v William s, 1 7 Conn .


1
Watkins v Eato n, 30 Maine,
J
. .

3 93 ; Lyon v Ro bbin s, 45 Conn


. . 5 29 ; Moon 0 ,
. ennings 1 19 Ind .

5 1 3 ; Cornell v Prescott, 2 Barb (N


. . 1 3 0; Wea re v ,. V an Meter 42 Iowa,
Y ) 16
. . 1 28 ; Oliver0 Montgo m ery 42 Iowa,
.
,

1
Daigle s Succession, 1 5 La Ann
’
. . 3 6 , and 3 9 Iowa, 601 ; Ha rris on 0 .

5 94 . H arrison, 5 6 Miss 1 74 . .

1
Higham v . H arris , 1 08 In d 1
Barnes v Boardm an, 15 2 Mas s .

J
. .

246 39 1 ; V an Horne v Fonda, 5 ohns


J
. .

Gearhart v ordan, 11 Penn St


1
. . . Oh ( N Y ) 3 88 ; Flagg v Mason , 2
. . .

3 25 ; Furim an v McMillian, 2 Les . Sum ne r, 48 6 ; Tice e erb , 5 9 Iowa,


y . D
1 21 . 3 12, 3 14 .

1
Preston v Wright, 8 1 Maine,
.
1
Hurley v . Hurley, 148 Mass .

306 . 444, and cases there cited .


m L AW 0? m m .

§ 1 73 . W hm I -s nd d t' o os - ore O U n s r- is j te m s ub e e t

n or w — Where on e of th e owne rs of la nd s ub j ect to a

m ortg age a
py s oi th e m ortgage -
debt by in sta lm en ts , a nd

u pon m a k in g
th e las t paym en t ta kes an ass i gn m e nt of th e
m ortgage, i ts lien is n ot th e re by ext in guish ed in fa v or of th e

oth er own e rs 1
Eith e r one of s uch owners, wh eth er th e y h old
.

d istin ct parcels of th e in cum be re d es tate or are tena nts in ,

c om m on of th e wh ol e is at l i be rty to re d eem , for th e proteo


ti on of his es tate ; an d upon s o red ee m in g h e becom es s u b t o

g a te d t o th e ri gh ts o f th e m o r tg ga e e a n d m a y h old th e l a n d ,

as if th e m ortga ge s ubs is te d 1 un ti l th e oth er own ers re i m ,

b urse him the ir proporti on s of th e in cum brance ; a nd in th e


a bs en c e of a ny agreem en t th e i r p ro porti ons wi ll be ac co rd ing

to th e proportion ate v a lue of t h ei r res pecti ve intere s ts 1 Th e .

g ra n te e of s u c h a n ow n er w i ll h a v e th e s am e r i gh t of s u b r o

g a t i o n as w a s po ss ess e d by h i s gr a n to r 1 W h e re t w o p u r .

ch asers of la n d ga ve th eir jo in t notes for th e p urch as e m on ey -

th ere of sec ure d by a m o rtga ge of th e prem is es an d a fte r a


, ,

p ar t it i o n of th e pr e m ises on e of th em r e fu s e d t o p y
a h i s p ro

p ortion of th e l ast n ote s o th at the oth er was com pell ed to ,

red eem th e wh ol e m ortgage th e l atter w as a llowed to h o ld ,

th e l an d of th e d efaul ter for th e am ount wh ich h e h ad th us


bee n c om pe ll ed to pa y above h is own sh are of the n ote a n d 1
,

to h ave th e s am e in te rest as h a d b een agre ed to be pa i d upon


th e o rig in a l d ebt 1 U pon th e s am e p rin c ipl e th e as s ign ee
.
,

of a m ortga ge wh ich covered th ree estates h avin g purc h as e d ,

t wo of th es e es ta tes ca n rec over fro m th e thi rd estate only


,

its ra ta bl e proportion of th e m ortga ge d ebt " -


.

1 Duncan 0 . Drury , 9 Penn . St . Jh


o ns .
(N Y ) 3 2 ; Ai k
.en e. Gale, 37
33 2 . N H 5 01
. . .

Newbold 0 S m art 67 Ala 3 26 ;


1
Watson s Appeal, 90 Penn St
.
, .
1 ’
. .

Lowery v Byers , 80 Ind 443 Ca rte r 426


. . .

0 Pen , 99 Ills 3 9 0; Brooks 0 He r


. .
1
Fisher 0 Dillon, 62 Ills 3 72 . . . .

wood, 8 Pic k ( Mas s ) 49 7.


1
Sim pson 0 Ga rdiner, 9 7 Ills
. . .

1
H ubba rd e Asc utney Mill Dam 23 7
. .

20 V t 402 ; Sawyer 0 Lyon, 10


.
1
Colton v Colton, 3 Phils 24
. .
. .
svnaoem w m m m m naaroas . 267

174 . m W e a ppfl e d m ons oh im ing un d s r a J am

P oroh a s s r . One Pi ers on and four oth ers purc h as e d a lot of


la n d, an d for th e purch ase m om e y th ei r j oint n ote sec ured
ga ve ~

by a m ortgage upon th e lot h ey th en d ivided th e lot am ong


. T
th em s e lves in to four e qua l pa rts, on e of wh ich was a ll otte d
to Piers on , an d agreed to giv e quitc l aim deeds of ea ch oth er

th e ir res pe cti ve p arts Pi ers on took poss ess i on of h is part


.
,

bui lt a h ouse upon it an d th en sol d it to on e W i ll i am s wh o


, ,

paid hi m th erefor in ful l T h e title sti ll rem ain ing in a ll


.

th e purch a se rs th ey j oin e d i n con veyi n g to h im th e p a rcel


,

purch as ed by h im of Pierson Pierson pa i d noth in g of th e .

origin a l purch as e m on ey of wh ich h e sh ould h ave pa id one


-

fourth ; th e rem a in ing three fourth s were pai d by th e oth er -

p u rch as e rs T h
. e m o rt g g
a e e th e n fi le d a b i ll to f orec l ose h i s

m o rtgage for th e un pa id fourth pa rt of th e purch ase m on ey ; -

an d it was d ec reed th at th e p a rt of th e l ot set 03 to Pi ers on

and c o n veyed to Wi ll i am s sh ould be first s o ld Judg e D aviw n ,

s ay ing Th e se vera l own ers of the res idue of th e lot h a vin g


'

ea c h pai d on e fourth of th e p urch as e m on ey th e re m ai n in g


- -

fourth was in equity th e d ebt of Piers on ; an d as hi s debt it


” 1
wa s p roperly ch argea b le on th e property set off to h im .

It w as n ot preten ded in th is cas e th a t Wi ll iam s h a d n oti ce


th at Pie rs o n h a d n ot p ai d h is sh are of th e purch ase m oney ; -

b ut h a vin g n otice of th e m ortgage h e was to be rega rde d as


, ,

h a ving purch a s ed s ubj ect to th e equities th a t aros e un der it


B ut un de r s om e wh a t s im i l a r c i rcum stan c es in Ge orgia it was
h e ld th a t on e p urch aser wh o h ad be en c o m pe ll e d to pay th e
wh ole of th e purch as e m oney was n ot to be subrogated for h is
-

re i m bur e m e nt to th e m ort ga ge l i en upon th e sh a re of th e


s
-

oth e r p urch as er in th e h a n ds of a gra ntee f rom th e l atte r ,

a l th o ugh s uch gra ntee h a d c onst ruct ive n oti ce of th e m ort

g g
a e f ro m th e f ac t of i ts b e i n g r ec o rd ed ’
.

1 75 . A pplie d to M o rt ga g e “ w h os e E s t a te w as s ub e c t
j to a

m M — Where th ree juni or m ortgage e s of l an d ,


h avi ng
3 William s 0 . Perry, 90 Ind 437 . . Clark 0 . Warren , 5 5 Ga 5 75 . .
268 m a LAW or sm oou x
on '
.

no pri ori ty am ong th em s e lves h ad agree d with th e m ort ,

g g
a o r th a t if
, i t s h o uld b e n ec e ss ary to re d eem fro m t h e p ri or

m o rtgage each of th es e three j un i o r m ort a ees s h oul d


g g p y
a

on e th ird of th e am oun t due th ereon


-
a nd be in de m n ified ,

th erefor out of th e p rope rty an d one of th e th ree pa id on e ,

th ird of th e am oun t due upon th e prio r m o rtgage an d th e n ,

a dvan ce d th e rem a in in g am oun t an d took an as s i n m en t of


g
th at m ortgage it was h e ld th at as to th e rem a in in g two
,

th ird s h e be cam e s ub rogate d to th e righ ts of th e p rior m ort

g g
a e e a n d m
,
i g h t r e q uir e h is c o m o rt a
g g ee s t o re d ee m b y
-

p ay ing to h im th os e two t hirds or to forfeit all title to th e


-

m o rtgaged prem ises 1


.

1 76 . N ot a ppli e d w h ore Li on upo n


°

ons B s o un ty ex t in g uis h ed .

If two s ec uri ties a re h eld for th e


paym ent of a deb t and ,

th e l ien upon on e of th em h as be en los t by l apse of tim e th e ,

owner of th e oth er s ecurity upon payin g th e debt wi ll s o , ,

quire n o right of subrogation to th at which h as been thus


d isch arged A tes tator devis ed a tract of lan d to h is two
2
.

s ons Ben j am in an d Th om as
,
The purch as e m oney due from .
-

th e tes tator for th is l an d be in g unp aid th e tes tator s v en dor


’
,

b rough t h is b ill agains t th e e xec utors an d obta ined a dec ree ,

ch a rgin g th e l an d w ith its p ay m en t By a sub s equent de .

c re e th e l an d was o rd e re d to b e s old th erefo r


,
Wh il e th es e .

dec rees rem aine d unexec ute d Ben j am in s old h is portion of ,

th e l an d ; an d th e purch aser th ere of took an d h eld pos s es s ion


un ti l by th e l a pse of ti m e h e ac quired a titl e wh ich was
, ,

va l id again st th ese dec rees Th en th e dec rees were re vived ;


.

an d by ord e r of th e c ourt th e re m ai n ing po rtio n of th e l and ,

be in g th e sh a re of Th om as was s old for th e paym en t of the ,

tes ta to r s i n d ebte d n ess for th e price of th e wh ol e trac t Ou


’
.

a b ill b rough t by Th o m as aga i n s t Be n j am i n for c o ntri bution

i t wa s h eld th at as th e ven do r s l ien upon th e wh ol e tract


’
,

1
H ubbard v Ascutney Mill Dam
. Bacot, 2 Desaus Eq ( 8 0 Car ) 5 46 ; . . . .

20 V t 402 . . Lovell 0 Nelson, 1 1 Allen ( Mam ),


.

See as tea, 5 1 10 Doughty o . . 101 .


sm ooxn on AMONG JOINT nm ons . 26 9

h ad been lost an d en d ed by th e statute of l im itations s o ,

th at th e c om pl ain an t c ould n ot h ave been sub rogate d to th at


l ien h is pay m ent of th e debt c on ferred no benefit upon Ben
,

j am in an d c on s equen tly th at Ben j am in was n ot b oun d to


,

c on tribute for h is re l ief Nor c an on e j oint d eb to r be s ub


1
.

roga ted to th e ben efit of a s ec urity whi ch h a s bee n oth e rw i se

lost as agains t th e oth er W h ere two purch as ers of lan d .

a ve b ac k a m ort a e for th e price th ere of wh ic h h owev er


g g g , , ,

w as n ot rec orde d an d th e in teres t of on e of th em was sub


,

s equen tly c o n vey e d to a bon a j id e purc h as e r for va l ue wh o

h ad n o n otic e of th e un rec ord ed m ortgage it was h e ld th at ,

th e m ortga gee m igh t yet enforc e h is m ortgage for th e wh ol e


am oun t rem a in in g due th ereo n a ga in s t th e in te res t of th e

oth er debto r wh o m ust th en look to h is c o debtor pers ona lly


,
-

for th e p ay m en t of th e l atter s s h a re 2 ’
.

1 77 . W h ere th e U l tim a te Li a b ili ty is upon one of S e v e ral

Ow n e rs of B s ouri t l os h el d for th e s am e D eb t . If th e property


of two own ers is subj ect to a m ortgage and as between th em ,

s e lves it is th e duty of on e of th e m to d is ch a rge it an d th e ,

oth e r pay s th e debt on an a greem en t th at th e m o rtga ge s h a ll

in ure to h is be n e fit or i f h e ta k es a n ass ign m en t of th e m ort


,

a
g g e h e,
w i ll b e e n tit l e d to r e im b u rs e m en t t h ro ug h th e l i e n

of th e m ortgage
8 Th e rel ation between th e d ebto rs or th e
.

own ers of th e in cum bere d property in s uch a c as e is th at of


p r i n c i p a l a n d s u r e ty ;
4
th e p ri m a ry a n d ul ti m a te l i ab i l ity i s

upon h im wh os e d uty it is to pay th e d ebt a n d up on h is p rop

arty ; h is p ay m en t of th e d eb t w i ll d is c h arge it in fa v or of

h is c c d e b to r a n d th e gra ntee of h is prope rty inc um be red


-
5

w ith th e debt wh o h as n otic e of th e inc um b ran ce an d of th e


,

1
Screven v oyner, 1 Hill, Eq . J Sm ith 5 7 Miss 648 ; . Swan 0
.
, .

8 Car ) 25 2 C h 0 Monro, 2 Ba rb Oh (N Y )
( 0 . . er r
.
y . . . . .

3
6 18 ; Barnard 0 Wilson, 74 Calif
Ohio Ins Cc v Ledyard, 8 Ala
. . . . . .

8 66 5 1 2 ; a s tea , Cb III
K
. . .

Laylin v nox, 41 Mich 40; . Birdsall v Cropsey, 29 Neb 6 79 . . .

Cornell v Prescott, 2 Barb (N Y ) Cook 0 Hinsdale, 4 Ca sh ( Mas s )


. . . . . .

16 . 13 5 .
270 m s LAW o r sm os u r
os .

respective righ ts o f the pa rtie s, w ill be i n no bet ter pos ition


than h is grant or ; h e m ust pa y th e wh ole d ebt, e ve n th ough
1

h is co -
debtors sh ould conve y the othe r in c m nbered r
p p y
o e rt
to th e o
on c red
c m m itor ’
A n d in s uc h a cas e a c ourt of
.

equi ty m ay ord er th e propert ies or in teres ts wh i ch th e c red i

tor h old s for th e s ec urity of his de bt to be sol d in th e s a c


oess i on or in th e pro po rt ion in wh ich th ey a re am on g ,

th em s e lves l iable for its pay m e nt ; th us whe re th e j o int


,
1
,

purc ha sers of l an d h avin g give n back a m ortgag e for its


,

p r ic e ,m a d e p a rti ti o n o f it am o n g t h e m s e l ve s a n d o n e o f ,

th em paid h is proport ion of th e m o rtgage debt it w as h e ld ,

th a t th e c ourt m igh t p roperly orde r the s h a re of th e oth er

p u r ch as e r to b e fi r s t s o ld o n a fo r ec l os u r e o f th e m o rt a
g g e
‘
.

A nd a l th ough wh ere a b ill to re de e m from a m ortg a ge is fi led


,

by s evera l pe rs o n s a s o wn ers in d ifi e re nt p ro porti ons of th e


'

e q uity of re de m t i o th p ro d i f t h o rt t
p n e ce e
, n g s o e m g g
a ee o

enforce h i s sec urity w i ll n ot be d e l a ye d un ti l th e c om pl a in

a n ts h ave se ttle d th e p ropo rti on s i n wh i ch th ey a re res ec


p
ti vely to c ontribute t o th e re d em ption ye t if the y pay in to
‘
5
, ,

c ourt th e full a m oun t whi ch i s d ue to th e m ort a ee th e s uit


g g ,

m a y be delay ed for a re asona ble ti m e to en a ble th em to ro


p
c eed aga i nst an oth e r d efe n d ant wh o is a l s o i n te res te d i n th e
,

eq uity of re dem p ti on for th e pu rpos e of c om pe ll in g h im


,
to
c on tribute h i s p ropo rti o n of th e m ort a e d ebt
g g
— ‘
.

1 78 . Th es e P ri n c i ple s a ppli e d t o J o in t um : an d t o th o

G ran te es of a M o rtg ago r . C . an d S . purch as ed a lot of l a nd ,

an d ve th ei r j oint n ote an d m ortgage for th e pric e th e re of


ga .

0 afte rwa rd s c onveyed h is un d i vi d ed h a lf to S s ub j ect to


. .
,

th e m ortgage wh i ch S a ss um e d an d ag reed to pay an d ga ve


, .
,

Cherry 0 Monro, 2 Barb Oh


1
. . . Y ) 16 ; Willis m s v Perry, 20 Ind
. . .

( N Y ) 61 8 ; C rafts v Cm tts 1 3
. . .
, 43 7 .

Gray 3 60 ; Cook 0 Hinsdale, . Roddy s Appeal, 72 Penn St 9 8


’
. . .

4 Cusb ( Mass ) 13 4
. . A s tea , Q1 70 Weihl 0 Atlanta . .

2 Crafts 0
Crafts, 13 Gray ah ss »
. . Furniture Co , 15 8 0 E B ep 28 2 . -

h
. .

3 60 Brinc ker ofi o La nsing, 4 Johns


‘
. .

1
Cornell v Prescott, 2 Barb ( N
. . . Oh ( N Y ) 65
. . . .
sUBnoe m os a xons JOINT nn roas . 271

to C . a bond of i n dem ni ty aga ins t the s am e . S . su se que ntb ly


vy d
c on e e th e lot to a o g raof wa r
ntee with full c ve nants

ran ty an d aga in st inc um bra n c es an d th e n be c am e in s ol ve nt ,

a n d l eft th e S tate, h avin g fa i l e d to pa y th e m ortga ge d eb t -


.

Th e m ortgage e h a vi n g b rough t a s uit a ga in s t C on the n o te .


,

in ste a d of pro cee d in g aga in s t th e la n d 0 th ereup on tend ered , .

to th e m ortga gee th e full a m oun t due an d dem an d ed an as ,

si gn m en t of th e n ote a n d m ortga ge to a thi rd pe rs on for h is

ben efit s o th at h e m igh t en force th em aga inst th e l an d for h is


,

in d em n ity ; but th e m o rtgagee refus ed to m a k e s uch a n as si gn


m en t It was h e ld on a b i ll in equity th en brough t by 0
.
, .

a ga ins t th e m ortgagee an d th e gran tee of S th at the ar .

ra n gem ent betw een C an d S an d th e c o nv ey an c e from th e


. .

form er to th e l at ter c ons titute d in equi ty th e rel ati o n of p ri n


cipa l an d s urety n ot on ly between th em se lves pe rs o na lly
, ,

but al s o with re ference t o th eir in terests in th e m ortga ged


p roperty ; th at th e equi tabl e righ ts of C a n d S were n ow . .

th e s am e as i f 8 h ad origin a lly owne d th e wh ole lot an d


.
,

ha d given the m o rtgage for h is own d ebt an d C h ad been , .

m ere ly hi s suret y ; th at ac c ord in gly th e la n d was th e pri

m ary fund for th e paym ent of th e de bt a nd th e s urety if , ,

com pell e d by th e m ortgage e to pay the d e bt, would be en

tit le d to be sub ro gated to th e c h a rge o f th e m ortgage upon


th e l an d ; and th at C s ri gh ts w ere n ot afi ect ed by th e fact
’
.

th a t h e h ad tak en a bon d of i nd em n it y from S for as S .


, , .

was i ns ol vent h is sureties on th at bon d m igh t we ll ins i st


,

th a t th e l an d sh ould be firs t res orte d to for th e pa ym en t o f


th e m o rtgage debt i ns tead of its bei ng c ol l ect ed from G
-

, .
,

a n d th ei r li a bi l i ty to h im upon th e bon d th us b e c om in g

fi xed .
1
Th e owner of l an d m ortga ge d it an d sub se quently ,

s old a part of i t to a purch a s e r wh o as s um e d th e m o rtg age ,

but fai led to pay it, and c onvey e d th e l and h e h ad purch as e d


t o B wh o h ad n oti ce of th e fa cts
.
,
In th e m ean tim e th e .
,

m ortgagor h a d c onvey ed an oth er porti on of th e m ortga ged

1 Cherry 0. Monro, a Barb Ch ( N Y ) 6 18


. . . . .
272 m a L AW or s us s oc u l os .

prem ises to G wh o conveye d it with warranty to an oth er


.
,

purch aser; and th e m ortgage being s till un paid th is l as t


, ,

purch aser to rel ieve h is estate appl ied to its d isch arge a
, ,

portion of th e purch as e m on ey wh ich h e would oth erwi se -

h ave p a id to C B be ing s ti ll in debte d to h is ven dor fo r


. .

th e p ric e of h is l a n d in a s um greate r th an h a d been pa id fo r


th e d is ch arge of th e m o rtga ge it w as h e ld th at G h avin g i n , .
,

e fi ect th ro ugh th e p ay m en t m a d e by h is gra n tee re d eem e d


, ,

from th e m ortga ge was en titl ed for his reim burs em e nt to be


,

s ub roga te d to its l ien upo n th e l a n d of B wh ic h s h ould h a ve .


,

d is ch a rged it S o wh e n th e a m ount d ue upon a purch as e


1
.

of two sepa rate lots h as b ee n a pportion ed be tween the two


p u rch a s e rs of ea c h l ot a n d th e p urc h as e r o f o ne
,
l ot h as p a i d
h is s h are of th e debt th e oth e r l ot sh ould be s old firs t upon
,

foreclosure of th e m ortga ge for th e ba l a nce d ue th ereon as ,

again s t a s ub s eq uent p urc h as er of th at l ot wh os e d eed was

m a d e subj e ct to a ll e x is tin g m o rtgages


1
.

1 79 Ex t t of th R igh t of B n b rog at lo n
. en e Th is righ t of .

s ub roga tion i s p a ram oun t to a ny o th e r c l a im or l ien upo n th e

property a ga in st wh ich it is s ough t to be e xerc ised if s uch ,

oth er c laim or l ien was s ubj e ct to th e obligation wh ich h as


b een d is ch arged by on e d ebtor or to th e s atis facti on of which ,

h is p roperty h as c o ntrib uted m ore th an its eq uitabl e sh a re ; 1

but it can n ot tak e pl a ce beyon d th e a m ount actua lly pa id


un der a l ega l l iab il ity or un d er c o m pul s ion by or from th e
4 5
, ,

property of th e on e wh o seeks to enforce it n or beyon d the ,

proportion al sh a re of th ose wh o are eith er pers on a lly or by


.
,

a pl ed ge or m o rtga ge of th e i r p roperty jo in tly l i a bl e w ith ,

h im 6
. H e c annot be s ub rogated upon th e pay m ent of any

1
Rardin , 88 Ind 1 4
v . 6 Walpole . .
5 h us band pays his
As where a
1 W
eyant 1 Murphy, 78 Calif 278 own debt out of his wife s property
’

3 . . . .

1
Silk v Eyre , Irish Rep 9 Eu
. . . Greiner o Greiner, 5 8 Calif 1 15 ;
. .

3 9 3 ; D un can 0 D rury, 9 Penn St . . . Pease v Egan, 1 3 1 N Y 262


. . . .

332 . Shropshire v Creditors, 1 5 La .

1
Walker v Municipality No One,. . Ann 705 . .

5 La Ann 10
. . .
s us aoorn os m om r nns rons
Jonr
'
. 273

th in g less th an his preportion of th e debt a lth ough the oth ers ,

h a ve pa id n othi n g 1
If one of s evera l obl i go rs in a bon d
.
,

e a ch on e of wh o m is boun d for h im s e lf a l on e o verpay s th e


‘

a m oun t due from h im s e lf thi s ove rpa y m ent be i ng m a d e on ly


, ,

up on h is own l iab i l ity g i ve s h i m n o righ t of ,s u b roga t i on

a ga ins t th e oth ers an d do es n ot inure t o th e be n efit of e ith e r


,

o f th e oth ers Nor c an th ere be any s ub rogati on if n othin g


2
.

m o re a ppe a lh th a n th a t th e join t d ebt h a s been p a i d w ith out ,

a ny in d ic ati on by wh o m or upon wh o se c re d i t th is was do ne 3


.

1 80 . W h e th e r O rigin al O b liga ti on d is c h arge d as to ail th e

D e b t ors upo n P a y m en t by on e . It w a s at on e tim e h eld in


P enn sylv an i a th at, lth ough a surety wh o h as p a id th e b on d
a

d ebt of h is prin c ip a l w i l l be sub rogate d to a ll th e c re d itor s ’

righ ts an d rem ed ies aga ins t th e p rin c i pa l th is rul e w i ll n ot ,

b e a ppl ie d to a p ay m en t m ad e by a jo int deb tor i n a b on d


w h o is n ot a s urety ; but hi s c l a im a ga in s t h i s c o obl igo rs -

w i ll be treated a s m erely a s i m pl e c o n tra ct c l a i m for c on tri -

b ution ; but th is d is tin c ti on h as n ot s in ce b een follow e d in


4

t h at Sta te "
Th e rul e in En gl an d is now th e s am e i n th is
res pec t as to b oth s uret ies a n d j oin t deb tors ; an d in th is
6

c oun try th e s am e p rin c i pl es a re gen e ra lly a ppl ie d b etw een

j oin t d ebtors or oth er pers ons wh o a re eith er pers on ally or ,

b y a ch a rge upon th ei r prope rty l iabl e for th e s a m e d ebt as , ,

b etween p rin c i pa l an d surety th ough th e c l a im of a m ere


7
,

joint d ebtor to s ub rogati on h as often b een less fa vored th an


th at of a s urety on th e ass um ed groun d th at th e p a y m ent of
8
,

Ga rfield
1
Foskett, 5 7 V t 290 ;
v
.
11
Mercantile Law Am en dm ent Act
J
.
,

Sawyer v Lyon, 10 ohns ( N Y )


. . . . 19 20V ie , c 9 7, Q5 . .

32.
Aztec 136 et seq
, See also .

1
Pettengill v Pettengill, 64 Maine,
. N eilson v Fry, 1 6 Ohio S t 5 5 2 ;
. .

35 0 .
O Bryan v Neel, 8 4 Ga 1 3 4 ; New
’
. .

B rick v Bnel, 73 Tex 5 1 1 som v McLendon, 6 Ga


1 . . . . 3 9 2 ; H en .

Greiners Estate , 2 W atts


1 '
drickson v H utc hinson 29 N J
.
, . .

414 .
Law , 1 80; H ollingsworth v Pears on, .

Sterling 0 Stewart, 74 Penn St


. . . 5 3 Iowa, 5 3 .

445 ; Gea rhart 0 Jordan, 1 1 Penn


. .
1
Arnott v Webb, 1 D illon C C .
, . .

S t 3 25
. Duncan 0 D rury, 9 Penn . . 3 62 ; Stanley v Nutter, 16 N II 22 ; . .

St 332
. . Morley 0 Stevens, 47 How Pr ( N
. . . .
274 m a LAW or sm oos n on
'
.

a debt by one of s evera l joint debtors inures to the benefit of


al l of th em 1 If th e pri n c ipa l obl igati on is h eld to be e xtin
.

g u is h e d upo n it s p ay m e nt by on e o f th e d eb to rs it ca n n o t be ,

ke pt a live by being ass igned to a stran ger wh o h as pa id it


with m oney furn ish ed to h im for th at purpos e by on e of th e
debtors 1 But if th e a ss ign m ent was m ade to th e s tra nger
.

by con te m poran eous agree m en t to secure him for advan cing


m o ney to tak e u th i d b t d n t h ou h t th r u t f
p e n e e es s g a e eq e s o ,

on e wh o is l iabl e for th e d ebt s uch a n as s ign m e nt w i ll not


,

e x tin guish th e o ri gin a l obl i ati o n 1


g .

’
Y ) 228 ; Boykin v Bnie, 109 Nor yer, C C 26 6 ; B ooth 5 Fs rm en .

K
. . . . .

Car 5 01 ; Ada m s 0
. eeler, 30 Ga Bank, 11 R un ( N 25 8 ; Allison
J
. .

8 6 ; Maxwell 0 Owen, 7 Coldw v Pattison, 1 1 8 0 Rep 19 4 ; am es


. . .
. .

( Te nn ) 63 0;
. Ba ldwin 0 M errill, 8 v Y ea er
g , 8 6
. Calif 1 8 4 ; Fo rt
. W o t
r h .

H um ph ( Tenn ) 13 2 ; Tom pkins 0 B ank 0 Daugherty, 8 1 Tex 301 ;


. . . . .

Fifth National Bank , 5 3 Ills 5 7 ; Boos 0 Morgan, 30 No E R ep 141


. . . . . .

Plsntcrs Bank 0 Spencer, 3 8 m Hogan 0 Re ynolds, 21 Al a 5 6


’ 1
. . .
. .

M ( Miss ) 305
. .
1
McIntyre v Miller, 1 3 M W . . .

1 As in Fr ench 0 Edwar ds, 5 Saw . 725 .


sm oou x
on m
'
ns ro m u s
ono rs nrr u m NOTES . 275

CHAP TER V .

SUBROGATION AMONG PARTIES TO BILLS AND NOTES .

Su m o:

An Indorser upon Paym ent sub h is Acceptances available to


rogs tad to R igh ts of Holder their Holders
This Principle extends to all
Th e Mak er of s n ote n ot entitled Parties to th e Pa per
Pro pe rty l n Sec urity deposited by
'

to th e bene fit of Paym en ts m ad e
by Indorsers . Drawer wi th Acce ptor
Indorser orAccom m odation Mak er H older not subs tituted to Secu
of Note regar ded as Surety rity h eld by one under no Lia .

m erely b ility, unless s ctns lly appro


Trans feree of B ond Ride H older
substituted to h is Rig h ts, th ough Righ t of Holders to S ecurities h eld
him self ch argea ble with Eq uities 1 83 by Acceptor not a Param oun t
Acceptor of Bill supra protest one

Holder8 Righ t to control Sec uri


’
substituted to Righ ts of H older

from wh om h e tak es it ties given by Drawerto Acceptor


’
Transferees of N otes or Bills en n o gr eater th an Drawer s

H olders Rig ht to Applica tion of


’
titled to th e Benefit of Sec urity
h eld for th eir paym en t Sec urity paris h es with t hat of
Rights of a S tranger upon tak ing its Depositor
up a Note Taking Bill on the Credit of th e
t
H older of N ote substitu ed to th e Funds is not enough
Benefit of Mortgage given by one Extent of Holder s Righ t of Sub
’

to an oth er party to th e Note to st ituti on to Acce tors Sec uri


'

p
sec ure its pa ym ent ties
S ubs tit ution of H older to th e Righ ts of Acceptor to Securities
Benefit of Indem nity h eld by h eld against th e Bill by Prior
an In dorser Part1es th ereto .

Bill drawn against a Consignm en t Acceptor 3 Se curi ties to be applied


’

of Merch andi se and m ade a Lien upon all Acc eptances alik e
upon it Snb m gation of H older of Ch eck to
Righ ts of Indorsee of B ill of Ex R igh ts of Drawer
ch ange with fr a udulent Bill of Whether S uits or Judgm ents ex
Lading attach ed t inguish ed upon Paym ent by
Securities h eld by a Bank er again st Parties seconda rily liable

1 81 . L n I n d o rs s r upon P a y m en t s ub ro ga t e d t o R i gh t s 0!

H ol d s : aga ins t p ri or p u n“ . paym ent of a note or bill


Th e
by an in dorser to th e h ol der th ereof wi ll n ot ex tinguish th e
instrum ent ; but th e in dors er after h is paym en t wh eth er
, ,

m ade vol un tari ly or upon c om pul s i on if h e was l i abl e for it


, ,
276 13 3 m m or sw ou n es .

wi ll be sub rogate d to d ies th at are avail able upon


a ll th e rem e

th e n ote or b i ll aga in st th e anteced ent pa rt ies th ereto in 1


,

c l ud in g th e righ t of a ction aga ins t a ba n k wh ich h as by its

n eg l ige nc e c a us e d th e re l e ase of a pri or i n dors er A partial


1
.

paym en t by an indorser w i ll n ot ex tinguish pro ta nto th e lie


b ility of a n te c ed en t pa rties un l e ss it was m ade i n th eir ,

beh a lf and n ot by reas on of th e liabi l ity of th e party m ak ing


th e pa y m en t to th e h old e r ; the h older of th e n ote can s till
1
1

c o ll ec t th e f ull a m ount th e re of fro m th e p art ies wh o a re an

tec eden tly l ia ble th e reo n rec eiving th e a m oun t of s uch pa r ,

tia l pay m en t as a trus tee for th e i n do rs er wh o o ri gin a lly


m a d e it un l e ss th e ul tim a te li ab i l ity to pay th e n ote re s ts
1
,

upon th is i n d ors er a s be twee n h i m se lf an d th e oth er p a rt ies to

th e n ote in wh i c h c as e th e p aym en t m a d e by h im wi ll ac
,

c rue to th e i r ben e fit
1 S o th e h old er of a n ote afte r rec eiv
.
,

in g pay m en t th ere of from th e in dorse r m ay m ai nta in an ,

ac ti on th ere on a t th e req ues t an d for th e be nefit of th e in

d ors er a ga in st th e m ak er ; an d th e l atte r cannot set up th e


in d ors e r s pa ym en t as a d efen ce to th e a ction aga in st h i m
’

se lf Th e in d ors e r of a p ro m is s ory n ote after its m aturity


1
.
,

an d a fter h is l i ab i l ity upon i t h a s be c o m e fi xed doe s n ot ,

c ea s e t o be entitl ed to th e righ ts of a s urety an d be c om e

a j oin t p rin c ipa l d eb to r by jo inin g w ith th e m ak e r of the

n ote in a b on d gi vin g furth e r tim e for its pa ym ent a l th o u h


g ,

th e b ond d oe s n ot d es cribe h im as a s urety 7 It h as been .

1
WoodwardPell, L R 4 Q B
v . . .
1
Randall a Moon 1 2 C B 261 ;
J
. . .
, . .

5 5 ; Picq uet v Curtis , 1 Sum ner,


. ones v B roa dhurst, 9 C
. B 1 73 ; . .

478 Rushworth 0 Moore, 36 N H . . . North National Bank a Ham lin, 125 .

18 8 ; Parker v Sanborn, 7 Gray Mass 5 06


K
. . .

191 Cassebeer v alb .


1Madison Square Bank D Pierce .
,

fieisch, 1 1 H un (N 1 20 ; Bec k . 6 2 H un ( N 49 3 ; s c 1 7 N Y. . .
,
. .

with v Webber, 78 Mich 3 90; Seixas


. . Supt 270 . .

v Gon soulin, 40 La Ann 3 5 1 ; C raw


. .
1
Cook 0 Lister, 13 C B N a . . . . .

fo rd 0 Logan, 9 7 Ills 3 96 See also 5 43


J
. . . .

Pollard v Ogden 2 El
. Bl 45 9 ;
,
. .
1
William s v am es, 1 5 Q B 498 . . .

Pac ific Bank 0 Mitchell, 9 Met . . Bank of Am erica a Senior 1 1 R I .


, . .

( M es a ) 29 7 ; Dong berty v D eeny, . 3 76 .

45 Io wa, 443 . Met rik en o Godwin, 2 Del Ch . . .

1
B ird 236 .
sm oou ms 1 110110 PARTIES ro m m mm mom s . 277

h eld th at th e jo int ind ors ers of com m ercial pape r th ough ,

l iable as c c prom iso rs h ave upon paym ent no righ t of sub


-

rogation aga in s t each oth er 1


but it is n ow us ua lly c ons id
ere d th at th e true re l at ion of a l l th e suc ces s ive pa rties to

a note or b i ll to each oth e r m a y be sh own by pa rol e v i d en c e ,

a n d th a t th eir righ ts of s ub rogati on wi ll de pen d upo n th e ir

true re la ti ons as th us es ta bl is h ed 1
.

182 . Th e M a k er o f a N o te n o t en title d t o th e B en efi t o f P a y

m e n ts m e. b y Ia d a w ker of a n ote is
n m a s on . Th e m a

r im a fa c ie the p a rty ul tim ate ly l iabl e th ere on a n d is n ot


p ,

e n ti tl ed in an a c ti on on th e n ote a ga ins t h im s e lf to a de d uc
, ,

ti o n for a parti a l pay m en t n ot m a de by h im or i n hi s be h a lf ,

but by an ind o rs er or by a guaran to r; for s uc h a paym e nt


1

d oes not in la w i nure to h is benefit 1


A n i ndo rs e r upon .
,

ta k in g up a b ill wh ich h e h as ind orsed is en ti tle d l ik e a ,

s ure ty to rec ei v e s ec uri ti es wh ic h th e h older h as rece ive d

from prior pa rties to th e b ill th e d ebts s ec ure d by s uc h se c u ,

t i ties bei ng firs t f ully pa i d to th e h o lder ; a n d he is e n ti tl e d


6

to th e benefit of a proof p revi ous ly m ade by th e h old er of th e


n ote ag a in st th e b an k rupt es tate of th e m ak er
1
Th e h old er .

of a n o te is en t itl e d to p rove it i n full aga ins t th e b a nk rupt

es tate of th e m a k e r a l th ough he ha s s in ce th e ba n kruptc y


,

rece iv ed a pa rti a l p aym en t the reon from an ind ors e r on th e


”
n ote . Th e ge ne ra l rule un doubtedly is sa i d Lowall J , , .
,

th at th e h old er of a n ote m ay p rove a gain s t all pa rtie s for


th e ful l a m oun t an d rece iv e d ivi de n ds from a ll un ti l he h as
,

1
We st Branch Bank 0
Arm strong, Lord, J , in N orth National Bank
.
1 .

40Penn 8 t 278 ; Hollim an v Rogers, 0 Ham lin, 1 25 Ma ss 5 06 , 5 08 ;


. . . . .

6 Tex 9 1 . . Madis on Square Bank 11 Pierce, 62 .

1
McDonald 0 Whitfield, 8 App Hun ( N. 49 3 ; W ard 0 Tyler . .
,

Gas 73 3 ; Goldsm ith v H olm es 1 3 5 2 Penn S t 39 3 ; Southern Mi chi


. .
, . .

Sawye r, C Martin 9 Mars hall, gs n Bank 0 Byles, 6 7 Mich 29 6


. . . . .

6 0 V t 3 21 Thom pson 11 Taylor, 1 2


.
1
Duncan v North S outh Wales
. .

R I 109 ; Farwell 0 Ensign, 66 Bank, 6 App Gas 1


. . . . . .

1
Richardson 0 City Bank, 11 .

1
Granite Bank 0 Fitch , 145 Mass Gray ( Ma ss ), 26 1
. . .

56 7 .
278 m a u w or soss oou x
os
'
.

obtained wh ol e of h is debt wi th interest It is l ik ewi se


th e .

th e gen era l rul e th at wh at h e h as re ce ived f rom on e pa rty


, ,

or from d iv i de n d s in b an k ruptc y of on e pa rty to th e n o te are ,

p aym en ts wh ich h e m us t give cred it for if h e afte rwa rds


proves aga ins t oth ers 1
I em of Op in ion th at th is l atte r rul e
.

m us t be con fin ed t o c as es in wh ic h th e p aym en t h as b een

m a d e by th e pe rs on p rim a ri ly l ia bl e on th e n ote or b ill .

Th e b ette r op in ion at c om m o n la w is th at pay m en t b y a


drawer or in d orser does n ot exone rate th e ac ceptor or m a k er ,

un l es s th e prom is e of th e l a tte r was for th e a c c om m o d a ti on

of th e form er or th ere is s om e oth er e quity wh ich m ak es th e


,

n ote or b i ll th e d ebt of th e p a rty wh o h as m a d e th e p ay m ent ,

or un l es s h e h as m a d e it at th e re que s t or for th e ben e fi t of

th e a cceptor or m ak e r 1
If th is be n ot th e rul e at la w s till
.
,

I c ons i d e r it to be s o in b a nk ruptc y A cred itor m ay .

prove th e debt n otw ith stan d in g paym ent in wh ol e or in part


,

by a s urety bec aus e h e in fact proves as trus tee fo r the


,

Ou th e oth er h an d a pa rtia l p aym ent of a b i ll


” 1
s urety .
,

by an y p a rty to it in ures to th e b enefit an d is a d is ch arge pro


ta n to of th e l ia bil ity of a ll s ubs e quen t p a rties ‘
C on se .

q uen tly an y paym en t or d ivid e n d rece ive d by th e h older


f rom a prior pa rty be fore proof in b ank ruptcy aga ins t a s ub
s eq uen t pa rty m us t be d ed uc te d fro m th e am oun t of th e
”1
c l a im provabl e again st th e l atter .

1
Sohier v Loring, 6 Cas h (Mass )
. . . V es 6 44 ; Worrall, ex pa rts , 1 Cox,
.

Wildm an, ex pa rte, 1 Atk 1 09 ; . 309 ; Taylor, a: pa rk , 1 De G J . .

R oyal Bank, ea: pa rte 2 Rose, 1 9 7 3 02 ; Oriental Bank , is re, L R 6 . .

J
,

Taylor, ea: pa rte 1 De G 3 02


,
. . Eq 5 8 2 ; and H oward, is re, 4 N B
. . .

1
B yles on Bills ( l oth 221, R 5 71, contra, are not to be
.

and cases there cite d .


p or t ed .

1
Souther, is re Talcott, as pa rts , ,
1
See accordingly Puls ifer, is re 9 ,

2 Lowell 3 20 Pro fesso r Am e. ( l


, . Bias 48 7 ; Lo well v Fre nch 5 4 V 1
. .
,
.

Cases on Bills 8: Notes, 8 8 0) cite s as 19 3 ; D earth 11 Hide Leather B ank .


,

agreeing with this cas e De Taste t, ex 100 Mass 5 40 ; Nash v Burchard, 8 7


. .

pa rt s 1, R ose 1 0 ; Ellerhorst, is re, 5


, Mich 8 5 . .

N B R 1 44 ; H a rris , a: pa rk , 2 l Am es s Cases on Bills N otes,


’
1
. . .

Lowell 5 6 8 , and says that COOper v


,
. 8 8 0, citing Ryswick, a: pa rts , 2 P .

Pepys, 1 Atk 106 Leers, a pa rts, 6


. Wm 89 ; Wyldm an, as pa rts , 2 Vet
. .
sosaoou ron m
'
ono m ari ne ro m u s AND NOTES . 279

1 82 a . I n d o rs s r or A c c o m m o d a ti o n M a k er of N ot e re ga rd e d

as s ure ty m erel y .
—A n in dors er of
b ill or on e wh o a n ote or ,

h as to th e k n owl edge of th e h olde r th ere of b ec om e a pa rty


th ereto m ere ly for th e acc om m od ati on of th e m a k er or prim a ry
d eb tor th ere on is to be regarded m e re ly as a s urety of th e
,

prim a ry debtor ; and h as a ll th e righ ts of a surety


1 1
But .

pa rties wh o h ave e x ch ange d n otes with each oth er cann ot


c l a i m to be ac c om m od ati on m ak ers or to h ave th e ri gh ts of
1 Th e in dors er s righ t of s ub rogati on w i ll n ot ac
’
s ureti e s .

c rue un ti l h e h as p ai d th e n ote but it h as b een h e ld th at


1

a n in do rs er of n otes s ecure d by a d ee d of trust wh o h a s been

c om pel l e d to pay th e i nte res t th e re on a c quires by h is pay

m en t a n in te re s t in th e s ecurity wh ich i s c om pl ete a ga in st

th e deb to r an d aw a its o n ly th e full satisfacti on of th e cred


,

i tor to be c om e c o m pl ete as agai ns t all p arties ; so th at upon


a s ubs equen t forec los ure by th e c re d ito r th e in do rs er m a
y
h a ve a de c ree for th e i nte res t s o pa i d aga inst th e o rigin a l
d ebtor One wh o m ak es a prom iss ory n ote for th e aec om
1
.

m od ati on of an oth er h a s th e s am e righ ts a gain s t th e h old er

of th e n ote wh o h as n oti ce of th e facts as any surety for th e


d ebt Such a s urety h as th e sam e righ t to be s ub rogated to
1
.

th e be n efit of an y c oll ate ra l s ec urity h e ld by th e c re d ito r or


h old er of th e n ote a nd th e s am e equita bl e righ t to be d is
7
,

c h a rge d by th e c re d ito r s s urren d e r of a ny c oll atera l s ec urity


’

or im p a irm en t of th e righ t of rec ourse aga in s t th e p ri n c i p a l

Sen 1 1 5 ; s c 1 Atk 109 ; Ro yal tended in Yates 11 Mead, 6 8 Mis s


. . . . .
.

Bank, as pa rts, 2 Rose , 19 7 ; Weeks, 78 7 .

is re 1 3 N B R 263 ; Sohier v Hoflm sn 0 Butler, 1 05 In d 3 71 ;


'
1 .
. . . . .
,

Loring 6 C a sh (Mesa ) 5 3 7 ; Blake Gunnis v Weigley, 11 4 Penn S t 19 1


, . . . . .

v Am os , 8 Allen ( Mass ), 3 18 ; N a S m ith s Appeal, 1 25 Penn St


1 ’
. . .

tional B ank 0 Porter, 122 Mas s 3 08 . 404 Stickney v Mohler, 1 9 Md . . . .

1
S tory on Prom Notes , Q 41 2 490 . .

cl seq Okie 0 Spencer, 2 Wharton


. .
1
Malone Bank 0 Shields, 5 5 H un .

25 3 ; Pease v Tilt, 9 Daly ( N 274 . . .

N B i 1
T lf d v Garrels , 1 3 2 Ills 5 5 0
( . 2 29 ut a statute nc reas
. e or . . .

ing the rights of a surety will not 1


Guild 5 Butler, 1 27 Mass 3 86 . . .

necessarily e xtend to an indorser Hagey 0 Hill, 75 Penn 8 t 108


7 . . . .

Dibrell v D andridge, 5 1 Miss 5 5 , ex Mayhew v Boyd, 5 Md 102


. . . . .
28 0 m s ra w or s uns os u r
os .

de btor, 1
as woul d be poss ess ed by a surety co m ine, ’ th ough
th i s h as been d en ied i n tw o old c as es
1
. Th u s, if a m ort
e
g g ,
a e wh en one ins tal m en t of the m ort gage -
d ebt h as be co m e
pa y bl e s o c on ducts h im s e lf as to operate a re leas e of the
a ,

m o rtgage th is w i ll re l eas e th e in d orse rs of notes wh ic h h ad


,

been givem for s ubsequen t insta lm e nts of th e m ortga ge de bt 1 -

But as would be th e c ase wi th any s urety


,
1 if th e in dorser ,

h as h im s elf as sum ed th e burd en of th e de bt as h is own then , ,

as h e w oul d not be en tit l ed to t a k e th e s ec urity by s ub ro ga

tion h e c ann ot c om pl a in of i ts re l eas e by th e c re d itor


,
1
A nd .

th e ri gh t of an ac c om m od ation m a k er to d em an d the privi


lege s of a s urety a ga inst th e h older depend s upon th e h olde r s ’

k n owle dge of th e m lat ion s between th e pa rties to th e note .

Th e appa ren t p rin c ipal ha s n ot th e ri gh ts of a s urety a ga in s t


th e cred ito r un l ess th e rea l facts we re k n own to th e c re d i
tor 1
. S o an a cc om m oda ti on in do rs er on ta k in g up th e b i ll , ,

m ay h old an ac c om m od at ion acc e pto r but n ot a s ubse quen t ,

in dors er 1
.

18 3 . Tra ns fe n e of B oo s m . H o l d e r s ub s ti t ut e d t o h is R i gh t:

t h o n gs h im se lf oh s rgs s b lo w i t h E q ui ti es . On e wh o ta ke s a bi ll
or n ote from a 6 m fid e h older for va l ue the reof w ill be s ub
s ti tute d to all th e rights of s uch h ol der a l th ough h e h im se lf ,

tak es it ove rd ue or w ith noti ce of fa cts w h ich w ould oth er ,

w is e c ons titute a defen ce to th e n ote or b ill i n h is h an 1°


on

1Guild 0 B utler, m m N assa u


.
1 Bri dg m an 0. Jh
o nson, 44 Mich .

B ank 0 Cam pbell, 63 H un ( N


. . 49 1 .

229 ; D unn 0 Parsons, 40 H un 77 ; . ,


1
M
, § 1 12
.

Ne wco m b v Raynor, 21 We nd ( N . . .
1
Bieg s r 0 Second National Bank, .

Y ) 108 ; Germ an Bank 11 Fourhaw, . 13 2 Penn S t 3 08 . . .

J
.

1 3 8 Pen n St 474 ; Bridgm an v ohn


. . .
1 T
y le r 0 B us ey, 3 H cArthur .

son , 44 Mich 49 1 ; H illegss v S te . .


( D. 34 4 .

p he n son 75 M o 1 1
, 8 ; U nion Bant u . .
1
Harrison 0 Co nrts uhl, 3 B . .

Cooley, 27 La Ann 202 . . . Ad 3 6 ; Auburn Bank 0 H am hsll,


. .

1
Case 0 Ha wkins , 5 3 Miss 702 ;. . 73 Maine, 79 ; Goodm an a Litaker, .

Capita l Savings Bank v Reel, 6 2 . 84 Nor Car 8 . . .

Ca lif 419 . .

1
H a rd 0 Little, 1 2 Mass 5 02 ; . . Re p 724 . .

s v West, 1 1 Q B 1 43 ;
11 Gurrutber
L iggett v Penns ylvania Bank , 7 S erg
. . . .

R (Pm .
) 21 8 . Fairclough 0 Pat h , 9 Exch 690; . .
suss oou xos m ono PARTIES TO em s AND NOTES . 28 1

th e groun d th at th e p urch as er is subrogated to a ll th e righ ts

of h is ven d or S o the in dorsee of protes ted drafts on


1
. wh ich
a d irect ac tion was prohi bited by s tatute h as been subrogate d

in N ew York to h is ind ors er s right of actio n for th e c on s id ’


‘

era ti on pa id for s uc h dra fts ; an d th e s am e rul e h as been


1

appl ie d to a vo i d c erti fic ate of in de b ted ness 1 But an in .

d ors er i s not a lways by his paym ent sub rogated to all the
ri gh ts of th e h old er from w h om upon his p ay m en t h e tak es , ,

the n ote a ga ins t p ri or pa rt ies the reto


, If th e n otice of dis .

h on or s en t by the h olde r to th e firs t in do rs e r w as w rongly


a dd ress e d in c ons eque nc e of erron eous in fo rm ati on ca re l es s ly

i ven by th e s eco n d in dorser to th e h olde r th ou h th e lat


g g ,

ter h a vi n g us ed due d i li gen c e m igh t h a ve h e ld t h e firs t in


, ,

dors er to pay th e n ote yet th e sec on d in dors er upon tak in g


1
, ,

up th e n ote from th e h olde r c an n ot do s o ; for it w as h is faul t ,

th at the n otice was n ot prope rly s en t 1 The prin c ipl e th at a .

notic e g i ven by th e h old er w i ll in ure to th e ben e fit of t he

oth er p arties to a b i ll or n ote


1
does n ot apply to s uch a c ase .

M ay Chapm an, 16 M
0 . W 35 5 ; . . 3 5 5 ; Cotto n 11 Ste rling, 20 La Ann . . .

R obinson 11 Re ynolds, 2 Q B 1 9 6, . . . 28 2 ; Cook 0 Larkin , 1 9 La Ann . . .

211 ; Chalm ers v Lenion, l Cam pb . .


5 07 H owell 0 . C ran e, 1 2 La Ann . .

3 83 ; Scotland C ounty v Hill, 1 3 2 .


1 26 .

U S 107 ; Com m iss ioners v Clark,


. . .
1
Anton, 34 .

9 4 U S 278 ; Dillingha m 0 Blood


. . .
,
1
One ida Bank 0 Ontario Bank, 21 .

6 6 Maine, 140; Robe rts 0 Lane, 64 .


N Y 490; a fi rm ed in McMahon 0
. . .

Maine, 1 08 ; Suflolk Savings Bank 0


'

.
Allen , 3 5 N Y 407, and Thom as 0 . . .

B os ton, 149 Mass 36 4 ; Woodm an v . . R ichm ond, 1 2 Wallace , 3 5 4 But .

Churc hill, 5 2 Maine 5 8 ; Barker 0 , . this s ubrogation could scarcely ha ve


Parker 1 0 Gray ( Mes a ) 3 39 Wil been 436d at la w e xce t in a c ode
, ,
p
liam s 0 Matthews, 3 Cow ( N Y )
. . . .
State .

25 2, 260 ; Wils on 0 Mechanics Bank,


’
.
1
McCorm ick 11 District of Colum .

45 Penn St 48 8, 49 4 ; Prentice 0
. . . bis 7 Mackey ( D
. 5 34 . .

Zane, 2 Gratt ( Va ) 262 ; Boyd v . . .


1
Lam bert v Ghiselin, 9 H ow 5 5 2 . . .

Mc Cann, 10 Md 1 18 ; Hogan v . .
1
Bea le v Paris h, 20 N Y 407, . . .

M oore . 48 Ga 1 5 6 Bassett v Avery, . . overruling s c 24 Barb ( N Y ) 243 . . . . . .

1 5 Ohio S t 29 9 ; Root 0 Bender, 25


. .
1
Palen v Shurtlefl 9 Met ( Mas s )
'

J
. .
,

M ic h 5 15 ; Woodworth v Huntoon,
.
. 5 8 1 ; Staflord v Yates , 1 8
'

ohns . .

40 Ills 1 3 1 ; Riley v Schs m cker, 5 0


. .
( N Y ) 3 27 Mead v Engs, 5 Co w
J
. . . .

I nd 5 9 2 ; Mornyer0 Cooper, 3 5 Iowa,


. .
( N Y ) 303 ; Marr v
. . ohnson , 9 .

25 7 ; Sonom a Bank 0 Gove, 63 Calif . . Yerg ( Tenn ) 1 . . .


28 2 m s u w or S U BB OGATION .

B old er from w h om bi ll supra


h e t s k es i t . Th e ac ce ptor of a

rote s t for th e h on or of a pa rt ic ul ar pa rty to th e b i ll s uccee ds


p
to th e righ ts of th e p arty f ro m wh om h e tak es i t e x c ept th at ,

h e d is ch a rges a ll th e pa rties to th e b i ll s ubs equen t to th e one


for wh os e h on or h e ta k es i t up an d th a t h e c ann ot i n d o rs e ,

it ove r 1
A cc o rdin gly he c an rec over on th e b i ll aga in s t a ny
.

prior parties th ereto wh o c ould h a ve been h e ld by th e pers on


from wh om h e receives it or by any p rior h older of th e b i ll , ,

e v en th ough th ey c o uld n ot h a v e been h e ld by th e on e for

wh os e h on or such acceptor h as tak en up th e bi ll 1


As th e .

ac c epto r supra prote st is l ia bl e l ik e a n in dors e r ao w h en h e


1
, ,

tak es up th e b i ll upon s uch an ac ce ptan c e h e is en titled to ,

h old a nte ced ent pa rties as a n in dors er c ould d o 1


.

1 85 . Tran s form of N o t ss or am . en t itl e d t o th e B en efi t of

S e c uri ty h eld fo r th e ir P a y m force secu e n t. Th e righ t to en

rity give n for th e pay m ent of a n ote w i ll pas s to th e i n dors e es

or trans ferees of th e n o te e ve n th ough th e s e c urity its e lf h as ,

n ot been form a lly tra ns fe rre d or d e l i v ered to th em A m ort


1
.

S wan, ex pa rte, Overend, is re,


1 Booth, 19 ohns ( N Y ) 48 6 ; Patti J . . .

L R 6 Eq 3 44 ( overruling La m bert
. . . son 0 Hull, 9 Co w ( N Y ) 747 . . . .
°

ex pa rte, 13 V es Wacke rbath, Wes t s Appeal, 8 8 Penn St 3 41


.
’
. .

ar pa rts 5 V es 5 74 ; Martens v
,
Partri dge v Partridge, 38 Penn S t
. .
. . .

W innington 1 Espinasse 1 13 ; Good , 78 ; Phillips 0 Lewistown Bank, 1 8


,
.

all 0 Polhill, 1 C B 23 3 ; Co x 0 Pe nn S t 3 9 4 ; Hym an v Devereux, . . .

K
. . . .

Earle , 3 B Ald 43 0; onig 0 Bay


. 63 Nor Car 6 24 ; Muller v Wadling
. .
.
. . .

ard, l Peters, 25 0 ton 5 8 0 Car 3 42 ; Martin 0 Mc


. , . . .

1 S wan er
, r p a rts, O vere nd, is re,
Reynolds, 6 Mich 70 ; U nion Ins . .

Co v Slee, 123 Ills 5 7 ; Ms pps e . . . .

1
W illiam s v Germ aine 7 B C Sharpe , 32 Ills 13 ; Pardee v L ind
.
, . . . .

46 8 H mo e 0 C aze n o ve 1 6 E ast, 3 9.1 le y, 31 I lls 1


,
7 4 ; F r e nc h 11 T u r n e r . .
,

Lenox v Leverett 10 Mass 1 Scho


. 1 5 Ind 5 9 ; Martindale o B urc h 5 7
,
. .
.
,

field v Bayard, 3. W en d ( N Y ) 488 I ow a , 2 9 1 ; I


.
n dia na B a
.
n k 0.
A n d er .
.

1
Antea 181 ,
son , 1 4 Iowa, 5 44 ; Bangs v Flint, 25
.
.

1 V ose 0 Hand
y , 2 G re enl (
. M e ) W ise 5 44 ; E xc ha n g e B an.k a S t on e, . .

3 22 ; Page 0 Pi ce, 26
er N H 3 1
7; 8 0 K y 10 9 ; B u rd ett 0 C la y 8 B .

J
. . . . .
,

B lake 0 W l
i liam s 3 6 N H 3 9 ; M o n K
( y) 28 7 ; a c kso n 0 .
B u t . . .

K
.
.
,

eyes 0 W ood 21 W lfl
'

. V t 33 1 ; B e ld in
g ,
le d g e , 3 L e
.
a 6 26 ; o e 0 .

v Manley 21 V t 5 5 0; D udley v Cad


.
,
Na" 62 Ala 24 ; Gra ha m 0 N e wm an,
. .
,
. .

well, 19 Conn 218 ; Everts on v 21 Ala 49 7 Hobson 0 Edwards , 5 7


. . . .
S UBROGA TION 1 11011 0 m am as TO m u s AND NOTES . 28 3

g g
a e a s i n do r se
’
m en t an d d e l i v e ry o f t h e n o t e s s ec u r e d by t h e

m o rtga ge w i ll Op e r a te as a n e q u i t a bl e a s s i g n m e n t of t h e

m ortga ge ts i e lf 1 Th e h old e r of th e l e g a
. l t it l e t o t h e se c u r i ty
w i ll be c on s idered to h old it as a trustee for th e ben efit of
d
th e i n ors ees 1 W h e n th e p u r c h a s e r . of a m e l o d eo n g a v e h i s

n ote for th e p r i ce th e re of w i t h t h e a g re e m e n t t h at t h e p rop ,

r
e yt s h o uld n o t v es t in hi m u n t i l h i s p a y m e n t o f th e n o te it ,

was h e ld th at th e v en d ors in te res t in th e m elod eon was


’

m ere ly an in c i d en t to th e n ote a s in th e c as e of a m o rtgage ,

or pl ed ge an d th at it pas s e d to on e to w h om
,
th ey in d orse d
th e n ote s o th at tro ver for th e m e lode on c ould n ot afte rwa rd s
,

be m a in ta in e d in th e n am e of th e v en d ors 1 A n d afte r a bon a .

e tra n s fe r of th e n ote n ot ov erd ue an d for v a l ue t h


fi d e , , ,

h old er of th e s ec uri ty c a nn ot d is ch a rge it to th e p re j ud i c e of


th e h old er of th e n ote 1
S uch a tak er of th e n ote m ay en .

forc e th e s ecurity in th e h an ds of th e payee of th e n ote even ,

th ough th is p ay ee c ould n ot h im se lf h ave en fo rc ed th e s ec u


rity aga i ns t th e m a k e r of th e n ote by reas on of th e eq uities

Mis s 1 28 ; Dick 0 Maury 9 Sm


.
( Mass ) 46 1 ; Young 0 M iller 6.
, .
, . ,

M ( Miss ) 448 ; Holm es 0 Mc Ginty Gray ( Mass ) 1 5 2 ; Crane 0 Ma rch,


. .
, , .

44 Mi ss 9 4 ; McQuie v Peay 5 8 4 Pick


. N elson 0 Fer .
, . .

Mo 5 6 ; Potter 0 Stevens 40 Mo ris , 30 Mich 49 7 ; Hagerm an v S ut


. .
, . . .

229 ; Scott 11 Turner 1 5 La A nn ton 9 1 Mo 5 19 ; S tudebaker Mfg ,


.

K
. . .
, .

3 46 Bennett 0 Solom an 6 Calif 1 34 : Co v McCarg ur 20N eb 5 00; uhns


.
,
. . .
, .

Webb Hoselton, 4 Neb 3 08 ;


0 . . v Bankes, 1 5 Neb 92 ; Ha m ilton 0
. . .

Creamer v Creaner, 3 6 Ark 91 B is . . L uhukee, 5 1 Ills 41 5 ; Sargent 0 . .

cos 0 Roysto n, 1 8 Ark 5 08


. . . Howe, 21 Ills 148 ; Gordon 0 Mo l . .

l C onvers e 0 Michi a n D air


g y . ha re 1 3 Wisc 22 ; Graham 0 N ew
,
. .

45 Fed Rep 1 8 ; O N eil v Seixas m an, 21 Ala 49 7 Colt v Barnes 6 4


’
. . . .
, .
,

8 5 Ala 80 B urnett v L yfo rd, 9 3 . Ala 1 08 ; Phelan v Olney, 6 Calif . .

K
. .

Ca lif 1 14 ; Sto rch 0 Mc Cain, 85


. . 478 ; B urhans v H utcheson, 25 ans . .

Calif 304 ; S m ith v B runk 14 Color


. .
, . 6 25 .

75 ; Farrell v Lawis , 5 6 Co nn 280; . .


1 Graham 46 N H 169
Es ty 0 .
, . . .

H olway v Gilm an, 8 1 Maine , 1 8 5 ; . B ut see om estic Sewing Mach ine D


Gabbert 0 Wallac e, 66 Miss 6 18 ; . . Co v Arthurhultz 6 3 Ind 3 22
. .
, . .

Patterson v Booth 103 MO 402 ; 1


Gordon 0 Mulhare 1 3 isc 22 ; W
J K
.
.
, .
, .

Blair 0 White 61 V t 1 10 . en kins ,


. eohane v S m ith, 9 7 Ills 1 5 6 ; Me . .

0 Ha wk ins 34 W V a 799 ; Z wic key


.
, . . Co rm ick v igby, 8 Black f ( Ind ) . D . .

v H ainey, 73 Wise 464


. . . 99 ; Gottschalk 0 Neal, 6 MO App . . .

1
Wolcott 0 Winchester, 1 5 Gray . 5 96 .
28 4 rm : Lu v or sm oou xon .

between them a lth ough th is has som etim es been denied in ,


1

th e cas e of a m ortgage 3
b ut one wh o ta kes th e n ote ove rd ue
wi ll n ot be p rotec te d by this prin ci ple aga inst such eq ui ties
of th e own er of th e s ec urity Th e equitab l e lien of a ve n do r
a .

of l and to sec ure th e paym en t of a note wh ich h e h as tak en for


th e purch ase m oney w ill n ot us ua lly pa ss to an in do rse e w h o
-

ca nn ot h old th e v en do r for the p aym e n t of the n ote s in ce ,

th e effect of th e trans fer was to se c ure to th e ven dor a ll th e


a dva nta ge s of a pa y m ent 4
Nor w ill th e m ortgagee s bare ’
.

righ t of a c ti on for a m ere to rt p ass by h is tran s fe r of th e

m o rtga ge n ote
‘ -
.

1 86 . R igh t: of a S trang er upon h u ng up n N o te ‘


. Whe n,

Carpenter v Longan, 16 Wallace


1
.
, Fish 0 French 15 Gray ( Mass ) ,
.
,

271 ( overm ling Longan v Carpenter .


, 5 20 ; Howard 0 Gresha m , 27 Ga . .

1 Co l Te r 205 ) Myers 0 Hazard, 5 0


. . . 347 .

Fed R ep 15 5 ; Pierce v Fa unc e, 47


. . . Barnett o Riser, 63 Ala 3 47 ; . .

Maine, 5 07 S prague 0 Graham , 29 . Bankhead 0 Ov en, 60 A13 45 7 ;


.

Maine, 160 ; Taylor v Page, 6 Allen . H ighb wer v R igi by, 5 6 Ah 1 26


. . .

( M ass ) 86 ; B re en v , Se wa rd, 1 1 . See genem lly ss to the som ewha t anom


Gray (Mass ) , 1 18 ; Green 0 Ha rt 1 alone case of a vendors lien, wh ich is
’

J J
.
,

ohns ( N Y ) 5 80; ac kso n 0 Blod


. . . . so m etim es held to be m erely personal

g e tt, 5 C ow ( N Y ) 2 0 2 ; G o uld v . . . . to the ve ndor, no t assignable, a nd not


Marsh, 4 Thom p C ( N Y ) 1 28 ; . . . the subject of subrogation and som e ,

s c 1 Eu ( N 5 66 ; Bloom er tim es to pass only whe n m anifes tly n


J
. . .

v . H en derson, 8 Mic h 3 9 5 ; udge . intended, and som etim es to pass like


0. V ogel, 3 8 Mich 5 6 8 ; C o rne ll a . . any other lien Salem Bank v Sale m
,
.

R ic hens, 1 1 Wis e 3 5 3 ; C roft v Bun . Flour Mills, 39 Fed Rep 8 9 , an d 1 4 .

J
. .

s te r, 9 Wise 603 . . Sawyer, 84 ; Roge rs 0 am es , 38 .

H ostetter 0 Alexander, 22 Minn Ark 77 Shall v Bisooe, 1 8 Ark 142 ; .

J
. . . .

5 5 9 ; ohns on v (h rpente r, 7 Minn . . D avis 0 Sm ith, 8 8 Ala 5 96 Avery 0


. . .

1 76 ; Baily v S m ith, 14 Ohio St . . C larke, 8 7 Calif 6 19 ; Gruhn 0 Rich . .

3 9 6 ; White v Sutherland, 64 Ills ds on, 1 28 Ills 178 ; Dayhnfl a


'
. . ar . .

1 8 1 Sum ne r v Waugh 5 6 Ills 5 3 1 ; Dayhnfl, 8 1 Ills 49 9 Pillow o


'
. . .
, .

Walker0 em ent, 42 Ills 272 ; Olds . D . H elm , 7 Baxter 5 45 ; Ham


v C um m in s, 31 Ills 18 8 ; Fos ter v blen v Folts, 70 Tex 1 32 As to
.
g . . . . .

Strong, 5 Ills App 223 ; Gras s ly v . . . subrogatio n to a s tatuto ry crop lien,


Reinbaok, 4 Ills App 3 41 ; U nion see S t Peter s Literary Assoc iation v
’
.
. . .

Co llege 0 Wheele r, 6 1 N Y 8 8 ; . . . Webb, 3 1 Ark 1 40 ; Mercer 0 C ross,. .

Briggs v Langford, l Silvernail s N 79 Ga 43 2 ; Benson 0 Gottheim er,


’
. . . .

Y Ct of Appeals , 5 5 3 ; Hors tm an v
. . . 75 Ga 642 ; Scott 0 Pound 6 1 Ga
. .
,
.

Gerker, 49 Penn St 28 2 ; Bouligny . 5 79


J
. .

v Fo rtier, 17 La Ann 1 21
. ennings . . Gabbert 0 Wallace, 66 Min 618 . . .

v V ickers, 3 1 La Ann 6 79
. . . .
s us aooxn on m os s n n ws TO BILLS A ND mom s . 285

a t or after th e ote one wh o is n ot


m aturi ty of a prom is s ory n ,

in tereste d in its paym en t eith er as in dors er or as surety , ,

ta k es i t up d ec l inin g to h ave it c ance ll e d but s ay i ng n othi n g


, ,

about buy in g it an d n ot s ti pul a tin g for a con v en ti on a l s ub


,

rogati on to th e righ ts of th e h old er h e is n ot s ub ro gate d to ,

th ose righ ts ; but th e n ote is p ai d an d s a tisfied a n d th e in ,

d ebtedn es s of th e m ak er is e x ti n guish ed 1
th e vol un ta ry
paym en t of th e n ote m a de by on e wh o was n ot b oun d for it
and h ad n o i n te res t in d is ch a rgin g it aff o rd s n o groun d for

sub rogati on B ut if a stran ge r h as m a d e s uc h a pay m ent


’
.

wi th out a p revi ous auth o rity from th e d ebtor a nd before an y ,

rat ific a tion of th e p a ym en t by th e deb tor th e c re d i tor an d th e

s t ra n ger un d o th e tra ns ac ti o n a n d th e c red ito r returns th e ,

m on ey to th e stra n ger it is th en too l ate for th e d ebtor to ,

ra t ify th e pa y m ent a n d th e c re d itor c a n en fo rc e th e ori gi n a l


,

obl igation again s t h im 8 S uch a p aym ent m a d e by a s tran ge r


.

bec om es a n effic ac ious pay m ent on ly wh en it is ratified or


a d opte d by th e de btor a l th ough s uc h rati fic a ti on a n d a dop
l ‘
,

ti on m ay be m a d e an d s h own by th e d ebtor s s ettin g up th e


’

paym ent as a de fe nce in an acti on again st h i m on th e n ote 5


.

A th ird pers on wh o h as given to th e h olde r of a n ote h is


writte n a gre e m en t to be h old en for its p ay m en t li k e an in
d ors e r wi ll n eith er be regarde d as a m ere stran ger n or yet as
a pa rt y to th e n ote ; an d if h e p ay s th e n ote upo n th e d efa ult

of th e p a rt ies to i t h e is ent itl ed to th e n ote un d isch a r e d


, g ,

a n d m ay m a i n ta i n an ac tion th e re on fo r h i s re i m b ursem en t “ .

A n d if a s tra nger tak es up a n ote th is wi ll be d eem e d a pa r ,

Burr v S m ith, 21 Barb ( N Y )


1 . . . . Edgeworth Co v Wetherbee, 6 . .

26 2 ; Oliver v Bragg, 1 5 La Ann . . . Gray ( Mass) . 1 66 .

5
402 . Sim ps on 0 Eggington, 10 E1 011
. .

3
Eastm an v Plum er, 3 2 N H . . . 8 45 ; Martin v uinn 3 7 Calif 5 5
. Q , . .

23 8 ; Lancey v Clark, 64 N Y 209 ; . . . See Dodge 0 Freedm an s Savings Co ,


.
’
.

Weil 0 Ente rprise Ginnery


. 42 La . 9 3 U S 3 79
. . .

Ann 49 2 . . Bishop v Rowe, 71 Maine, 263


J
. .

Walter v am es , L B 6 Excb . . . . See Pacific Bank 0 Mitchell, 9 Met . .

1 24 ; Mec hanics Bank 0 Seitz, 3 0W ( Mass ) 29 7 Warner v Chappell, 3 2


’
. .
.

N C 26 1
. . . Barb ( N Y ) 309
. . . .
28 6 TH E LAW OF s nsnoc s rxon
'
.

c h as e an d n ot an e x tin guishm en t th ere of ,


if s uch was th e
i nte n t of th e pa rtie s .
1

1 87 . H old er o f N o t e m b a t lt n t od t o B e n efi t of S ec uri t y given


by on e to m o t h er P a rt y t o t h e N o t e t o s e c ure it s P a y m en t .

Property ortgaged to secure to th e m ortga gee th e p aym ent


m

of n otes indorse d by th e m ortgagee for th e benefit of th e


m ortga go r w i ll be a ppl ie d in e q uity upon th e in s olv en c y of ,

both m ake r an d in d ors er to th e paym ent of s uch n ote s and ”


, ,

m a y be s o a ppropriate d by th e c re d ito r upon th e in s ol ve n c y

of on ly th e m ak er A n d s uch a m ortgage not bein g given


8 .
,

m e re ly for th e in d em n ity of th e m ort a e e c ann ot b e re l eas ed


g g ,

by h im s o as to d eprive the h old ers of th e n otes of th e ir righ ts


un d e r th e m o rtga ge ‘
A n d n ote s is s ue d by th e m ortgagee to .

th e m o rtga gor in c on s i d e ra tion of th e m ort ga ge a n d purpo rt


in g on th eir fa ce to be s ec ured by th e m ortga ge wi ll b e pro
tec ted by th e m o rtga ge in th e h a n ds of th i rd pers on s to wh om
th ey h av e b een n egoti ate d for va l ue e ve n a fte r a d is ch a rge ,

of th e m ortgage by th e n om in a l m o rtga gee “ B ut sec urity .

gi v e n by o n e p a rty to a n o t e t o a n oth e r o n a s ec ret trus t for

th e p aym ent of th e n ote w i ll p as s free of a ll e q uities to a bona


e p urc h as e r for v a l ue “
fid .

188 . S ub s ti t uti o n of th e H o l d e r t o t h e B e n efi t o f I n d e m ni ty

h ol d b y an I n d orl o r . S e curity given by th e m ak er of a n ote


to h is od ation
a cc m m o i nd ors er th ere on , to in d em n ify th e lat
ter a ga i n s t h is l ia b il ity i s n ot an a cc es s ory to th e p rin c i pal ,

obl igation but m ere ly a pers ona l in dem n ity ord in ari ly a v a i l
, ,

ab l e o n ly upo n p ay m en t by th e i n dors e r 7 S uch an in dem .

1
Lefi ngwell, 72 Mo
S wope v . . Boyd 0 Parker, 43 Md 18 2 3 . .

3 48 ; Montgom ery Bank v Albany . Hartford N Y Trans porta tion . .

Bank 7 N Y 45 9
, . . . Co . v Ha rtford Bank, 46 Conn
. .

Rice 0 Dewey, 1 3 Gray ( Mass )


.
, 5 69 .

47 ; H arm ony Bank s Appeal, 101


’
McCracken v Germ an Ins Co . .

Penn St 428 DeMott v Sto ckton


. 43 Md 471
J
. . . .

Pa perware Co , 3 2 N Eq 1 24 ; . . . Mifl in C ounty Bank s Appeal, 98


’

Ohio Life Ins Co v Winn, 4 Md . . . . Penn St 15 0


. . .

C h Dec 25 3
. . . O Hara v Baum , 88 Penn St
’
. . .

DeMott v Stockton Paperware . 11 4 ; H artford N Y Tram p Co v . . . . .

3 2 N J Eq 1 24 . . . . Ha rtford Bank, 46 Conn 5 69 Spiller .


S UBROG ATION AMONG m am as TO m u s
'
AND n rms o . 28 7

n ity would n ot be ava i l abl e to a surety upon th e n ote wh o


h ad been c om pel l e d to pay it for th e m ak er th ough a ,

s urety an d an ac c om m od ati on in do rs er a re n ot c c s ureties


1 -

n or h as an a cc om m od a ti on m a k er th e righ ts of a c o s urety -

aga in s t a n ac c om m od ati o n i n dors er


” Nor h ave s ucc ess ive .

a c c o m m od a ti o n in do rsers th e righ ts of c o s ureties aga i n s t -

ea ch oth e r un l ess th ey h ave a gree d to b ec om e s uc h as am on g


,

th em s elves a Th e h older of th e n ote c ann ot in e q uity b e s ub


.

s ti tute d to th e ben e fit of th e in do rs er s in d em n ity wh en h e


‘ ’
,

h a s obta in e d n o j ud gm ent aga in s t e ith er m ak er or in dorser ,

a n d does n ot a ve r th at e ith er is in s olven t


“ or th a t th e debt ,

c an n ot b e c oll ec te d on e x e c uti on If th e in do rs e r h as been


6
.

d is ch a rged from h is l iabi l ity upon th e n ote by th e n egl ect


of its h old er to give h im p rope r n otice upon its d ish on or ,

th e s e curity h eld for h is in d em n ity i s d is ch a rged a n d n e ith er ,

th e h old er n or an y oth er pa rty to th e n ote c an c l a i m th e


ben efit of s uch sec urity by s ub roga ti on to h is righ ts 7 for an
‘

i n dorse r does n ot by ta k in g in d em n ity a ga in st h is in d orse


,

m en t w a ive h is righ t t o n oti c e


,
3
B ut th e h old er is en titl e d .

to th e ben efit of a ny s ecurities recei ve d by a n i ns olven t in

v. C reditors, 16 La Ann 29 2; Peter . . Post 0 Tradesm en s Bank, 28 .


’

son 0 Willing, 3 B a ll 5 06
. . . Conn 420 . .

1
Dawson v Pettway 4 Dev 8: .
, . Antea , 55 1 60, 1 6 1 ; Nightingale
Bat Law ( Nor 3 96 ; N urre v v Chafiee , 11 R I 609
'
. . . . . . .

Chittenden, 5 6 Ind 462 . .


6
Ohio Ins Co v Re eder, 1 8 Ohio, . . .

Hillegas v Stephenson, 75 Mo . .

118 ; Sm ith v S m ith, 1 Dev Ch ( Nor


. . . . V irginia Bank v Boisseau, 1 2 .

Car ) 1 73
. . Leigh 3 87
S till well v How , 46 Mo 5 89 ; . .
3
Ra y 0 Sm ith, 1 7 Wallac e, .

Mc Cune v Belt, 45 Mo 1 74 ; Me . . 415 ; Haskell v Boa rdm an 8 Allen .


,

N e illy v Patc hin, 23 Mo 40; Wood


.
.
.

( M as s ) 3 8 : M ose s v
, Els, 43 N H . . .

w a rd v Se verance 7 Allen
.
5 5 7 ; Seacord v Miller 1 3 N Y 5 5 .

K
, .
, .

3 40 ; S weet 0 Mc Allister 4 Id 3 5 3 ;
.
, . ra m er v Sandfo rd, 4 Watts . S erg .

Clapp 0 Rice 1 3 Gray.


, 403 ; ( P e n n ) 3 28 ;. enn y v P alm er 5 D .
,

S m ith v Morrill, 5 4 Maine, 48 ;


.
I red La w ( Nor
. 6 10 ; Wilson .

R ogue 0 Davis, 8 Gratt ( V a ) 4 ;


. . . v .Senier, 1 4 W ise 3 8 0 ; Poe ts v . .

Q uarrie r v . Q
uarrier, 1 5 8 0 E R e p . . . Wils on, 19 La 478 B ut see Story . .

1 5 4 ; Aberc ro m bie 0 Connor, 10 Ala . . on Prom Notes, 55 281 282, and cases
.
,

29 3 ; Arm strong 0 Cook, 30 Ind 22 . . . there cited .


28 8 ra n LAW or snm zoou x
on .

dors er as a surety for prior pa rties If all th e in d orse rs of .


1

a b i ll of e x ch a nge h ave be c o m e s uc h for th e a c com m od a ti on

of th e drawer an d h e gives a dee d of trust for th e in dem n ity


, .

of th e two l as t indors ers the first in dors er c an not com pel ,

th em to s e ll th e trus t p rope rty and apply it to th e paym ent


of th e bi ll ; h e will h ave n o righ t of s ub rogati on to the ir
sec urity un ti l h e p ays th e bi l L
’

18 9 . am d raw n a g a i ns t a C o n s ig n m en t of M erc h an d is e an d

m ade a Li en upo n it .
—Th e in do rsee of a b i ll wh ic h purports
to be dra wn aga ins t a con s ignm ent of m erch an d ise a n d has ,

ann e x e d to it a w a re h ous e rec ei pt for th e m e rc h an d ise a n d a

c e rti fic ate by wh ic h th e d ra we r d ec l a res a l ien upon th e m er

c h a n di se in fa vo r of th e h old e r of th e b i l l res ervin g to th e ,

c o n s ign e e up on wh om th e b i ll is dra w n th e righ t to se ll th e

m e rc h a n d is e upo n its a rriv a l a n d h old i ts proc ee d s i n trus t .

for th e h old er of th e b ill ac quire s by ta k in g th e b i ll a s pe c ia l ,

property i n th e m e rch an d ise th us a ppropriate d for its pa y


m e n t an d m ay enfo rc e th e tr u
,
s t by a b i ll i n e quity ag ai ns t

th e c o ns ign ee an d on e to wh om th e l atte r h as pl ed ge d th e
prope rty after ac ceptin g th e b ill Th e in dorsee or trans fe ree
8
.

of th e b i ll acq uires a s pecia l p roperty in th e good s d es c ribed


i n th e s h i pp in g doc um en ts wh ich a ccom pan y it ; a n d th e
4

sh i pper is d e p rived of h is p rope rty an d h a s n o l on ge r e ith er ,

“
pos ses s ion or title A nd one wh o pays s uch a d raft a t the .

1
s
In re 8 N B R 241 cox, . . . . Ban k v Pfeiifer, 22 H un ( N
.

D
unlap v Cle m en ts , 7 Ala 5 3 9 ; . . 3 27 ; Holm es 0 Bailey, 9 2 Pe nn St . . .

B uffalo Bank v Wood 71 N Y 405 .


, . . . 5 7 ; Holm es v Ge rm an Sec uri ty Bank, .

Mic higan Bank v Ga rdiner, 1 5 . 8 7 Penn St 5 25 ; West M ic higan


. .

Gray ( Mass ), 3 62 ; U llm an v Ba r . Bank 0 Howard 5 2 Mich 423 ; Chal


.
,
.

nard, 7 Id 5 5 4 ; Marine Ban k 0


. . ter Bank 0 Atlanta B y 25 So
. . .

Wright, 48 N Y 1 Car 216 ; Taylor v Turner, 8 7 1113


.

K
. . . . .

D
ow s 0 Exc hange Ban k, 9 1 U S
. . . 296 ; Ha lsey v Warden 25 ans .
,
.

6 1 8 ; Wells u orego n R N Co , 3 2. . . . 1 28 ; Stac kville Bank v Meyer, 43 .

Fed Re p 5 1 Ha thaway 0 Hayn es,


. . . La Ann 1 ; Delgado v Wilbur, 25
. . .

1 24 Mass 3 1 1 ; Cairo B ank 0 C rochet ,


. . La Ann 82
. . .

1 1 1 Mm 1 6 3 ; C hicago Ba nk 0
. . De Wolf 0 Gardner, 12 C ash . .

Bailey, 1 15 Mass 228 ; Bata via Ba nk .


( M ass ) 1 9 ; Petitt v F irs t National .

v. Ege, 109 N Y 1 20 . . Com m ercial Bank, 4 Bus h 33 4 .


sunnoorrl on AMONG PAR TIES ro BILLS AND NOTES . 28 9

re ues t q of
d rawee an d on th e l atter s agreem en t th at h e
th e ,
’

s h a ll be s ec ure d by th e p rope rty w i ll ac q ui re th e s a m e righ t

to th e p rop erty 1 If h owe ver th e acce pto r on h is acc ep t


.
, ,

a n c e w as to a c q uire aga in st th e dra we r th e full c o n tro l of th e

p roperty or if th e property h ad been de l ivered to th e ca rrier


,

a s a gent for th e purch as er upon wh o m th e b i ll was d ra wn , ,

th ough th e c a rrier s rec eipt was ann e x ed to th e b i11 th e cas e


’ 3
,

w o uld be d ifl erent A Liverpool m erc h ant w ish ing to obta in


'

.
,

c o n s i gnm en ts of c otto n from a Pe rn am b uc o firm a n d b ei n g ,

c a ll e d up on for s ec urity obta ine d from a b ank a l ette r of ,

c red it by wh ic h th e b a nk a uth o ri z ed th e Pernam buc o firm to

d raw upon th em for s uch c on s ign m en ts an d en gaged to h on or ,

th e b i ll s up on rec e i pt of th e sh i pp in g doc um en ts S om e .

s h i pp in g d oc um en ts were sent an d s om e b i ll s ac ce pte d ; an d ,

on e b i ll w a s a c cepted w ith out an h i pp i n do c u n t b i


y s g m e s e n g
s e n t ; a n d th en b efore an y of th e b ill s fell due th e ban k
, ,

becam e b an k rupt an d b ill s a rrivin g im m ed iate ly afterwa rds


,

w ere un ac c epted Th e agen t of th e Pern a m buc o firm c l a im e d


.

to p rove a ga ins t th e b an k for th e full a m oun t of th e b i ll s ,

w ith out brin gin g into th e ac c oun t th e value of th e c otton


wh ich h a d been s old or wh ich rem a ine d on h and ; but it was ,

h eld th a t h e h a d n o ri gh t to do so ; th a t th e h old e rs of th e
un a cc e pte d b i ll s h ad n o l ien upon th e c ott on in th e h an d s of

th e b a nk s o as to en abl e th em to treat th e b an k a s the i r


,

trus te e a n d th e b a nk wa s in d eb ted to th e h old e rs of th e b i ll s


,

on ly for th e s urplus rem ai n in g af ter th e good s c on s ign ed h ad


b e e n a ppl d
i e to th e p ym en t of th e bill s a cc epted
a a
.

18 9 a . R i gh t of I n d o rs ee of B ill of E x c h a n ge w i th fra u d ul e n t

3 111 of L a d in g a tt a c h e d . S in c e th e in dors ee of a bill of ex


c h a n ge h av in g a wa reh ouse rec eipt or b i ll of l a d in tta h d
g a c e

1
Newcom b v Boston 8: Lowell 9
W igton v Bowley, 1 30 Mas s
.
. .

R R . Co , 1 15 Mass 230; Alderm an 25 2 ; Firs t Nat l Bank 0 C rabtree ,


. .
’
.
.

0 Eas tern R R Cc
.
, 1 15 Mas s 233 ; 5 2 N o W Rep 5 5 9
. . . . .

J
. . .

Joslyn v Gra nd Trunk Ry Co 5 1 V t


.
Banner v ohnston, L R 5 Ho
K
. . . . . . .

92 ; Ti edem an v
O

nox, 5 3 Md 6 12 Lds 1 5 7
.
. . . .

19
290 m s LA W or sneaoc a n os '
.

to it is ord in ari ly h e ld to ac q ui re n o greate r righ t of property


in th e g ood s th e reby re pre se n te d th an be lo n ged to th e origi
n a l s h i pp er un d e r wh om h e c l a im s a n d s in ce a c a rrier is
1
,

n ot boun d by a b i ll of l a d in g gi ve n by h is a ge n t for good s

wh ich h ave n ot be e n ac tually de l ivered to th e c a rrie r s o th e ”


,

in d o rs ee of a b i ll of e x ch an ge purpo rtin g to be sec ured by


s uc h a b i ll of l a d in g th ough ta k in g it bona d e an d in re l i
fi ,

a n c e upon th e a ppa re nt sec urity ca nn ot, i t is gen e ra lly h e ld , ,

enforc e th e c o n trac t of th e b i ll of l a d i n g aga i n s t th e ca rri e r a


.

No r c a n th e in d o rsee com pe l th e ca rri e r to a n s w er fo r a m is .

des c ription of th e good s in th e b ill of l ad ing caus ed by th e


fraud of th e c ons igno r But it is som etim es con s id ered th at
‘
.

th e ca rri e r is es toppe d a ga in s t s uch a bon a fid e in d ors ee for ,

v a lue to de ny h is rec ei pt of th e good s state d in th e bi ll of lad


,

ing ‘
5
.A n d th e gen e ra l rul e of la w h as in E n gl an d an d in
m a ny of our S ta tes bee n s i m ila rly m odifie d by s ta tutes
“ B ut .

if th e good s a re ac tua lly rece ive d by th e ca rrier th ough afte r ,

the b i ll of l a d in g was given the ri gh ts of s uc h an acc eptor or ,

in d ors ee a re va l id un l ess th e goods we re s o rec ei ve d upon a


7
,

n ew ag re em en t wh olly i n d epen den t of th e old b i ll of l a d ing


8
.

The Idaho, 9 3 U S 5 75 5 8 3 ; . .
,
5 4 Tex 5 9 3 , 604 ; Hunt 0 Miss
so n, . . .

Maybee v Tregent 47 Mic h 495 ; . Central R R Co , 29 La Ann 446 . . . .

J
.
. ,

Moore 0 Robinson 62 Ala 5 3 7.


,
. Miller v H annibal . St . os eph

Brown 0 Powell Steam L R . 90 N Y 430, overruling . . R B . . . .

1 0 C P 5 6 2; Mackay a Co m m ercial
. . s c , 24 H un, 607 . . . .

Bank L,
P C 3 9 4 ; Frie dlan der
. S c hoone r F
.reem an.
v B uc king .

0 Texas R y
. 1 3 0 U 8 41 6 ; ham 1 8 H ow 1 8 2 ; B ats via Ba nk e
. .
, .
.

Pollard v V in ton, 105 U S 7 ; Sears


. N Y R R 106 N Y 19 5 ; Ar . . . . . .
. .

0. Wingate, 3 Allen 103 ; m onr 0 Mich igan Central R R . . .

Baltim o re Ohio R R Co v Wil 6 5 N Y 1 1 1 ; Meyer0 Peck, 28 N Y . . . . .

K
. . . .

kins, 44 Md 1 1 ; Dean 0 ing, 22 5 90; St Lo uis B R Co v Larned


. . . . . . .
,

Ohio St 1 1 8 ; Louisiana National 103 Ills 29 3 ; Sioux City R R 00


. . . .

Bank 0 Laveille 5 2 Mo 3 8 0
.
0 Fr e m ont Bank 10 N e b 5 5 6
,
. .
.
, .
.

Pollard v V inton 105 U S 7 See V alieri c Boyland, L B 1 , . . . . .

Robinson 0 Mem phis Charles town C P 3 8 2


. . . .

R R Co 9 Fed Re p 129 ; Le hm an
. .
7
R owley v Bigelow , 1 2 Pick
. . . .

0 Central R R Co 1 2 Fed Rep ( Mass ) 307 . .

J
. . . . .

5 9 5 Baltim ore Ohio R R Co v The ohn K Shaw, 3 2 Fed Rep . . . . . . .

Wilkins, 44 Md 1 1 ; Adone o Seelig 491 . . .


s ns noc a rl on AMONG m am as TO BILLS AND norm . 29 1

1 90 . S e c uri ti es h e l d b y a B a n k er a g ai n s t h is A c c e pt an c e .

a v ail a b le t o th e ir H o l d e rs . S ecurities h e ld
by a b an k er aga ins t
h is ac ce ptan ce s are a va i l abl e to th e h old ers of th e b i ll s ,

th rough th e eq uity of th e b ank er or h i s a s s ign ees in b a n k


ruptcy to h a ve th em a ppl ie d to m eet th e acc epta n ces ; th ough l

i t h as b ee n sai d th at w h i le th e rul e is perfec t ly j us t wh ere


2

th e s ec urities a re s uffic ie n t to pay th e b i ll s i n full ye t if th e ,

c ase i s o th erwi s e it gives t h e b i ll h old e rs a n ad va n ta ge a t -

th e expe n s e of th e a c cep tor to w h i ch th ey a re n ot en titl e d ,

a n d th at th e re a s on s a s s ign e d 3 for th e e x ten s i on of th is rul e


t o th e c a s e of a defic ien t s ecurity a re un s a tis factory an d ,

a ppe ar to overl ook th e f a ct th a t wh en th e w h ol e ben e fit of

s uc h a s ec urity i s gi ven t o th e b i ll h olde r th e es ta te of th e -

b a n k rupt ac ce ptor m ay los e s om e p art of th e in dem n ity to


wh ich h e is e n titl ed Ou th e s am e p rin cipl e th e in dorser
.
,

of a b i ll of ex ch ange h as an equitabl e c l a im upon p roperty


d e po s ited with th e d rawee as a se curity aga ins t h is a c c ept
an ce th ere of up on th e l a tte r s b a n k ru p tcy B ut th e a ppli
4 ’
, .

c a tio n of th i s p ri n c ipl e w i ll n ot be p reven te d by th e fa c t th a t

th e p ers on wh o d e p os ite d th e s ec urity was n ot a p a rty to th e


b ill s eith er as d rawer or in d ors er p rovided th ey were d ra wn ,

with res pect to a tran s ac ti on in wh ic h h e wa s liablef Wh ere ’

m erch an ts c on s i n e d o od t n p rty n d by rr t
g g s o o e a a a an ge m e n ,

d rew b ill s for th e i r v a l ue up on a n oth e r p a rty wh o a cc e pted ,

th em i t w as h e ld upon th e b a n k ruptc y of both th at re m it


, , ,

ta n ce s m a d e by th e c on s ign or to th e a c ce pto r on a c c ount of


th e b ill s sh ould b e s pec ific a lly a ppl ie d to th e p ay m ent of th e
b ill s.
8
N or is th is prin c ipl e l im ite d to th e b an k ruptc y of th e
p a rties to th e b ill s ; it will be a p pl ied upon th eir m ore in
Waring ea: pa rts, 1 9 V es 3 45 ;
, . Perfec t, ex pa rte,
Mont Bnkcy
. .

S e ligm a n 0 Wells 1 7
.
, Blatchf C C . . .

41 0; S pro ule v . Sam uel, 5 Ills 1 3 5 . . S m art, ez pa rte, R ichardson, in re,


5

Royal Bank v . Com m ercial Bank , L R 8 Oh 220


. . .

7 App Gas 36 6
. . . Dover ex pa rte, S nse, in re. 14
,

By Lord Cranworth in Powles v


.
Q .B D 6
. 11 S
. m a rt, ea: pa rte, Rich
H argreaves , 3 De G , M 6: G 45 3 . . . . ardson, in re, supra .
29 2 rue m m or S UBBOGATION .

solven cy Th e ac ceptor h as a l ien aga ins t h is acce ptan ces


.
1

up on p rop erty in h is h an ds b e longi n g to th e d ra w e r ; a n d ’

th e h old e r of th e b i ll m ay c l a im th e ben efit of th is l ie n by


wa y of s ub s titution j ust as a c re d ito r m a y h o ld th e in de m
,

n ity of a s urety upon th e l a tte r s i n s ol ven cy A m ortgage


1 ’
.

g i v en t o th e ac c e pt o r of b i ll s t o s ec u re t h e i r p a y m e n t by th e

d ra we r w ill upon th e ins olven cy of th e d rawer an d th e ac


,

c e ptor be a ppl ie d d irec tly to th e p a y m en t of th e b i ll s So


1
.
, ,

wh ere on e wh o h as proc ured b ill s to be d ra wn for h is aec om


m od a ti on afte rw a rd s gi ves a d ee d of trus t to th e a c ce p to rs

th e re of to s ecure n o tes given to th e a c ceptors for th e a m ount


of th e a c ceptan ces th e h old ers of th e b i ll s m ay res ort to the
,

trus t p rop erty for th e i r p ay m ent wh e n di sh on ore d if th e ,

n o tes h a v e n ot b e en n e g oti ate d to bon a fid e h old ers for a

va l uab le c on s idera tion 11


Wh e re th e h olders of a j ud gm ent
.

g i v e n t o s ec u re th e m fo r th e i r a cc e p ta n c e s m a d e fo r th e be n e

fit of th e j ud gm en t d eb tor ass ign ed i t to a p rior c red itor of


-

th e ir own th e coll ec t ion of th e j ud gm en t by s uc h as s ign ee


,

w as re s tra in ed on a b ill i n equity fi le d by th e j udgm en t


d ebtor for wh o se be n efit th e a cc eptan c es h ad b een m ad e th e ,

h old e rs of th e acce ptan c e s w e re d e c l a re d t o h a ve a n eq uita bl e


in tere s t in th e j ud gm en t a n d th e p roc e e d s of th e j ud gm en t
,

w e re d ire c te d to be a ppl ie d t o th ei r pa ym en t ‘
.

1 91 . Th i s Prin c i pl e e x t en d s t o a ll P a rt i es t o t h e B ill . Th i s

b
s u s ti tuti on to th e be n e fit pa ym e nt
of s ec urit y h e ld for th e
of n egotiable pa per w i ll be m ad e for th e bene fit of a ll pa rt ies
th e reto wh o by rea s on of th ei r l ia b i l ity th e re on h a ve p a id
, ,

th e s am e 7
One wh o h a s a c cepted a b i ll of e x ch ange on th e
.
0

Po wles v Hargreaves, 3 De G
1
. .
1
Toulm in 0 . Ham ilton, 7 Ala .

M . G 43 0 45 3
.
, . 3 62 .

1
H am m ond v Barclay, 2 Eas t, . Heath v Hand 1 Paige ( N
.
,

227 ; Madden v Kem pster, 1 Cam p 3 29 ; Auburn Bank 0 Throop, 18


J
. .

bell, 1 2 . ohns ( N Y ) 5 05
. . . .

1
Aztec 5 16 2 ,
. Ste venson v Austin, 3 Met . .

City Bank v Luckie, L R 5 Oh . . . .


( M as s ) 474 .

773 .
sos noe u xon m ono m arrss TO BILLS AND norms . 293

agree m en t property of th e d rawer in h is h an d s


th at c ertain

sh a ll be a ppl ie d to th e p ay m ent th e re of is entitl ed upon , ,

paying th e a cce ptance out of h is own fun ds to h old th is prop ,

et ty for h is re i m b urs em ent a ga ins t a tta ch in g c red itors of th e

d rawe r Th e pay ee of a prom iss o ry n ote wh o h as tran sferred


1
.

i t by in dors em en t an d h as afterw a rd s on th e fai lure of th e


, ,

m a k er b ee n c om pe ll e d to tak e it up m ay en force a m o rtgag e


, ,

g i v e n by th e m ak er of th e n o te to th e in do rsee wh i l e it w a s ,

h eld by th e l atte r to secure its p ay m en t ,


’
If th e h old er of .

a p rom i ss ory n ote wh o h as p rov e d it aga in s t th e es tate of th e

fi rs t in d ors er a n d h as th en rec ei ve d p ay m en t of it from th e


,

s e c on d i n d ors e r aft erw a rd s obta in s a d ivi d en d in th e b an k


,

ruptc y pro cee d in gs h e m ust a cc oun t for this d iv id en d to th e


,

s ec on d i n d ors e r a n d n ot to th e b an k rupt s c red itors 11 If d e bt


’
.

ors h ave given a c cepta n c es to th e i r c re d itor for th eir d ebt ,

a n d h av e a ls o giv en to h im s ec urity for th e p ay m en t of th e ir

i nd ebted n es s an d h a ve th en gon e i n to ban k rupcty an d th e


, ,

h old ers of th e b i ll s h ave p rove d th em for th ei r full a m ount


un d er th e b an k ruptcy th e c re d itor c a n n ot h ave th e full b e n e
,

fi t of th e s ec urity w ith out firs t h i m s e lf ta k i n g up th es e b i ll s


th e s ecurity w i ll be a ppl ied firs t to pay to th e c re d ito r an y
b a l an ce due to h im ove r th e am oun t of th e b i l ls an d th en to ,

re l iev e h im f rom h is l iab ility un d er th e b i ll s 4


A n d if th e .

h older of a n ote s urren ders c oll ate ra l s ecurity wh ich h e h old s


th erefor from th e m ak er th is w i ll ope rate th e d is ch arge of th e
,

i nd ors er to th e ex ten t but on ly to th e ex tent of th e rea l


, ,

va l ue of s uch s ec urity “ Th e i n dors e r w i ll be d isch arge d nu


.

d er suc h c i rcum s tan ces j us t a s a s urety ao nom in e w ou ld be 6


.

1 92 . P ro pe rt y i n S e ourtt i e s d e p o s i te d b y D ra w e r w i th A 0

o o pt o r . Th e prope rty in s ec urit ie s d epos ited by th e d rawer


1
Printup v . Jh o nson, 19 Ga .
1
Mann, carpa rts, Kettengell, in re,
73 . 5 C h D 367
. . .

O Hara Haas, 46 Mississippi,


’
1
v.
1
Union National Bank v Cooley, .

3 74 . 27 La Ann 202
. . .

Selfridge v Gill, 4
1 . Mass 9 5 . . Antea , 55 1 19 et seq , l 82 a . .

Aztec , 55 1 8 1, 1 8 2 . Case 0 Ha wkins, 5 3 Miss 702


. . .
294 mm m m or sus a om n on.

with th e acce pto r of


bi ll s for th eir paym en t rem ains s ub jec t ,

to th e trus t i n th e d raw e r; an d s o far as n ot applie d for


,
1

th at purpo se th ey are h e ld by th e acce ptor for th e d ra wer .

G in Ma l aga was in th e h a b it of d ra w in g bi lls on Y in Lon


. .

d on an d of rem ittin g b i ll s to th e l atte r to en abl e h im to


,

m eet h is a c c e p tan c es Y ren dered to G h a lf yea rly ac


. . .
-

c oun ts ch a rgin g h i m with b i ll s ac ce p te d an d c rediting hi m


, ,

with b il ls rem itted w ith a c red it of in te rest to th e sam e


,

tim e if a b ill rem itte d was d ish o n o re d th en its am oun t ,

was e n tere d on th e d eb it s i de th us in effe c t s tri k in g i t ,

out of th e a c c ount Y bec am e ins olvent an d c om poun d e d .


,

w ith h is c red itors C red iting Y with th e am ount h e th us


. .

paid on h is ac ceptances th e ba l ance of ac c oun t was in ,

favor of G At th e tim e of s us pend ing pay m ent, Y ha d


.
,
.

rem ittan ces wh ich h a d been th us sen t to h im by G It . .

was h e ld th at as Y h a d been d is ch a rge d f rom h is l ia b i l ity


.

on h is acc eptan c es by h is c o m pos iti on an d as th e re m i t ,

tan c es we re s pec ifically a pp ropriate d to th e p aym en t of th e


a c c eptan c es th e rem a i n d e r of th e re m ittan c es after Y h a d
,
.

b een re im burs ed for th e a m oun t th at h e pa i d on th e b ills


be lon ge d to B ut if th e rem ittan ce s be in g neg oti a ble ,

p ape r or current c oin h ad b een pas se d for va l ue to a 6m ,

fi d e h o l de r w ith out n otice of th e eq uities e x is tin g i n f a vor

of th e d rawer th e d rawe r c ould n ot rec l a im th em from


,

s uch a h old er Ou th e s a m e prin c i pl e it th e acc e pto r of


8
.
,

b ill s d epos its w ith on e b a n k e r m on ey a n d n egotiabl e s ecu


riti es for th e expres s purpo s e of tak ing up h is a c ce p ta n ces

pa y abl e at a noth er b an k er s and th e fi rst bank er re m its the ’

d epos it to th e s econ d w i th out n otic e of th e in struc tions on


wh ich it was rec eived th e a c ceptor cann ot foll ow th e prep ,

e rty in to th e h a n d s of th e s e c on d b an k e r to th e p re j ud i ce of
th e l atte r s righ ts a ga in st th e fi rs t
’ ‘
.

1 Pearl v . C la rk ,
2 Pe n n S t 3 5 0 Ba nk , 8 .Oh D . 1 6 0 ; B road ,
i
.
s re . . ,

Go m ez cd : pa rk Yg les ia s i n re N ec k , ex pa rk 1 3 Q B D 74 0 .

J
. . .
, , , , ,

L . Oh 63 9
. .
1
ohnson v Robarts, L R 10 . . .

1 Banco de Lim a v Anglo Pem vis n Oh 5 05


.
-
. .
susaoe i rxou AMONG m nri m
' '
ro m u s A ND m ores . 295

1 93 . H o ld e r n o t s ub s t it ut e d t o s e c uri ty h el d b y on e un d e r

no L ia b ili ty . unle s s a c t ually a ppro pri at e d . Th e h oldeb Wi ll n ot,

p
u on th e ins o lven cy k ruptc y of both drawer and d ra wee
or b an ,

be s ubs titute d to th e ben efit of s ec urity dep os ited by th e


drawer with th e dra wee to s ec ure th e l atter agains t h is in
ten ded ac ce ptan ces un l es s th e d raw ee h as a cc e pted th e b i lls
, ,

or un l ess th e h old er h as th e righ t to prov e h is de m an d a ga i ns t

th e es tate of both th e d ra we r a n d th e d rawee l


N or w i ll .

s uc h s ubs tit uti on be a llow e d if th e s ec uri ty is he ld by th e

acceptor n ot s pec ific al ly a ga i ns t th e acce pta n c es but for th e


, ,

p aym ent of any m on ey wh i ch sh ould be due from th e d rawer


to th e ac c eptor ev en th ough th e re m ay be n o i n debte dnes s
,

a p a rt from th e b i lls B ut an actua l app rop riat i on to th e


2
.

p aym en t of bi lls of property cons igned by the drawer to th e


d rawee wi ll be uph eld a l th ough th e l atter h as n ot ac c epte d
1
,

th e b ill s 4
Th e c ons i gn or of c offee d re w b i ll s up on th e c on
.

s i gn ees wh ich bi lls were n egotiate d to th e pl a intiff Th e


,
.

b i lls did n ot purport to be d ra wn agains t an y particul ar sh i p


m en t Th e c ons ign ee refused to a c c ept th e b i ll s a n d th ey
.
,

were protes ted Th e c on s ign or th en w rote to on e S as k in g


. .
,

h im to tak e ch a rge of th e c ons ign m en t rea l ize on it a n d , ,

h on or th e b ills Th e d ay b efore th e m aturity of th e b i ll s S


.
, .

wro te to th e plain tifl s ay in g th at h e expected s oon to rec eive’


,

from th e c ons ign ees th e c offee s en t by th e d rawer again st th e


b i lls a n d would th en write th e pla in ti fl aga i n
, S oon a fte r .

w ards 8 rec eived th e w arra nts fo r th e coffee from th e c on


.

s i gn ees a n d wrote to th e pla in tifl to th a t e ffec t refe rrin g to


, ,

h is p rev i ous l ette r a n d s ay in g h e s h ould d is pos e of th e c offee


,

as in s truc te d by th e c o n s i gn or an d w ould s e n d furth e r pa r ,

ticulars i n due tim e Th e s am e da y th e c ons ignees atta ch e d


.

1
V aughan v H alliday, L R 9 . . . 29 7
. See Matte r of Le Blane, 4
Oh 5 6 1
. . Abbott, N ew Cas ( N Y ) 221
. . . .

1
Levi s Case, L R 7 Eq 449 ;
’
. . .
1
Frith v Fo rbes, 4 De G F
. J . . .

S m ith, is re, 1 5 N B R 45 9 . . . . 409 ; Marine Bank of Georg ia 0 .

1
Ross 0 Seuls bury, 5 2 Ga 3 79 ;
. . Jauucey, 1 Barb ( N Y ) 486 ; a m ,
. . .

Allen 0 William s, 1 2 Pick ( Mass )


. .
5 18 9 .
296 m e u w or sus noeu r
on .

cofl ee as th e p rope rty of


ll ege d h ad an firm who th ey
'

th e a a

in teres t in it , but w ith wh om


S h a d h ad no dea l in gs ; b ut it .

was h e ld on th e pla in tifi s b i ll in equity th at th e c ons ign or


’
, ,

h a d g iv en S a uth ority to m ak e an equita bl e ch arge upon


.

th e p rop erty an d S h ad ac te d on th at auth ority an d th a t


,
.
,

th e c ofi ee m us t be a ppl ie d to th e paym ent of th e b i lls


'
1
.

1 94 . R igh t of H o ld e rs t o S ec uri t ies h e ld b y A c c ept or n ot a

param o un t on e. Th i
of th e h olders of negotiable pa per
s righ t

to be s ub s titute d to th e b en e fit of se c uri ties for its pa ym e n t

g iv e n by o n
,
e of th e d e b to rs u po n i t t o a n oth e r c a n n o t b e p re

ferred to the lega l righ ts of prior c red itors of both th es e


debtors in th e sa m e tran s a ction Th is prin c i ple was e s tab .

lish ed in an En g l ish cas e i n wh ich it a ppe ared th at two ,

se p a ra te firm s on e in B om bay an d on e in Lon don w e re en


, ,

a
g g e d in th e j oi n t a dv e n tu re of b u y i n g a n d s e l l in g g ood s i n

En gl an d a nd in In d ia Th e B om bay firm d rew bi lls on th e .

London fi rm wh ic h th ey d isc oun te d in In d ia ; an d w ith th e


,

p roc eeds they bough t c otton wh ich th ey c on s igned to Lon ,

don s pe c ia lly to m eet th ese a cce ptan ces


,
B oth firm s be ing .

in s olven t th e h olders of c erta in un pa i d b i ll s wh ich h ad b een


,

d rawn a n d acc epted in th is way c l a im ed to h a ve th e p roceeds


of th e sh ipm en ts of c otton appropriated to th eir paym ent ;
an d it wa s h e ld th at th ey were en titl e d to th is a pp ropria ti on ,

but th at it m us t b e s ubj ect to th e righ t of a ny c re d itors of


th e j o in t a d ven ture to h a ve th e c otton appl ie d firs t to th e ir
p aym en t as pa rt of th e as s ets of th e joi nt adventure A nd 1
'
.

it h a s b e en intim ate d th at th e rul e th at s ec urities h e ld by a


b a nk er a ga in st h is acce ptan ce s are ava i lable to th e h olde rs
of th e b ill s wi ll n ot b e a ppl ie d in ba n k rup tc y w h e re th e

d ra wers owe th e acce ptors on oth er ac c ounts m ore th an th e


a m oun ts of th e b i ll s at l ea s t if th e ac c eptors h a v e a g en e ra l
,

l ien on th e s ecuri ties s o d e pos ited w ith th em 1 If th e d rawer .

1
Ra nken v Alfaro , 5 Ch D 786 . . . . Royal Bank 0 Co m m erc ial Bank,
1
.

1 D w
e hurst, ex pa rte, L R 8 Oh . . . 7 App Gas 3 66 ; Richie s Case, L R
.
’
. . .

9 65 And see Addison e B urckm yer,


. . 4 Eq 226 . .

4 Sandf Oh ( N Y ) 498
. . . . .
sus aoe u l ou m ono PARTIES ro m u s AND NOTES . 29 7

of b i lls h as m a de re m ptor to c over h is


itt a n ces to th e a c ce

a cce p ta n c es a n d t
,
h e a cc e p to r h as b e c o m e in s olv e n t b e f o re

th e ap y m e n t of th e b i ll s a n d th e d ra w e r,
h a s a l s o b e c om e i n

s olv en t o w,
i n g th e a c c e p to r on g e n e r a l a c c o u n t a l a rg er s u m

th a n th e am oun t of th e b i ll s but h as n ot go ne i n to b an k ,

u
r p yt c t,
h e e q ui t y of t h e h o ld e r s of th e b i ll s t o b e p a i d ou t of
th ese rem ittan c es w i ll n ot p rev a i l over th e direct ion of th e
dra wee to h a ve th em a ppl ied upon h is genera l in debted ness
to th e a cc eptor 1 S o wh ere th e a cceptor of a b i ll pa i d th e
.

a m o un t th e reof to h is b a n k ers in ord er to m eet i t but th e ,

day b efore th e b i ll m atured d ied in d ebte d to h is bank ers on


g e n er a l a cc o u n t an d th e,
b a n k e rs d i s h o n o re d th e b i ll it w a s ,

h e ld th at th e d rawer h a v in g tak en up th e b i ll c ould n ot


, ,

c o m pe l th e ba n k e rs to re im burs e h im a s h av in g rec eive d th e ,

am oun t of th e b i ll in trus t for i ts p ay m en t


1
.

19 5 . H o ld e r s R ig h t t o
'
c o n t ro l S e c uri ti es gi v e n b y D ra w e r to

A c c e pt o r n o gre a t e r t h a n D ra w e f s Th e righ t Of th e h old e rs


of b ills to th e ben efit of property d epos ite d by th e d rawer
with th e ac c eptor th ere of wi ll even upon th e b a nk ruptcy of ,

th e a c c eptor be l im ite d by th e righ t of th e d ra w er a ga in s t


,

h im 1
. It w i ll n ot e x ten d to th e c as e of a gua ra nty gi ven to
th e a c c eptor by a th ird pe rs on n o n oti c e h av in g b een gi ven ,

by th e h older to th e gua ran to r Th e c l aim of th e h older


1
.

of th e b i ll c an n ot prevai l aga in st one wh o h as in good faith


a n d for v a l ue a c q uire d th e d e pos ite d p rope rty fro m th e d raw er

a n d th e a c ce ptor 1
If th e d ra we r c ould n ot req ui re th e
.

a pp ropri ati o n of th e p rop e rty to th e p a ym en t of th e bill s ,

th e h olde r wi ll h a ve n o s uch righ t 1


Th us A in Engl an d .
,
.

1
General South Am erican Co , a: .
1
Ba rned s Banking House, is re,
’

pa rt s , Y g les ias, in re, L B 10 Oh . . . L . Oh 75 3 . .

63 5 .
1
Hopkins e Beebe, 26 Pen . .

1
H ill 0 Royds , L R 8 Eq 290
. . . . . St 8 5 . .

1 Rin
dge v Sanford, 1 1 7 Mas s
. .
1
De ver
Suse, is re, 1 3
, ex p te,
a r Q .

460 See Walker 0 Birch, 6 T R


. . . . B D 766 ; First National Bank
. . of
25 8 ; Moore v Robins on, 6 2 Ala . . Marquette v Weed, 89 Mich 35 7 . .

5 37 .
298 m s m m or 8 03 3 001 11 03 .

em ploye d B in S outh A m eric a to purc h ase goods for him


. .

Th e m od e adopted was th at B ra ise d m oney by d ra win g bi lls .

on A an d s e ll in g th em
. an d w ith th e p rocee ds bo ug h t goods, ,

wh ic h h e s h ippe d to Liverpoo l c o ns ign e d to A In h is a o , ,

c o un ts B cred ite d A w i th th e b ill s a nd cha rge d hi m w i th


,
. .
,

th e c os t of th e goods a n d w i th h is c o m m iss i on s ; an d i n h is
lette rs he d irec ted A to pl ace th e price of th e g o ods to h is .

c re d it an d th e b i lls to h is d eb it B oth A a n d B beca m e . . .

b an k rupt Wh en A becam e b ank rupt goods were in trans it


.

'
.
,

to Liverpool ; an d s om e of th e b ill s out of th e p roceeds of


wh ich th e goods h ad been bough t h a d been ac cepted an d ,

oth ers were pres ente d to A after h is ban kruptcy an d were .


,

un a cc epted Th e good s h av ing a rrived an d c om e i nto th e


.

p osses sion of A s trus tees in ba nk ruptcy it was he ld th at


.
’
,

th e h old ers of th e b i lls h ad n o righ t to h a ve th e good s s pec i


fic ally a pp rop riate d to th ei r pay m en t The p roperty in th e .

g o o d s p a ss e d to A s ubj e c t on l y to B s ri g
.h t,
of s topp a g e in .
’

it d id n ot re ves t in B upon A s fa i lure t o acc ept


’
tra n si tu . .

s om e of th e b i ll s ; an d th e fac ts s h owe d n o a greem ent by

wh ich B would h ave a c h arge on th e goods in th e h an ds of


.

A a n d a righ t to h a ve th em a ppl ied to ta k e up th e b ill s


.
1
If .

th e p roperty was purch as e d o rigina lly a t th e j oin t ris k of th e


d rawer and th e d ra wee alth ough th e drawee h as prom ised ,

th e d ra wer to p rote c t th e b i ll s but h as afte rwa rds upon th e , ,

in s olve n c y of th e d rawe r refus ed to ac c ept th em th e ri ght , ,

of th e h old e rs of th e b ills to th e property w ill be l im ite d to


th e s urpl us of its proce ed s over th e am oun t due from th e
d ra we r to th e d rawee A m ere d irecti on in a b ill of ex
1
.

ch an ge to pl a ce th e am oun t to th e a c c oun t of a sh ip m ent

m a d e by th e d ra w e r to th e acc e ptor or a m e re l ette r of


1
,

a d vic e ac c om p any i n g th e b i ll to th e efi ec t th at th e b i ll is

1Banner ex pa rte Tappenbeck, is


, , Brown 0 R ough, 29 Oh D 848 ;
1
. . .

re, 2 Oh Div 278 . . . Entwis tle, is re, Arbuthn ot, a: park ,


1
Robey e Ollier L R 7 Oh 69 5 ,
.
,
. . . 3 Ch Div 477 . . .

lim iting and expla in ing Frith v Forbes, .

4 De G , F . J 409 . . .
sus noe u xon Am e m am ro m u s A ND norms . 29 9

d ra wn o wi ll n ot operate a
on ac c un t of a spec i fied s h i m ent, p 1

s pe c ific a p prop riati on


of th at sh ipm e nt to th e p ay m ent of th e

b ill wh ich c an be en forced aga ins t a purch as er of th e goods


,

from th e ac ceptor ; j us t as th e m ere fact th at b i ll s are given


in pa rt ia l pay m en t for p rope rty agreed to b e s old by th e
d ra wer to th e a c c eptor upon wh ich th e se ller reta ins a l ien ,

for th e un pa id porti on of th e p rice w i ll not upon th e ban k , ,

ruptcy of both p art ies gi ve to th e p ers ons to wh om th e b i ll s ,

h a ve b een n egotiate d any l ien upon th e property for th e ir


pa y m e n t 1
.

1 96 . H o l d e rs n i gh t t o A ppl ic a ti on
'
of S ec uri ty pe rleh ee w it h

t h a t o f i t s D e p oai t o r .
—If th e
d rawe r of b i lls h olding s ecurity
from th e acceptor for th ei r paym ent h as by th e s ubstituti on ,

of n ew b ills th erefor los t th e right a s a ga in st th e acc eptor , , ,

to h av e th e sec urity appl ie d for th ei r pa y m en t th e h old er of ,

th e old b i ll s c l aim ing un de r th e d rawer wi ll a l s o be de


, ,

p ri ve d of s uc h ri gh t T h us a d e b t o r b or ro w e d
. m o n ey f ro m ,

a c orpo ra ti on gi vi ng it h is acc e pta n c es an d d epos iti n g s h ares


, ,

a s s ec urity th erefo r Wh en th e b ill s bec am e due th e cor


.
,

p o r a t i on p re s e n te d to h im f res h b i ll s fo r a c c e pta n c e s ta t in g
th em to be i n pl ac e of th os e fa ll in g d ue ; an d h e a c ce pte d th e
n e w b i ll s a cc ord in g ly B oth h e a n d th e c orpo ra tion th en .

becam e in s ol vent B oth sets of b i ll s be in g st ill outstan d in g


.
,

i t was h e ld th a t th e h old e rs of th e firs t b ill s h ad n o e qui ty


to h a ve th em p a i d out of th e s h a res ; for th e l ette r an d th e
deb tor s n e w ac cepta n ces h ad put an e nd to th e s ec urity as
’

to th e firs t s et of b ill s 1 B ut it is to be ob se rve d th at th e .

fi rst s e t of b ill s did n ot purport to be dra wn a ga ins t th e


s e c urity
1
.

1
Phelps 0 Com ber, 29 Oh D 8 13 ,
. . . Lam bton ex pa rte, Lindsay, is re,
1
.

afi rm ing s c , 26 Oh D 75 5 and ap
. . . .
, L R 10 Oh 405
. . . .

r ving Pers evera nce Iron Works 0 1


General R olling Stock is
p o .

Ollier, L R 7 Ch 69 5 ; B rown v
. re L R 4 Oh 423 . .

K
.
. . .
, .

oug h 29 Oh D 8 48 overruling on
, . . .
1
See McCracken 0 Germ an Ins . .

t his point Frith v Forbes , 4 De G , F . . 43 Md 471 .

J
. .

409 .
TH E LAW OF S UBROGATION .

§ 1 97 . Ta k i n g a m on th e C re d i t of th e P un d u n ot en o ug h .

Alth ough th e d ra wer of a b i ll h as fun ds in th e h an ds of


th e d rawee a n d th e h old er tak es it upon th e as s ura n c e of
,

th e d ra wer th at th e fun d s a re s pe c ifica lly a pprop ria te d to th e


paym ent of th e b ill th is as suran ce w ill n ot of itse lf operate
1
,

s uc h a n a pprop ria ti on un l es s th e b i ll was so d ra wn a g a in s t ,

th a t pa rti c ul a r fun d as to c on s titute a n eq uita ble as s i gn m en t


th e re of ; oth e rw is e th e m e re d ra w in g a n d n egotia ti on of th e
1
,

b i ll does n ot pass any righ t to th e fun d 1


Thus wh ere th e .
,

pl a in tiffs bough t a b i ll of ex c h a nge on th e ass urance of


th e d ra wer th at th e re were fun ds in th e h a n d s of th e d ra wee
wh ich we re s pec ific a lly a pp ropriated to m eet i t but before ,

a ny acc e pta n c e of th e b i ll th e d ra w er s to ppe d p aym e n t ,

a l th ough i t was at fi rs t c on s id ere d up on th e pla i ntifi s bill ’


,

a ga ins t both d ra we r a n d d ra we e th at th e pla in tifi s h a v in g , ,

ta k en th e b ill up on th e fa ith of th es e repre s enta ti ons w ere ,

en tit l e d to be p a id its a m oun t out of th e fun d s of th e d ra wer

in th e h a n d s of th e d ra wee yet on a ppea l it w as d ec ide d th at ,

th e pl a int iffs h a d n o righ t to a ny c h a rge upon th ese fun ds 1


.

W h ere on e b ank h as depos ite d b on ds w ith an oth e r b an k as


s ec urity a ga in s t its ov erd rafts a n d h as th en b ec om e in sol ,

ven t bein g in debte d to th e s econ d b an k th e h old ers of s uch


, ,

b i ll s d rawn by th e firs t b a nk before i ts ins ol ven c y but pre


,

s e n te d afte rw a rd s ca n n ot re s o rt to th e p roc ee d s of th es e
,

b on ds to th e pre j ud ic e of th e righ t of th e s ec on d ban k to


a pply th em up on its own d em an d 1
.

Canto n Bank 0 D ubuque 11 R


1
. . .
1 Whitney o
Eliot Bank, 1 3 7 Mass . .

Co 5 2 Iowa. 3 78
.
, . 3 5 1 ; B ush v Foote 5 8 Miss 5 ; Com
.
,
.

See S m ith is re, 1 6 N B R 3 99 ; m erce Ban k 0 Bogy 9 M o Ap 3 3 5


1 . .
, . . .
, . .

Trem ont Na il ex pa rte Id 448 ; ,


. B ut see Cincinnati Bank 0 Coates, 3 .

Brill v Tuttle 8 1 N Y 45 4 re vers


.
, . .
, 11c , C
C 9 . . .

ing s c , 1 5 H un 289 ; Attorney Thom son 0 Sim pson, L R 5


’
1
. . . .
.
,

Gene ral 0 Con tinental Ins Co 71 N


. . .
, . Ch 6 5 9 reversing s c , L R 9 Eq
. . . . . . .

Y 3 25
. Kabnweiler 0 Anderson, . 49 7 .

78 N or Car 1 33 ; Wellsburg Bank 0


. . .
1
Garvin v State Bank, 7 8 0 Car
. . .

Kim berlands, 16 W V a 5 5 5 . . . 266 .


sus noou l on m ono m am as t o BILLS AND NOTES . 3 01

1 98 . E x te n t of H o l d ers R igh t
'
of S ub s ti tut i on to A oc e pt o rs
'

S ec uri t i es . Th e o of th e h older of a b ill to sec ur


substituti n

iti es h e ld by th e a cce ptor w i ll if th e p a rties to th e b i ll h ave ,

n ot be c om e in s olven t be l im ite d to th e righ ts of th e ac c eptor


, .

If th e a cc e ptor s s e c urity is a m ortga ge from th e d raw er


’

c on d iti on ed on ly to in d em n ify h i m for wh at m on ey h e s h ould

ac tua lly h a ve p a i d up on h i s ac c e ptan ce th en a s th e a c c eptor , ,

c o u ld n ot en fo rc e h is s ec urity unt i l a ctua l p ay m en t by h im ,

th e h old e r of th e b i ll c an n ot requi re a forec lo sure of th e


m ortg age for i ts p ay m en t Th e acce pto r h old in g s uch ih
1
.

d em n ity m ay b efore th e righ ts of th e c re d itors a ris e upon


,

h is i n s ol ven c y re l e as e th e wh ol e or p a rt of it to th e d raw e r;
,

a n d th e h old e r of th e b i ll s c a nn o t up on th e a c c e pt o r s s ubs e
’
,

que n t ins ol ven cy av oid s uch re lease aga in s t th ose wh o h ave


,

s in c e a cqui red righ ts in th e re l e as e d prop e rty


1
.

1 99 . R igh ts of an A c c e pt o r t o S e c uri t ies h el d a g a in s t th e

B ill b y Pri o r P art i es t h e ret o b i ll be ing


.
— Th e a cc e ptor of a ,

th e pa rty prim a ri ly l i abl e up on it c a n n ot up on pay in g it , , ,

b e s ub rogate d to th e ben efit of a s e curity given by th e d ra w er


t o th e p ay ee to se c ure its p ay m ent
.
1
Th us wh ere th e pur .
,

c h as e r of p rope rty gave to th e ve n do r a m o rtgage on th e p rop

e rty to s ec ure th e p ay m en t of a b i ll d ra wn by th e purch aser

i n favor of th e v en d or upon a th ird p e rs on for th e p ric e of


th e prope rty th e m o rtgage rec itin g th at a l ien was reta in e d
,

on th e prop erty in favo r of th e v en do r or a n y oth e r h old e r of

th e b i ll but n ot s ti pul a tin g th a t th e dra wee sh ould h av e th e


,

ben efit of th e m ortgage on p ay in g th e b ill w ith out h av in g


b een put in fun ds th erefo r by th e d ra wer an d with out be ing
b oun d a s to th e d ra we r to pay it if th e b ill i s pa id by th e ,

d rawee at its m a turity w ith out a n y c on ven tion a l sub roga tion
in h i s fa vo r at th e tim e of th e p ay m en t th e d eb t w ill be e x ,

tin guis h e d as to th i rd pe rs ons an d th e m o rtgage wi ll be ,

Planters Bank 0 Douglass , 2


1 ’
1
Fowler v Gate C ity Bank, 13
.
.

H ead 6 99 8 0 E Rep 83 1 ; Trim ble v City


.
. . . . .

1
St Louis Building Association 0 Bank, 1 5 8 0 W Rep 8 5 3
. . . . . .

Clark, 3 6 Mo 601 . .
8 02 THE LAW or S UBROGATION .

e x tinguish ed as to the h olders of oth er l iens upon th e m o rt


a
g g e d p ro p er ty ; f or th e ac c e p to r w as th e p r in c i p a l d e b t or

upon th e b i ll an d s im ply pa id h is own d ebt i n payi n g i t ;


,

a n d th e m ortga ge c on ta in in g n o s t ipul ati o n i n h is b e h a lf


, ,

c a nn ot be k e pt a l i ve for h is be n efit or for th e be n e fit of a n y ,

oth er pers on un less th is res ults from th e term s of th e b i ll


,

itse lf 1
. A n in do rs er an d a n a c c om m od ation a c c eptor of a
—
b ill a re n ot c o s ure ties ; an d th e acc eptor c ann ot be s ub ro
g a te d t o t h e be n e fit of a m o rt g g g
a e i v e n by th e d r a w e r t o t h e

in d ors er to in de m n ify th e l atte r aga in s t h is l iab il ity e ven ,

th ough th e b i ll w as p a i d after bein g prote s te d by giv i n g to


i ts h old e r th e n ote of th e d raw er w ith th e in dors er an d t h e
,

a c c e ptor as s ureties th e reon a n d th e acc e pto r on p a y in g th is


,

n ote took a n as s i gn m en t of a ll th e s ec uri ties in th e h an d s of

th e in d ors er a n d of th e h old er be c ause th e m ortga ge w as


,

g i v e n on ly f o r t h e p e r s on a l i n d em n i ty of t h e i n d o r s e r a n d
n ot for th e p aym en t of th e b i ll s o th a t th e acceptor h a d n o
,

righ t to it ; an d on th e i n dors e r s b ein g in dem n ified by th e


’

a cc epto r s p ay m en t of th e s ub s titute d n ote th e m o rtgage


’
,

1
B ut in Ne w Yo rk it h a s bee n d ec i d ed
’

b ec am e f un c tue qflie zo
’
.

th at a l th ough at la w th e a c c om m od ation a c ce pto r of a b i ll i s


re ga rd ed i n fa vor of a bon a fid e h old er of th e b i ll as th e p rin

c ipa l d eb to r th ere on y e t ,
as b e tw e e n t h e d r a w e r a n d s u c h
a c c e ptor th e l atte r i s rega rd e d in equity as m ere ly a sure ty ,

an d i s en titl e d up on h is p ay m ent of th e b i ll to be s ub roga ted

to th e ben efit of a n y s ec urities ta k en by th e h olde r of th e b ill


from th e drawer to secure its pay m en t ; a nd acc ord in g ly in ,

a n ac ti on a ga i n st s uc h a n acc ep tor by a n on res i d en t h o lder


-

of th e b il l th e d rawer h avin g becom e i n s olven t th e d efen dant


, ,

m ay un d er th e c od e a ll ow in g th e gi v i n g of b o th l e ga l a nd
,

e q uita b le re l ief in th e s am e ac ti on d e m an d s uch s ub rogation ,

upo n p ay m en t of th e a m oun t due to th e pl a intiff


1 .

1
Sals un v B elt, 4 La Ann 5 75
. . . . Toronto Bank e H unter, 4 Bosw
1
. .

1
Gom ez 0 Lazarus, 1 Dev Eq
. . .
( N Y ) 6 46. . .

( No r C
. ar ) 20
.5 .
sos s oeu l on A MONG PARTIES ro B LLS AND s om e I . 3 03

200 . A c c e ptor. S ec uri ti es to b e applie d upo n all A c ce pt

a n c e: alik e . Securi ty in th e h a nd s pt o r for th e of an acce

paym ent of h is acceptances w ill in c ase of nee d be appl ied , ,

to th e p aym en t of all th e ac ceptan c e s a l ik e 1 If th e h olde rs .

of s om e of th e acceptan ces h ave esta bl ish ed th e ir righ t by


l itigati on th ey w ill be preferre d on ly to th e extent of a fa ir
,

sh a re of th e e xp enses of th eir liti ga ti on Th us a drawer .


,

h av in g g iven to h i s a ccepto r a j ud gm en t as s ecurity for h is


ac c e ptan c es th es e ac c e pta nc e s we re n egotia ted ; an d s om e of
,

th em re m a ine d un pa i d i n th e h an ds of th ree firm s Th e .

ac c e pto r a ss ign ed a po rti o n of th e j ud gm en t to two of th ese

fi rm s as c oll ate ra l security for th e pay m ent of th e d rafts


,

wh ich th ey res pec tive ly h e ld Th ey enforce d th e j udgm en t


.

a t th e ir own e xpen s e an d c l a im e d to be fully p a id out of


,

i ts p rocee ds l ea v ing on ly a s m a ll b a l an ce for th e ben efit of


,

th e oth e r firm wh ich h a d ta k en n o part in th e l itigati on


, .

B ut it was h eld th at th e s ec urity of th e j udgm ent atta ch e d


to all th e un p aid ac ceptan ces al ik e an d th at th e h old ers ,

were en titl e d to pro ra ta sh a res of th e m oney wh ich h ad ,

been c oll ected th e l itiga nts re c e i v in g in add iti on to th ei r


,

d iv i den d a fa ir sh a re of th e c os ts an d expens es of th ei r l iti


g at ion B .u t th e c ourt a l s o s a i d th a t s uc h t h i rd fi r m w ou ld
be requi re d to exh a ust wh atever ind epen d ent s ecurities th ey
h a d an d sh ould n ot be a llow ed to rece iv e th ei r pro ra ta
,

s h a re un ti l s uc h o th er s ec uritie s h ad been e xh aus te d or

s h ow n to be wo rth l es s an d th at a nyth in g wh ich th ey m igh t


,

re ceiv e from s uch sec urities sh ould be rec koned as a p a rt of

th eir d ivi d en d so as to i nc reas e th e s h are of th e tw o firm s


,

wh ich h ad born e th e burd en of th e l iti gati on and h ad re a l i z e d


th e fun d 1
.

200 a . S ub ro ga t i on of H old er of C h e c k to n h ts of D raw er .

By an a logy to th e n ow wid ely adopte d rul e th at on e for


wh ose ben efit a prom ise is m ad e th ough not a p arty to
, th e

1
Franklin County Bank v. Green 1
K ram er s
’
Appeal, 3 7 Penn . St .

field Bank, 1 38 Mass 5 15 . .


3 04 rs s LAW or sus aoou i on .

o
c ntract privy to the cons ideration m ay m a intain an
or ,

ac tion th e re on 1
it h as been o cc as ion a lly d ec id ed th at th e
,

h older of a ch ec k is s ub rogated to th e righ ts of its draw e r ,

th e de po s itor a nd m ay sue th e b an k up on its fa i lure to pay


, ,

th e ch ec k in h is own n a m e ,
1
B ut th e old rul e is s till gen .

e rally m a inta in e d th at s uc h a n ac t ion ca n be b rough t o n ly


,

by th e d epos itor But it h a s been h e ld th at a ch ec k d ra wn


1
.

a ga ins t th e wh ol e of a s pec ific fun d d epo s ited in th e b an k i n

th e n am e of th e d ra wer but be l on g in g in e quity to th e pa y ee , ,

transfers to th e payee on its de l ivery to h im th e l e ga l ti tl e


to th e d epos it 1
a n d th a t wh en th is p a y e e i n purs uan ce of
, ‘
,

h is prior p a rol a s s ign m en t of th e fun d m a de for va l ue in ,

do rses an d d el ive rs th e ch ec k to h is ass ignee th e ti tle to th e ,

depos it vests in th at as s ignee even aga inst subs equen tly ,

a tta ch in g c re d itors of th e d e po s ito r th ough an o rd in a ry


1
,

c h eck can n ot be trea ted as a n eq uita bl e ass i gn m en t of th e

m o n ey for wh ic h it ca ll s a n d woul d n ot be fore its pa ym ent


1
, ,

or a ccepta n c e or c ert i fic a ti on by th e b a nk g i v e th e p a y ee ,

a ny righ ts a ga in s t a c red ito r of th e d e pos ito r m a k i n g an

in te rven in g a tta ch m ent ?

201 . W h e th e r B utts or J ud g nm n ts e x t in gui s h ed upon P ay

m en t b y P art i e s p h a ve b een
s ec o n d ari ly li a b l e . If s e a ra te suits

b rough t again st th e m ak er a n d th e in dors er of a prom is s ory


n ote a n d th e in do rs e r pay s th e a m o unt due with th e a g ree
,

m en t th at th e s uit a g a in st th e m ak e r sh a ll b e p ro sec ute d for

1
55 8
Antea5 . 1 71 a , . Bank, 107 Mass 45 ; Meghan 0 Dollar . .

1
Fonner v S m ith 3 1 Neb 1 07, .
,
. Sa vings Bank, 1 3 1 Penn St 3 6 2 . . .

and cases there cited ; Union Ban k v .


1
Germ an Savings Institution e .

Oceans Bank, 80 Ills 21 2 ; Lester v . . Adae , 1 McC rary, C C 5 01 . . .

1
Given, 8 Bush 3 5 7 Roberts v . Hem phill v Ye rkes, 1 3 2 Penn St . . .

Austin, 26 Iowa, 3 15 ; Fogarties v . 5 45 .

State Bank, 1 2 Ri ch Law ( So Hopkinson v Forste r, L R 1 9


.
.
1 . . .

5 18 . Eq 74 ; Schroeder 0 Central Bank . .


,

First Nat l Bank v Wh itm an, 24 Weekly Re po rte r 710; s c , 3 4 L


’
1 . . . .

94 U S 3 43 ; Bank of Republic 0 T N s 73 5
. . . . . . .

Millard, 10 Wallace, 1 5 2 ; Essex 1


Bank o f Com m erc e 0 Russell 2 .
,

County Bank v Bank of Montreal 7 Dillon, C C 215 ; Ballard v Ra ndall.


. . . . .

Bias C C 193 ; Carr 0 Security 1 Grey ( Mesa ), 605


. . . . .
sns s ooa rl on m
'
ono pu m as ro m u s A ND norms . 3 05

h is benefit, th e k er cann ot av ail h im self of th e in d orser s


m a
’

p a y m e n t as a d efen ce to th e furth e r p ro sec uti on of th e suit

a ga i ns t h im s e lf ; n or if th e i n do rs e r s p ay m en t w as m a d e
1 ’
,

afte r j ud gm e nt aga ins t th e m a k e r can th e m ak e r s b a i l s et


“
’
,

up s uch a d efen c e in an ac tion up on th eir recogn i z an c e


1 If .

s ep a ra te j ud gm ents h a v e b een ob ta in e d a ga in s t m ak er an d

i n d ors er th e l atte r m ay pay th e j ud gm ent a ga ins t h im s e lf


, ,

a n d tak e an as s ign m e nt of th a t a ga ins t th e m a k e r an d en

force it for his own ben efit If th e m ak er an d th e in dorser


1
.

h ave b een jointly sued un der th e New Yo rk statute an d a ,

j udgm en t h as been rec overed aga inst th em th e indors er upon , ,

p a y i n g t h e j ud gm en t m a y t a k e a n as s ignm e n t t h ere of f
,
ro m

th e c red ito r an d us e it for h is in dem n ific a tion a s a s ub s is t


,

i n g j udgm en t aga in st th e m ak er 1
If a n in d orse r of a b i ll of .

e x ch a nge h as rec overe d a j ud gm en t th e re o n a gain s t th e

m ak e r th is j ud gm ent w i ll n ot be e xti n guish e d by its as s i gn


,

m ent to a p ri o r i n dors e r of th e b i ll up on th e l atte r s p a y i n


’
g ,

th e am oun t d ue th ereo n 1
Th e in dors er m ay be sub rogated .

to th e b e n efit of a j ud gm en t aga in st th e m ak er w ith out tak


i n g an as s ign m e nt th e reof 1
B ut th is sub rogation of th e .

i n dors er is to a s uit or a j ud gm en t a ga in s t th e m ak er
d irectly upon th e o rigin al obl igati on ; it does n ot exten d to
th e p os e ti on of a m e rely i n c id en ta l rem e dy s uch as an
r c u 7
,

1
As tea , 55 1 8 1. 1 8 2 . d surety has
an not since been followed .

1
Mechanics Bank 0 Hazard, 1 3
’
. Antea , 5 1 3 7
J
.

ohns ( N Y ) 3 5 3
. . .
Hs rger v McC ullough, 2 Denio
1 .

1 Folsom e
Carli. 5 Min n 3 33 ; . .
( N . 11 9 ; S tiles v Eastm an, 1 Ge . .

S tate Bank 0 Wilson, 1 Dev Law . . 205 ; Wils on e Wright, 7 R ich . .

( N o r C
. ar ) 48 4 . .
( La w ) 8 0 C ar 3 99 .B ut see T opp. v . .

1
Yates v Mead, 68 Mi ss 78 7 ; . .
B ranch Bank, 2 Swan ( Tenn 184 . .

D avis v Perrine, 4 Edw Ch ( N Y )


. . . . .
1
. J
Ross 0 ones , 22 Wallace, 5 76 ;
62 Corey 0 White, 3 Barb ( N Y ) . . . . Old Dom inion Bank 0 Allen, 76 V a . .

1 2, overruling Saline Bank 0 Abbott, . 200 ; Yates v Mead, 68 Miss 78 7, . .

D
3 e nio ( N 1 8 1 , and explaining
. extending Dibr ell v Dandridge. 5 1 .

Onta rio Bank Walker, 1 Bill ( N . Mi ss 5 5 Lyon 0 Bolling, 9 Ala


. . .

65 2 The state m ent in avis 0


. D . See a s tea , 5 1 3 5 cl seq .

Perrine, supra, that this rule has not 1


H eighe 0 Farm ers Bank, 5 Han
’
. .

been extended to the case of principal (JM d ) 6 8 ; D e


.h n e H eck m an, 12 .

Ohio St 18 1 . .

20
3 06 m l u w or 9 03 3 001 11011 .

o
acti n agains t a notary for negl igence in m aking a prot es t of
th e ote wh ereby oth er part ies were re leas ed The pay
n ,
.
1

m ent of a n ote by one of s eve ra l jo in t prom is ors exti n guish es

it a n d it cann ot afterwards be kept a l iv e agai nst th e oth er


,

e ign e rs
1 Nor w i ll eith er th e m aker or a s urety for the
.

m a ke r ac quire by pa y i n g a j udgm ent on th e

of ac ti on a ga ins t th e indo rse r 1


.

1
8 49131610 in Warren Bank ar 1 A11egheny R R Ca v.

her, 8 Gray 221 . 13 1 Penn St 86


. . .

1
Ste vens 0 H annah , 8 8 Mich 13 ;
. .

e c , 86 Mich 305
. . . .
BUBBOGA TION m m w uxm sm rxon or nsn rm . 8 07

CHAPTER VI .

S UBROGATION IN THE ADK INIBTRATION OF S TATE .

S ubrogation of Exec utor or Ad S ubrogation in Favor of Specific


m ini stra tor to Debts and Legs De visees and l e gatees
cies wh ic h h e has paid 202 Subrogati on Of Devisees to s nbse
S uch Subrogation m ust be seas on q u n tly q red Assets
u i
’

e ac .

a bly cla im ed Its Lim itations 208 Rig h ts of Heirs , Devisees, or Log
“
.

S ubroga tion in Fa vor of Credi tors 9 08 agains t 0001! oth er

of Deceas ed Marshalling of
.
S pecific Deviss 01 Legacy charge '

C reditors subroga ted to Charge its Protection


upon Property purc hased from Rig hts of Heirs . am ong t hm e

Funds of th e Deceased Debtor 205


C red itors subrogated to Rights of Righ ts of Purchaser from Heir or
Exec utors to Reim bursem ent Devieee
W here the Cred itor entitled to
h old Two Fund s
Subroga tion be tween Tenant for S ubrogation of Devisee or Le gatoe
-

Life and Rem ai nder m an 207 a


- wh o is disappointed by the Elec
S ubrogation in Favor of Lega tees 208 tion of an ot h er

In Favor of a Purchaser from the Extent of th e Right of S ubstitu


Personal Represe ntative
Where Lega tees have paid udg J Th is does not exte nd to 9 Davies .

m en ts agains t the Esta te m er ely upon Condition 220

202 . S ub ro ga t l o n of E x ec uto r o r A d m i nis trat o r t o D e b ts an d

Le ga c i es w h ic h h e h as pa i d x ec utor or ad m inis trator


. If an e

pay s debts of th e estate out of h is own m ea ns to th e value of


th e as s ets in h is h an d s h e m a y apply th e se a ss ets to re im
,

burse h im self ; and by such e l ection th es e assets becom e h is


ow n p roperty 1
but h is subroga ti on w i l l be carrie d to n o

gr e a te r e x te n t th an th e ac tua l v a l ue of h i s p a y m en ts
1
S o .

1
Livingsto n v Newkirk, 3 ohns. J . Hancock 0 Minot, 8 Pick (Masa ) . .

Oh ( N Y ) 3 12 ; C hesson e Chee
. . . . 29 , 3 7 3 8 ,
.

son, 8 Ired Eq ( Nor Car) 141 ;


. . . .
1
Powell 0 Powell 80 Ala 1 1 ; . . .

Mila m 0 n lend, 19 Ala 8 5 ; Baelt


. . Sorrels e Trenthsm , 48 Ark 386 ;
. .

ingham v Wesson, 5 4 Miss 5 26 ;


. . Am os v H eatherby, 7 Dane
. 45 .
3 08 THE LAW or sus aoe s n ou '
.

p
u on paym ent of h is testator s debts h e wi ll be sub rogate d
his ’
,

to an e quitabl e c h arge upon p rope rty c h a rge d by th e wi ll w ith


th e p ay m en t of debts but w i ll n ot bec om e th e abs ol ute o wn er
,

of s uch property A n d al th ough an e x ecuto r ordered to sell


1
.

l an d can n ot h im s e lf reta in it as h e m ay pe rs on a l as sets yet , , ,

if th e pe rson a l estate p rov es to be in sufi c ien t a n d h e h as ,

p aid debts of th e estate to th e v a l ue of th e l an d out of h is


ow n p roperty h e m ay up on a s a l e of th e l an d
, , reta in th e ,

proceeds of th e s a le for h is own in dem n ity H is righ t to be1


.

re im bursed for a dv an ce s p rope rly m a d e for th e ben efit of th e

es tate is p a ra m oun t to th e c l a im s of th e d i strib utee s 1 S o if .


,

h e h as p a id d ebts of th e d ec eas ed to a n am ount e x c ee d in g the


a v a il a bl e pe rs on a l a s s ets h e m ay for h is i n d em n ity be s ub ro ,

g a te d t o th e rig h ts of t h e c r e d ito rs w h o m h e h as p a i d 1
a g a i ns t
th e l an ds of th e d ec eased an d m ay subj ec t th e rea l es ta te in
1
,

th e h an d s of th e h e irs for h is re im b urs em e n t ; an d a sure ty


1

of th e adm in istrato r upon h is paym en t m ay be s ub rogate d to


th i s righ t of h is p ri n c ip a l 7 Th ough an a dm in istrator acts .

a t h is own pe ri l in p ay in g un p refe rre d de bts of h is i n te s ta te

b efore h e c ould la wfully be c a lled upon to pay th em a n d if ,

th e es ta te afte rw ard s turn s out t o be i ns olvent cann ot ch arge


it w ith th e full a m oun t s o p a id by h im 1
y e t i n t h e a b s en ce , ,

of statute regul ati ons h e m ay by sub rogation to th e righ ts of , ,

th e c re d itors wh om h e h a s th us s atis fied rec eive th e sh are of ,

1
Graha m 0 . J ones, 24 So . Car . 70; S m ith v . H oskins , 7 J J . .

241 . Marsh (Ky ) 5 02 . . .

Turner 0 S hufller, 108 Nor Car


1 . Collinson v O wens, 6 Gill 0: J . .
1 . .

642 ; Livin gs ton v N ewkirk, 8 8 p m ; ( Md ) 4 ; Gist e Cockey, 7 H


.
J . . . .

Clayton v So m e rs, 27 N J Eq 230


.
( M d ) 1 3 4 ; G ood b
.ody o G
.
o odbody, . . .

Wheeler 0 Wheeler, 1 Conn 5 1. 95 Ills 45 6 ; B lac k 0 Black , 42 Ion ,


. . . .

1 Pen der ras s v Pender rase 26


g g , 6 9 4 ; M c
. C ulloug h 0 W ise, 5 7 A h . .

So C ar 19 ; Terrell v Ro wland, 86 6 23
. . . .

Ky 6 7 .
7
Taylor 0 Taylor, 8 B Mon . . .

1
Gundry H enry, 65 Wise .
( Ky ) 419 . .

559 .
1
Has lett 0 Glenn, 7 B arr 0: J . . .

1
Crowley o . Mellon , 5 2 Ark . 1 ; ( Md 17
) ; .Rh ee e Greer, 8 6 Tenn . .

Huflm an, 1 2 Gratt ( Va ) 5 9


'

Gaw v . . .

K
.

628 ; inney 0 Harvey, 2 Leigh


.
susaoe u x
on m rs s A DMINIS TR ATION or m u m s . 3 09

th e ass ets to wh ich th ey


would h ave been entitl ed and th e 1

s am e rul e wi ll be a ppl ie d to an y oth e r truste e ; but if h is


1

p ay m ents were m ad e for h is own re l ief th ey w ill n ot give ,

h im a righ t of sub roga ti on to th e p re j ud ic e of oth e r c re d itors


of th e deceas ed A h adm in istrator wh o h as m a de voluntary
1
.

p a y m e nts to a c re d ito r of th e estate w i ll be p rotecte d by a

sub seq uen t d ec ree i n f a vor of s uc h c red itor If h e h a s em


1
.

ployed as sets of th e esta te to pay a debt owe d by a l egate e ,

he ca n h old on ly s uch l egatee s s h a re of th e e state for h is


’

re im burs em en t ; but h e m ay be s ub ro gate d to th e righ ts of


1

a l eg ate e wh om h e h as ev en b efo re th e p roba te of th e w i ll


1
, ,

a dv a n ce d th e m on ey to pa y 1 If one of two pe rs on a l repre .

s en tative s h a s com m itte d w a s te by apply i n g th e pe rs o n a l

es ta te to th e p a y m en t of d ebts wh i ch w ere p rope rly ch a rge

a bl e up on th e re a l e s ta te th e oth er re p res enta tive if com , ,

p e ll ed t o r e pl a c e th e am oun t s o m i s a ppl ied by h i s c oll e a ue


g ,

m ay h old th e rea l esta te in th e h an d s of th e h e irs for h is re

im b urs em en t ; for co ex ecutors a re n ot at th e c om m on la w


1 -

re s p on s ibl e for each oth e r s w as te i n wh ich th ey h a ve n ot


’
,

partic ipated un l es s it h as been m ade poss ibl e th rough th eir


1
,

1 i
P erce 0 All en
.
, 12 1
ohnson v Corbett, 1 1 Paige J .

Woolley o Pem berton, 41 N J Eq ( N


.
26 5 . . . . .

3 94 ; B rec kenridge s Appea l, 1 27 Penn


’
1
Pete r 0 Beverly, 10 Peters, 5 3 2 ; . .

St 8 1 ; Millard 0 Harris , 1 19 Ills


. .s c 1 H ow 1 34 ; Mc Kim v Aulbach,

J
. . . . .

1 8 5 ; Byrd v o nes, 8 4 Ala


. 3 36 ; 1 3 0 Mass 48 1 ; B raze r v Clark, 5 .
. .

McNeil] v McNeil], 36 Ala 1 09 ; Pick ( Mass ) 9 6 ; Town e v Am m i


. .
. . .

Feem ste r v Good 1 2 So Car 5 73


.
, down, 20 Pick ( Mass ) 5 3 5 Fisher
. . .
.

1
Salter v C reditors 6 Bush
. 17 Skillm an 1 8 N J E
,
q 229 ; G ault .
, . .

6 24 Corcoran 0 Allen, 11 . 5 67 ney e N olan, 3 3 Miss 5 69 ; Gates 0 . . .

1 McNeill e McN eill 3 6 Ala 1 09


.
, Whetstone, 8 8 0 Car 244 ; Clarke v . . .

J
.

E: pa rts Allen, 8 9 Ills 474 ; Stott s


’
en kins, 3 Rich Eq ( So Car ) 3 1 8 ;
.
. . . .

Estate , Myrick s Prob ( Calif) 16 8 Turnerv Wilkins, 5 6 A18 1 73 ; Walker


’
. . . .

Charlton s Appea l, 8 8 Penn St 0 Walker, 8 8 Ky 61 5 Mosely v


’
1
. . . . .

476 ; Cham berhn v Mc Dowell, 42 Floyd, 3 1 Ga 5 64 S parhawk v B uell,


.

J
. .

N Eq 628. .
9 V t 41 Nanz v Oakley, 120 N Y
J
. . . . .

1 ohn son e H enagan, 11 So Car


. 8 4 ; Croft v William s , 8 8 N Y 3 8 4 ; . . .

J
. .

Sutherland v B rus h, 7 ohns Oh ( N . . . .

1
Pink 0 Grant, 78 Maine, 1 5 8 Y 17 ; ouglas s v 86 tte r1ee 11 . D
J
.
. . ,

1 S tets n v Moulton 1 40 Mass N Y E l ll


o .
,
oh ns ( ) 1 6, 21 ,
w e e . . . . .

5 9 7 ; Stayner v B ower, 42 Ohio St


.
uas h, Str 20 ; H arq thorpe 0 Mill . Q . .

D
3 14 ; ickie v . D
ickie , 80Ala 5 7 forth, Cro Eliz 3 18 . . . . .
8 10 m l m v or m s oe u lou.
'

ne g l igence 1 . paid l egacies th at


An d one exec utor wh o h as
sh ould h a ve been pa i d by th e oth er m ay be sub roga ted to th e

be nefit of security given by th at oth er for th ei r p ay m ent “ .

m u t to n of pers on al representati ves to be


. Th e c a im l
subs titute d to th e ri gh ts of c red itors wh om th ey h ave s atis
fied m us t be seas onably m ade a Though an ex ecutor who .

h as in purs uance of a bo n d given by h is tes tator m ad e a


, ,

dee d with c ovenants of wa rranty on which h e h as bee n s ued ,

an d s ubj ec te d to th e p ay m en t of d am a es i s en title d to be
g ,

s ubrogate d to th e righ ts of th e obl iges in th e b on d and ,

th ereby to be reim b urs e d out of th e estate yet if th e e state , ,

wa s settl e d in c h a n c e ry a n d th e e x ecutor w ith no tic e of th e , ,

c l a im fai led to h ave th is s ub rogati on provided for in the


,

dec ree for th e settlem ent of th e estate h e c ann ot afterwa rds , ,

with out expl an ation of h is l ach es m a inta in a b i ll for h is ,

re i m burs em ent ag a in s t l egatees to w h om h e h as pa i d th eir

l egac ies ‘ Or if h is c ours e of a dm in istrati on h as been


.
,

irregul a r an d w i th out re gard to th e righ ts of c re d ito rs as by ,

pay in g s im ple c ontract d ebts an d leavin g s pec ia l ties unpai d ,

his c l a im for re im b urs em ent h as no righ t of p riority on a


defic ien cy of as sets ‘
5
H e m us t s h ow th at pro pe rty ch a rged
.

by th e w ill w ith th e pay m ent of deb ts h as been faith fully


a dm in iste red an d h as p rov ed to be in a d eq ua te b efo re h e can ,

be a ll ow ed a lien up on th e tes tator s oth er es tate for h is in


’

dem n ity 6 If an adm in is trato r h as in his h an d s th e proc e eds


.

of property sufficient to pay a preferred m ortgage to which


it is s ubj ect an d ins te ad of p ay in g th e m ortgage d ebt p ays
,
-

1
74 N Y 5 39
Adair v B rim m er, . Lam bert v H obson, 3 ones Eq . J .

J
. .

S it
m h v p ettigmwv 3 4 N
. Eq 216 '
,
. .
(N o r Car ) 424
. . .

Hays v Hays, 3 Ten Oh 8 3 Greiners Estate, 2 Watts


'
. . . .

Miller s Appeal, 127 Penn St 414 ; Findlay v fi g , 8 3 V a 5 39 ;


’
. .
. .

Moye o Albritton, 7 I red Eq ( Nor


. . . .

0 D ll C k Car ) 6 2 ; M o Hallec k, 8 3 Mo
Antea , 5 1 1 ; o nne v oo e, . . . .

Car 227 ; Loom is s Appeal, 3 76


’
63 Nor . . .

29 Penn . St 23 7 ; Allen, 00 pa rts, 15


. Fu ry 0 Booth. 3 7 Vt 78, 93 . . .

Mass 5 8. .
S UBROGATION IN THE ADMINI STRATION or ESTATES . 3 11

an other dem and he cannot recover b ack th e l atter paym ent,


,

if the fund subsequently by reas on of h is own l ach es be , ,

c om es i n s uffici ent to pa y th e m o rtg ga e d eb t 1 Th o ug h a n y


-
.

trustee wh o h as in good fai th pai d out h is own m on ey for th e


prote cti on of th e trus t estate by d is ch arging c l aim s aga in s t ,

it is entitl ed to re l ief by subroga tion to th e righ ts of th e


,

cre d ito rs wh om h e h as th us s ati sfied o o


11
ye t t h i s s ub r g at i n ,

to th e righ ts of cre d itors to wh om he h as pai d m ore th an


th e ir proporti on of th e ass ets w i ll not be for h is own ben efit ,

but for th e prote ction of th os e cre d itors wh o h ave not recei ved
wh at th ey we re en titl ed to d em an d 11 .

204 . S ub ro ga fl on in F a v or of C re d i t ors of D ec e as e d . M ax
ah a l un ‘ of m a . l dopted in th e m a r
Th e e uita q ble ru e a

sh al li ng of ass ets th at wh ere on e cre d itor m ay res o rt to two


,

fun ds for th e satisfac tion of h is d em and an oth er c red itor ,

wh o can h old on ly on e of thes e funds m ay c om pe l th e form er


to tak e h is sati s f acti on out of th at to wh ich th e l atte r h as
.

n o res ort is of gene ra l a ppl icati on in th e settl em ent of


1
,

es pe cia lly in th ose c a ses in wh i ch on e c l a s s of c re d i


ls
es ta tes ,

to rs can av ai l th em selves of both th e rea l a nd th e pers on a l


p rop erty of the dec eased wh i l e an other c l as s is restricte d to
,

th e pe rs on a l as sets If th e cre d ito rs of th e form e r c l ass ex


.

h aust th e pe rs on al estate th ose of th e l atter c l as s wi ll be ,

sub roga te d to th eir righ ts a ga in st th e rea l est ate to th e ,

ex te n t to wh ich th e form er h a ve appropri ated th e pe rs on a l

es ta te for th eir s atisfacti on If a tes tator h ad purch ased an


1
.

es tate in h is l ifetim e and after h is d eath th e purch as e m on ey


,
-

is p aid out of h is pe rs on a l as s ets; th e righ t of h is s im pl e


c on tract cred itors if n eces sa ry for th ei r satisfac ti on to be
, ,

1
Succession of Foster, 4 La Ann . . Law ( Nor Car ) 682 ; Ro binson
. . v .

479 . Chairm an 8 H um pb ( Tenn ) 3 74


, . . .

Robb s Appeal, 41 Penn St 45 ;


’
Anton, Q6 1 et seq
. .
1
.

Boyd 0 De Ham , 1 2 Lou


.
1
Ri ce 0 Harbes on , 63 N Y 49 3 . . .

1 75 ; Lewis 0 Nichols , 3 8 Tex 5 4


. Hill 0 Mellon, 5 5 Ark 45 0
. . . . .

1 Ellicott o Ellicott 6
, Gill
. J Aldrich 0 Cooper, 8 V esey, 8 8 2 ; .

( M d ) 35.
; S tate v Mou ser, 5 Ire
.d Cran e 0 M ean , 8 Gn tt ( Va ) 496 . . . . .
3 12 m s LA W or sns a oon x
os .

b
s u rogate d to th e vendor s l ien upon th is es tate against th e ’

devis ees th ereof th ough at first l eft un decided h as s in ce


,
1
,

been establ ish ed 1 B ut th e c red itor of an intestate is n ot in


.
,

th e ab s enc e of s pec i a l c irc um s tan c es entitl e d to be s ubs ti ,

tute d to th e ri gh ts of th e h e irs i n res pec t of a d ebt due to


th e m as s uch h e irs 1
C re d ito rs wh o h ave been pos tpo n ed
.

becaus e of a be l ief th at a ll property h ad been d isc overe d and


e x h aus te d m ay upon th e d is c ove ry of furth er assets b e s ub
, ,

rogate d to th e righ ts of th os e to wh om th ey were pos tp one d 4


.

205 . C re d it o rs s ub roga te d to a Ch a rge upo n P ro pe rt y pur

ch as e d fro m F un d s of t h o D ec e ase d D eb t o r . If an adm in is


tra t or or oth er t rus tee purch as es property with th e ass ets of
th e trus t, th e d itors an d cestm a qua trusten t m ay in equity
’

c re

tre at s uch p rope rty as p art of th e trust es tate 1


Wh e re a .

w id ow before th e a ppointm ent of any a dm in istrator upon


,

th e es ta t e of h er d ec eas e d h us b an d used h i s as se ts i n m ak ing ,

a pa rt i a l p ay m ent for l a n d which sh e purc h as ed g iv in g h er ,

n o te for th e rem a i n d e r of th e purch a se m o ney w i th a s urety -

a n d th e s urety afte rwa rds p aid th e n ote an d to ok a dee d of ,

th e l a n d for h is in d em n ity it was d ec id ed th at th i s s urety ,

h e ld th e titl e to th e l an d in trus t for th e c red itors a n d dis


tribute es of th e d ece ased s ubj ect h owe ve r to h is ow n prior , , ,

l ien for wh at h e h ad been c om pe ll ed to pay as s urety upon


th e n ote 1
Th is is an appl ic ation of th e fam i l iar rul e th at
.

th e ben efici ary of p roperty wh ich h as b een im p res s e d wi th a


trus t ch aracter m ay follow th e p roceed s of s uch prope rty i nto
th e h an d s of an y on e but a bon a fid e h old er for v a lue w ith out
n otic e
7 .

1 Austen v Halsey, 6 V esey, 475


. . 3 8 8 ; Breit o Yeaton, 101 Ills 242 ; . .

1
Selby v Selby, 4 Russ 3 36
. . . Shaw 0 Thom pson, 1 Sm . M Oh . . .

1
Turner Faucett, 6 Ired Eq . .
( M ica ) 6 28 ; Blak e 0 C ham b ers , 4 .

(N or Car ) 5 49
. . . Neb 90 . .

1
Clifford v . Cam pbell, 65 Tex .
1
Miller v Birdsong, 7 Baxter .

243 5 31
1 Mason
.

Pom eroy, 1 5 1 Mas s


0. .
1
Hopper v Conyers, L R 2 Eq .

J
. . .

164 ; Evertson v Tappen, 5 ohn Oh . . . 5 49 ; Mount 0 Snydam 4 Sandf Oh .


, . .

(N Y )49 7 V an Horn 0 Fonda, Id


. . . .
( N Y ) 3 99 ; Gre
.e n o Gin a ,
3 3 N Y . . .
sus aoc u l ou IN m a ADMINIS TRATION o r m u m s . 313

206 . C re d it o rs s ub ro ga t e d t o R i gh t s o f E x e c ut o r. t o R ei m

b urs e m e n t .
Th o ugh c re ditors wh o h ave m a de advan ces or

ren dered s e rvi ces to a trus t es ta te m us t ord in a ri ly lo ok to

th e trus tee pers on a lly for th eir paym en t yet if th e trustee ,

would be entitle d to reim bursem en t from th e estate for h is


pay m ent an d is in s olvent or a n on res iden t equity will s ub
,
-

s t itute th e c re d ito rs t o th e righ ts of th e t rus tee a n d a ll ow ,

th em to b e p a id d ire c tly out of th e es ta te On th e s am e


1
.

prin c ipl e s in c e ex ec utors wh o are em powere d by th e will to


,

c a rry on th e te s tator s b us in es s a fter h is d e c eas e th ough


’
,

p ers ona lly l iable for th e trad e d ebts th ereby c on tracted -

m ay i n eq ui ty reim burs e th e m s e lv es for th ei r p ay m en t of -

s uch d eb ts out of th e prop erty w h ich h a s b een l a wfu lly em

b arked in th e trade th e trade cred itors m ay th em s e lves in


,
-

e qu ity re s ort to th i s fun d if th e ir rem edy aga in s t th e e x ec u

tors is un ava ilin gf an d m ay even h old th e fee s im pl e of l a n d -

us ed forth e purp os es of th e b us in es s ; but s uch c red ito rs m ust


1

look prim arily to th e prope rty used in th e bus in es s an d 4


,

c a n n ot h ol d for th e paym en t of th e i r c l a im s l an d s of th e te s ta

tor wh i ch h e h as n ot by h is w i ll s ubj ec ted to th e ris k s of


t ra d e 1
m e re ly b e c a us e th e e x ec utors h a ve w ith out auth o rity
,

us ed th e proc ee d s of th e bus in es s for th e im p rov e m en t of s uch

l a n d Th e righ ts of th e c red itors being a ga in st th e execu


.
,

t ors p ers on a lly an d on ly d e riv at ive ly again s t th e es tate 1


,

3 43 ; Allen 0 R ussell, 78 Ky 105 ;


. . 46 H un , 5 40 ; 43 H un, 43 4 ; Clapp
Gan naway v Tarpley, 1 Coldw (Tenn )
. . . 0 Cla pp, 45 H un, 45 1 ; Ste wart 0
. .

5 72 ; D
odge 0 Cole , 9 7 Ills 3 38 ;
. . Robinson, 21 Abbott, N ew
Rose 0 Sc hafiner, 5 0Iowa, 483 ; Rob
. 63 Moseley 0 Norm an 74 Ala .
,
. 422 .

in son 0 Robinson, 22 Iowa, 427 ;


. Laible
Fe rry, 3 2 N J Eq
1 v . . . .

H unte r 0 Bosworth, 43 Wise 5 8 3 ;


. . 79 1, reversing Ferry v Laible, 3 1 .

W helan v McC reary, 64 Ala 3 19


. . . N J Eq 5 66
. . . .

1 Thom son v S m i h
t , 64 N H . . .
1
Wilson 0 Fridenberg, 21 Fla 3 86 . . .

412 ; Willia m s on s Appeal, 9 4 Penn 1 See Luc ht v Behr ens, 28 Ohio


’
. .

S t 23 1 ; Norton v Phelps, 5 4 M iss . . S t 23 1 .

K
. .

46 7 ; D
ickinson v Conn ifl, 65 Ala .
'

.
1
Lynch 0 irby, 65 Ga 279 ; . .

5 8 1 ; Cannon v Co peland, 43 Ala . . Johnson 0 Cla rke, 15 8 0 Car 72 . . . .

25 9 ; R eins tein v S m ith , 6 5 Tex 247 . . . So in Maybury v Grady, 67 Ala 147 . .

1
W illis 0 Sharp, 1 1 3 N Y 5 8 6,
. . . Delaware Lack W R Cc o Gil , . . . . .

and 11 5 N Y 3 9 6, reversing s c ,
. . . . bert, 44 Hun ( N 201 . .
814 m 1; m m or sus noe an on .

cann t o b e greater th an th ose of th e executors for wh om th ey


subs titute d a n d a c c ord ing ly if the exec utors, being
1
are

th em se lves
d f l t to the t rust estate w ould n ot be en
in e au -

titled to in dem n ity ex cept upon c on d ition of m ak ing good


th ei r d efaul t th e cred itors a re in no better c on d i tion a nd
, ,

ca nn ot h av e th e i r d ebts pai d out of th e fun d un l es s th e de

fault is first m ade good 1


Debts th us in curre d by th e exe c u .

tors th o ugh h av in g equa l s tan d in g as am on g th em s e lv es


,
1
,

m us t be pos tpo n e d to th e p rope r de bts of th e dec eas ed 1


B ut .

in th e ab sen ce of such c on s id e ra ti ons wh ere truste es wh o a re ,

a uth orized to c arry on a b us in e ss c o n trac t p rope rly d eb ts ,

th e c red ito rs m ay n ot on ly h old th e trus tees pe rs ona lly b ut ,

m ay a l s o re s o rt to th e trus t fun d for th eir p ay m en t 1

207 . W h e re t h e Gu ano : en ti tle d t o h ol d Tw o P un ch . Th e


o
c m m on l -
th e pe rs on a l es ta te of a dec ea se d pe r
la w ru e th at

s on w i ll
be appl ie d to th e pa y m e nt of h is de b ts to th e re l ief
of h is rea l estate wi ll not be enforced when it is in appa rent
1

h os ti l ity to th e inten t of th e dec eas ed a s exp re s se d in h is


w ill an d w ould d efeat be ques ts m a de th e re in
,
1 In a c a se .

in New Yo rk it appea red th at a d eceas e d c iti z en of th at


,

S tate h ad by h is w ill auth o rized h is ex ecutors to red uce a ll


th e property rea l an d pe rs on a l of wh ich h e sh ould die pos

Evans v Evans, 34 Oh D 5 9 7 ; a rd, 5 60; Pitkin Pitkin, 7 Con


1 v
. . . .

Stric kland v Sym ons , 22 Oh D 66 6 ;


. . . 3 07 .

Laible v Ferry, supra 1


Hanson 0 H anson, 70 Maine,
J
. . .

1
Dowse v Gorton, 40Oh D 5 36 ; . . . 5 08 Livings to n v Ne wkirk, 3 ohns . .

is re Johnson, 1 5 Oh Div 5 48 . . . Oh ( N Y ) 3 12 ; Scott 0 Morrison,


. . . .

1
Mason 0 Pom eroy, 1 5 1 Mas s . . 5 Ind 5 5 1 ; Wh itehead v Gibbons,
. .

164 10 N J Eq ( 2 Stoc kt ) 23 0; Mc Kay


J
. . . .
,

ones 0 Walker, 103 U S 444 ; a Gr een, 3 Jo hns Ch ( N Y ) 5 6


1 . . . . . . .
.

Morrow v Morrow, 2 Tenn Oh 5 49


. . . .
1
Graves v Hicks , 6 Sim 3 9 1 ; . .

1
Owen v Dela m ere , L R 1 5 Eq .
. . . Roge rs 0 Roge rs. 1 Paige ( N
. .

1 34 ; Thom pson 0 Andrew s, 1 Myl . . 1 88 ;Manning 0 Spooner, 3 m I r, .


, .

K 1 1 6 ; Cutbush v Cutbush, l
. . 1 14 ; Harvey v Steptoe, 1 7 Gratt . .

Bea v 1 8 4 ; Ri chardson, ex pa rte, 3


. V
( )a 28.9 ; Cline felter v Aym s , 1 6 .

Madd 13 8 ; Garland, 6: pa rk , 10 Ills 3 29 ; Marsh 0 Marsh, 10 B .

J
. . .

V es 1 10; ones o Walker, 103 U 8


. . . . Mon ( Ky ) 360 ; Iowa Loan Co v
. . . .

444 ; S m ith v Ayer, 101 U 8 3 20, . . . H olderbaum , 5 2 N W Rep 5 5 0; . . .

3 3 0; Burwell o Mandeville, 2 How . Lightfoot o Lightfoot, 27 Ala 3 5 1 . . .


s uanoc a n on m
'
ru : m um sn rn ou or ESTATES . 3 15

s es s ed in A m erica into divi si bl e sh ape, an d after th e pay


m ent of debts and testam e nta ry e xpen ses to d ivi de it into
v
s e en s h ares, distri bute th ese in a spec ified m ann er
an d .

W h en h e ex ec ute d h is wi ll h is property was m os tly pers on a l ;


but h e afterwards purch as e d rea l estate in S outh C aro l ina ,

p a y in g p a rt of th e p ur ch ase m on ey in cas h a nd giv in g h i s


-

b on d secure d by a m ortgage on th e l an d for th e rem a in de r .

Th e wi ll w as a dm itted to proba te in New York as a w i ll of


b oth re a l an d pers ona l p roperty but in S outh C arol in a on ly ,

as a w i ll of pe rs on a l p roperty n ot h avi ng th e n um b er of
,

w itn es ses requi red by th e l a ws of th at S tate for a wi ll of rea l


es t ate .All th e legatees un de r th e wi ll were a l iens ex cept ,

th e b en efic iaries of on e of th e sh a res to wh om as h e irs at ,


- o

l a w th e rea l estate d es cend e d Th e h older of th e m ortgage


.

b on d pres en te d it as a c la im agains t th e estate ; an d th e


C ourt of Appea ls h e ld th a t to pay th is bon d out of th e pe r
s on al es ta te would d efe at th e obv i ous in ten t of th e tes tator

to h av e a ll hi s rea l an d p e rs on a l es ta te in th is c oun try


d ivid ed eq ua lly a m on g th e be n efic iaries un d er h is w i ll ; an d
th at th e doc trin e of tw o fun d s w ould be a ppl ie d b y req uirin g
th e b on d c re d ito r to e x h aust h is rem edy un d er h is m ortgage
-

a gai n st th e re a l estate be fore res o rtin g to th e pe rs on a l prop

e rty wh ic h a lon e w as a v a il abl e to th e c l a i m a n ts un d e r th e


,

wi ll .
1
Wh en a c ourt of e quity h as c on trol of both th e real
a n d th e pe rs on a l es tate i t wi ll in o rd e r to s ave e xpe n s e an d
, ,

del ay apply th em in th e ord er in wh ic h as be tween th e h eir


, ,

an d th e e x e c utor th ey a re l i a bl e 1
.

207 a . S ub ro ga ti o n b et w ee n T e na n t fo r W e an d R em a i n d er

m an . Wh ere d evis ed all h is es tate b oth rea l a n d


a te s ta tor
p ers on a l to h is w ife for h er l ife w ith rem ain de r over an d , ,

d irec te d h is ex ecutrix to pay h is d ebts as s oon as poss ible


o ut of an y fun d s whi ch sh e m igh t ob ta i n for th at purpose it ,

w as h eld th a t th e ten an t for l ife an d th e rem ain d er m an -

1 Rice 0 . Harbeson, 63 N Y 49 3
. . .
1
Goodhnrn 9 . Stevens, 1 Md Ch . .

Dec 420 . .
316 m m m m or sus nooan on .

o b
m us t c ntri ute for th e p aym en t of debts acc ording to the ir
re s pec ti ve in teres ts an d th at a dvan ces m a d e by th e ten ant
,

for l ife for th at purpos e c ons titute d a l ien upon th e es tate as


aga inst th e re m a i n d er m an 1
Th e s am e rul e h a s b een ap
-
.

pl ied in oth er c ourts 1


W h ere a h usb an d c on vey ed l an d
.

w h ich wa s subj ect to a m ortga ge for h is own d ebt to be h e ld ,

in trus t for h is w ife for h er l ife w ith re m a in d er in on e h a lf ,

to h e r h e irs or d ev is ees an d in th e oth er h a lf to h is h e i rs or


dev isees it wa s h eld th a t s he m igh t for th e protection of h er
,

e s ta te pay ofi th is m o rt a e a n d th a t s h e h av in g don e s o
g g , ,

h er d ev is ees were entitl ed after h e r d eath to h old th e m ort


a
g g e l i e n upo n th e w h o l e t rac t a ga in s t h e r h us b an d s h e i rs
’
,

u nti l th e l atte r sh ould c ontrib ute th e i r equitabl e p ropo rt i ons

of th e prin cipa l s um due on th e m ortgage d ebt and of th e -

in te rest a c cruin g after h er d eath as i t wa s h e r duty to k e ep ,

down th is interest durin g h er l i fe Th e red em ption of th e


1
.

tena n t for l ife i s for th e b ene fit of th e rem a in d e r m an as -

we ll as of h im self upon th e re m a in der m an s c ontributin g


,
-
’

h is p roporti on of th e expe ns e ; un til th is is d on e th e ten ant ,

for l ife c an in s is t upon b e ing s ubrogated to th e o ri gin al


l ien 1
.

208 S ub ro ga tlo n in F v r of Le gat o“


. A l e gatee W i ll
a o .

be a llowed th e s am e righ t of sub roga tion as would be en joy ed


by a c red i to r 1 If th e pe rs on a l esta te of a testato r n ot
.
,

bein g suffic ient to pay d eb ts an d l ega c ie s h as been ex ,

h aus ted by th e ex ec utor in th e p aym en t of c re d itors wh ose


debts are ch argeabl e on b oth th e rea l an d th e pers on a l es tate ,

9 l e gatee
. a s b e tw een h i m s e lf an d th e h e irs i s enti tl e d to
, ,

s ta n d in th e pl ac e of th e c re d i to rs pro ta n to an d to rece i ve ,

1 Peel: Glass , 6 H ow (Miss) 31 ; Jaooclrs o Bos m an, 1 Dev & Bat


0 . . . . .

19 5 Watts v Watts , 2 Mc Cord Oh Eq ( N or Car ) 1 9 2


. . . . . .

( S o. Ca r ) ;
77 W
. hi tney o Salte r, 3 6 1 Ohm r v B
e o er
y , 89.Al a 273 . . .

Minn 1 03 . .
1
Allen v De Groodt, 1 05 Mo . .

1
Am ory v Lowell 1 Allen (Mas s ), 442
.
, .

5 04 ; Durham v Rh odes 23 Md 233 , .


1
Alexander 0 Miller, 7 Heisk
, . . .

H awkins v Skeggs , 10 .
( Te nn ) 6 5 . .
suna os a n ou i n m a A DMINISTRATION or ES TATES
'
. 3 17

th e am ount of h is legacy or s o m uch th ereof as th e pers on a l


,

es tate but for s uc h c re d itors would h ave p ai d out of th e rea l ,

e s tate d es c en d e d to th e h e ir un l es s i t a ppe a rs by th e w i ll
,

th at th e testator in ten d ed th e l egac y to ab ate in th e c as e of


a d efi c ien c y in th e p ers on a l p rope rty
1
Wh ere a te s tator .
,

h a v i n g a gree d to purch as e an es tate d ied l eav in g th e g reater , ,

pa rt of th e purch ase m on ey un pa id a l egatee was a llow ed to


-

h a ve th e a sses ts m a rs h a ll e d i n res pect of th e v en dor s l ien


’

for th e un p a id purch ase m on ey s o th a t h i s legacy m igh t be


-

p a i d .
1 A n d if s u c h p u rc h as e m o n ey h as b een p a id by th e
-

e x ec utor a n d th e p ers o n a l as sets of th e es tate h a ve th ereby


,

be en exh a usted a pecun iary legatee wi ll be sub rogated to


,

th e v en d or s l ien upon th e purch a s ed es ta te aga in st th e


’

d ev isees th ere of Wh ere a d ebt of the testator is prim ari ly


1
.

c h arge abl e upon l a n d s wh ic h h e h a s s pe c ific a lly d ev i se d ,

a n d th e c red itor obta in s h i s p a ym en t out of th e p ers on a l

e state or f rom o th er prope rty wh ic h i s on ly s ec on d a ri ly l ia bl e


,

for th e d ebt th e own ers of s uch pe rs on a l es ta te or oth e r


,

p r op e rt y a re e n ti t l e d t o be s u b ro g t
a e d to th e ri gh ts o f th e

c re d itor aga in st th e es ta te s pe c ific a lly d evis e d A n d to .

p r e v en t c i rc ui ty of a c t i o n t h e c ourt i n s uch a c a s e wi ll
, p e r

m i t an d s om et im es re qui re th e c re d itor wh o c a n h old two

fun ds for th e s atis fac ti on of h is d em an d to proc e ed at on c e


aga in s t th at fun d wh i ch i s p rim a ri ly l ia bl e w ith out s ubj ec t ,

i n g th e ow n e rs of th e s econ d ary fun d to usel es s l itigation 1


.

If a n a nn uity wh ich w as ch a rge d by th e w ill up on b oth rea l


a n d pe rs on a l es ta te h a s b e e n s a ti s fied f rom th e p ers on a lty ,

l eaving th at in s uffi ci en t for th e p aym ent of th e gen era l


l eg atees th e l atter wi ll as a ga i n s t th e h eirs but n ot a ga inst
, , ,

d evi sees b e sub rogate d to th e l ien of th e annuitan t upon th e


,

rea l es tate
1
.

1 Mollan v Grifi th 3 Paige (N 1


Sm ith v Wyckofl, 11 Paige (N
'
.
, .

402 . 49 ; a id ed , Q61 .

1
Spronl 0 Prior, 8 Sim 1 89
. . .
1
Allen 0 Allen, 3 Wallace. Jr
.

K
.

1
Lilford v eck , L R 1 Eq 3 47
. . . . . 28 9 .
3 18 m m v or am a zon .

§ 209 . In h m d a m - a m m Pu s a n ! R M
Th e purc h aser of a dec eas ed person s real es tate at
’
h a ve .

an inva li d sa l e m ade th ereof by th e pers ona l re pres entative


for th e p y debts, h aving paid hi s purch as e m oney
a m en t of -

an d th is h av in g been appl i ed to th e paym en t of de bts and

c h arges of a dm in is trati on, is en ti tl ed, upon an a void a n ce of

th e sa e, l to be su rb ogate d to th e righ ts of the c red itors an d

of pers on a l repres en tati ve wh om h e h as satis fi ed a n d to


th e ,

ch arge th e l a n d w ith th e d ebts a n d e x pen s es s o p a i d by h i m


1
,

to th e exte n t to wh i ch th e lan d was l i a ble for such d eb ts and


e xpens e s
1
The l an d wi ll for th e protec tion of a purc h as er
.

be ch a rged wi th th e de bts which h a ve th us been pa id out of


h is purch as e m on ey 1 A purc haser of person al property from
.

a g uard ia n wi ll be p rotecte d i n th e s am e way 1


Th is right .

of a purch a se r h as a l rea dy been c o ns i de re d


1
But it h as been .

s aid th a t if th e ti tl e of th e p urch as er fai l s b y re ason of a

want of j uris d iction of th e court ord ering th e sa le over the


h ei rs th e purc h a se r w i ll n ot be so s ub rogated aga ins t th em
,
1
,

th e d ebts p a id n ot h avin g bee n l iens upon th e l an d Th ough .

a purch as er of l a nd of a tes ta tor at a s a le th ereof m a de under

a j ud gm e n t aga inst th e e x ecuto r a c quires n o ti tl e by h i s pur

ch ase yet if h e pay s h is purch ase m on ey in good fa ith un der


, ,
-

th e be l ief th a t h e is ac q uirin g a good titl e and this is a ppl ied ,

1
Cathcart S ugenheim er, 1 8 Sov. Caldwell a Palm er, 6 Let (Tea m ).
1

K K
. .

Car 123 ;
. inney v noebel, 5 1 6 5 2 ; Stults 0 Brown, 1 1 2 Ind 3 70;
K
. . .

Ills 1 12 ; S hort v Porter, 44 Miss


. . . Gaines 0 enn edy, 5 3 Miss
. 1 03 ; .

5 3 3 Bland o Bowie, 5 3 Ala 15 2 ; . . B ill 0 Billingsley, Id 111 ; C unning


. .

Folts v Ferguson , 77 T6 1 301 ha m 0 Anderson, 107 Mo 3 71 ; Lo ng


J
. . .

Wheeler 0 Wheeler, 1 Conn 5 1 ; . . v . oplin Mining Co , 68 Mo 422 ; . .

H udgins v H udgins , 6 Gratt ( V a )


. . . Sc haefer v Causey, 8 Mo Ap 1 42. . .

3 20 B ro wn v Bouncy, 30 In Ln pt I . .

J
. . . .

1
S prings 0 H arven , 3 ones Eq . . 1 74 ; Sharkey v Bankston. Id pt 11 . . . .

( N o r C
. a r ) 9 6 ; Y o u
.ng v Tw igg , 27 . 89 1 .

Md 621 ; Dunc an 0 Gainey 108 Ind Harn son o Ilgner, 74 Tex 86


'
1 .

J
. . .
, . .

5 79 ; ones 9 French, 9 2 Ind 13 8 ; . .


1
Aztec , Q3 0 ct sq .

Neel o Carson, 47 Ark 421 ; Wag B ishop v O Connor 69 m t


’
1

J
. . .
,

g en er v L yles ,. 29 A rk 47 ; P oo l 0 . . 43 1 ; ones 9 Woodstock Iran .

Ellis, 64 Miss 5 5 5 . . 10 8 0 Rep 635 . . .


ou m
sunnoou x ra n m um s m m '
on or seru m . 31 9

to th e paym ent of th e j udgm ent d ebt, wh ich was ch arged -

up on th e l an d by th e will, h e w i ll b e s ub rogated to th e b ene

fi t of th is llowed to h old th e l and until


c ha rge, an d wi ll be a

h e h as been reim b urse d to th is e xtent 1


But th e m ere fact .

th at the purch ase m on ey h as b een appl ie d to th e p aym ent of


-

th e d ebts of th e d eceas ed wi ll n ot en titl e th e purch as er of h is


rea l e state from the adm in is trator to a l ien upon th e l an d

for his rei m bursem en t upon th e sale bein g set as i de if such ,

d ebts d o n ot appear to h ave b een a ch a rge upon th e l an d 1


.

N or if th e adm i nistrator p uts h im s e lf in th e pl ac e of th e


,

pu rc h as e r c an h e as a re l
,
i ef ag ai n s t h i s own,w ro n g in m ak
in g th e s al e c l a im th e s ub rogation wh ich m i gh t h ave been
,

a llowed to th e in n oc ent purch as er


1
.

g 21 0 W h e re.
m m h a v e pd d J ud g m en t s a ga i n s t th e na m e .

Legate es wh o h ave pai d a j udgm ent ren dere d in favor of a


cre ditor of th e es tate again st x ecutor h ave for th eir re th e e o

i m b ursem ent th e ri gh t to be subrogated to th e rem ed ies of

th e judgm ent c re ditor if th e c l ai m of th e cre d i tor was re ,

duce d to a j ud gm en t or oth erwis e m ad e a l ien upon th e ,

assets to wh ich th e l ega te es are en titl ed to l ook but not


1
,

oth erwise ; for on e wh o p ay s a d ebt for wh ich h e was n ot


1

p e rs o n a lly l i a bl e an d wh i ch wa s n ot a c h arge upon h is prop


,

et ty wi ll not be s ub stitute d to th e benefit of a l i en wh i ch th e

creditor h a d upon th e estate of h is d ebtor S o wh ere an


1
.

ex ecutor wh o was a l s o a devi se e a n d l egatee d i ed ins olv en t,


, ,

h av in g w aste d a l a rge porti on of th e es tate an d leavin g un ,

pai d a debt of the testator an d al so a j udgm ent aga inst h im


s e lf for h is own d ebt wh ich j ud gm e nt was a l ien upon h is ,

1
Mc Gee , 6 3 8v
.
1Wallis
Place 0 Oldham , 10 B Mon
57 Miss . . . . .

1
Bennett v Coldwell, 8 Baxter ( Ky ) 400 . . .

48 3 ; Ham pton v Nicholson 1


Mitchell 0 Mitchell, 8 H um ph
.
, .

23 N J Eq 423 ; Neal v Patten, 47 ( Tenn ) 3 5 9 ; Belcher v Wickersham


. . . . . .
,

Ge 73 . 9 Baxter Alston v .

1 William s v
Stratton, 10 Sm Batchelor, 6 Ired Eq ( Nor Car)
. . . . . .

M (Miss ) 418 But see Weaver 0 3 68


. . . .

N orwood, 5 9 Miss 665 Ebelm eeser 1


Posted 5 240 at seq
. .

0 Ehelm esser, 99 Ills 5 41


. . .
320 n u mm or sus noe s n ox
'
.

interest as d evisee in ce rta in re al estate of th e tes tator, it


was h e ld th at h is legatees did n ot by paying
cc -
d e visees a nd ,

th e d eb t of th e tes tator ac qui re a righ t over h is inte res t in


,

th e rea l es ta te pri or to th e l ien of h is j ud gm ent c re d itor -


,

e ith e r by s ub s titution to th e c l ai m of th e c re d ito r wh om th ey

h ad p a i d or by reas on of th e ex e cuto r s was te 1


B ut if a ’
.

tes tator h as beq ue ath e d a ll h is property to h i s w i dow in l ieu


of h e r d ower an d sh e h as as h is e x ec utri x pa id from the
,

g e n era l a ss ets n ote s gi ven by h i m i n p ay m en t fo r a n e s ta te

wh ich h e h ad bough t subsequen tly to th e e xec uti on of h is


wi ll an d wh ich d id n ot pass th ereby sh e wi ll be subroga ted
, ,

for h er re i m burs em ent to a l ien reta in ed by t he ven d or upon


th e es ta te to s ec ure to h im th e pa y m ent of th e s e n ote s ; and
th is righ t w ill p as s to h er de vi s e e 1 S o if m on ey of h er .

h us b an d s estate th at sh ould h ave been pa i d to h e r for h er


’

d owe r in te rest h as been ex h a uste d by th e a d m in is trator in


th e p aym en t of d ebts s h e m ay be s ub rogate d to th e righ ts of
,

th e c red ito rs wh o h a ve th us be en pa i d at h er e xpen s e to h old


th e rea l es ta te for h er re im b urs em en t 1
.

211 . S ub rop fl on in F a v o r o f s pec ifi c D efi n es an d Im us .

— Th e dev is ee of a tract of lan d wh ich by directi on of th e


te stato r h ad b een l ev ied upon in h is l ifetim e to s atis fy a debt
of h is own an d was sti ll boun d by th e levy at th e tim e of
,

h is death i s en titl e d afte r p ay ing th e d e bt to be subrogated


, ,

to th e c l ai m of th e c re d ito r aga ins t th e pers on a l as sets of


th e es ta te an d th e l ien c re d ito r of th e dev i see w i ll h ave
1 -

th e s am e ri gh t of sub roga ti on 1 for un l ess th e wi ll m an i ,

fests a c le ar inten ti on to th e c ontrary it is th e righ t of s uch


1
,

de vis ee to h ave th e testator s in deb ted n ess pai d out of th e ’

pers on a l an d un d is posed oi assets of th e estate th ough th is


1 -

1 Wilkes v Harper, 1 N Y 5 86
. . . .
1
Morris v . Mowatt 2 Paige ,
1 Durha m 0 Rhodes, 23 Md . . 5 86 .

233 .
1
Rogers 0 Rogers , 1 Paige (N . .

1
Crouch Edwards , 5 2 Ark 188 ; Brent s Will 40 Mo 266 ; Mire
’
0. .
,
.

49 9 house v Scaife, 2 Myl Or 69 5


1 Redm ond v Burrou hs
. . . .

g .
, 63 Nor .
1
Gould v Winthrop, 5 R I 3 19 ;
. . .

Car 242. . Plim pton o Fuller, 1 ] Allen ( Mass ),


.
s unaoe urr
on H mm Anm m s ru n on or seru m
' '
. 3 21

l
ru e is reve rs ed when de vis e d propert y is subject to a ch arge
wh ich is not th e proper deb t of th e testator 1
But th is righ t .

wi ll n ot e x tend to a grantee of th e de vise e wh ose g ra n t is


.

e xp res s ly m ade s ub jec t to th e i nc um b ran ce upo n th e l an d


1
.

A nd i n Eng l an d an d New York re a l estate wh ich is s ubj ect


to a s peci fic l ien for th e paym en t of a debt as i n th e c as e of ,

a m ortgage is prim a fa ci e th e pri m a ry fund for th e paym en t


,

of s uch debt to the exon erati on of th e pers on a l property ,


1
.

Sin ce s pec i fic l egate es are en title d to rec eive th eir beques ts


e x on e rate d from in cum b ran c es c re ate d by th e tes tato r th ey
1
,

ha ve l i ke wi s e if th ei r lega c ies h ave been s old for the pay ,

m en t of th e te s ta to r s de b ts th e righ t to res o rt to th e gen e ra l


’
,

fun d for th eir rem uneration upon th e prin c ipl es a dopted in ,

th e m a rs h a ll in g of as s ets 1
If th is gen era l fun d is m a d e up .

partly of pers ona l e state and p artly of th e p roceeds of rea l


est ate n ot ch a rgea bl e w ith th e pay m en t of si m pl e c on tract -

debts th at portion of it wh ich c om es from th e pe rs on a lty is


,

l iab l e in th e first instance to m ak e up for th e los s of th e


s pe c ific l egac ies ; and if th at be in s uffi c ien t, th en th e pro

c eeds of th e rea l es tate a re to be a ppl i e d for th e s am e u r


p
pos e so far and s o far on ly as th e s pec ific l egac ies h ave
, , ,

been appropri ated for th e paym en t of s pecia lty debts wh ich -

boun d th e rea l estate 1


.

13 9 ; H ewes v Dehon, 3 Grey . 2 De G , F . J 3 47 ; Brownson v


. . .

205 ; Adam s v Brackett, 5 Met . Lawrence, L R 6 Eq 1 ; St 1 7 18 .

J
. . . .

(M as s ) 28 0 ; B ays 0 ackson, 6 . V ic , ch 1 13 ; 1 N Y Rev Stats


. . . . . .

Mass 149 ; Lam port v Beem an, 3 4 749 ; Mosely 0 Marshall, 27 Barb
K J J
. . . .

Barb ( N Y ) 23 9 ; eene v Mann


. . . .
, ( N Y ) 42
. . um el v um el, 7 Paige .

16 N J Eq 3 9 8 ; Lennig s Esta te, N


’
. . .
( . 5 91 ; R og e rs 0 R oge rs , 1 .

5 2 Penn St 1 3 5 ; Pbinney s Estate, Paige ( N


’
. 1 8 8 ; Cum be rla nd v
J
. . .

Myn ck s Prob ( Calif ) 239


'

Coddrington, 3 ohns Ch ( N Y ) 229


’
. . .

J
. . . . .

1
Go uld u Winthrop, 5 R . .
1
ohnson o 6 038 , 128 Mass 43 3 ; . .

Andrews 0 B ishop, 5 Allen ( Mesa ), . Ri cha rdson 0 Hall, 1 24 Mass 228 . . .

49 0 .
1
Cranm er e McS words, 24 W .

K
.

1
eene 0 Mann, 1 6 N J Eq . . . . Va 5 94 ; H ope u Wilki nson, 14 Lee
. .

3 98 21
1 Anthony, is re, 1 Ch D ( 1892)
.

. .
1
Byrd v Byrd, 2 Brook 0 0 . . . .

45 0 ; Woolstencroft v Woolstencroft, . 16 9 .

21
3 22 m s LAW or S UBB OGATION .

21 2 . S ub rop fl on of D e vi s ees t o s ub s e q ue n tly ac q uire d As

se t s .
De v ise es wh o h ave
l ost th e wh ole or part of th e prop
e t ty d ev i s e d to th e m by its be i n g s o l d to pay th e d eb ts of th e

te s tator in c ons equen ce of th e in s uffic ien cy of th e pe rs on al


,

as s ets w i ll be s ub roga te d to th e ri gh ts of th e c re d ito rs wh om


,

th e i r p rope rty h as th us s atis fied an d en title d to re im b urse ,

m en t out of pe rs on a l p rope rty s ubs eque n t ly d is c ove re d an d

re c e i ve d by th e e x ec utors ; and s uc h a d e v is ee s ri gh t of
1 ’

s ub rogation w i ll pa s s by an as s ignm en t of a ll h i s s h a re an d

c l a im in a n d to th e pe rs on a l e state of th e testato r w h ich


th en was i n or m i gh t th e re afte r c o m e in to th e h a n ds of th e
e x ec utors a l th ough n ot m e n ti o n ed i n th e ass ign m e nt
, and ,

n ot a ppea ri n g to be th en k n own to th e as s i gn o r A c cord


1
.

in gly wh ere a tes ta tor c h a rge d h is pe rs on a l es ta te with th e


,

paym ent of h is d eb ts but th is being ins nfi cient for th at


, ,

purp ose th e tes tato r s rea l estate whi ch h ad been devis ed


,
’
, ,

wa s s old to pay h is d ebts an d afte rwards th e e x e cutors ,

ob ta ined a s um of m oney upon a c l a im wh ich th e testa tor h ad


aga ins t th e Fren ch gove rn m ent i t was h eld th at th i s m on ey ,

w as in eq uity to be c on s id ere d a s ubs titute for th e rea l es tate


wh ich h ad been s old for th e paym e nt of debts th at w ere pri
m a ri ly ch a rgeabl e upo n th e pe rs on a l es ta te a n d th at in eq uity ,

it m ust go e x c l us ively to th e d evisees or th ei r g ran tee s wh o ,

were at th e tim e of th e s ale th e own e rs of th e rea l esta te th at


h ad b een s o s old thi s m on ey b e in g reg arde d n ot as rea l
,

es tate but as a fun d to wh i c h th ey h a d an e quita bl e ri gh t to


,

c o m pe n s ate th e m for th e los s of th e i r l an d B ut c re d itors


1
.

of such d ev isee s th ough h avin g acqui re d a j udgm en t l ien


,
-

c an be s ub roga te d to th is righ t of th e d evi s ee s on ly by b rin g

in g a ll pa rties before t h e c ourt s o th at th e ri gh ts of a ll m ay


be p roperly protecte d 1
.

Co uc h v Delaplsine, 2 N Y 397
1
. . .

Graham 0 Dickinson, 3 Barb Oh (N


. . .
1
Evans 0 Dnncan, 4 Watts
.

Y ) 1 69
. .

1
Couch v D elaplaine, u m . .
sus aoe a n on IN ra n A DMINISTRATION or s eru m
'
. 3 23

21 3 . R i gh t s of H e irs , D e vi s ees , o r ne ga t es . a gain s t e a c h o th e r .

If one of se lost th e property devis ed to vera l dev is ees h as


h im by its bein g tak en to pay a d ebt of th e testator h e w i ll ,

be s o far sub rogate d to th e righ ts of th e c red itors wh om h e


h a s th us be en fo rced to s atis fy as to be entitle d to a c ontri ,

bution to h i s l os s from th e oth er d ev is ees an d a n h e ir w i ll


1

h aye th e s am e righ t again s t th e other h e irs ’1 H e w i ll a l s o .

be sub rogated to th e rights of th e c re d ito r aga ins t an oth er


debtor wh o was un der a prim ary l iab il ity for th e paym ent of
th e d ebt 1
Th e d ifferent dev is ee s if th ere be a de ficie nc y of
.
,

as sets m us t c on tri bute to m e et a ch arge upon a ll th e es ta te


, ,

devised in p roportion to th e va l ue of th eir res pec tive inter


,

a s to m ak e up an an n uity to th e tes ta to r s w i dow or to


1 ’
es ts , ,

p y
a d eb ts o f th e te s ta to r w h i ch rem a i n un s a ti s fi ed a fter t h e

pers on al property an d th e un dev ised rea l estate h ave be en


e x h aus ted A d evisee wh ose es tate h as been taken for th e
1
.

dower of th e testator s w id ow h as th e s am e ri gh t to c ontri ’

b ution as if it h ad been tak en for a d e b t of th e tes tator 1 A .

l egatee wh o h as advan ced m on ey to pay th e testator s d ebts ’

un d e r th e m is tak en s uppos iti on th at th ey w e re ch a r e d up on


g
h i s property h as bee n a ll owe d to com pe l c ontrib ution from
h is c o l egatees 1 Wh ere l egac ies an d d evises are put upon
-
.

Rhonda s Estate, 3 Rawle


’
1 1
Hancock 0 Minot, 8 Pick . .

420; Brigden v Cheever, 10 Mas s . .


(Mas s ) 29, 3 8 .

45 0 ; Arm is tead v Dangerfield, 3 .


1
Harris 0 Wh ite , 5 N J Law, . . .

Munf ( V a ) 20 ; Foster 0 C renshaw,


. . . 422 ; Mitc h ell 11 Blain 5 Paige ( N .
, .

3 Munf ( Va ) 5 14 ; Hum phries o. . .


5 8 8 ; Young 0 Weldon , 1 Murph . .

S haw, 63 Nor Car 3 41 Gallagher 0 . . .


( Nor Car ) 1 76 ; Snow 0 Cullum , 1
. . .

Redm ond, 64 Tex 6 22 ; Lance field .


Desaus ( 8 0 Car ) 5 42
. . . ,

o Igg ulden L R 10 Oh 136


.
, . . . .
1
Tom lins on o Bury 1 45 Mas s .
, .

1
Winsto n v Mc Alpine, 65 Ala 3 46 ; H arland v Person 9 3 Ala 274 ;
J
. .
.
, .

3 77 ; Chaplin v Sullivan, 128 Ind 5 0; . . Livingston o Livingston, 3 ohns . .

Falley v Gribling, 1 28 Ind 1 10; Mo


. . Ch ( N Y ) 148
. . . .

Pike v We lls 5 4 Mis s 1 36 ; Taylor v


.
, . .
1
Gallagher s Appeal, 8 7 Penn St
’
. .

Taylor 8 B Mon ( Ky ) 419 ; Tilg lt


,
. . . 200; Elias on v Eliason 3 Del Oh
K
.
, . .

m an 0 J , in Guie r v . elly, 2 Bin


.
, . 260 Blaney v Blsney 1 Cus h (Mass ) .
, .

n ey 294 29 9 ; Lyles v Lyles, , . 107 .

1 Hill Eq ( S o Car ) 77 B rinson v . . .


1
McCam pbell v Mc Cam pbell, 5 .

C unliff 25 Tex 760 , . . Litt ( Ky ) 9 2


. . .
3 24 m a Lu v or S UBROGATION .

an e uaq l ity they are e qua lly l iab le to c ontribution am ong


,

th em s e lve s 1 But a res i d uary devisee is n ot en titl e d to c on


.

t ribution f ro m th e oth er de vi s ees th ough a s om e wh at m odi


1 ‘

fied rul e h as been l a id down in Engl an d 1


A devis ee of land .

wh o h as been obl ige d to pa y a debt of th e tes tator wh i ch was


prim ari ly ch arge d upon th e l an d devis ed to h im c ann ot c laim
c on tributi on th erefor from oth e r s pe c ific d evi s ee s or l e ga te es
1
.

In Mis s i ss ippi it is s a i d th at th e doc trine of th e m arsh a ll ing


of ass ets d oes n ot a pply to th e c ase of s pec ific l ega te e s un der
a w i ll wh en a ll th e r p rty b eq u a th e d to th em i s s ubj e c t to
p o e e

an in c um b ran ce p aram oun t to th e w i ll of th e tes ta to r an d ,

th e p rope rty beq ue ath ed to on e of th e m h as a lo ne be en s eize d


t o s atis fy th is i ncum bran c e ; an d acc ord in gly s uch a s pec i fic
l egatee wi ll h ave n o ri gh t to enforc e c on tri bution from h is
c c l e gatee s th ough th ei r p roperty was eq ua lly l ia bl e w i th h is
-

to th e burden of th e i n cum b ran c e 1


th us l ea v in g it t o th e ,

c a p ric e of th e c red itor to d eterm i n e at wh ose e x pe ns e h e

s h a ll get h is pa y m en t A n d on th e prin c ipl e th a t n o on e


1
.
,

c a n en j oy by w ay of s ub rogat i on to a c re d ito r any g re ate r


, ,

righ ts th an th e c re d i to r h im self pos s es s e d 7 it was h e ld th at ,

wh ere on e d ied l ea vin g un in c um bered rea l estate a nd a ls o


,

rea l es tate subj e ct to a m o rtga ge by th e term s of wh i ch th e

m ortga gee c ould h old o n ly th e l an d for th e s a tis f ac ti on of

h is d em an d and th e m ortgagor s h e irs m ad e p artiti on a m ong


’
,

th em s elv es of a ll h is l an d in ign ora n ce of th e m ortgage th e ,

Powell 0 Riley, L R 1 2 Eq
1 . . . . Bligh n s 84 ; B ensm an v Frye
, . . .

1 75 ; Grim s Appea l, 89 Pen n St L R 3 Oh 420 ; s c , L R 2 Eq


’
. . . . . . . . . .

3 3 3 ; Dugan v H ollins , 1 1 Md . . 627 .

H am m ond 0 Ham m ond, 2 Bland, Oh 1


H ocker s Appeal. 4 Penn S t
’
. . . .

( M d ) 3
. 06 ; B rant s W ill, 4 0 M o
’
. 49 7 ; Graves o Graves , 1 06 Ind . .

266 . 11 8 .

1
Richards on 0 Hall, 124 Mass . .
1
Peeples v Horton, 39 Miss . .

228 23 3 ; Blaney o Blaney, 1 Cus h


,
. . 406 .

( M as s ) 10.7 M c M u llin 0 B rown, 2 .


1
Am a , § 1 72
H ill Eq ( So Car ) 45 7
. . . . 1 6 Fed Re p 48 2 And see 1 Story
. . .

'

1 Lan
cefield v Iggulden, L R 1 0. . . Eq , Q49 3
. .

a tad d 6
1 A
Oh 1 3 6
. See Spong o S pong, 3
. . .
sus noe u xox m run a num s rs u l on or seru m
'
. 325

h e ir wh o fterwards l ost h is l and by th e m ortgagee s tak in g


a
’

it c o u ld n ot b e in d e m n i fi ed f o r h i s l os s f rom th e p ers on a l
estate of th e deceas e d
1 Nor ca n a devisee who h as lost h is .

e state for l ac k of title in th e tes ta tor b e re l ie ved out of oth er

p o rti on s of th e tes ta to r s p r op e rty 1 ’


.

21 4 . S p ec ifi c D e v il s or L e ga c y c h a rge a b le w i th E x pe ns e ln

om a fo r m x ecutor h as at th e reques t
p ro m uon ,
If an e

of d ev isees re l iev ed th e d evi se d p roperty from an i n cum

b ran ce res ti n g upon it h e m a y for h is reim burs em ent as , ,

a ga in st th e devis ees be s ubroga ted to th e orig in a l c h arge ,

u pon th e pre perty 1 th e gen era l doc trine be i n g th at a trus tee


,

w h o rem oves a prior in cum b ran ce upon th e trus t es tate wi ll


b e s ub rogated to th e l ien of th a t i n c um bran c e for h is prote o
t i on 1
. A n ex ec uto r wh o h a s prope rly pa id out of th e gen e ra l
e s tate ta x es an d l ien s p rim ari ly ch a rge a bl e upo n l a n d s p ec i

fi ca lly d evis ed by th e testa tor and wh ich sh ould h a v e bee n ,

p a i d by th e d e v isee s th e re of m ay i n c as e of th e i r fa i l ur e , ,

to re im burs e h im be s ub rogate d to th e l ien s up on th e


,

l a n d an d m ay h ave th es e l ie n s enforc ed for his protection


,
1
.

Th ough c o l e gatees do n ot s us ta in to each oth er th e re l atio n


-

of c o s ureti es for th e tes tato r s d ebts each be in g re s pon s ibl e


’
-

i n any even t on ly in p ropo rt ion to th e am oun t of h is own


l ega c y yet if on e of two res i duary l egate es h as in curre d in
1
, ,

p r o te c ti n g th e i r joi n t i n te re s t a n e xp e ns e w h i c h h a s p rov ed
to be ben efic ia l to b oth of th em h e w i ll b e en titl ed to rec over ,

from h is cc l egatee reim burs em ent to th e am oun t of th e ex


-

pens e in curre d upon th e l atter s ac c ount at a ny rate if th e 1 ’


,

l atte r n eith er obj ecte d to th e in currin g of th e expen se n or


1Fairm an 0 Heath, 19 Ind 63 .
1
H udson 0 Gray, 5 8 Miss 8 8 2 ;
J
. . . .

1 Mc inno v
K n Thom pson, 3 ohns . . Mogan s Estate, Myrick s Prob
’ ’
.

011 ( N Y ) 307
. . . .
( Ca lif) 60 .

1
Franklin 0 Arm field, 2 Snee d .
1
Wilkes a H arper, 1 N Y 5 86 . . .

305 . De Ends 0 Wilkinson, 2 Patt . H . .

1 Glide e
Dwyer, 83 Calif 478 ; .
( V a ) 66 3
K
. . .

ing 6 C ushm an , 41 Ills 3 1 ; Free


. .
1
Miller s Appeal, 1 19 Penn St
’
. .

m an 0 Tom kins. 1 Strobh E S 6 20; New Orleans 0 Baltim ore, 15


p .
q ( o . . . .

Car ) 5 3. . La Ann 6 25
. . .
3 26 um LAW or SUBBOGATION .

h im f provided for th e protec tion of his interes t The


s el .
1

e xpe n s es of a n ecess ary l itiga tion wi ll be th rown u o n the


p
wh ol e fun d wh ich reaps th e b enefit th ereof 1
.

215 R igh t: of H ei rs
. on g Th em s el v u If s om e of theam

h eirs of an in tes tate h eld a m ortgage upon h is re a l es ta te to


s e c ure th e pay m e nt of a d ebt due to th em f ro m h im a n d in ,

ord er to prevent a s a le of h is rea l estate by his adm in istra


tri x give b on d for th e p ay m en t of h is d eb ts th ough th e y w i ll ,

th e reby d is ch arge th e l ien of th ei r m ortgage a s a s ec uri ty for


th e d ebt due to th em s e lves th ey m ay n everth e less h old th e
1
,

m o rtga ed p rem i s es a a i ns t th e oth er h eirs as if th e m ort


g g
g g
a e s ti ll s ub s is te d un t i l th es e oth e r h e i rs s,
h a ll c o n t ri bute

th e ir res pec tive s h ares of th e m ortgage d ebt 1 If e x em pt -

property is s old by th e adm in is trato r to pay debts th e h e ir ,

is e ntitl e d to be re im burs e d from s uch o th er p rope rty as is


n ot s ubj e ct to p rio r l ien s ; an d if debts wh i ch we re c h a rge
1

a bl e upon th e pers on a l p rop e rty h a ve be en p a id out of th e

rea l e s tate th e h ei r m ay a s aga in s t th e d is tri butees b e s ub


, , ,

t ogated to th e righ ts of th e c re d itors up on th e pe rs on a l

esta te ; b ut h e w i ll n ot b e so s ub roga te d a ga in s t th e d e v is ees


1

to reim burs e h im for d ebts wh ich h e h as p ai d out of h i s own


pock et as a m ere boun ty 1 .

21 6 . R ig h t s of P urc h a s e r from H eir or D evis e a — If th e


purch aser from a n h eir a t law of a port ion of the re a l e s ta te - -

des cen de d to th e l atter subs equen tly loses th e l an d wh ic h h e


h as purch as ed by its be in g s old to pay th e deb ts of th e eu
,

c estor s uc h purc h as er wi ll h a ve an e quita bl e l i en upon th e


,

res id ue of th e p rop erty rem a in in g in th e h an d s of th e h e ir for

Thirlwell 0 Cam pbell, 1 1 B ush


1 Phipps v Phipps, 3 Pa La w 1 . .

J
.

163 . ournal Re p 275 So if the paym ent . .

1
Florida Internal Im provem ent was m ade by the widow from he r own
Co v Greenough 12 Am er
. . Eng m eans : Mc Nally v We ld, 3 0 Minn
, . . .

lis h R B Gas 3 45
. . .209 See also Deichm an o Arndt, 22
.
. .

1 R obin on v Leavitt
s , 7 N H 73 A t] R.ep 79 9 ; Adam s 0 S m ith
.
, 20 . . . . .

1
Jenness 0 Robinson, 1 0 N H Abbott, New Gas ( N Y ) 60
. . . . . .

21 5 1
C oleby o Coleby, L R 2 F4 . . . .

1 McDougnll v Brokaw. 9 2 Fla 9 8 803 . . . .


ou m
sus s oe u r m a m m m m on or m u m s
rr . 3 27

h is burs em ent : such a purc h as er as to th e l an d re


re im ,

m a in i n g in th e posses s i on of th e h e ir s tan d s in th e p os iti on ,

of a surety and w i ll be subrogated to th e righ ts of th e cred


,

itor wh om h is prope rty h as s atis fied as if h e were a s urety 1


,
.

A n d if s uccess ive c on vey an ce s of l an ds h ave been m ad e by


an h ei r or by a d ev i see th ereof ch a rge d w ith th e p ay m ent of
,

d ebts or l egac ies; th e lands th us c onveyed are in th e h an ds ,

of th e purc h a se rs th e reof l i a bl e am on g th e m s e lves to be re ,

s orte d to for th e pa y m en t of s uc h d eb ts or l e ga c ies in th e

in v ers e ord er of th eir a l ien atio n th e porti on if any rem a in , , ,

i n g in th e h a n ds of s uch h e ir or devi s ee be ing firs t tak en ,

th en th e porti on l as t c on veye d by h im a n d s o on 1 In th e ,
.

s am e w ay bon a fid e purc h as ers of th e p rop e rty of th e tes ta t o r

from ex ec utors wh o h ave power to sell th e s am e w ill be pro


to ote d from d ebts of th e tes ta tor wh ich a re l ien s upo n th e
purch as ed property by c om pe ll in g the ex ecutors if th ey h ave , ,

as s ets to pay s uch d eb ts


1 .
,

21 7 . C re d it o rs s ub rog a t e d t o th e R igh t s of l e g at e es . If a

tes ta to r ch arges on e es tate with th e pay m ent of h is d ebts ,

with th e paym ent of l egac ies an d th e l egac ies


a n d a n oth e r ,

a re p ai d out of th e p roc ee d s of th e form e r es ta te th e c re d i ,

to rs wi ll be s ub rogated to th e righ ts of th e l egate es aga in st


th e l atter es ta te in th e h an d s of a purc h as e r th ere of wh o
,

h a d c onstructive n otic e of th e term s of th e wi ll ; an d sureties


wh o h ave s at is fie d th e c red itors w i ll h a ve th e s a m e righ t
wh ich th e c red itors m ight h a ve e x ercise d 1
Th e l e gate es
”
.
,
1 “
s a i d Mon c ure P h avi n g rece ived pa ym e nt out of th e fun d
, .
,

wh ich b e lon ge d to th e c re d ito rs th e l atte r h ad a c l ea r an d ,

1
Eddy v Traver, 6 Paige ( N
. Ireland v Miller, 71 Mich 1 19 ; Finch
. .

5 21 0. S haw, 19 Beav 5 00; a s tea , i 75


J
. .

1
Freyer, 4 Paige ( N at seq
enk ins 0 . . .

47 Livingston v Freeland 3 1
Latrobe v Tierm an, 2 Md Oh .
,
. . .

Barb Ch ( N Y ) 5 10; Conover v Dec 474


. . . . . . .

C onover 1 N J Eq ( Sexton ) 403 ;


.
1
B urwell v Fauher, 21 Gratt
. . . .

Lewis 0 Overby 31 Gratt ( Va ) 601


.
(V a ) 446
,
. . . .

Nellons v Truax 6 Ohio S t 9 7 ;


.
1
In Burwell v Fanber, supra
,
. . .
3 28 m l an or m ou rn s .

pla in ri gh t to com pe l th e form er to retun d th e m on ey, so fa r

as it was necess a ry for th e paym ent of debts . An d the l ega


tees, b ein g th us d is appo inte d in
obta in in g sat is fa cti on out of

th e fun d wh ich be lo nged to th e cred ito rs woul d h a ve as c l ear ,

a nd pla in a ri gh t to be re ins ta ted in the ir ch a rge upon th e

hom e pl ac e an d to be sa tis fied out of th e s am e


,
B ut to .

a v oi d c ircui ty a c o urt of eq ui ty wi ll s ub rogate th e c red itors


,

to th e pla ce of th e l ega te es an d gi ve th e form er a d irect ,


”
dec ree aga in s t th e h om e place So wh ere an e x ec ut or who .
,

was a ls o a trus tee un de r th e wi ll a ppl ied th e fun d s of the


estate wh i ch sh o uld h a ve bee n us e d to m e et th e tes ta to r s
’

debts to pay ch a rges wh ich c ons tituted a superior l ien upo n


th e trust p rope rty it was he ld th at equity woul d give the
,

e n ra l c red itors a ch a rge upon th e trust p rope rty to th e


g e

ex te nt of s uch p ay m en ts
1
.

21 8 . S ub ro ga t lon of D e v in . or 1n a m w h o in W
b y th e E lec ti on d
o f a n o th er w i ll who
. Ben efic iari es un er a

h ave by the e l ect i on of a noth er le gatee be en d isa ppointed of


, ,

wh at th ey would oth erw ise h ave recei ved wi ll be all owed ,

c om pens ati on for th e i r l os s out of wh a t th e la tter would by

a d ifferen t el ec ti on h ave tak en un de r the w il l


1 If a le ga tee .

un d er a w ill wh ich d ev is es a w ay p roperty be longing to h im

se lf e le c ts to reta in h is own p roperty an d to w ai ve th e l ega cy ,

th e testa to r wi ll n ot be th e reby ren de red intes tate o r th e ,

sh a re of th e res id uary legatee s n ot be ing th e p a rties disap ,

poin ted in c on s equence of th e e lec tion inc reased as to th o , ,

subj ec t m at te r of such l e gacy


-
but it wi ll go to th e d isa p ,

pointe d de visee so far as is n ecessary to th e satis fac tion of


,

h is So if a tes tator b equeaths th e inc om e of ce rta in


,

1 Fe rris 0 Van V echten, 9 R un


. 1 6 7 ; Dea n v H art 6 2 Ala 308 ; Key
.
,
.

N 12 v Grifi n, 1 Rich Eq ( 8 0 Car ) 67 ;


( . . . . . . .

1
Pickersgill o Rodger, 5 Oh Div
. . . Tim berlake 0 Pa t h, 5 Dana .

1 6 3 ; W ilkinson 0 Dent, L R 6 Oh . . . . 3 45 .

3 3 9 . 3 41 ; Re eve o Reeve, 1 V ern 1 Ha m ilton 0 Ham ilton 1 Ch I) . . .


. .
,

21 9 ; Welby o Welby, 2 V es . B . .
( 18 9 2) 39 6 ; Ker v W a ucho pe. I .

1 87, 190; Bar 0 Ber, 3 Bm P C


. . . Bligh, 1 ; Gilm an u Gflm am j l l N . .
sus noou x
on m m m a nusm n ou or m u m s
'
. 3 29

pro erty tp
o wife for th e support of herse lf and h er c hi l
h is
d ren and sh e wa ives the provis i ons of the wi ll in h er beh alf
,

an d e l ects to tak e h eard owe r ri gh ts in stea d th e reof th e ch i l -


,

dren w i ll be entitl ed to th e wh ol e of th e inc om e of th a t prop


'

e rty for th e tim e th at she would oth erwi se h ave ta k en it


1
.

De vi sees wh ose interests are p re j ud ic ed by the w idow s e l ec


’

ti on to ta k e h er dower in p referenc e to th e p rov is ion m ade


for h er by h e r h us band s wi ll a re equita bly en titl ed to com
’

p e n s a ti on fo r th e i r lo s s ou t of th e p rov i s i on w h i c h s h e h as

th us re j ected 1
Th e ground of th is doctri ne was s ta te d in an
.

e arly ca s e to be th a t whe re a tes tator i n m a k in g p rov is ion

for th e d iffe ren t branc h es of h i s fam i ly giv es a fee s im pl e ,


-

est ate to on e a nd a settle d es ta te to an oth er im ag in ing th at


, ,

h e h a d power to do ao a tacit con d iti on is anne x e d to th e ,

dev ise of th e fee s im ple estate th at th e devisee th ereof sh a ll


-

p e r m it t h e s ett l e d es ta t e to go a c co rd in g t o t h e te r m s of th e

wi ll ; a n d if in th at res pe ct h e sh ould dis appo int th e w i ll ,

wh at is devise d to h im wi ll go to th e pers on wh o is th ereby


disa ppo in te d it being pres um ed th at if th e tes tator h ad
, ,

k nown of his l ack of power to devise th e sett led es tate h e ,

would out of th e estate in h is power h ave prov id ed for th at


b ra nch of h is fam ily wh ich h ad n o inte res t in th e settl ed
es tate and h a ve d i rec ted th at n o pe rson sh o uld en joy a de
,

vi se or l egac y wh o controverte d h i s pow er as to a beq uest

g i v e n to a n o t h e r 1
Th e w i ll w i.ll th us b e u p h el d a n d th e i n ,

ten t of th e tes ta tor carrie d out as fa r as th is m ay be don e 1


, .

A c cord ingly th is doctrine wi ll not be appl ied to th e cas e of


,

Y 265 ; Batione s Es ta te, 136 Penn


.
’
. R oe, 21 N J Eq 25 3 . . Contra, . .

St 307 ; Lewis v La tvia. 13 Penn 8 t


. . . . Hawley v . J
am es, 5 Paige ( N .

K
79 ; innaird v William s, 8 Leigh . 3 18.

400 ; Hach ett v Ms cknett. .


1 Barles v Series 19 Abbott New
, .

J
,

24 N J Eq 277 ; Wilbs nh v Wil Cas ( N Y ) 3 22 ; ennings v Jen


'

. . . . . . . .

hanks, 1 8 Ills 1 7 Contra , Hewley


. . nings, 21 Ohio St 5 6 .

J
.

v. am es , 5 Paige ( N 318 .
1 Bor v Bor 3 Br. o P C 1 67 . . . .
.
,

1
Plym pton v Plym pton. 6 Allen .
1
Sturtevant v Bowker. 1 1 Met . .

1 78 Adam s 0 Gilles pie, 2 .


( Ma ss ) 29 1 ; A llen 0 Hannn m . 1 5 .

Jm es Eq ( Nor Car) 244 ; Roe 0


. . . . Km .625 .
3 30 THE LAW or sus s oou rou .

a pe rs on wh o d is appo in ts an oth er by e l ecting to tak e un der


th e ins trum e nt wh ic h gives ris e to th e e l ec t ion
1
.

21 9 . m m : of th ls R igh t of S ub s ti t ut i on . Th e s ubs titu

ti on of d is appo in ted benefic iaries to th e righ ts of the


th e
legate e or devi se e wh os e e l ection h as caus ed th e d is appoint
m en t w i ll if n ec es s a ry be to th e e x ten t of th e ri h ts wh ich
, g ,

were given by th e wi ll to the pa rty m ak ing th e e lecti on but 1


,

it can be c a rrie d n o furth er 1 If th e w idow of a testa t or wh o .

h as by h is wi ll after v a rious abs ol ute d e v ises an d be ques ts


, ,

b equeath ed th e in c om e of a certa in fun d to hi s wife for her


l ife w ith rem a in der to be d istri bute d am ong va ri ous legate es
, ,

an d gi ven th e res id ue of h is e sta te to h is res i d ua ry d e vi s ees ,

e l e c ts to ta k e h e r s tatuto ry ri gh ts as wi dow i n h i s e sta te in

s te a d of th e p rovis i on m a de for h e r in h is w i l l a n d th us ,

d im in ish es th e sh a re of th e res id ua ry l ega tees th es e l ega tees ,

wi ll durin g th e l ifetim e of th e widow by subs titution to h er


, ,

righ ts be en titl e d to rec ei ve th e inc om e of th e fun d provided


,

for h er a n d a fte r h e r dea th th e fun d w i ll go to th e l egatees


,

n a m e d in th e w i ll as if h er e l e ct io n h a d ope ra ted n o c h an ge
,

in c a rry in g out th e in ten ti on s of th e tes ta to r 1


Th e pur .

ch a ser from a de vi see of certa in c o tta ges in wh i ch th e tes

tato r h a d on ly a l ife e state th e rem a in d er b e ing i n h is wi fe


-

, ,

will be entitl ed to c om pe n sation from th e es tate of th e tes


ta to r s w ife for h e r s e ll ing th e c o ttages to th e e x tent of th e
’
, ,

ben e fit tak en by th e w ife un d er th e w ill the te s tator h a v ing ,

g i v e n a l l h is e s t a te to h is w i fe fo r h e r l if e a nd th es e c ot ,

ta ges a fte r h er d e ath to s uch purch as er s gran to r 1


A tes ’
.

tator h a vin g ch a rge d c e rta in l an d s w ith a po rti on for h is


‘

d augh ter by h is first w ife afterw ard s settled a portion of the ,

Chesham in re, 3 1 Oh D 466 5 09 ; Sandoe s Appeal 6 5 Penn St


’
1 . . . . .
, ,

1
Ro gers 0 Jones 3 Ch Div 6 8 8 ;.
,
. . 3 14 ; S tum p v Findlay, 2 B a wle .

Maskell v Goodall 2 Disney ( Ohio ),


.
, 1 68 .

28 2; Tiernan v Roland, 15 Penn S t . . .


1
Firth v Denny, 2 Allen ( Mass ),
.

43 0, 45 1 . 46 8 ; B randenburg v Thorndike, 139 .

1
Gretton v H a ward, 1 Swanst . Mass 102
.

J
. .

409 ; Upham v Em erson. 1 19 Mass . .


1 R
ogers 0 ones, 3 Oh Div 6 88
. . . .
ou or reru ns
sus s ooim on 111 m s m m m s ru rr
' '
. 33 1

s am e lan ds as a jointure upon h is sec n o d wife ,


wh o h ad no

n otice of th e prior ch a rge B el ievin g that th e ch a rge would .

h ave p referen ce over th e joint ure h e th en devise d oth er ,

l an ds to h is w ife in l ieu of th e join ture After h is death


,
.
,

th e w ife fin d ing th at h er joi n ture wa s good aga inst th e


,

ch a rge for th e d augh te r s port i on because th e l atter was ’


,

m e re ly vol un ta ry a greed w i th th e h ei r to wa iv e h er d ev is e
, ,

a nd c l a im th e joi nture for th e purpos e of d epriv in g th e ,

d augh ter of h er portion But th e c ourt decreed th at th e .

d augh te r sh ould h ave th e lan ds devised to th e w ife un ti l h er ,

portion was m a de up 1 .

220 . Thi s d oe s n ot ex te n d to 3 D evi l . m erely upo n C on di

ti o n . prope rty is devis ed to one upon a condition w ith


If x

which h e fai ls to c om ply and th us wai ves his righ t to th e ,

devise th e perform an ce of th is con d iti on by a stran ger will


,

n ot s ub s titute th e s tranger to th e ri gh ts of th e d ev ise e


1
.

Th us wh ere a testator dev ised l and to on e of h is s ons on


,

c on d ition th at th e d ev is e e s h o uld suppo rt a secon d s on d ur

i n g h is l ife but th e d ev isee refused to ac cept th e d ev ise an d


,

d id n ot support th e s ec on d s on an d a stran ge r h av in g been , ,

a ppo in te d g ua rd ian of th e l a tte r a dv an c e d out of h is own ,

m ean s m o n ey for h is s uppo rt to an a m oun t eq ua l to th e ,

va l ue of th e estate s o dev ised it was h e ld th at th ese a dvances ,

c o uld n ot ri gh tfully be re im burs e d out of th e d e vis ed es ta te ,

but th at on th e refus a l of th e ori gin a l d ev isee to a ccept th e


,

s a m e it d es cen d e d to th e tes tato r s h e irs at law free of an y


’
- -

, ,

ch a rge th e reon ; but el s e wh ere th e ri gh t of a pa rty furn ish


1

i n g s upport to th e ben efic iary of s uch a c on d iti on a l d ev ise or


c onvey an ce to be s ub rogate d to th e ti tl e of th e d e vis ee h as

Reeve v Reeve, 1 V ern 21 9 23 Maine, 269 ; Box 0 Barrett, L R


1 .
.
, . .

recognized by Lord Ha rdwicke in La 3 Eq 244 , . .

noy v Athol 2 Atk 447


.
,
1
Tem ple 0 N elson, u pra Hal
. . .

m ple 0 N elson, 4 Met (Mass ) stea d v Westervelt, 41


1 Te
. . .

5 84 ; Frederic k v Gray, 10 S erg Savage 0 McCorkle, 1 7 Ores 42


. . . . .

R . Bugbee v Sargent, .
3 32 m u w or m m n os .

been a fi rm e d.
1
If a pe rson to whom land is devised, on

c on di tion of his releas in g a de bt due to h im from th e t ests


tOt , rece ives paym ent of th e debt, h e re l in quish es th e l and ;
fact th at he receives such paym e n t from a stra n ger
'

an d th e

g i v es th e l a tte r n o ti t l e to th e l a nd 1
B u t if th
, e m o n e y s o

p a i d by s u c h st ra ng e r w as th e f ul l v al u e o f th e p rop e rt y a n d ,

im m ed iate ly upon its pa ym ent h e to ok possess i on of th e l a n d ,

an d w as s nfi e red by a ll th e h ei rs to h old possess ion th ey ,

k n o w in g a n d ac q ui esc i n g i n hi s p a y m e n t, a n d b e in cu r re d
e xpe nse to m ake i m provem ents it h as been int im ated th at ,

eq ity would o rd er th e l an d to be c on veye d to h im es pe ,

c ia lly if th e title was on e w h ich was th en go verne d as to its

tra ns m iss i on by th e sam e rul es as pers on a l p ro pe rty 1 A nd .

a d e vi se of l and on c on d ition th at th e d evis ee sh al l pa y ce r

tain s pecified d ebts an d l egac ies creates a ch arge upon the


lan d to th e e x on eratio n of the pers on a l p roperty beque a th e d
,

by th e w i ll a l th ough th e d ev ise be n ot acce pted


,
1 .

1
Ferre v Am erican Board, 5 3 V t
. Frederick 0 Grey, 10 Berg
1
B .

K
. . .

162 ; Mc Arth ur 0 Gordon, 1 26 N Y ( Penn ) 1 8 2 See also


. . . ing 0 Mor . . .

5 9 7; Ha flm ond v Bones , 128 1nd 13 1 ; ris, 2 B Mon ( Ky ) 99


. . . . . .

Scott Hillenbnrg, 8 5 V a 245 Som e


v . .
1 h ederich 0 Grey, cm
. . .

of thes e were ca ses of conveyances in 1


McFait s Appeal, 8 Penn St
’
. .

which the consideration was a prom ise 290; Birdsall o Hewlett, 1 Paige .

to give such suppo rt, or in whic h a ( N 3 2 ; Bugbee s Sargent. 27


. .

lien was res erved or created therefor, Maine, 33 8 ; s c , 23 Ma ine, 26 9 . . .

to which subrogation m ight well be


m ade ; they were not u on a bare
p
condition .
sm oos n os m um s com m ons or m sus m cs . 3 33

CHA PTER VII .

SUBROGATION UNDER CONTRACT S OF INSURANCE

S ubrogation of Marine Insurers Subrogation against other Parties


S ubrogation to t h e Rem edy for a liable for a Loss by Fire
Tort ca using t h e Loss S ubrogation of Mortgages to In s ur
Lim ita tions of th is S ubrogation ance procured by Mortgagor

Does n ot arise upon a Com prom ise Wh ere a Creditor obta ins Insa r
of th e Insurer s Lia bility a nce upon Property on which he
'

Effec t of Aba ndon m en t . has a Lien


A ba ndonm en t of S hip an d Freigh t R igh ts of Mortgagor in Ins uran ce
separ a tely insured . obtained by Mor tgages
English Doc trine Insura nce obtained by Mortgagor
S n brogation of Insurers on Fre igh t for Ben efit of Mortgages
agains t th e Insured Wh ere th e Policy s t1puls tes for
S ubrogation against a Carrier of th e S ubroga tion of th e Insa r
Insured Good s ers

Insurer against Fire subrogated to Be tween Lessor and Losses or V en


Rem edy agai nst Railroa d dor a nd Purch aser
Mode of en forc ing this Righ t S ubrogation of Life Insurers

221 . s ub ro ga ti o n of M a rin e Ins urers . Ma rine in surers


ac quire by th e ab an don m en t to th em of th e property ins ure d
an d by th e s atis fa c tion of th e ir pol ic ies a ll th e own ers h ip of

th e i n s ure d i n th e property aban d on ed with th e spec rec ap


1
,

era n d i an d a ll th e righ ts an d rem ed ies of th e i ns ure d wi th


,

res pe c t th ere to an d m ay p ros ec ute a ll s ub s eq uen t righ ts


,

an d rem ed i es in th eir own n am es 1


A n d th e i ns urers m ay .

bring a l ibe l to enforce th is righ t even b efore th eir a ctua l


paym ent A n d th eir paym ent of a tota l los s wi th out th e
1 .

1
The Mary E Perew, 1 5 Blatc hf
. . Hall 104 Mass 5 07 Union Ins Co
,
. . .

C C 5 8 ; Traders Ins Cc 0 Pro 0 Ba rrel], Auth Cas ( N Y ) 1 76 ;


’
. . . . . .

J
. . . .

pe lle t Ma nis tee, 5 B ias C C 3 81 . . . . U nite d Ins Co 0 Scott, 1 ohns


. . . .

1
Mutual Ins Co v Brig George,
. . .
( N Y.
) 106 . .

Olcott ( Adm ) , 89 Sun I ns Cc v . . .


1 The
Manistee, 7 Bias C C 35 . . . .
3 34 m u: LAW or sm ou
oe u x .

form of an ab an donm ent will h ave th e sam e efi ect The .


’

la w gi ves to th e ac t of aban d onm ent wh en ac c e pted a ll th e , ,

effe cts which th e m os t ca refully d ra wn a ss ignm en t w ould

a cc o m pl ish By th e act of a ba n do nm ent th e ins ure d t e


.

n oun c es an d y ie l ds u to th e un d e rw riter a ll his righ t titl e


p , ,

an d c l ai m s to w h at m ay be s a ved an d l ea ves it to hi m to ,

m a k e th e m os t of i t for h is own ben efit Th e un d erw riter .

th en sta n d s in th e pl ace of th e ins ure d and becom es l e ga lly ,

e n t it l ed to a ll th a t can be s a ved from destruc tion ”


3
Th e .

ins ure rs a re en titl ed upon sett l em en t as for a tota l los s to , ,

be s ub rogate d for th eir own ben efit to an y rights of ac tion of


th e in s ure d a ga ins t a th ird p a rty for his n egl igen ce or w ro n g
doing caus ing th e loss 3 Nor ca n such th ird p a rty i n an .

a cti on b rough t a ga ins t h im in th e n am e of th e in s ure d s e t u


p
th e ins urers p ay m en t to th e pl a in ti ff as a d efen ce e ith er
’
,

wh olly or pro tan ta The ab an d on m ent h as a retroa c tive


‘
.

efi ect an d v es ts in th e in s urers th e tit l e to th e p ro pe rty or


,

its proc eed s from th e tim e of th e in j ury or los s a s fully as


if it h ad bee n th e s ubj ec t of a b ill of s a le ls
Th e prope rty .

ves ts in th e in s ure rs w ith its be n efits as we ll a s its burd en s 6


, ,

if th e aba n d on m ent h as be en righ tfully m a d e th ough the ,

l oss h as n ot been ac tually pa id 7 .

a ourcet 0 B ishop, 1 8 Q B D
1
. . . . Ob rh 0 Wilson, 1 03 Mass 21 9 . . .

3 73 ; Holbrook v U ni ted State s 21 The opinion of the court in this case,


J
.
,

Ct of Claim s, 434
. . by Mr us tice Gray, contains an ex
.

S tory, J , in Com egys v V ases. .


,
haus tive discussion of the q uestion in
1 Pete rs, 1 9 3 ; Sim onds 0 U nion Ins . . valved both upon pr
, inciple and upon
1 Wash C C 443 . . . . authority .

The C ity of Paris 1 Benedicts, ,


Sun Ins Co 0 H all 104 Mass . . .
,
.

5 29 ; H om e Ins Co v We s te rn Trans . . . 5 07 ; U nion Ins Co v Burre ll, Anth . . . .

p orta tion C o 4 R oh t ( N Y.
) 7;
25 . . Gas ( N Y ) 1 76 ; United Ins Cc v. . . .

J
. .
,

Mercan tile Ins Co v Clark, 1 18 . . . Scott, 1 ohns ( N Y ) 106 . . . .

Mas s 28 8 ; Georgia Ins Co v Daw


. . . . Frothingham 0 Prince , 3 Mass . .

son , 2 Gill 3 6 5 ; The Thyatira, 5 63 ; S un Ins C o 0 Hall, 104 Mass . . . .

8 Prob D 1 5 5 ; Dicke nson v Jar


. . . 5 07 Heilne r r China Ins Co , 18 .
. .

dine , L R 3 C P 63 9 ; Ba nds ] v . . . N Y S upt 1 77


. . . .

Coc hran, 1 V es Ben 9 8 ; N orth of . . R ogers 0 Hosack, 1 8 Wend . .

England Ins Association 0 Arm strong,


. .
( N Y ) 8 19
. . .

L R 5 Q B 244
. . . . .
sus a oe a rron UNDER CONTRA CTS or m snnm cs
'
. 3 35

222 . s ub ro ga ti on t o th e R e m edy for a Tort c a us i ng th e L oss .

A cc o rd in gly th e righ t of a own er to in dem ni ty for an sh i p -

j ust capture wi ll pass by h is ab an donm ent to th e in s urers


of th e sh i p a n d on th e l a tter s b an k ruptc y w i ll vest in th e i r
1 ’
,

as s ign e es
2
Th e ins ure rs of a sh i p wh ich h as been run down
.

a n d sunk by th e faul t of an oth er sh ip are upon th ei r pay m ent ,

of a tota l loss subrogated to th e righ t of th e in sured to re


,

c ove r th erefor a ga in s t th e own ers of th e l a tte r vesse l


8 a
nd ,

wi ll be entitl ed to any d am ages which th e in sured m ay h ave


re c ove red from such ow n e rs ; an d if th e ir pol i cy was a va l ued

on e th ei r p ay m en t of th i s v a l ue w i ll give to th em th e w h ol e
,

a es recupera n d i an d th e righ t to th e wh ol e d am a ges th ough


p ,

th e i n sure d ves se l was in f act wo rth a l a rger s um th a n th e


va l uation n am ed in th e pol icy this val uation be in g c on c lu ,

s i ve betwee n th e i n s urers an d th e in s ured Acc ord ingly


‘
.
,

th e d efen d ants in an ac tion to rec over for th e d am a ge don e


to th e pl ain ti ff s sh ip by a c oll is i on c ann ot d ed uct from th e
’

dam ages to be paid by th em th e am oun t th at h as been paid to


th e plaintifi for th e s am e in j ury by in s urers of th e sh ip ; th e

p l a i n ti fi i s e n ti t l e d t o re c o ve r a s to th i s a m o un t as a trus te e

for th e in surers ls
S o too if th e in surers of g oods h ave
.
, ,

sti pul ate d t o an s wer for a lo ss by th eft an d th e m as te r a n d ,

sh ip owners are a l s o l i abl e for th is loss th e in s ure rs upo n


-

, ,

a lo ss by th eft an d an aban d onm en t to th em or th e ir p aym en t

of a tota l los s w ill be en titl ed to be sub rogate d to th e rem edy


,

of th e in sure d th erefor again st th e m aste r an d ship owners ; -

an d i f th e in s ured d es troys th is rem e dy after h is rec ov ery of

j ud gm ent again st th e in surers equity will rel ieve th e l atte r ,

ro ta n to from th is j udgm en t °
A n d th t r r h i p
p a s e m as e o s .

Monticello v Mollison 1 7 How


.
,
.
5
Yates 12 Whyte , 4 Bing New
. .

ard, 15 2 . Gas 272, following Mason 0 Sains


. .

Com egys o V asse, 1 Peters, 1 93


. . bury, 3 Doug 6 1 .

The Poto m ac, 105 U S 630 . . Atlantic Ins Cc v Storm w, 5 . . .

The Planter, 2 Woods, 0 C 490 . . . Paige ( N .28 5 See Phe nix Ins . .

North of England Ins Associa . Cc 0 Parsons, 1 99 N Y 8 6


. . . . .

tion 11 Arm strong, L R 5 Q B 244


. . . . . .
8 36 m LAW o r em an ate .

own ers would ha ve no right to c l aim from the owners of the


g o o ds c o n tri b ut i o n fo r s uc h a l os s th e p o l i cy ca nn o t u p o n , ,

th eir s atisfy ing the insure d be le ga lly ass igned for th eir ,

ben efit so as to enab le th em to rec ove r from th e ins ure rs 1


.

Ins ure rs w i ll upon s atisfying a j ud gm ent rec overed a ga ins t


,

th em for th e t ota l l oss of a vess e l oc cas i one d by th e ba rra try


of its m as te r be subrogate d to th e benefit of a jud gm ent
,

obtain ed by th e i ns ure d against th e m aster for th e s am e l oss ,

a l th ough th ey h ave Wh i l e th e a c ti on a ga in s t th e m as te r was ,

p e n d in g re f us e d, a n o ffe r of th e i n s ur e d to t ran s fe r t h e co n

trol of th at action to th em upon c on diti on th a t th ey s h oul d ,

p y
a t h e e xp e n s e s a l rea dy in c ur r e d th e re i n a n d th a t th e ,

trans fer sh ould n ot p re j ud ice any ri ghts of th e i ns ured ’


.

223 m u t t n of cm
. s ub ro g t ion o Th is s ubrogat ion a .

of th e in sure rs to the rem edy aga ins t a wron g d oer wh o h as -

c a us ed th e loss wh ich th e in s ure rs h ave s a tisfi ed is on ly to

th e rem e d ies an d righ ts of a cti on wh ich were v es te d in th e


in s ure d or wh ich th e ins ured h av e s uccee ded in ob ta in in g
,

“
from th e pa rty at faul t subj ect to a ll th e l iabi lities an d ,

duties wh ich rested on th e insured e ven in favor of th ird


‘
,

parties it is not an in d epen dent righ t of ac ti on in th e in


5

s urers th em se lves °
an d w i ll not be s ubj ect t o a ny pe rs ona l
,

estoppe l e x is ti ng a gain s t th e ins urers in th e i r own righ t ?

Th e i ns urers succeed m e rely to th e m eans of red res s wh ich


were posses sed by th e party wh om th ey h ave in dem nified
aga in s t th e p arty wh ose w ron ful a c t c aus e d th e lo ss 8
A o
g .

c ordin gly wh e re tw o s h ips be lon in t o th am e w n e r c am e


, g g e s o

1Atlantic Ins Co v 8 torrow , . . . Rice 0 . Cobb, 9 Ca sh ( Mass ) .

5 Paige ( N 28 5 . 302 .

2
Mercantile Ins Co v Clark, 118 . . . Alliance Ins Com Louisiana Ins . . .

Mass 288 . . Co ,
. 8 La 1 . .

N ew England Ins Cc v Dun . . . .


William s 0 Hays, 64 m m (N .

ham , 8 Clifiord, C C 3 8 2; Alliance


'

. . 202 .

Ins Cc 0 Louisiana Ins Cc , 8


. . . . . Mngdcbm
g Ins Cc v P au ls
'
on, . . .

La 1
. . 29 Fed Rep 5 80; The Sam Brown,
. .

Wilson 0 Raf alovich, 7 Q B D . . . . I d 65 0, which was a case of collision


. .

5 5 3 The Bris tol, 29 Fed Rep 867 . . .


S UBROGATION UNDER CONTRA CTS OF INS URA NCE .

in to coll is ion and on e of th em s an k an d b ec am e a tota l loss


, ,

th e in sure rs of th e l atte r sh i p d id n ot, upon th e ir p aym en t of


a tota l loss bec om e en titl e d to m a k e any c l a i m for th e l oss
,

a ga ins t th e in s ure d as th e own e r of th e s h i p at fa ul t in th e

c oll is i on ; fo r th e i r righ t e x is te d on ly th rough th e own e r of

th e s h i p in s ure d an d n ot in d epe n d en tly of h im ; an d as h e


,

c ould n ot h a v e s ued h i m se lf th ey w ould h a ve n o rem edy ,

a ga in s t h i m
1
A n d th e in s urers righ t of s ub rogati on m ay be
’
.

lost by th eir l ac h es i n fa il in g seas onab ly to enforce it before


th e righ ts of oth ers h a ve a c c rued 2 Nor will it be e xten d ed .

to c ove r a m e re gift o r gratuity s ub s e quen tly rec ei ve d by th e


i n sured of wh a t c ould n ot h a ve b een de m an d ed as a righ t 8
.

224 . D o es not a ri s e upo n a C o m pro m ise of th e I n s ure r


'

Li a b ili ty . If th e in surers do ban don m en t of n o t ac c e pt an a

th e i ns ure d p rope rty or pay a tota l l os s but m a k e a c om


, ,

p rom ise of th e c l a im upon th em th ey wi ll n ot be sub rogate d ,

to th e ri gh ts of a cti on of th e in s ure d for th e w ron gful act


wh ich caus ed th e l os s or en titl e d to th e c om p en s ation th at
,

m ay afterw a rd s be rea l i z e d th erefo r


‘
Th us wh ere a c argo .
,

of m e rc h a n d is e wh ic h w a s i n s ure d wa s se i z e d an d c on d e m n e d

by th e Fren ch governm en t un de r the Berl in an d Mil an


d ec re es an d a com p rom is e was afterward s m ad e b etween th e
,

un d e rwrite rs a n d th e in s ured wh ereby th e l atter a ccepte d ,

from th e form er one third of th eir c l aim un d er th e pol icy-

a n d s urren de re d th e pol ic y but d i d not c ed e or as s ign to th e ,

un d erw rite rs th e ir c l a im to in d em n ity from th e Fre n ch gov

e rn m e n t it w a s h e ld on th e un d erw riters sub s eq uen tly re


, ,

c e i vin g th e am oun t of th eir p ay m en t as an i n d em n ity from

th e Fren ch gov ern m en t th at th ey rece ive d th is m on ey i n ,

trus t for th e in sured c ould n ot h old it by sub rogati on an d


, ,

1
Sim pson 0 Thom son, 3 App Cas . . . Burnand v. Ro docanachi, 7 App .

279 ; Globe Ins Cc v S herloc k, 25 . . . Gas 3 33 . .

Ohio St 5 0 . . B rooks v McDonnell, 1 Yo.Cc . .

Mercantile Ins Cc v Corcoran, . . . Ex 5 00; New York Ins Cc v R oulet,


. . . .

1 Gray ( Mass ) , 76 . 24 Wend ( N Y ) 5 05 . . .


8 88 THE LAW or sum om rx
ox .

m us t a
p y it o erv to th em .
1 A n d if, un e r such d c i rc um

s tan c es, th e ins ure d


ould after th eir c om prom ise wi th th e sh ,

un d e rwriters rece ive full c o m pe n s ation for th e i r l oss fro m


,

th e pa rties at fa ul t th erefor th e un d erwriters would n ot be ,

entitl e d to a n y pa rt of th is c o m pen sa ti on “ .

225 H o ot of n A b n d o n
. nt After an aban don m ent a a m e .
,

if it is a l e ga l on e or if it is accepted th e in sure rs st an d i n , ,

th e pl ace of th e in s ure d a n d th e form er a gents of th e in s ured ,

bec om e th e agen ts of th e in lslurers Th e m aster of th e sh i p


a
.

b ec om es th e a gent o r se rvan t of th e insurers and is an s we r ,

a bl e to th e m for h is n e gl ec t or m isc on duct Th e c ons ign ee


‘
.

of good s in s ure d be c om es by th e a b an d on m ent th e age nt of

th e in s ure rs ; an d h is a c ts d o ne in g ood fai th a re at th e i r


ris k a n d for th e ir b en e fit “ A h age n t appoin ted by th e i n .

s ure d a fte r a c a pt ure to p ro s ec ute h is c l a im bec om es afte r ,

a n ab an don m e n t th e a ge n t of th e ins urers ; an d s uc h ag en t s


’
,

re c e i p ts of th e p roc e ed s of a s a l e of th e c a ptured p rope rty

w ill be deem e d to be a receipt th ereof by th e ins ure rs w h o ,

m us t look to th e a ge n t for th e a m oun t and pa y to th e i n s ure d ,

th e full am oun t of th e l os s w ith out an y d ed uct io n th e re fo r “ .


,

Th e w age s of th e c rew afte r an a ba n don m ent w ill be ch a rge , ,

a bl e to th e i n s ure rs n ot as in s ure rs but as own ers of th e , ,

1
New York I ns Co v Roulet, 24 Ins Co , 1 3 Mo 5 24 ; Phillips
’
. . . am . . .

Wend ( N Y ) 5 05
. . . . v St
. Louis Ins Cc 11 La Ann
. . . .

Broo ks 9 Mc Donnell, 1 Yo . . 45 9 ; Graha m 0 Ledda, 1 7 La Ann . . .

Co Ex 5 00
. . . 45 ; H eilner0 C hina Ins Co , 1 8 N Y . . . .

C hes apea ke I ns 00 c Stark, 6 . . . S upt 1 77 . .

Cranch, 268 ; B urtin v t nix Ins . . The Sarah Ann 2 Sum ne r 206 ; , ,

Co , 1 Wash C C 400 ; Mutual Ins Mowry 0 Cha rlesto n Ins Co , G Ric h .

J
. . . . . . . .

Co v Cargo Olcott Adm 89 ; Peince


. Law ( 8 0 1 46 ; a m el 0 M arine
J
. . .
, , .

1 8 Pic k Ins Co , 7 ohns (N Y )412 ; Ga rd


J
. . . . . .

Badger 0 Ocea n Ins Co 23 Pick


. . . . ere v C olum bian I ns. Cc 7 ohn . .
,
.

( Mas s) 3 47 ; Gardiner o S m ith 1 ( N Y ) 5 14 .

J
. .
, .

Johns Cas (N Y ) 1 41 ; Curciat v


. . . . . Ga rdiner v S m ith, 1 ohns Gas . . .

Phila I ns Co , 5 Serg 8: R ( Penn )


. .
( N Y ) 1 4 1 ; Sc hm idt.0 United Ina .

J
. . . .

1 1 3 ; Cincinnati Ins Co v Dufi eld, . . . Co 1 ohns (N Y ) 249


.
,
. . . .

6 Ohio S t 200; Norto n 0 Le xington


. . Miller a De Poynter, 2 C aines .

Ins Cc , 1 6 Illa 23 5 ; Gould c C iti


. . . .
( N .8 0 1 .
sus aoc i n on UNDER conru crs or INS URANCE . 3 89

sh i p .
1
purch as e m a d e by th e insure d or h is agen ts of
A ny
th e ab an don ed p roperty whi ch h as b een pai d for by th e i n
s ure rs wi l l be ta k en to h a ve bee n m ad e for th e ben efit of the

i n surers ” An d th e ins ure rs as own ers of th e sh i p w i ll be ,


.
,

e nt it l e d to its e arn in gs if an y are m a de after th e ab an do n ,

m ent
a
But s in ce th e ea rnin gs of th e sh ip up to th e tim e of
.

th e ab an do nm en t be lon g to th e in sured as i ts o wne r if th e 4


,

own er of sh i p a n d good s righ tfully ab a n dons both to th e

un de rw rite rs as for a tota l l oss by peri l s in sured a gain s t ,

a n d p a rt of th e good s a re sav ed th e in s urers as own ers of th e ,

g ood s w i ll b e l i a b l e to th e in s ure d a s own ers of th e s h i p for

freigh t pro ra ta itin eris un til th e ab an donm ent Th e fre igh t


‘
.

e arn e d b efo re an d afte r th e ab an d on m en t w i ll be a ppor

ti on ed so a s to g ive to each p arty th e in s ured an d th e in


, ,

sure rs th e earn in gs of th e sh i p durin g th e res pec ti ve period s


,

of th eir own ers h ip th ereof °


.

226 . A b an d o nm ent of S hip a nd F re igh t se pa ra t e ly i n s ured .

owne r of a sh i p h as effec te d separa te in suran ces


If th e
upo n sh i p a n d fre igh t an d afte rw a rd s righ tfully a b an d ons ,

both to th e un derwrite rs upon th em res pectively th e d octrine ,

g en e ra l ly a dop te d in th is c oun try is th at h e i s e nti tl e d to

re c ove r for a to ta l los s of both a n d th at th e frei gh t ea rn e d


7
,

p rio r to th e lo ss goes to th e sh ip ow ner or to h is repres en -

tatives th e in s urers of th e f re igh t to wh om it h as b een


, ,

ab a n do ned wh i l e th e f re igh t i f a n y ea rn e d subs equen tly to


, , ,

th e lo s s wh ic h h a s c aus ed th e a b an d on m en t goe s to th e in
s urers of th e sh ip wh o h a v e by th e ab a n donm en t b ec om e its ,

1
McBride 0 Marine Ins Cc , 7 Miller v Woodfall , 8 El Bl
J
. . . . . .

ohns( N Y ) 4
.3 1 ; F rothingh
.am v . . 49 3 .

Prince , 3 Mass 5 63 . . Teasdale v Charleston Ins Co ,


5 . . .

3
United Ins Co 0 Robinson, 2 Brev (So Car) 1 90
K
. . . . . . .

2 Gaines ( N 28 0 . . enn edy 0 Baltim ore Ins Co , 3


. . .

M cB ride 0 Marine Ins Co , 7 . H arris J ( Md ) 3 67 . . .

J
. .

ohns ( N Y ) 43 1
. Stewart v Gree n
. .
. Coolidge v Gloucester Ins Co , . . .

oc k In s Co 2 H o Lds 1 5 9 Miller
. .
, . . 15 Mass 3 41 . .

v . Woodfall , 8 El . Bl 49 3 . .
840 TH E LA W or sus aoeu l on .

ow n ers b an donm en t of th e vesse l to th e ins urers


.
1
Th e a

th ere of wi ll n ot p recl ud e th e insure d from rec overin g upon


th e pol icy on th e f re igh t “ A cc ord in gly if a sh ip own er -

, ,

h av ing in sure d th e s h i p an d th e fre igh t s e pa rate ly w i th two


sets of in s ure rs up on a c a pt ure of th e s h i p a b a n dons th e sh ip
,

to th e ins urers of th e s h i p an d th e fre igh t to th e in s ure rs of ,

th e fre igh t an d th en ta k es from th e in surers of th e sh i p h a lf


,

of h is c l aim in c ash an d for th e othe r h a lf an a s s ignm e nt of ,

th e ir i nte res t in th e sh ip h e w i ll be en titl e d to th e fre igh t ,

wh ich would oth e rw is e h a v e been th ei rs a n d m ay re c over ,

from th e in s ure rs of th e fre igh t to th e full am oun t of th eir


p ol ic y d educting on ly th e pro ra ta freigh t wh ich h ad been
,

e a rne d b ef ore th e ab a n d onm ent 8


.

7 — E l d U d
§ 22 n n gn h D oot rln
. I n n g a n as i n th e s n i te e .
,

S tates fre igh t e a rn ed s ubs eq uen t ly t o th e l os s by re as on of


,

wh ich th e ab an d onm en t is m ade goes to th e ins ure rs as


own ers of th e sh ip ‘
If after th e d is as te r an d a b a n don .
,

m ent th e c a rgo is t ra n s sh ipp e d a n d c a rrie d by an oth e r v e ss el


,

to th e port of d estin ation a n d th e freigh t i s th us ea rn ed , ,

th is w i ll n ot be for th e ben e fit of th e in s urers of th e s h i p 5


,

n o r w ill th ey b e enti tl e d to d a m ages for th e l oss of th is

f reigh t from a w ron g d oe r wh o h as c aused s uch l oss 5


But -
.

ii afte r th e l os s wh i ch is th e c a use of th e ab an don m en t th e


, ,

o rigin a l sh ip proc ee d s on h er voya ge an d ea rns th e pen d ing ,

fre igh t both th e vess e l a n d th e freigh t b ein g sep arate ly in


,

s ured th e titl e t o th e wh ol e f rei gh t is ves te d by th e a b an don


,

m en t in th e in s ure rs of th e sh ip a n d th e frei gh t h a v ing ,

b een earn ed in accordan ce with th e true inte rpretatio n of the


Marine Ins Co v United Ins Co ,
1 Hickie v Rodocanachi, 4 H urlst 5

J
. . . . . . .

9 ohns (N Y ) 1 86 ; Davy c Hallett


. Nor 45 5
. . .
, . .

3 Gaines (N 16 Ham m ond 0 Es .


5
Sea Ins Co v Hadden 1 3 Q B . . . .
, . .

sex Ins Cc 4 Mas on 0 C 19 6


. D 706
.
, , . . . . .

5
Livingston v Colum bian Ins Cc .
,
5
S tewart 0 Greenock Ins Cc 2 . .
,

J
. . .

3 ohns ( N Y ) 49. . . . H o Lds 15 9 ; Davidson 0 Cas e , 8


. . .

5 Dav o H alle t 3 Gaines N


y t, ( . Price, Exch 5 42; s c , 5 J B Moore
. . . . . ,

1 16 ; s c , in Exch Cham ber, 2 B rod


. . . .

3 Luke c . Lyde, s Burr ass . . a B 3 79 . .


sus noc u ron UNDER com ers or INS URANCE . 341

pol icy upon th e freigh t an d h avin g been preven ted from ,

c om in g to th e in sured on ly by re as o n of h is v ol un ta ry ab a n

d on m en t of th e sh ip th e ins ured c an n ot rec over anyth in g in ,

a n ac ti on upon th e l a tte r pol icy Th e ab andonm en t pro


1
.

d uc es th e sa m e results upon th e titl e to th e freigh t as would


follow from a ny other transfer of th e sh ip 2
.

228 . S ub ro g a t lo n of I n s ure rs on F re igh t a ga i ns t t h e I n s ured .

If, h owever, th e freigh t a re


ri gh ts of th e ins urers of th e
n ot c om pl i c ated by th e c fi ec t of an a b a n d on m en t of th e s h i p

t o th e in s urers th ereof th ei r righ t of sub rogation up on th e


’

, ,

a ban d on m en t to th em of th e ins ured subj e ct, wi ll as a gains t ,

th e in s ure d be th e s am e as th a t of oth er m arine ins urers


,
5
.

A nd h ow eve r th e q ues tion of p riority of titl e as to th e fre igh t


m on ey m i gh t be h e ld as b etwe en th e t wo sets of ins ure rs ,

an d h ow e ver th e w eigh t of a rg um e n t m igh t be tak en to pre

pon derate in favor of th e und erw rite rs upon th e ship over


th os e upon th e fre igh t yet th e titl e of th e l atter is s upe rior ,

to th a t of th e in s ure d c l a im ing in h is own ri gh t 1


.

229 . S ub re ga ti on a ga in s t a C a rri er of I n s ure d G o od e . AS


between a ca rrie r and an in s urer of th e s am e good s th e pri ,

m a ry res pon s i b i l ity for th ei r los s or d es truc tion i s upo n th e

carrie r an d th e l iab i l ity of th e in s ure r is m e re ly s e c on d a ry


,
5
,

th e owner an d th e ins urer b e in g c on s i dere d as but on e pers on ,

an d h a v in g to geth e r th e ben e fic ia l ri gh t to th e in d e m n ity

due from th e c arrier for h is b rea ch of c ontract or n on per -

Scottish Ins Co v Turner, 4


1 . . . 3 4 ; Pullerv Staniforth, 1 1 East, 23 2 ;
.

Ho Lds 3 12 ; Benson v Chapm an,


. . . Lea tham v Terry, 3 B03 . P 479 . . .

8 C B 9 5 0; Mc Carthy 0 Abel, 5
. . .
5
B radburn m Grea t Western B y . .

Eas t, 38 8 . L R 10Exch 1 ; Liverpool and


. . .

Sea Ins Cc v H s dden, 1 3 Q . . . .


Great Weste rn Stea m Co 0 Phoenix . .

B D 706 ; Morris on 0 Parsons, 2


. . . Ins Co , 129 U S 3 9 7 Ga rriso n 0
. . . . .

Taunt 407 ; S plidt e Bo wlee, 10


. . Mem phis Ins Co , 19 Howard , 3 12 . .

Eas t, 279 ; Chinnery v Blackburne, 1 . North Am erican Ins Cc , v St Louis . . . .

H Blecket 1 1 7, note
. . . By . 9 Fed Rep 8 1 1 ; Mead v . . .

5
Dufourcet 0 B is hop, 1 8 Q B D . . . . Mercan tile Ins Co , 67 Barb ( N Y ) .

K
. . . .

3 73 ; The Thyatira, 8 Prob D 15 5 ; . . 5 19 ; entucky Ins Cc . . v. Western


Barc lay v Stirling, 5 Man . S 6 . . .
R R Cc
. . 8 Baxter 268 .

5
Thom pson 0 Rowcroft, 4 East, .
842 m m v or sum m a ri es .

form ance of duty .


1 Nor can th e c arri er ra ise th e q uestion
wh eth er th e ins ure rs were boun d un der th e p olicy to in dem
m fy th e in s ure d for th e los s sustaine d If th e ins ured by
’
'

.
,

h is a ct and c ontra ry to th e te rm s of th e pol icy de fe a ts th is ,

righ t of th e ins urers to be subroga ted th e ins urers l i a bi l ity


’
,

w i ll be te rm in a te d 5
S tan d ing as th e ins ure r d oes prac .
, ,

tica lly in th e pos iti on of a s urety st i pul a tin g th at th e goods ,

sh a ll n ot be d es troye d or in j ured in c on s equen ce of th e pe ril s

ins ure d aga in s t wh ene ver h e h as indem n ified th e o wn e r for


,

th e loss h e is en ti tl e d to a ll th e m eans of in d em n ity which


th e satis fied owner h e ld agains t th e party prim a ri ly l iab le 5
.

It i s th e doc trine of s ub roga tio n d epen d e nt n ot at a ll upon ,

priv ity of c ontra ct but worked out th rough th e righ t of the ,

c re d ito r or own e r H en ce it h as bee n often rul ed th a t an .

in surer wh o h as pa id a l oss m ay use th e n am e of th e in s ured


in an action to obta in re dres s from th e c arrie r wh ose fa i l ure
of d uty c a use d th e los s It is c on c e ded th at th is d oc t rine
5
.

prevai ls in cases of m arine ins uran c e ; but it is den ied that


it is appl icable to cases of fire ins urance upon l and ; an d th e
reas on for th e s up posed d ifference is s ai d to be th a t th e in

s ure r in a m a rin e po l ic y becom es th e own er of th e l o st or

in j ure d p rope rty by th e aban don m en t of th e ins ure d w h ile ,

in l an d pol ic ies th ere c an be n o aban don m ent But i t is a .

m is ta k e to s uppo s e th a t th e ri gh t of ins ure rs in m a ri ne

1
Mobile R R Co 1 11 . . . v . J ute y, Sun Ins Co v Kounts Line,
5
. . .

U S 5 8 4 ; H all u Nas hville dxC hatt


. . . . 122 U B 5 8 3 ; Hibernia Ins Co v
. . . . .

R R Co , 1 3 Wallac e, 36 7 ; Ga les v
. . . . S t Louis Transportation Co 10 Fed
. .
, .

B ailm a n , 1 1 Penn St 5 15 . .
,
. Re p 5 9 6 ; Lancas ter Mills 0 Mer
. .

5
The Am azon Ins Co v The I ron Cotton Pres s Co , 89 Tenn
’
. . . c han ts -
. .

Mountain, 1 Flippin, C C 6 16 ; Sun . . 6 ; Railway Co v Manchester Mills, . .

Ins Co 0 Miss iss ippi V alley


. . . 8 8 Tenn 6 5 3 . .

1 7 Fed Re p 9 19 ; Pea rse v


. uebec . . Q 5
This has been denied in on e cu e,
S tea m s hip Co , 24 Fed Rep 28 5 . . . . and it is believed in only one ; and in
5
Carstairs v Mec ha nics Ins Co , . . . that cas e no authori ty was c ited fo r the
1 8 Fed R ep 473 ; Fayerweather a
. . . conclus ion ado pted, and two j udges

Phoen ix Ins Co , 1 1 8 N Y 324 ; Ins . . . . . dissented : Ca rroll r New Orleans .

Co of N orth Am
. erica v . Eas ton, 73 R R Co 26 Le Ann 447
. . . . .

Tex 1 6 7 . .
sus a oe u xon m um s com a cr
'

s or m sna m c n . 843

pol ic ies to proceed against a ca rrier of goods after th ey h ave


pa id a tota l los s grows wh olly or even prin c ipa lly out of any
b d
a an onm e n t T h e re c a n b e
. n o a b an do n m e n t w h e re t h e re

b
h as e en t o tal de s t ru c ti on ; th e r e i s n oth in g u po n w h i c h it

ca n opera te ; a n d a n ins ure d pa rty m ay re c over for a tota l

loss with out it It is lai d d own in Phi ll ips on In suran c e


.
1

th at th e p ay m en t of a l oss wh eth er p a rtia l or tota l gives , ,

th e ins urers a n eq ui ta bl e titl e to wh at m ay afterw ards be


re c overed f rom oth e r p arti es on acc oun t of th e los s an d th at ,

th e effect of a p aym en t of a l os s i s eq uiva l en t i n th is res pect


to th at of a n a b an d on m en t 5 Th ere is th en n o re as on for th e .

s ub roga ti on of in s urers by m arin e po l ic ies to th e righ ts of

a cti on of th e ins ured aga in s t a c a rri er by s ea wh ic h does n ot

e x i st in s upport of a l i ke s ub rogati on in c as es of in s uran c e

aga in s t fire upon l an d Nor do th e auth orities m ak e a ny .

d istin cti on between th e c as es 5 A m ari n e in surer in s uch .

a c a s e m a y in a d m i ra l ty b rin g a l ib e l a ga in s t th e c a rrie r i n

h is own n am e but at la w th e rem edy of fire ins ure rs aga inst


5
,

th e ca rrie r m us t b e purs ued in th e n am e of th e in s ured an d 5


,

is s ubjec t to a ll d efen c es wh i ch m igh t be m a d e a ga i n st th e


in s ured ; and th e c a rri er m ay d es troy th e ins ure r s righ t by
5 ’

s ti p ul a tin g w i th th e ow n e r of th e good s for th e ben efit of

a n y i n s uran ce to b e obta in e d by th e own e r a ga i n s t los s o r

dam age to th e goods for wh ich th e ca rrier would be l iable 7 .

Section 1 723
1 . Cc 17 Celebs, 20 N Y 1 73 Gales c
. . . . .

5
Mobile R R Co v Jurey, 1 11 . . . . Heilm an 1 1 Penn St 5 15 ; Geo rgia
,
. .

U S 5 8 4 ; The Sydney, 27 Fed Rep


. . . . Ins Co v Dawson, 2 Gill
. . 3 65
. .

1 19 ; Pearse 0 ue bec Stea m ship Co ,. Q .


5
H ibernia I ns Co v S t Louis . . . .

24 Fed R ep 28 5 ; The Frank G


. . . Transportation Co , 120 U S 1 66, . . .

Fowle r 8 Id 3 60 , . . and 1 7 Fed Rap 478 ; The Fr ede ric k . .

t ong , J , in Hall 0 Nashville,


5 S r
. . E I ves, 25 Fed Rep 447 ; The B B
. . . . .

C hatt R R Co , 1 3 Wallace 3 67
. . . .
,
. Sa unders I d 727 ; Ge rm ania Ins Cc
, . . .

0 Me m his R R Co , 72 N Y 9 0
5
Am azo n Ins Co v The I ron . . . .
p . . . . . .

Mountain 1 Flippin, C C 6 16 ; The


, . .
1
In m an 0 So Car Ry Co 1 29 . . . . .
,

Libe rty, 7 Fed Rep 226 . . . U S 1 28 ; Phoenix I ns Co v Erie


. . . . .

5
Hall v Nas hville Chatt R R
. . . . Transportation Cc , 1 1 7 U S 3 12, . . .

Co a pra B rig hthope Ra ilw Co 0


.
, . . . afi rm ing s c , 1 0 Bias 1 8 ; The Syd . . .

Roge rs , 76 Va 44 3 ; Mercantile I ns . . ney, 27 Fed Rep 119 ; Rintoul v . . .


344 u m u w or sunnoc a rr
on .

B ut th e provis ion in a b i ll of l ad in g th at n o dam age th at c a n


be in s ured a ga in s t w i ll be pai d for is n o t such a stipul a ti on ,

an d w i ll n ot afi ec t th e righ ts of th e i ns ure r wh ich are n ot


1
,

to be ta k en a wa y by im pl ic ation 5
Nor w i ll th e i ns ure rs b e .

sub roga te d to an y righ t of a c tion wh ich th e in sure d m a y

h a ve a gain s t a th ird pa rty for a breac h of th e l atter s a g ree


’

m en t to c a rry i ns uran ce on th e p rope rty


5
.

23 0 . I ns urer aga ins t Fi re s ub roga t e d to R em edy ag a i n s t

R a i lro a d .
— Th e in s urers of property wh ich h as a ga in s t fire
been des troy ed by fire c om m un ic ate d from a l oc om otive
en gin e w i ll upon p ay m en t for th e lo ss be s ub roga ted to th e
, , ,

ex tent of th e ir p ay m en t to th e rem e d ies of th e ins ure d as , ,

th e own e rs of th e p rope rty in s ure d an d d estroye d a ga ins t ,

th e ra i l roa d c o m p any for th e l os s 5


But th is re m e dy m us t .

a l s o l ik e th at a ga i nst a c a rri er be p ros ec ute d at la w in th e


, ,

n a m e of th e in s ured s in ce th e ri gh t of a c ti on w as a l re a dy ,

vested in th e l atte r befo re th e paym en t by th e ins urers e x 5


,

cept un d e r th os e reform e d c od es of p roced ure w hic h pe rm it

a n y a c tion to b e b ro ugh t in th e n am e of th e re a l p a rt y in

in te res t 5
B ut s in c e th e insurers tak e by s ub roga tion on ly
.

th e righ ts of th e in s ure d an d th e a c tion for a s in gle tort is ,

N Y Central R R Co , 20 Id 3 1 3
. . . . . . Met ( Mas s ) 99 ; Conn In s Cc v
. . . . .

and 1 7 I d 9 05 Jac kson 00 c Boyl . Erie Railw Co 73 N Y 39 9 ; Mon .


, . .

J
. . .

ston I ns Co , 1 3 9 Mas s 5 08 ; Platt


. . . m outh Ins Cc v Hutc hinson 21 N . . .
, .

v R ic hm ond R Co
. 108 N Y 3 5 8 ; . .
, . . Eq 107 . .

M ercantile Ins Co v Celebs 20 . . .


,
5 S wa rthout 0 C hicago 11 R Co , . . . .

N Y 1 73 ; Gulf Colorado,
. . Santa , 49 Wise 6 25 ; H olcom be a Rich .
.

Fe Ry Co v Zim m e rm an, 8 1 Tex


. . . . m ond & Danville R R C o 78 Ga . . .

605 Britis h Ins Co Gulf, &c . . . 776 ; Peoria Ins Co 0 Frost 3 7 . . .


,

6 3 Tex 475 . . Ills 3 3 3 Hart 0 Wes tern R R Cc ,


. . . . .

1
The Hadp, 22 Blatc h f C C 23 5 ; 13 Me t ( Mass ) 9 9 E tna Ins Cc . .

J
. . . .

s c , 20 Fed Re p 8 75
. . 1 6 Id 8 6 1 . . . . v H annibal
. St oseph R R Co , . . .

5
t nix I ns Co v Liverpool
. . . 3 Dillon C C 1 , . . .

Stea m ship Co .
, 22 Blatchf C C 3 72 . . .
5
Conn I ns Co 0 Erie Railw . . . . .

The Montana, 22 Fed Re p 715 , and . . Co 73 N Y 3 99 ; H ustis ford Ins


.
, . . .

1 7 Id 3 77 . . Co 0 Chicago Railw Co , 66 Wise


. . . . .

5
Dem ing v Merchants Cotton
’
. 5 8 ; Swarthout 0 Chicago N W . . .

Press Co , 9 0 Ten 309 . . . R R Cc , 49 Wise 6 25 ; Ra ilw Cc


. . . . . .

5
Ha rt 0 Western R R Cc , 1 3 . . . . v Fire Association, 5 5 Ark 164
. . .
S UBBOGATI ON UNDER CONTRA CTS or INS URANCE . 3 45

in d ivis ibl e, judgm ent aga inst a rail road c om pan y for th e
a

d estructi on of one build ing by fire c om m un ic ated from its


locom otiveen gine w ill bar an oth er action in th e n am e of th e
s am e pl a i n tiff a ga i n st th e s a m e d efen d a nt for th e d es truc t ion

of a n oth er build ing by fire c om m un ic ate d from th e first build


in g a l th ough th e s ec on d a ct ion is rea lly b rough t a n d p ros e
,

c ute d for th e be n efit of a n in s uran c e com p a ny wh ich h as ,

upon one of its pol ic ies p aid th e pl a i n tiff for th e lo s s of th e


,

s e c on d b ui ld in g A rel ea s e given by th e n om in al pl ain tiff


1
.

pen d in g th e action will n ot be a ba r to its furth er proseou


ti on a ga i ns t th e ra il ro ad c om p an y for th e ben e fit of th e in
s uran c e c om p a n y In s urers of a b uild ing which h as be en
5
.

des troye d by fire th rough th e faul t of a ra il roa d c om pa ny m ay


res tra in th e in s ure d from c oll ec tin g or s ett l in g th e i r c l a i m

a ga in s t th e ra i l ro a d c o m p a n y with o ut sub ro gati on of th e i n

s ure rs
5
. If before th e p ay m en t by th e ins uran c e c om p a n y of
,

th e a m oun t due upon its p o l ic y th e owner of th e p rope rty h as ,

received from th e ra i l roa d c om p a n y th e am ount of th e los s

ab ov e th e in s ura n c e an d h as g iv en to th e ra i l ro a d c o m p an y a
,

d is ch a rge of its l iab il ity c onta in in g th e s tatem ent th at it was


n ot in ten d ed th ereby to re l eas e th e i ns uran c e c om p an y from

its l ia b il ity to h im th is wi ll be treate d as a l im itation of th e


,

d isch a rge to th e a m o un t of th e los s over th e ins uran ce t e ,

ta in in g th e c l a im upo n th e in suran ce c om p an y an d re s ervi n g ,

i ts rem e dy ov er a n d s o n ot b a rrin g th e in suran c e c om p any s


,
’

righ t of s ub rogati on aga in s t th e ra i l roa d c o m p an y 5


.

23 1 M d . f e n fo rc i n g th is R igh t
o e o Th is Btl bject was fully .

d is c uss ed in New J ereey ; an d it was determ in ed th at wh ere


an ins ura n c e c om p a n y p ay s th e ins ure d for a los s by fire

occ as ion e d by th e faul t of a ra i l roa d c om pany an d th e in ,

s ure d afte rw a rd s recei ves from th e ra il road c o m p an y th e

Trask v H artford & N H R R


1
. . . . .
5
H artford I ns Co v Pe nnell, 2 . . .

Co , 2 Al len (Mass ), 3 3 1
. . Ills App 609
. . .

5
Hart 0 Western R R Co , 1 3
. . .
5 Conn Ins Co 0 Erie Ba llw
. . . . .

Met (Mas s ) 99 ; Monm outh Ins Co


. . . Cc , 73 N Y 3 9 9 reversing s c , 10
. . . . .

v Hutchinson, 21 N J Eq 107
. . . . . Hun (N 59 .
346 ra n m v or sus aoeu l ou .

am ount in f
da m ages h e h o lds th is in trus t
satis a ct ion of h is ,

for th e ins urers a n d th ey m ay rec over it from h im by a s ui t


,

in e quity ; an d if th e rai l ro ad c om pany h as n ot pa i d th e in


s ure d h is d am ages or h a s pai d th em k n owi n g th at th e i ns ured
,

h as a l rea dy rece ived h is pa ym en t f rom th e ins uran c e c om pa n y ,

th e l a tte r m ay m a in ta in a s uit a t la w agains t th e ra i l roa d


c om pa n y in th e nam e of th e i n s ure d e v en agai n st h is c o n ,

s ent to c om pe l re pay m en t of th e d a m a ges to th e a m o un t on


,
!
th e i r pa y m e nt ; an d a re l eas e gi ve n by th e ins ure d to th e
ra i l roa d c om pan y would be n o d efen c e to this s uit B ut .

th es e two rem ed ies ca n n ot be purs ue d on a s i n gl e b i ll in


eq ui ty ; n ei th er th e i n s ure d n or th e ra i l road c om pan y i s a

n ec es s ary pa rty to th e s uit a ga ins t th e oth e r; th e y a re n ot

jointly l iabl e an d n o j udgm ent c ould be ren de red or dec ree


,

m a de aga ins t both Th e ins ure rs m ay h owe ver be fore be


.
, ,

g i n n in g t h e i r s uit a ga ins t th e ra i l roa d c o m p a n y b ri n g a b i l l ,

in e quity to h ave a re l ease g iven by th e ins ured to th e ra i l


roa d c om pa ny wh en th e l atte r k n e w of th e p aym e n t by th e
,

i ns ure rs dec l are d v oid as a fra ud upon the ir righ ts ; a nd to


,

th is b i ll bo th th e ins ured a nd th e ra i l roa d c om pa n y woul d be

pr op e r p a rties
1
.

23 2 . S ub ro ga uo n a g ai n s t ot h er P arties liab le fo r a Lou by

Pira — In l ik e m ann erbui ld ing wh ich h as th e ins ure rs of a ,

b een burned in s uch a m anne r as to c reate a l iabi l ity th e refor


in a m un c ipa lity or in oth e r pa rties at f ault c a nn ot upo n
.
, ,

th ei r p aym ent of a l os s m a in ta in in th e ir own n am es a n s e ,

ti on th e refor a ga in st th e pa rties ulti m ate ly res pon s ib le for


th e l os s but m ay do s o i n th e n am es of th e ins ure d own e rs
5
,

of th e prope rty wh om th ey h ave in dem n ified Th e in surer


,
5
.

ta k es by s ubs tituti on a ll th e righ ts an d rem ed ies of th e i n


s ure d a n d un d er s om e of th e re fo rm ed c od es of p roce d ure
5
,

1 Monm outh Ins Cc . . v


. H utchin 5
Mason 0 Sainsbury 3
.
, Doug . 61 .

son, Eq 107
21 N . J . .
5
Hum and v Rodocanac hi 7 App .
,
.

5
London Ass 00 v Sainbury, 3 . . . Gas 3 33 3 3 9 ; Cas tella in 0 Pre s to n,
.
,
.

Doug 245 Bo ckingham Ins Cc v


. . . . 1 I Q E D 3 8 0, re versing s c , 8 I d
. . . . . .

B os her, 3 9 Maine , 25 3 . 61 3 Niagara Ins Co v Fidelity Ins - . . .


S U BROGATION 01m m CONTR ACTS OF INS URANCE .

o
th ugh n ot at c om m fter full paym ent m ain ta in on la w, m ay a

a c tion th e re on in th ei r own n am es 1 Th e pa ym en t by th e .

in s urers w i ll be n o d efen ce in an acti on b rough t by th e own er


of th e prope rty aga inst th e party wh o is ans werabl e for th e
loss eith er in bar of th e acti on or in m itiga tion of d am ages
,
5
.

Th e in surers pay m en t gives th em by subrogati on an e quita


’

ble in teres t in th e c l aim aga in st th e w ron g doe r 5


B ut th is -
.

s ubroga ti on of th e ins ure rs is s tri ct ly l im ite d to th e ex istin g

righ ts of th e ins ure d 5


an d is subjec t to th e ri gh t of th e ow ner ,

to be fully c om pe ns ated for th e l os s of h i s p rope rt y ; if h e5

h as obta in e d a pa rti a l in dem n ity f rom a m un ic ipa l ity wh ose


l iab i l ity is l es s ex ten s ive th an th at of th e insure rs th is wi ll ,

be a d efen ce on ly pro ta nto to th e ins ure rs ; th ey w i ll s till be


li abl e to h im w ithi n th e l im its of th e ir pol icy for th e a m oun t
of h is loss deductin g th e refrom th e net proc eeds of h is recov
,

ery aga in s t th e m un ic i p a l ity 5


A n d if th e in sured own er of .

th e p rope rty afte r rec e i v ing p ay m ent of th e insuran ce is fully


, ,

in dem n ified for h i s los s by th e wron g doer or from th e l atter s -


’

m ean s he m us t th en acc oun t to th e i n sure rs for wh at th e


, y
h a d p re v ious ly pa id h im ; th e ins ure rs l iab il ity is m e re ly
7 ’

a s ec on d a ry on e 5
On th e s am e p rin c ipl e wh ere a bui ld
.
,

in g wh ich was ins ured aga in s t fire but n ot to its ful l v a l ue , ,

1 23 Penn St 5 16 ; Hom e I ns
. St Louis . Iron Mountain R .
5
. .

Cc v O re gon Ry
. . Nav Cc , 20 Cc 0 Co m m ercial Union Ins
. . . . . .

Greg 5 69. . 13 9 U S 223 . . .

1
Marine Ins Cc v St Louis Ry .
5 H om e I ns Co 0 Oregon Ry
. . . . . . . .

Co , 41 Fed Re p 643
. . Nav Cc , 20 Greg 5 6 9 ; People s
. .
’
. . .

5
Cla rk 0 Blything, 2 Barn. Ins Cc v Straehle, 2 Cinc innati S up . . . . .

Cress 25 4 ; Perrott c Sheare r, 1 7 Ct 18 6 ; Newc om b 0 Cinc innati I ns


. . . . .

Mic h 48 ; Cunningham v Evansville Cc , 22 Ohio St 3 8 2


. . . . .

R R Co 102 Ind 478 Webe r 0


. .
5
Pentz v E tna Ins Co , 9 Paige
.
°
. . . .

Morris Essex R R Co 3 5 N J ( N 5 68
. . . . . .

La w, 409 ; H ayward 0 Cain 105 .


, Darrell v . Tibbetts 5 , Q . B Div
. .

Mas s 21 3 ; Harding v Towns hen d, 43


. . 5 60 .

V t 5 36
. . Frie m andorf v Watertown Ins
5 . .

5
Cas tellain c Preston, l l Q B D . . . . Co , 9 Bias C C 1 6 7 ; H ardm an c
. . . . .

3 80; C hica go, St Louis N O R . . . . Brett 37 Fed Rep 803 ; Fidelity Ti


, . .

Cc v Pullm an Car Co , 1 39 U S tie Co w People s Gas Co , 1 5 0 Penn


’
. . . .
. . . .

79 Pratt v Redford, 5 2 Wise 11 4


. . . St 8
. .
3 48 m s LAW or sm ea rr
on .

h ad been burned th rough the fault of a m un ici pa l ity an d th e ,

o wn e r h ad b rough t an action th erefor aga ins t th e m un ic ipal


ity an d un d ertook to s ue for th e wh ol e d am age as h e m ay
, ,

d o h e was a llowe d to c on duct th e ac ti on w ith out th e in te r


1
, .

feren ce of th e in s ure rs th ough h e would be l iabl e to th e in ,

s ure rs for an yth in g th at h e m igh t do in v i ol a ti o n o f h is

e quita bl e d uty t ow a rd s th e m 5
S o h e c ould re l e as e th e w ron g .

doer from l iabi l ity for any in j uries n ot c ove red by th e in


sura n ce
5 By th e c ivi l law as a dop te d in C an ad a th e su b
.
, ,

rogat ion of th e in surers is m ore e xtens iv e th an h as b een

a l rea dy s tate d ; an d th ough l ia bl e for a n d pay in g o n ly a ,

p a rt of th e d am age done th ey m ay be s ub rogate d pro ta n to ,

to th e rem edy of th e in s ure d aga in st th e wron g d oe r w h o h as -

c a us e d th e l os s an d m a t h r u p i t i uit i th i r
y e e on m a n a n a s , n e

own n a m es for th e re c overy of th ei r p aym e nt fro m s uc h

wron g d oe r 5 -
.

23 3 . S ub ro ga ti o n of M o rtg a gee t o I ns ura n c e pro c ure d b y


m m e A m o rt g g
a e
ore a s s uch
, h a s n o c l a i m to th e be n e fit
of a pol icy of in s ura n ce procured upon th e m ortga ge d p rop
5
e rty by and for th e m ortga gor; and th e s am e is th e c as e

w ith th e h older of a m ech an ic s l ien But an agreem e n t


’
.
5
,

express or im pl ie d on th e p art of th e m ortgago r th at h e w i ll , ,

k ee p th e m ortgage d p rem is es in sured for th e protection of th e


m o rtga ge e w i ll c reate a n eq uita bl e l i en up on th e m on ey d ue
,

for a los s th ough th e pol icy was p roc ured by th e m ortg a g or


’
,

1
H unt, 105 Me 1 5 4
Dillon v . . . C olum bia Ins Co 0 Lawre nce,
5
. . .

5
Com m erc ial Ass 00 v Lis ter, . . . 10 Pete rs 5 07 ; Nichols v Baxte r, 5
, .

L R 9 Oh 48 3
. . . . R I 49 1 Fra nklin Sa vings Ins titu
. .

5 Ins urance Co c orth Am e rica 0 . . tion 0 Central Ins Cc


. 1 19 Mass . .
, .

Fidelity Title Co , 1 23 Penn S t 5 23 . . . . 240; Wilson 0 H ill 3 Met ( Mes a ) .


, .

5 Q
uebec Ass 00 v S t Louis , 7 . . . . 6 6 ; McDonald 0 Black , 20Ohio 1 8 5 ; .
,

Moore P C 28 6 Pa rke, B citing


, . .
, .
,
Nordyke Marm on Co 0 Ga ry 1 12 . .
,

Ala uze l on Assurance, p 3 8 4 477 ; .


, I nd 5 3 5 Ryan 0 Ada m son, 5 7 Iowa,
. .

Pardes s us Cour: dc Droit Com m ercial,


,
3 0 ; Carte r 0 B ec kett, 8 Paige (N
.

Q
5 9 5 ; uinault, p 248 ; Toullie r, tit . . 43 7 .

IV 1 75
. Em erigon ( English trans , .
5
Ba c kley 0 Scott, 61 N H 140
. . . .

Oh X II 1 4, pp 329 3 36 ;
. . .
-
1
Reid 0 McCrum , 9 1 N Y 412
. . . .

Pothier on As surance, p 248 . .


S UBROG ATION UNDER C ONTRA CTS OF IN S U RA NC E .

1
in h is own n am e u ortgage d property an d wh eth er
pon th e m ,

th e pol y x
ic e is te d a t th e t i m e of th e m o rtg g
a e or w as a f te r

wards tak en out by th e m ortgagor a l th ough by a c l aus e in


5
, ,

h
t e c o n d i ti o n of th e m o rt g g
a e th e m o r t g g
a e e w as p e rm i tte
,
d ,

u po n th e m o t
rg ga o r s d e fa u l t h i m s e lf to
’
ta k e o u t a pol i c y
,

p
for h is rote c t i o n a t th e e xp e n s e of th e m o rtg g
a o r a dd i n g ,

5
n
a y p r e m iu m s th a t h e m i g h t p ya t o t h e m o rtg g
a e d e b t a n d -

th is e quita bl e l ie n of th e m ortga gee w i ll ava i l aga ins t both


th e in s uran c e c om pan y an d a n as s ign ee of th e pol i cy if th ey ,

were pri or to th e as s ign m ent n otified of th e righ ts of th e


m o rtgagee A n d th is l ien in fa vor of th e m ortga gee upon
5
.

ins ura n ce p roc ured by th e m o rtga go r w i ll be v a l id a ga ins t


th e l atte r s as s ign ee in b an k ruptc y 5 If in s uc h a c ase a s uit
’
.

a t law to re c ove r th e lo ss un d er th e pol ic y is p en d i n g b etwee n

th e l ega l owne r of th e pol icy a nd th e ins ura nc e c om p an y ,

e q uity w i ll n ot en jo in th e furth er p rosecuti on of th is su it ,

but w i ll to avo id de l ay an d expe n s e a nd as certa in th e righ ts


,

of th e pa rties a llow th e s uit to proceed to j udgm ent en join


, ,

in g h ow eve r th e c o m p an y from m ak in g pay m en t t o th e


, ,

p la i n t ifi i n th a t s u it an d th e p la i n t i fi fr om ,
re c e i v in g s u c h
paym en t an d a llow ing th e m ortga gee to a ppear an d prosecute
,

th e s uit for th e protec ti on of h i s equitabl e l ien upon th e l oss


,

c ontes t e d i n it If th e m ortga gor s c ove na n t was to k ee p


5 ’
.

th e b ui ld in gs in s ured a n d in c as e of lo ss to apply th e in sur ,

an c e m on ey to re bui ld in g an d a fte r a lo ss th e m o rtga gee h as


-

s old th e l a n d un d er hi s m ortgage for l es s th a n i s due upon

th e m o rtg age d eb t h e wi ll s ti ll be en titl ed to h is equita bl e


-

l ien upon th e in surance m on ey for th e b al ance due to h im -

Hazard v Draper, 7Allen (Mesa ),


1
. .
!
NicholsBaxte r, 5 R I 49 1
v
. . .

267 Doughte r0 V an H orn, 29 N J Thom as a V onkapfl, 6 Gill J ( Md )


'
. . . . . .

Eq 90 3 72 ; V andegraafl c Medlock, 3 Por


'
. . .

5
Dunlop c Avery, 89 N Y 5 92, . . . ter ( Ala ), 3 89 .

and 23 H un ( N 5 09 Am cs v . .
5
Sands Ale Brewing Co is re, 3 .

Richardson, 29 Min 3 30 . . Bias C C 175


. . . .

5
Wheeler v Factors Ins Co , 101
’
. . .
5
Nichols c Baxter, n pra
. .

U S 43 9
. . .
35 0 m s u w or m a cs .

a lth ough h e h as , by h is s a e, m a el d re bui ldin g by the m ort


g g
a or or h is re res enta ti es v im poss ible p .
1
But th e m o rtgagee
ca nn ot h ol d th e ins ure rs l i a bl e for th e am oun t of a loss un der

s uch a pol icy wh ich th ey h ave pa i d to th e m o rt a or before


g g
th ey h ad n otic e of th e term s oI the m o rtgage
'

5
.

23 4 . W h ere a C red i t or ch um s In s un n oe upon Pro pe rt y

on w hi c h h e h as a n on . W h ere a cre d itor effects ins ura n ce


u pon prope rty m ortgag ed or ple dged to h im to s ec ure th e
paym ent of h is d em an d th e i ns ure rs do n ot be com e s ure ties ,

for th e d ebt n or do th ey ac quire a ll th e ri ghts of s uch s ureL


,

t ies 5
Th ey a re ins urers of th e particular property only ; a nd
.

so lon g as th e p roperty re m a ins l iabl e for th e debt so l on g ,

i ts de struc tion by fire w i ll be a l oss to th e c red ito r w ith in th e


term s of th e pol icy 5
A cc ord ingly i t h as been h e ld in Mas .
,

s ac h us e tts th a t a m ortgagee wh o h as a t his own ex pens e , ,

ins ured h is inte res t in th e m ortgaged p rope rty agai ns t l oss


by fire m ay in case of such a los s before h e h as receive d pay
,

m en t of h is de m an d c oll ec t th e am oun t of th e loss f rom th e ,

i ns ure rs fo r h is own us e, wi th out firs t ass ign in g th e m ortga ge


5
or an y in te res t th ere in to th e ins urers n or ca n th e ins urers ,
upon offerin g to pay th e l oss an d th e add ition a l am ount d ue
upon th e m ortga ge a bo ve th e l oss req uire th e m o rtgage to be ,

as s ign e d to th e m an d th us be s ub roga te d to th e righ ts an d ,

rem ed ies of th e in s ure d un d e r h is m ortga ge


5
But th is Mas .

Thom as a V onkapfl, 6 Gill


1 1 5 8 ; Cass: Marittim a a Phoenix Ins
'
J . . . .

( M d ) 3 72 . 1 29 N Y 490 .

K
. . .

5
S tea rns 0 Quincy Ins Co 124
. . .
5 ing 0 S tate Ins Cc , 7 C as h. . . .

Mass 6 1 . .
( M es a ) 1 , c iting and c ons ide rin g
5
Cone v Niagara I ns Cc 60 . . .
, Colum bia Ins Co 0 Lawre nce 10 . . .
,

N Y 6 19 ; Exce lsio rI ns Cc 0 Royal Pete rs, 5 07 ; Roberts 0 Traders Ins


’
. . . . . . .

I ns Co , 5 5 N Y 3 43 , 3 5 9 ; Hadley
. . . . Co 1 7 Wend ( N Y ) 63 1 ; E tn a . . .

v N H Ins Cc
. . 5 5 N H 110 But
. . .
, . . . Ins Cc 0 Tyler, 16 Wend ( N Y )
. . . . . .

see Kip v Mutual Ins Cc , 4 Ed w . . . . 3 8 5 ; Carpente r 0 Providence Ins . .

Oh ( N Y ) 86
. . . . Cc , 16 Peters, 49 5 .

5
B ra dley J , in Insurance Cc v 5
S uflolk Ins Cc v Boyden, 9
'

. . .
, . .
.

Stinso n 103 U S 25 ; International


, . . Allen ( Mass ) 1 23 ; Provincial Ins , .

Trus t Cc v Boardm an, 149 Mass . . . 00 v 11eeeor, 21 Gm nt Ch


. . .

296 ; 33 U p Can Q B 3 5 7 . . . . .
sus a oc a rr
on m anna com a crs or m s nam c a . 35 1

s a ch usetts l h as n ot been genera lly followed e ls ewh e re


ru e .
1

A n d in New J ersey th e ins urers wi ll in such a cas e up on , ,

th eir p aym ent of th e l oss be s ubroga te d pro ta n to to th e ,

be n efit of th e m ortga ge or oth e r se c urity h e ld by th e insured ,

an d by pay in g to th e i ns ure d th e wh ol e am oun t of th e c l a im

for wh ich th e l atter h olds h is s ec urities th e y w i ll be com e ,

e n titl e d to a l l s uc h s e c uriti es ;
5
an d if a fter effec tin g th e in

s uran c e th e i ns ure d h as pa rte d w ith an y of h is s e c urit ies or

rece ive d pa rti a l p aym en t of th e debt for wh i c h th ey a re h e l d ,

an d wh ich gi ves h im h is in s urable in terest th e l i ab i l ity of ,

th e in sure rs w i ll be p rop orti on a lly d im in is h e d 5 un l es s th e ,

in s uran c e w as rea l ]y in te n d e d for th e ben efit of th e d eb to r 5


.

23 5 . m gm of M ort ga g o r i n I n s uran c e o b t a in e d by M o rt

g a ges .
—A m ortga g r is o n ot en tit ed l to th e benefit of ins ur
an c e ortgaged property ob ta in ed by th e m ortga gee
in th e m

i n h i s own n am e at h is own e xpen s e and w ith out th e p rivity , ,

of th e m o rtga gor a n d in th e e ven t of a lo s s ca nn ot require ,

th e am o un t rec e i ved by th e m ortgagee upon such in sura nc e


to be a ppl i ed i n re d uc tion of th e m ortg age d ebt 5
Th e i n -

te res ts of th e m o rtga gee a n d of th e m o rtga gor th ough both ,

in s ura ble are s e pa ra te a n d d is tin ct f rom e ac h oth er


,
5

if th e m ortga gee h as proc ure d th e i ns uran c e th ough in h is


( B ut .

own n am e a t th e reques t a n d e xp en s e a n d for th e be n e fit of


,

Castellain v Preston, 1 1 Q B D
1
. . . .
5
R ussell 0 Soa thard, 1 2 H oward,
.

38 0, revers ing s c , 8 Q B D 61 3 , . . . . . 1 3 9 ; Honore v Lam ar Ins Co , 5 1 . . .

w hich followed the Massac hus etts Ills 409 ; S tinchfield v Millikan, 71
. .

cases c ited s apra Thom as c Mon . Maine, 5 67 ; Concord Ins Co v . . .

tank Ins Cc , 43 H un (N . 21 8 ; . . Woodbury, 45 Maine 447 B urlin ,

Pendleton v Elliott, 6 7 Mic h 496 ; . .


g a m e v Go.odspeed , 1 5 3 M ass 24 ; .

B aker 0 Fire m an s Ins Cc , 79 Calif


’
. . . . White 0 B rown , 2 Ca sh (Mass ) 41 2 ;
. .

34 C ushing 0 Thom pson, 3 4 Maine, 49 6


J
. . .

5
Boundbrook Ins Co 0 Nelson, . . .
5
o hnson v N orth British I ns Co ,
. . .

41 N J Eq 48 5 . . . . 1 H olm es , C C 1 1 7 Tuc k o Ha rt
. . .

5
S us sex Ins Co v Wood rnfl , 26 ford Ins Cc , 5 6 N H 3 26 ; Wheeler
'

. . . . . . .

N J Law ( 2 D utch ), 5 41 , c riticised


. . c Waterto wn Ins Cc , 1 3 1 Mas s 1 ;
. . . .

in Ins Cc v Stinson , 103 U S 25


. . . . . . Carpenter v Conti nental Ins Cc , 6 1
. . .

5
Nelson 0 Boundbrook Ins Co , . . . Mich 63 5 ; Westc hester Ins Co v
. . . .

43 N . J
Eq 25 6 , reversing for that . Foster, 90Ills 121 ; N iagara Ins Co . . .

reason s c , 41 N J Eq 485 . . . . . . v Scam m on, 28 N o E Rep 9 19


. . . . .
35 2 m s LAW or sonaoe a rxon .

th e o we ll as for h is own protection th ough th is


m ortgag r, as
,
1

i s by a pa rol agreem ent un k n own to th e in s ure rs th e m o rt ,

g g
a o r w i ll h a v e th e r igh t in c as e of a l os s t o h a v e th e , ,

a v a il s of th e pol ic y a ppl ie d for h is re l ief to wa rd s th e d is

ch a rge of h is in de bte d ness S o if th e own er of l an d a fte r


5
.
, ,

e x ec utin g a n a g ree m en t for its s a l e b ut be fore m a k i n a c n


g o ,

veyan c e in s ures th e b ui ld in gs s tan d in upo n th e l n d n d


, g a a ,

n ot m e re ly th e p ur ch a se m o n ey a gree d to be pa i d to h im he -

m a y upon a l os s re c ov er th e wh ol e am oun t of th e ins uran c e ,

an d w i ll h old a n y s urpl us ove r th e b a l an c e f th e purch as e


o
m on ey d ue to h im in trust for th e ve n d ee of th e p rem ises 5

an d th e in s uran ce c om pan y w i ll h a v e n o righ t of s ubroga t i on

to h is c l a i m upon th e ven dee for s uc h purch as e m on ey 5 -


.

Wh e re th e owne rs of rea l es ta te h old ing i ns uranc e aga i nst


th e l os s of th e b ui ld in gs by fire as s ign ed th e pol ic y to a ,

m ortgagee of th e es tate a n d a lo s s h a v in g oc c urred t h e as , ,

s ign ee b rough t s uit up on th e p ol icy in th e n a m e of th e in

s ure d an d ob ta ine d j ud gm en t th e re on a n d th en in s tea d of


, , ,

c oll ec tin g th is j ud gm en t c oe rc e d th e p ay m e n t fro m th e in ,

s ure d by a f o re c l osure of h is m ortgage th e in s ure d was h e ld ,

to be e n titl ed to th e ben e fit of this j ud gm ent a l th ough wh i le ,

th e as s ign e e h e ld th e pol icy h e h ad e fi ec ted oth e r in s uran ce


'

up on th e p roperty w ith out n otice to th e in s ure rs


5
.
,

1 Waring v
Loder, 5 3 N Y 5 81 ; . . . 45 Maine Lam er , 447 ; H onore v .

Clinton v H ope Ins Co , 45 N Y . Ins Co , 5 1 Ills 409 ; E tn a In s Co


.

K
. . . . . . . .

45 4 46 7; De Wolf 0 Capital City Ins


, . . 0 Ba ke r, 71 1nd 102
. lein v Union . .

Co , 1 6 H un (N
.
1 16 . Ins Cc , 3 Onta rio, 23 4 ; Ri c hardson
. .

5
H olbroo k 0 Am Ins Co , 1 . . . . 0 Ho m e Ins C o , 21 Uppe r Canada
. . .

Curtis . C C 1 9 3 ; Phoenix Ins Cc


. . . .
( C .291 ; H aza rd v C a nada I ns . .

v C had bourne, 3 1 Fed


. R e p 3 00 ; . . 3 9 U pper Canada ( Q 4 19 . .

B ay a Star Ins Co 77 N Y 235 ;


. . .
,
. . See Morrison 0 Tenn Ins C o , 18 . . . .

Ke rnoc han v N Y Ins Co , 1 7 N Y . . . . . . . Mo 262 . .

428 ( aflirm ing s c 5 Duer (N . . .


5
Reed 5 Lukens, 44 Penn St . . .

t aix I ns Co 0 Pa rsons , 5 6 . . . 200 .

N Y S uper Ct 423 ; Grosvenor o


. . . . .
5
Ins Co v Updegrafl, 21 Penn . . . .

Atlantic Ins Cc , 1 7 N Y 3 9 1 ; . . . . St 5 13
. .

Roberts 0 Traders Ins Co , 17


5 ’
Norwic h Ins C c v Boo m er 5 2 Ills . . .
, . . . .

442 ; Concord Ins Cc v Woodbury, . . . Wend ( N Y ) 63 1 . . .


S UBROGATION UNDER C ONTRA CTS O F INSU RANCE .

23 6 . I n s uran c e o b t ai ne d by M ort g a go r for B en efi t of th e

M rtg g s
o a ow
e n e r
.
of a n e q u ity of
If th e
re d e m p t io n h a s pro

c ured ins uran ce upon th e b ui ld in gs s tan d in g on th e m o rt

a
g g e d p re m is es p ay a bl e i n c as e of lo ss to th e m o rtgagee as
, ,

add iti on a l s ec urity to th e l atter it is th e righ t of th e fo rm er ,

to h a ve th e p roc ee ds of th e po l ic y in ca se of a los s a ppl ied , ,

1 n o w i ll this ri h t b e
to th e paym ent of th e m o rtgage d ebt ; r g -

a ffec te d by th e f act th a t th e pol ic y c onta in a a stipul ati o n th at

n o c on v ey a n ce of th e prope rty sh all afi ec t th e righ t of th e

m ortga gee to rec ove r for a lo ss ; but ii after th e is suin g of ,

s uc h a pol ic y th e e quity of re d em pti on is s old an d c onv ey ed


, ,

a n d a los s th en o c c urs a n d th e in s uran c e com pan y upon , ,

p a y i n g th e am o un t of t h i s l os s to t h e m o rtgagee tak es fro m ,

h i m an as s ign m ent of th e m o rtgage an d of th e pol ic y th e ,

p urch aser of th e equity of redem pti on m ay redeem from th e


m ortga ge by pay in g to th e i n s uran ce c om p an y as as si gn e e

of th e m ortgage th e am oun t rem ain ing due upon th e m ort


g g
a e d eb t a-
ft e r d e d u c t in g th e r ef ro m th e p a ym e n t r ec e i ved by

th e m o rtgagee from th e com ban y 5


A h ac ti on at law upon a .

pol icy in suring th e m o rtgagor but m ade pay able in c ase of ,

loss to th e m o rtgagee an d rem a in in g in force for th e proteo ,

ti on of both m ay be m ai n tain e d in th e n a m e of eith er of


,

th em 5
th ough it h a s b een in tim ate d th at th e c on s ent of th e
,

m o rtgagee is necess a ry to th e m a in ten an ce of an a ction upon


s uc h a pol icy by th e m ortga gor in h is own n am e 5
S o lon g .

1
Conn Ins Co v Sca m m on, 1 1 7 . ohnson, 77 Ills 5 98
.
Travellers Ins
. . J .
’
.

U S 6 3 4 ; Pearm an v Gould , 42 Cc v California Ins Co , 1 Nor Dak


. . . . . . . . .

N J Eq 4
. . .
1 5 1 ; N orth B ritish Ins Co 0 Fel
. . . .

5
Graves v H am pden Ins Cc , 10 rath, 77 Ala 1 9 4 ; Winne c Niagara
. . . . .

Allen ( Mass ) 28 1 Ins Cc , 9 1 N Y 1 8 5 ; Ennis v Har


, . . . . . .

5
Marten 0 Fra nklin Ins Co , 3 8 m ony Ins Co , 3 Be av ( N Y ) 5 1 6
. . . . . . . .

N J Law ( 9 V room ), 1 40; S ta te Flynn v North Am er Ins Co , 1 15


.

J
.
. . . .

I ns Co v Maackens, 3 8 N
. . La w, Mass 449
. . . .

5 64 See Meriden Bank 0 Sto ne


.
5
Patterson v Trium ph Ins Co
K
. . .

I ns Cc , 5 0 Conn 3 9 6
. .ane 0 H i 64 Maine, 5 00; Coates c Pennsyl
. . .

bernia Ins Co , 38 N J Law, 441 ; vania Ins Cc , 5 8 Md 1 72 ; Gra ves


. . . .
. . .

H opkins Mfg Co v Aurora Ins Co v Am erican Live Stock I ns Cc , 46


. . .

J
. .
, . . .

48 Mic h 148 ; St Paul I ns Cc v Minn 130; ackson a Farm ers Ins


. .
’
. . . . . .

23
85 4 m s u v or sum ou x
ox .

as th e m ortgagee is uns at is fied, h e h as the righ t to k e ep th e


contr ol of s uch a n acti n, an d o to re ce i ve th e ava i s l th e re of .
1

23 7 . W h ere th e P o lic y s ti pula t es fo r th e S ub ro ga tl on o f th e

m un A pol icy of ins uran ce ta ken out by the m ortgagor


“ .

or th e own e r of th e eq uity of re d em pt ion a n d m ad e pa y a ble ,

in c as e of los s to th e m ortgagee wh ich be s id es a sti pul a t i on , ,

th at a fo rfeiture as to th e m o rtgago r s h a ll n ot afi ec t th e ri gh t
of th e m ortga gee to rec over for a los s c on tains a ls o th e pro ,

vis ion th at in case of th e pay m ent to th e m ortgagee of a los s


,

for whic h th e ins urers would n ot be l iable to th e m o rtga gor ,

th e ins ure rs sh a ll be s ub rogate d to th e righ ts of th e m ort

g g
a e e a n d e n t it l e d to a n a s s i gn m en t of th e m o rtg g
a e i s n ot ,

a va i l a bl e to th e m o rtga gor a fte r a f orfe iture of h i s righ t ,

un d er th e pol ic y ; an d up on th e pa y m ent of s uch a lo ss by


5
,

th e i n sure rs to th e m o rtga gee th ey m ay tak e a n as s ign m en t ,

of th e m ortga ge and c oll ect from th e m ortgagor th e w h ole ,

am o un t of th e d ebt s ec ure d th e reby If th e m o rtga gee h as


5 .

d estroyed th e in s urers righ t of s ub rogation to th e m o rtga ge ’


,

h e c an n o lo n ge r h old th e in s urers l iable upon th e pol ic y 5


.

Th e s am e rul e w i ll be a ppl i ed to a pol icy of ins uran ce pro


cured by a m o rtgag or an d m a d e p a y a bl e in cas e of los s to a

m ortga e e w h i c h h as b ec om e forfe ited by its te rm s b ut


g , ,

wh ich h as bee n k ept a l ive as to th e m ortgagee by an agree


Cc ,.5 G ray ( Mas s ), 5 2 Turner 0 Co , 5 R I 3 9 4 ; National Ins Co c . . . . . . .

Q uincy Ins Cc , 109 Mas s 5 68 B utCrane, 1 6 Md 260; Ri c helieu Nav


. . . . . .

see Friem ansdorf v Watertown Ins Cc a Tham es Ins Cc , 5 8 Mich 1 3 2 ;


. . . . . . .

9 Bias C C 1 67 Chris m an a Price 0 t


. .
h iz I ns Cc , 1 7 Minn
. . . . . .

Sta te Ins Co , 1 6 Greg 28 3


. 49 7 Field er, J , in Barrett 0 U nion
. . . . .

1
Ripley v AstorIns Co , 1 7 H ow Ins Co , 7 Cush ( Mass ) 1 75 , 1 8 1 ;
. . . . . . .

Pr ( N Y ) 444 ; Cone v Niagara Ins cited approvingly in Phillips


. . Mer . .

00 60 N Y 6 1 9 ; Frink v Ham p rim ac k Ins Co , 10 Cush ( Mass ) 3 5 3


. . . . . . . .

den Ins Co , 45 Barb N Y 3 8 4 ;


.
5 Phcenix Ins Co v Floyd, 19 R un
. . . . . . .

Ham m el 0 ueen Ins Co , 5 0 Wise


.
(N Q 28 7 . . . . .

240; Hartford Ins C o v Olcott 9 7 5


Allen v Watertown Ins Co 132
. . .
, . .

1113 43 9 ; H adley v N H Ins Co , Mass 480; Ulster Ins Co 9 Lu ke,


. . . . . . . . . .

5 5 N H 1 10 ; Cham berlain v N H
. . 73 N Y 161 ; Springfield Ins Cc v . . . . . . . .

Ins Co 5 5 N H 249 ; Motley 0 Allen 43 N Y 3 89


. .
, . . .
, . . .

Manufac turers Ins Cc 29 Maine,


’ 5
Lett v Guardian Ins Cc , 5 2
. . . .

33 7 ; B rown 9 Roger W illia m s Ins R un, 5 70 . . .


S UBROGATION UNDER CONTRA C TS OF INSURANCE . 85 5

m en t between h im and th e insurers th at hi s interest sh a ll be


a bs olute ly i ns ure d an d th at th e i n s ure rs m ay be sub roga ted ,

to h is righ ts upon th eir paym ent to h im of a los s if th e ,

p ol i c y b e c om e a vo i d e d as to th e m o rtga go r
1
T h i s s ti pul a .

t ion for th e ben efit of th e m o rtga gee th ough c ontain ed in a ,

pol ic y is sued to th e m ortgagor is an in de penden t agreem ent ,

between th e ins urers an d th e m ortgagee wh ic h is b in d in g ,

upon th em 5
but w ith wh ich th e m ortgagor h as n o c on c ern
,
5
.

A n d if th e m ort gagee h as h im s e lf in s ure d h is inte res t as s uch


by a pol icy prov id in g th at upon th e paym ent to h im of a loss
h e sh a ll as s ign h is m ortgage to th e ins ure rs th ey w i ll upon , ,

pay in g to h im th e am ount of a loss an d tak ing a n as s ignm ent


of h is m ortga ge b e en titl e d to a ll h is ori gin al righ ts un de r
,

th e m ortga ge for th e wh ole of th e d e b t s ec ure d th ereby 5


But .

th e m ortgagee s d ebt m ust be p a i d in full before th e i n s urers


’

c a n c o m pe l h im to m ak e ov er to th em an y sh are or propor

t ion i n th e m o rtga ge or th e m ortga ge debt 5 -


.

23 8 . B et w e e n L e ss o r an d L es s e e or V en d or an d P urc h as e r .

— If l essee of bui ldin gs h a s by th e te rm s of h is lease th e


th e
opti on to purch ase th e m a n d th ey a re in sured for th e ben efit ,

of th e l ess o r th e l e s s ee c an n ot a fte r th e b ui ld in s h a v e b ee n
, g ,

b urn e d an d th e l es s o r h a s re c e ived th e a m oun t of h is in sur


,

a n c e req uire by th en e x e rc i s in h i p ti t p urch ase th e


, g s o
, on o ,

i n sura n c e m on ey to be appl ie d tow a rds th e s atisfac ti on of his


-

p u rc h as e m o n ey a n-
d th e a rr e a rs of h is ren t 5
B ut if th e in .

s uran c e w a s p roc ured by th e lessee i n a cc ord an ce wi th h is

a greem e n t a n d for h is ben efit afte r e xe rc is in h i p ti t


, g s o on o

1
Ulste r Savings Institution v .
5
Foster 0 V an R eed, 70N Y 1 9 ; . . .

L aks 73 N Y 1 6 1
e
, See Fos te r 0
. . . Thornto n 0 Ente rprise Ins Cc 71 . . .
,

Eq uita ble Ins Co 2 Gray ( Mesa ), .


Penn S t 23 4 ; Dick 0 Franklin Ins
. . . .

216 .
Cc 1 0 Mo Ap 3 76 ; aflirm ed in 8 1
.
,
. .

5
D ick v Franklin Ins Co , 8 1 Mo
.
. . . Mo 103 See Traders Ins Co p Ra ce,
. . . . .

1 03 affirm ing s c 10 Mo Ap 3 76
, . . . . 3 1 N o E Rep 39 2
. .
. .

5
t h iz 83 N Y . .
5
t nix Ins Cc v Firs t Na . . .

6 1 3 afi rm ing s c 19 H un ( N
, . .
, . tic h ai Ba nk, 8 5 V a 765 . .

28 7 Se e Graham v Firem en s Ins


.
’
. .
5
Gilbe rt 0 Port, 28 Ohio St 276 . . .

Cc 8 Daly ( N
.
, 421 . . Sec Poole v Adam s, 1 2 W R 68 3 . . . .
85 6 rue LAW or suaaoo a n os '
.

purch as e h e w i ll upon th e e xerc ise of th is opti on afte r the


, ,

oc curren ce of a loss be entitled to th e ben efit of such in s ur,

an ce
1
In on e cas e it a ppea re d th at a lessee h ad by th e
.
,

te rm s of h is l ease th e op ti on of purch as in g th e l ease d prem


is es for a s tipul ated p rice by givin g c e rta in n otic e of h i s in
ten ti on t o do ao Th e l ess or c oven an te d to in s ure an d d id
.
,

in s ure Th e b ui ld in gs w ere bum ed down ; a n d th e le ss o r


.

rec e ived th e ins uran c e m on ey Th e l essee th en gave s e as on


-
.

a bl e n oti c e of h is in te n ti on to purch as e an d c l a im ed th e ,

ben efit of th e in suran ce m on ey a s part p a ym ent of th e s tipu -

l ated price but th e lea se c onta in ing n o provis i on as to th e


,

d is pos ition of th e ins urance m on ey it was h e ld th at th e -

l es see was not entitled to it If in such a c as e th e purc h ase


5
.

is c om pl ete d after th e in surers h ave p a id to th e ven d or th e


am oun t of th e los s a n d th e ven dor rec ei ve s f rom ,
th e pur
ch as e r th e full am oun t of th e ag ree d p ric e w i th out an y a ba te

m en t for th e los s of th e b uild ings d estroy e d th e in shre rs ,

m ay by s ub roga ti on c l a i m from th e in s ure d ve n do r th e full

ben efit of th e s a lvage th at h e h as th us rece i ve d from th e pur


c h as e r an d s o rec ove r bac k f ro m h im th e a m oun t of th e loss
,

wh ic h th ey h ave previ ous ly paid him 5 Th e te n an t h as n o .

in te re s t in in suran ce p roc ured for th e b en e fit of th e l an dlo rd 5


,

j us t as th e l andlord h a s n o equitabl e c l aim upon th e te na n t s ’

in s uran c e of h is own in te res t an d j us t as ven do r an d ve n d ee


5
,

h av e res p ective ly n o equitab l e c l a im upon in suranc e p rocured


by eith er upon his own inte rest un les s by a gree m ent be
5
,

1
Reynard 0 Arnold, L R 1 0 . . . dem andable of righ t, but a m ere gifl ,
Ch 3 8 6
. .
and so not the s ubject of s ubroga tion .

5
Edw ards 0 West, 7 Oh Div . . .
5 Darrell v Tibbetts 5.
Q B D iv , . . .

8 5 8, c riticis ing Lawes v Be nnett, 1 . 5 60; Leeds v C heetham , 1 S im 146 ;


. .

Cox 16 7, and explaining Reynard v


,
. Milte n berger v Beacom , 9 Penn St
. . .

Arnold, s upra . 19 8 Tongue v Nutwell, 3 1 Md 3 02 ;


. .

5
Cas te llain 0 Preston , 11 Q B . . .
Ely v Ely, 80 I lls 5 3 2
. . .

5
Me rchants Ins Co v Man nge,
’

D 3 80 re ve rsing s c , 8 Q B D 6 13,
.
,
. . . . .
. . .

and dis tinguishing Burnand v Rodo 22 Ala 16 8 ; Ely 5 E137, 80 Ills 5 3 9


K
. .
.

canach i, 7 App Cas 33 3 , on the ground


5
. ing 0 Preston, 1 1 La Ann 9 5
J
. . . .

that the paym ent there m ade by the a H am m er v ohnson, 44 Ills 1 9 2 ;


. .

U 8 Governm ent was not salvage, not


. . Wood 0 Northwes tern Ins Cc , 45
. . .
BUBB OGATION UNDER CONTRA CTS OF INS URANCE .

tween th em ; provis i on th at any m oney received


1
s uch as a

upon th e pol ic y s ha ll be a ppl ie d to rep air th e in j ury


5
.

23 9 S ub r g tton f w I ns urers
. Th e do ct rin e Oi s ub
o a o e .

rogati on of th e in s urer h as n o a ppl i ca ti on to an ord in ary

c on trac t of l ife ins uran ce ; th ough th is is p rob ably b ec aus e


5

a c on trac t of life ins ura n ce is n ot l i k e oth er ins uran c e a , ,

c on trac t of i n d em n ity m e rely an d it c ann ot be s uppos e d to ,

h ave b een c on te m pl ate d by th e c ontrac tin g p arties th a t th e


ins urer s h ould be s ub rogate d to th e rem edy of th e ins ure d for
a ny w rong or in j ury wh i ch m igh t c a us e a A cc ord
in gly wh ere a ra i l roa d c om pa ny h a s by its n egl igence c aus ed
,

th e d eath of a pas se n ger upon its roa d ins ure rs wh o h a ve ,

th ereby b een c om pe ll e d to pay a p ol icy of in s ura n c e is s ued


by them upon h is l ife c ann ot m a in tain an action aga inst th e
ra i l roa d c om p any for th e re i m b urs e m en t of s uc h p aym ent ; 5

for th ough th e l os s of th e ins urers wa s c aus ed by th e ra i l road


c o m pan y s wron gful a cts yet as th es e w ron gful ac ts a ffe c te d
’
, ,

th e ih surers on ly by re as on of th e ir a rtifi c ia l c on tra c tua l re


l a tion with th e ins ured to wh om th e wrong was don e th eir , ,

los s is too rem ote an d in d irect a con sequen ce of th e wron g to


be th e foun d ation of a n a cti on 5 Nor c an th e ra il road c om .

pan y set up th e ins ura n ce in d im in uti on of th e dam ages for


wh i ch it is liabl e un l es s s o p rov ided by th e statute creatin g ,

th e l iab i l ity 7 B ut as h as be en a l rea dy in tim ate d th es e


.
, ,

N Y 421 ; Ra yner 0 Pres ton 1 8


. . .
, nand v
Rodocanachi, 7 App Gas 3 3 3 , . .

Oh . 1, a ffirm ing s c , 1 4 Oh D . . . . 3 40, 3 41, c iting Godsell v Boldero, 9 .

29 7 . Eas t, 72 ; and Da lby v India Life .

1
B enjam in 0 Saratoga I ns Co , 1 7 . . . I ns Co , 1 5 C B 3 65
. . . . .

N Y 41 5 ; Was hing ton Ins Cc v


. .
5
Conn Ins Cc v N Y N H
K
. . . . . . . . . . .

elley 8 2 Md 421 R R Cc , 25 Conn 26 5 t


,
. . . . .
p os ed , .

5
Ga rde n 0 Ingram , 23 L J . .
5 2 44 A n d see
. M ob ile In s C c . .

Oh 478 . . v Br
. am a, 9 5 U S 75 4 . . .

5
See the general language in E tna 5
Conn Ins Cc v N Y 8:N H
J
. . . . . . . .

I ns Cc v Hann ibal
. .St ose ph
. . R R Co , u pra poctca 5 244
. .
,
.

B R Cc , 3 Dillon C C 1 ; Hardin g
. . .
, . .
7
Grand Trunk Railw Co v Jen . . .

v Townshend 43 V t 5 3 6 ; Pittsbur ninga, 1 3 Ap Gas 800; H icks 0


.
g , . . . .

R R Cc v Thom pson, 5 6 Ills 1 3 8


. . . . . . Newport Ra ilw Cc , 4 B S 403 , .

K
. . .

5
See per Lord B la ckburn in Bur , note ; ellogg c N Y Central R R . . . . .
35 8 m a LAW or sm oc u x
on .

decis ions m igh t perh a ps better be sustain ed by th e appa rent


fact th at no s ubrogati on of th e insurers c ould h ave bee n ih
ten de d by th e p arties to this ins ura nce th an upon th e reas ons
as s igned by th e c o urt ; for i t h as a l re ady been sh own th a t the

doctrine of subrogation is wh olly in de pen dent of an y privity


or c on trac tua l re l ati ons be t wee n th e p arties to b e afl e c t ed by

it.
1 A n d in a l m os t a ll c as es of th e s ubrogati on of m arin e or
fire in s urers to th e rem e d ies of th e ins ure d aga ins t a wrong
.

d oer wh os e tort h as c aused th e l os s th is tort h as affec te d th e ,

i ns urers on ly by re as on of th ei r artifi c ia l c ontra ctual re l a


ti on s with th e in s ure d to wh om th e wron g w as don e
”
B ut , .

in th es e c as e s th e subrogati on of th e in s urers is con te m


pl ate d or m ust be pres um ed to h ave been c on tem pl a ted by
, ,

th e pa rties to th e c on trac t of in s ura n ce s ince oth erwise th e ,

ins ure d would c on tra ry to th e inte nt of th e pa rties rec ei ve


, ,

m o re th an a n in d e m n ity for th e los s or e l se th e m ere wrong ,

doer th e party prim arily li abl e for th e in j ury would obtain


, ,

th e ben efit of th e in s urers s ubs id iary l ia bi l ity a res ul t


’

wh ich w ould be at v a rian ce w ith th e princ iples of m a n ifes t


j us tice from which th e equitabl e doctrine of subroga ti on h as
b een evolve d Th e pay m en t by a l ife in s uran c e c om p an y to
.

a c red itor of th e a m oun t of an ins uran ce pol icy i s s ue d by it

to h im upon th e l ife of h is d ebtor i s n ot pro ta n to a sa tis fac ,

ti on of th e d ebt un l es s th e pre m ium s h ave be en p ai d by or


5
,

for th e d ebtor 5 If th e d eb to r p ays 011 th e in d ebte d n ess in


.

h is l ifetim e h e can n ot requi re from th e c red itor an as s ign


,

m en t of s uc h a p ol ic y un l e ss it w as re a lly ob ta in ed for h im
5
,

or at h is expen se On e wh o n ot be in g th e own er of a p o l icy


5
.
,

Co , 79 N Y 72 ; Baltim ore 3: Ohio


. . . 1 002 ; Morland 0 Isaac , 20 B ear . .

11 R Co v Wightm an, 29 Gratt


. . . . . 3 88 ; Co on c Swan, 30 V t 6 . . .

V
( )a 4 3 1 S he rloc k v Ailing 44 .
5
Go tlieb o C runch, 4 De G , M
. .

K
.
.
,

Ind 1 84 . . G 440; nox c Turner, L 11 9


. . . .

1 Aid ed 1, 1 1 , 9 3 , . Eq 1 5 5 .

Courtenay 0 W right, 2 Gifl 33 7 ;


'
5
H um phrey v Arahin 2 Lloyd 8: .
,
5
. .

Gould, Ir Ch Plunkett 3 18. .


, . Drysdale v Piggott, 8 De G M G
. . .

5
B ruce 0 Garden, 22 L T (N s ) . . . . . 5 46 ; Page 0 B urnstinc, 102 U S
. . .

5 95 overruling s c , 20 L T (N s )
, . . . . . . 66 4 ; Cam m ack 0 Lewis , 1 5 Wallace, .
S UBBOGATION UNDER CONTRACTS 0! INSURANCE .

of insuran c e, h as p ai d th e prem
w i l l n ot by
ium s th ere on,
subs titution to th e righ ts of th e ow n er be en titl ed to a l ien

th ere on un l ess by re as on of a c o ntra c t w ith th e own er or by ,

rea s on of th e righ t of a trustee to in d em n ity out of th e trus t

property for m on ey expended by h im in its preservation or ,

th e righ t of a m ortgagee to h old h is l ien for a ny m on ey p ai d


'

by h im for th e preservati on of th e prope rty or by th e s ubt o ,

ga t i on to th e r igh ts of s uch a m o rtg g


a e e or trus te e of on e

wh o h as m ad e s uch adv ances at th e ir req uest and in th eir


1
righ t .

643 See McKenty 0 Universal Ins


. . . Gif 5 78, note ; Swan 0 Swan, 8
. .

Cc , 3 Dillon, C C 448
. . . . Price, 5 18 ; and Gill v D owning, L B
. .

1
Leslie 11 French, 23 Oh D 5 5 2,
. . . 1 7 Eq 3 16
. .

com m enting on Tharp, is re, 2 S m .


860 m m v or sum orn oa .

CHAPTEB V III .

S UB BOGATION OF S TRA NGERS .

S trangers or V olunteers not en When thePerson m aki ng Pay


titled to S ubrogs tion m ent of th e De bt of an oth er re

i
0

Th e V olunta ry Paym ent of a l ebt ga rded a s a S tranger or V ol un


by a S tranger extinguis h es it teer
Appli cation of this Princi ple to Instances of th e S ubrogation of a
th e Case of one wh o bin ds hi m . Person on h is paying the Debt
self for a Pre e xis ting De bt
-
of a noth er

An d to one wh o loa ns Money to a S ubrogation of one paying a Debt


Debtor for th e Paym ent of th e at the Ins tance of th e Debtor

De bt . C onve n tional S ubrogation


Applica tion of th is Principle to th e Co n ven t ional S ubrogation upon
Purchase of Co upons on Sec ured Paym ent of a Debt, and a Re m
Bonds 243 a edy for th e Paym ent itself, can

Creditornot s ubrogated to Rem edy n ot coexist

of his Debtor ag ai nst a W r o ng Con ventional S ubrogation in Lou


doer

240 . S tra n ge rs o r V o lun t ee rs n o t en ti tle d t o S ub rog t lon .

Th e doctrin e of s ubrogation is n ot a ppl ied for th e m ere s tran


g e r or v o l un t e e r w h o h as p
,
a i d th e d eb t of a n o th e r w i th o u t ,

an y as s ign m ent or a gre em en t for sub rogati on bein g un d er ,

n o l e ga l obl i gation to m a k e th e p aym en t a n d n ot be in g com ,

p e l le d to d o so for th e p rese rv a ti o n of a n r
y gi h t s or p rop e rt y
of h is own On e pe rs on c an not by his un auth ori z ed pa y
1
.
,

m en t of th e pric e of l an d wh i ch a n oth er h as a gre ed to buy ,

s ub s ti tute h im s e lf to th e v en do r s l ien upon th e l an d


5
’
Th e .

d octrine of sub roga ti on s ai d Mr Ch an cellor J oh ns on


”
,
.
5
is ,

a pure unm i x ed equity h a v in g its foun d ation in th e prin c i


,

1 Webster s
Appeal, 8 6 Penn St 22 ; Shinn c Budd, 14 N J Eq
’
. . . . . .

409 ; H oover v Epler, 5 2 Penn S t


. 23 4 . . .

5 22 ; Cla rk 0 Moore, 76 V a 262 ;


.
5
Tm esdcll c Calls way, 6 Mo
. . .

St Franc is Mill Cc v Sugg, 8 3 Mo


. . 605 . . .

476 Sanford c McLea n, 3 Paige


.
5
Gadsden 0 B rown, Spears Eq . .

( N . 1 1 7 ; Grima 0 O m an, 9 Fls ( 8 0 Ca


. r ) 3 7, 41 . . . .
on or STRANGERS
svsaoe a rx . 61

ples of n atural justice an d from its very n ature c ould never ,

h ave been in ten de d for th e re l ief of th os e wh o were in a c on


d ition in which th ey were at l iberty to e lec t wh eth er th ey
would or would not be boun d ; an d s o far as I h ave been abl e ,

to l earn its h istory it h as n eve r b een s o appl ied ,


If one .

w ith a perfect knowledge of th e facts will part with h is


m on ey or b in d h im se lf by h is c on tra ct in a suffi c ien t c on s id
,

erati on an y rul e of la w w hi ch would re store h im h is m one y


,

or a bs olv e h im fro m h is c o n tra c t would s ub ve rt th e rul es of

s o c i a l o rd e r It h a s b een d irecte d in its a ppl icati on e x c lu


.

s i ve ly to th e re l ie f of th o s e th a t w ere a l re a dy bo un d wh o ,

c o uld n ot but c h oos e to ab i d e th e pen a l ty S ureties for e x .


,

am pl e wh o h a ve be fore b e c om e bo un d a re a m ong th e s pec i a l


, ,

s ubj ec ts of i ts c a re A n oth er ex am ple of th e a ppl ica


1 ~
.

ti on of th e s am e p rin c ipl e wi ll be foun d i n th e case wh ere two


c red itors h a ve m o rtgages or oth e r l ien s upon th e s am e p rop

erty of th e sam e d eb tor Th us if th e subsequent c red itor


.
,

p y
a t h e p ri o r d e b t h e i s e n t it l e d t o b
,
e s ub s ti tute d t o th e

righ ts of th e p rio r c re d itor as a m ea n s with out in j ury to th e , ,

p r i o r c red i t o r of e n a bl in g h i m t,o s e c u re p ay m e n t of h i s ow n

debt But I h ave s een no c ase an d n one h as been referred


5
.
,

to in th e a rgum en t in wh ich a s trange r who was in a c on , ,

d ition to m ak e te rm s for h im self an d d em an d any s ecurity ,

h e m igh t re qui re h as bee n p rote cted by th e p ri nc ipl e


,
.

241 . Th e V o lun t ary P ay m en t o f a De b t b y a S tran ger ex

t ln g nls h e s it . S ubrogat ion


by ope ration of law exists in
favor n ot of all wh o pay th e debt of an oth er but on ly in
, ,

favor of th ose wh o bein g bound for it h ave th erefore dis , ,

ch arge d it 5 The dem an d of a c red itor wh ich is pa id with


.

th e m on ey of a th ird pers on and w ith out any agreem en t th at ,

1
Q
As ton,
8 6 c t seq 0 M c Don o ugh, 3 9 H
. o w P r ( N Y ) .

K
. . . .

5
Antes ,
1 2 ct seq 3 8 9 ; uhn v North 10 Serg
. R .
, . .

5 Nol
te v C reditors, 1 9 H art ( 7 ( Penn ) 39 9 ; U nited States Bank 0
.

K
. .

Mart N . La 602 ; Harrison v Winston, 2 Brook 0 C 25 2 ; lei


. . . . . .

Bisland, 5 R ob (La ) 204 B ough m ea n u Geiselm ann, 45 Mo App 49 7 ;


. . . .

e E tna Ins Cc , 5 7 m s 3 18 ; Bo d G u D 11 Upr ey, 1 6 Calif 1 95


.
y.
y 0 . . . . .
3 62 re s m m or susa oe u x
‘

on .

th e y sha ll be assigned or kept on foot for th e benefit


s ec urit

of s uch th i rd pers on is abs ol utely e xtin guish ed by the pay ,

m e nt 1 It is w ell settl e d th at n o one c a n be a ll o we d to


.

obtrude h im se lf upon an oth er as hi s surety ; and th ere f ore


if a m an vol untarily pays th e debt of an oth er with out an y ,

agreem en t to th at efi ec t w ith th e de b tor h e c ann ot ta k e the ,

pl ace of th e c re d itor or rec over the m oney s o pa id of th e


debtor because th e law d oes n ot perm it one m an th us ofli
,

c i ous ly an d with out s ol i c itati on to in te rm ed dle wi th th e

a ffa irs of an o th e r One c ann ot by vo l untari ly pa y ing


5
.
,

m on ey or ren d ering s e rv ic e for a n oth er n ot h av ing been t e ,

quested so to do m ak e th at oth er h is debto r or subrogate


,
5
,

h im s elf to th e righ ts of th e c re d itor 5 A d raym an h a ving .


,

c on tra cted to h aul and d el ive r to w ves se l certain c otto n ,

h aul ed it to th e ves se l an d d e pos ite d it on th e le vee a t a ,

pl ace pointe d out to h im by th e om eara of the vesse l an d left ,

it th ere at th eir re ques t th ey dec l in ing to rece ipt for it on ,

th e groun d th at it wa s too l ate in th e d ay Th e cotton h a v .

in g been s tol e n in th e n igh t th e d raym an pa id its va l ue to its ,

own ers an d brough t h is ac tion aga inst th e vessel to rec over


, ,

th e am oun t of th is p aym en t B ut it was h e ld th at h e could .

n ot rec over for th e c otton h a d been d e l ive re d to th e v ess e l ;

th e v essel was l iab le to th e own ers of th e c otto n ; an d th e


pay m en t by th e draym an b eing one wh ich h e was n ot boun d ,

to m ak e d id n ot s ub rogate h im to th e right of th ose own ers


,
5
.

1
S hinn v B udd, 1 4 N . Eq 234 ; . J . Bland, Oh ( Md ) 199 , citing S tok es
. .

Conrad 0 Buck, 21 W V a 3 9 6 ; . 0 Lewis, 1 T R 20; Norton 0 H i h


. .
g .

K
. . .

Woods 0 Gilson, 1 7 Ills 21 8 ; itc h


. . laym an, 8 8 Mo 6 21 . .

ell v .Mudgett, 3 7 Mich 82 ; Sim .


5 Binford 17 Adam s 1 04 Ind 41
, ; . .

m ons 0 Walker, 1 8 Ala 66 4 ; Morris


. . Fay v Fay 43 N J Eq 43 8 Webb
.
,
. . .

0 Lake, 9 S m
. 8: M ( Mica ) 5 21 ;
. . 0 Cole, 20 N H 490
. . . .

Moran 11 Abbey, 6 3 Calif 5 6 ; Terry


. .
5
H om es tead Cc v V alley R R . . . .

c O Neal, 71 Tex 5 9 2 17 Wallace, 15 3 ; Ia ngley c


’
.

K
. . .

5
United States v oehler, 9 Wal . Chapin, 1 34 Mass 8 2 ; Hungerford .

lacs , 83 ; Bancroft e Abbott, 3 Allen a Scott, 3 7 W ise 3 41 ; Traders Ins


’
. . . .

( M ass ), 5 24 ; So uth Scitua te v H an . Co v Race 3 1 No E Rep 39 2


. .
, . . . .

over, 9 Gray 420; B la nd, 5


Roth 0 Harkson, 18 La Ann
. . .

CL , in Winder v Dif cnderfler, 2


’
. 705 .
8 68
'

sm ou or sru nc m s
oc u x .

§ 242 . A ppli ca tion of un Pri n ci ple t o th e c a n of on e w ho

b tnd s hi m s elf fo r a P re e x is t in g D e b t . Th e ow n er of an e ui t q y
of d pti on wh ich was subj ect to severa l m ortgages
re e m ga v e

h is n otes w ith an in dorser to th e firs t m ortgagee for th e i n


terest wh i ch wa s due on th at debt Th e in dorser p a i d th es e .

n otes a t th e ir m aturity ; but n o a ss ignm en t of th e m ortgage

was m ad e to h im Ou a sub sequent s a l e of th e p rope rty h e


.
,

c l a im ed to be s ub roga ted to th e righ ts of th e firs t m o rtgage e

to th e am oun t wh ich h e h ad th us pa id an d s o to h a ve a pre ,

feren ce over th e subs equent m ortgagees in th e surplus pro


c eed s of th e s a l e after th e p aym en t o f th e firs t m ortgage .

B ut it was h e ld th at as h e was n ot a party to th e o rigin a l


, ,

tran s ac ti on a nd th ere w as n oth in g in th e m o rtga ge wh ich


,

p rovided for m ak in g hi m a surety s o as to subrogate h im to ,

th e righ ts of th e m o rtgagee h e was m e re ly a vol un teer an d , ,

ac c o rd in gly was n ot en title d to th e p ri o rity wh ich h e c l a im e d .

H e c ould entitl e h im s e lf to th e benefit of th e security h e ld by


th e c red itor on ly by a n agreem en t to th at efi ect or by tak i n g ,

an a ss ignm en t of a c orres pon d in g in te res t in th e m o rtgage

wh en h e p a id th e n ote 1
Th e s am e prin c i pl e has been de
.

c la re d in S outh C arol in a 5
.

243 . A ppli c a ti o n of this P ri n c i ple t o t h e c a s e o f on e w ho

l oan s M o n ey t o t h e D eb t or fo r th e P a y m e n t o f h is D e b t . Th e
m e re l oan ing of m oney to a debto r to be applied by h im in or
tow a rd s pa ym en t of a d eb t w h i ch was a l ien upon h is e s tate
does n ot of itself s ubroga te th e len d er in wh ol e or in part to
th is l i en even th ough it was un de rs tood between th e pa rties
5
,

to th e tra n s a ctio n th a t it would h a ve th is efl ect un l es s th ere


'
5
,

w as s uch an a gree m ent as to Operate a c on ven ti on a l sub roga


ti o n 5
. On e wh o h as a dvanced m on ey to pay ofi l iens upon a

1
Swan 0 Patterson, 7 Md 164
. Unger v Leiter, 32 Ohio St 210
. .
5 . .

5 Gadsden v B rown, Specrs Eq Riflie s Appeal 3 Brewst ( Penn ) 9 4


’
. . .
, .

Bowen 0 Barksdale, 33 8 0 Car 142 . . . .

5 N
as h v Taylor, 83 Ind 3 47 ;
.
5
Murphree 11 Counties, 5 8 Miss
. . .

Price 0 Courtney, 8 7 Me 38 7 ; Kline 71 2 ; Baker 0 Ward. 7 Bus h


. . .

v Ragland, 47 Ark 111


. .240 . .
3 64 m a u w ou
or s c aaooa rx .

sh i p wi ll by reas on of thi s b ase


not fact be subrogated to the
ben efit of th e 1iens , un l ess at any
1
ra te it is c le arly s h own

both th at the m oney was s o use d and th at it was a dvan c ed


for th at purpose on th e c re d it o f th e vessel 5
Th e l en der of .

m oney wh ich is a ppl i ed by th e borrower i n pa rt p aym en t of

th e purch ase m on ey of l an d is n ot th ereby s ub roga te d to th e


-

ven dor s l ien upon th e lan d es pec ia lly if th is would pre ju


’ 5
,

d ice th e ven dor s s ecurity for th e am oun t un paid un l ess th e


’ 5
,

parties a ppear to h a ve s o inten ded or unl ess a fraud would


5
.
,

oth erwis e be ope rated On e wh o pays off a pri or in c um


5
.

b ran ce upon prope rty in wh ich h e h as h im se lf n o inte res t to


be protecte d w i ll n ot by h is p aym ent be s ub rogate d to th e
l ien which h e h as d isch arged as again st th os e h a vin g in te r ,

ve n in g i n teres ts in th e p rope rty! e ve n th ough afte r t h e ih ,

c um b ra n ce h ad b een rea lly d is c h a rged by h is p aym en t of th e

debt but n ot form a lly releas ed h e took an as s ign m en t


, ,

th ereof w ith o ut th e c onsen t of th e o wn er of th e prope rty


,
5
.

Nor is th e rul e ch an ged by th e fac t of h is ac qui ring a n in ter


e s t im m ed iate ly upo n h is p ay m en t If a guard i an p ays 03
5
.

an i n c um b ran c e upo n h is own l an d wi th h is wa rd s m o n ey i t


’
,

h as b ee n h eld th at the w ard is n ot th ere by sub roga te d to th e


l ien th us d is ch a rged 1°
B ut ii wh en h e m a de h is paym ent .
, ,

The Willia m A Harris 8 Bene


1
.
, A111 108 ; Nic hols c D unn, 25 Ark
. . .

diets , 210; The City of Salem , 3 1 129 .

Fed Rep 61 6
. . .
5
Browerv Witm eyer, 1 21 Ind 83 . . .

5 The Hein r ich Bjorn, 8 Prob D . .


5
Sec Carey 0 Boyle, 5 8 Wise 5 74 . . .

1 5 1 ; The S t La wrence, 5 Prob D


. . .
5
Otis 0 Gregory, 111 Ind 5 05 ;
, .

25 0; The Anna, 1 Prob D 25 3 ; . . Nette rville c Barber, 5 2 Mi ss 1 6 8


. .

The Lim e Rock, 49 Fed Rep 8 88 ; . .

Nippert v The J B Willia m s, 42


. . .
5 Downer 0 Wils on
, 8 3 V t 1 ; . .

I d 5 3 3, reversing a c , 3 9 Id 8 23 ; . . . Wilson 9 Soper, 44 Maine, 1 18


.

K
.

The Augustine obbe , 3 9 Id 5 5 9, North River Construction Co , is re, .

J
.

and 3 7 Id 702 ; The Menom inie, 36


. 38 N Eq 43 3 ; Woods 0 Gilson,
. . .

Id 1 9 7 The Wyom ing 3 6 Id 49 3 ;


.
, .
1 7 I lls 218 ; Wolf 0 Walter, 5 6 M0
. . .

The Tangier, 2 Lowell, 7 . 99 8 .

5
Grim a o Proctor, 14 Bush
.
5
Moody v Moody 68 Maine 1 5 5
.
, ,
.

5 71 ; Durant 17 Davis, 10 Heis k .


5
Gardenville As sociation 9 Walk .

J
.

( T e nn ) 5 22.
; ones v L oc kard 89 .
, ar, 5 2 Md 45 2 . .

Ala 5 75 ; Pettus v Mc Kinney, 74


. .
15
French 0 Sheplor, 83 Ind 266 . . .
sus a oc u x
os or sru ne nss . 865

he m an i e sted an f in tenti on to
k eep th e pri or lien al ive for
h is p rotecti on as by tak in g a quitc l a im dead or an a ss ign
,

m ent from th e pri or i n c um b ran c er h is paym ent wi ll be ,

deem ed to h ave been m a de not in extin guish m ent but as a , ,

purch ase of the ch arge an d h e m ay h old un d er it An d


,
1
,
.

on e wh o h as l ent m oney to an i nf an t to be use d i n p urch as

ing n eces s aries or in p ay ing d eb ts in c urred for necess aries ,

th e m on ey h a vi n g been actua lly us ed for th a t purpos e h as ,

b een a llowed to h old th e infan t l iable th erefor by sub roga


tio n to th e righ ts of th e person furn ish ing th e n ec es sa ri es 5
,

th ough it m ay be doubte d wh eth er th is wa s n ec ess ary for his


protection 5
.

243 a . A ppli c a ti o n of t hi s Pri n ci pl e to th e P urc h a s e of

C o upo ns on S e c u re d d coupons on
B on d s . Wh ere m ature

se c ure d b on d s of a rai l ro a d or oth er c orpo ra ti on are tak en up

with m on ey furnishe d with out th e k n owledge of th e bon d


h olders by a th i rd pa rty w ith out a ny as sen t on th e part of ,

th e bon d h old ers th at th is trans a c tion s h ould b e regard ed as


a purc h as e of th e c oupons th ey w i ll n ot afterw ard s in th e ,
‘

h an ds of such th ird pa rty h e a l lowe d to sh are in th e s ecurity


to th e pre j ud ic e of th e bondh olde rs 5
If th e c oupons h ave .

beenp aid on pres en tation at th e pl ace of paym ent with th e


m on ey of a third p a rty a p ri va te a rran ge m en t b etween h im ,

an d th e d eb to rs th at h e sh ould be rega rd e d as th e purch as e r


'

of th e c oupon s wi ll n ot be enforced again st th e b on dh olders 5


.

Suc h a v ol unta ry act w i ll be re ga rde d as a p ay m ent n ot as a ,

purch ase un l ess s o in ten ded by all parties


,
5
S o th e m ere .

fact th at m on ey loan e d to a rai l roa d com pan y was actua lly


Cole v Edgerly, 48 Maine , 108
1
. Randall 0 S weet, 1 Denio ( N 5 .

Capen 0 Ri chardson, 7 Gray ( Mas s ) ,


. 460 ; Conn v Coburn, 7 N H . . .

364 ; Freem an v Mc Gaw, 15 Pic k 3 68 ; Heine v Tarrant, 2 Hill Law


. . .

( Mass ) 8 2 ; Bo rland v Meurer,


13 9 400. .

Penn St 5 1 3 ; Loewenthal v Mc
. .
5
Wood v Guarantee Trust Cc . .

Corm ick, 1 01 Ills 1 43 128 U S 416


. . . . .

5
Price 0 Sanders, 60 Ind 8 10 ; .
5
Fidelity Cc e west Penn Railw. . . . .

Martin 0 Gale, 4 Oh D 428


. 1 3 8 Penn St 49 4
. . . . . .

5
Cason 0 Heath, 8 6 Ga 43 8 . . .
3 66 rue LAW or sm rm s .

ap pl ied towards th e paym ent of inte rest upon its first m ort
g g
a e bon ds or of o perati n g e xpenses w i ll n ot e nt i t l e th e

lender to any pre fere nce over the first m ortga ge bon d s b y
way of s ubrogati on .
1

244 . C re d i t o r no t s ub s tit ut ed to R em e d y of m. D e b to r

a gai n s t a W ro n g d oe r -
. One wh o has been in j ure d by th e ac t

of a wrong -
doer h as
o th e re of t o be no ri gh t, in c nseq uen ce ,

s ub ro gated to th e be ne fit of a n i n d em n ity wh ich th e wro n g

d oer m ay h ave ta ken again st th e consequen ces of h is wron g


ful ac t n or th ough h is d e bt or m a by o o
5
y r
,e as n of th e w r n g
h ave b ec om e un a bl e to pay h im 5
or h e m ay h ave been put to ,

e xpe ns e a bout th e pers o n t o wh om th e wrong h as bee n d o n e


5
,

w i ll h e th e re for be substituted to th e rem edy of such pe rs on


aga i ns t th e wrong doe r 5
A pla intiff c an n ot rec ove r aga inst
-
.

a de fen d an t for in j ury don e by th e l atte r to a th i rd pers on ,

th ough th is i n j ury c a us es a l so a l oss to th e pl a in ti ff by re a ,

s on of h is c ontract re l a tion s wi th or for s uc h th i rd pe rs on


5
.

A j ud gm ent c red itor c an m aintain n o acti on agains t one w h o


-

h a s converte d to h is own us e th e goods of th e d ebtor th ough ,

th e l atter h ad n o oth e r p rope rty an d th e c red ito r is th us ,

prevented f rom obta ining th e s atisfac tion of h is d em an d 5


,

un l ess th is w as d one by fraud ulen t a rra ngem en t b et wee n th e

d ebtor and th e wrong d oer or un l es s th e c red itor h as before


5 -

th e c on vers i o n ac qui red a lega l in teres t in th e prope rty by

1 Morgan s Co m pany 0 Texas Cen


’
Conn Ins Cc 0 N Y N H R R
. . . . . . . . . .

tral R R Cc , 1 3 7 U S 172
. . . 25 Conn 265 ; B raem e Mer
. . . . .

5
11c v Keilhack, 14 Abbott chants Bank, 127 N Y 5 08 ; As hley
. . .

Pr ( N Y ) 142 0 D ixon 48 N Y 43 0; Dale 9 Gra nt, .

K J
. . . . .
.
,

5
Green 0 im ble, 6 Blackf (Ind ) 3 4 N J Law, 42 ; en n ison 0 Grey
. . . . . .
,

552 29 Iowa, 5 8 7
K
. .

5
An thony 0 Slsid 11 Mate 5
Green 0
. im ble, 6 , . .

( M a ss ) 29 0 ; Butle r Co unty 0 Me 5 5 2 ; W elling t on 9 S m all, 3 C a s h . . .

Cann 23 AJ11 5 99
, .
( M a ss ) 145 ;
. L a m b 0 S ton e 1 1 P i c k .
, .

5
Barker 9 Mathews, 1 Denio ( Mass ) 5 27 ; Ma rtha 9 C arley 47
. .
,

( N 3 3 5 . N Y S uper Ct 3 9 3 . . . . .

5
Lum ley v Gye, 2 E1 B1 216 ; .
5 Adam s 0 Paige, 7 Pick (Mm ) . . . .

S m ith v H urd, 12 Met ( Mass ) 3 71


. 5 42 But see Klous e H ennessy, 1 3
. . .

Cunningham 0 Brown, 1 8 V t 123 ; . 332 . .


sus aoe a rton or S TR ANGERS
'
. 3 67

m ean s of l evy th ereon ; a nd th en h e sues


an attac hm ent or
1

in h is own righ t an d n ot by subs tituti on to th e rem e dy of ,

h is d eb tor 5 Th e s am e prin c ipl e a ppl ies t o a n ac ti on by a


.

ca rrie r a ga in st h i s s e rva n t for d am ages d on e by th e l atte r to

g ood s i n h i s po s s es s i on for wh i ch th e c a rri e r h as s atis fied ,

th e own e r of th e good s ; th e ac ti on is m a intain ed i n th e


5

ca rri e r s own ri gh t
’
.

245 . W h en th e P ers o n m a k in g Pa ym ent of th e D eb t of

a n o th e r re ga rd e d as o a S t ra n ge r or V o lun t e e r . It is s m et im es

d i ffi cult to as c erta in wh en one wh o h a s pa id a d ebt w ill b e


c on s i d e re d to h av e been a m ere s tra n ge r or vo l un tee r A .

pay m ent m ade in purs uance of a m ora l obl igation or by one 5


,

wh o wa s l iabl e to be c om pe ll e d to m ak e it wi ll n ot be re ,

g a r d e d a s m a d e by a s tra n ge r an d w i ll n ot e x t i n g u i s h th e ,

in debted n es s of th e party on wh om res ts th e ul tim ate liabi l


ity .
5 S e wh ere a guard ian h as been c om pe ll ed to pay to h is
,

ward a sum of m oney due from a form er guard ian on a c c ount ,

of his h aving n eglecte d to c om pe l th e paym ent th ere of by


th e fo rm er gua rd i an h e i s by h is pa y m en t s ubrogated to th e ,

ri gh t of th e w a rd an d m ay re c ov e r th e am oun t from , th e
form er guardian or th e sureties upon th e l atter s bon d 5 ’
.

Neith er di rectors n or s tockh olders are strangers to th e c or


7

p o r a ti on ; th e y m a y b e s u b ro ga te d a ga i n s t bo th th e c o r po ra

ti on an d o th er s toc k h old ers for pay m en ts of its d ebts m a d e


by th em in a fa ir effort to protect th eir own interes ts in th e
c orporate p rope rty If th e co rporate officers tak e n o ste ps to
5
.

1
Brown Casetes , 1 1 Ca sh v. .
5
Heritage 0 Paine 2 Ch Div
J
.
, . .

( Mesa ) 3 48 ; B ates v Blonsky, 62 . 5 9 4 ; The ersey City, 43 Fed R ep . .

H ow Pr ( N Y ) 429 ; Yates v
. . . . 1 66 ; Rindge v Coleraine, 1 1 Gray
J
. .

Joyce, 1 1 ohns ( N Y ) I S6 . . . . 1 5 8 ; Farm ers Bank 0 Eric


’
.

5
Sec S m ith 0 Blake, 1 Day . R R Cc , 72 N Y 1 8 8 Gillett v
. . . . . .

25 8 ; Platt v Potts, 1 3 . No Am Ins Cc , 3 9 Ills App 284 ;


. .

J
. . . .

Ired Law ( Nor Car ) 45 5 ; Mat


. . . acques v Fackney, 64 Ills 87
. . .

thews 0 Pass, 19 Ga 1 41
. . .
5
Sm ith 0 Alexander, 4 Sneed .

5 S
ee Gray 0 Boston Gas Cc . 48 2 .

114 Mass 1 49 ; Sm ith v Foran, 43


. .
5
Harts 0 Brown, 77 m s 226 . . .

Conn 244 . .
5
Redington v Cornwell, 90 Calif . .

5
Slack 0 Kirk, 67 Penn St 8 80 . . . . 49 .
8 68 m s LAW or soanoc a n os
'
.

d
re eem with in th e tim llowed by law c orporate p roperty
e a

w h ich h as been s old on ex ec uti o n a stoc k h older w i ll upon , ,

pay ing th e j udgm ent and re dee m ing th e p rope rty be s ubro ,

g a te d t o a ll t h e rig h ts of th e o ri gi n a l p urc h a se r a t th e

s h e ri fi s s a l e If trus t m on ey is us e d by a trustee to pay


’ 1 -
.

05 l ien s upo n h is o wn p ro pe rty th e c es tm s m : tm atm t


'

g ,

n ot be c a ll e d v ol un te e rs a n d m ay be s ub ro ated to th e l ien s
g ,

th us d is ch a rge d 5
A n agen t w h o pa y s m on ey out of h is ow n
.

poc ket to protect th e esta te of h is princ ipa l th at is in h is


ch a rge is n ot a m ere vol unte e r an d i s e n titl e d to a ll th e ,

eq uit ies th at th e s am e pa y m en t would h a ve i v e n t h i


g o s

p rin c ipa l Th e wife an d ch ild ren of on e dece ased wh o pay


5 .

v al id dem an ds aga ins t h is estate out of their ind ivi dua l


m ea n s h a ve bee n h e ld n ot to be m e re vol un tee rs an d m a be
y ,

s ub roga ted
5
S a id Th om ps on 0 J
. Th e prin ci pl es of s ub , .

rogation do n ot a pply in favor of vo l un tee rs Th ey c an oh .

ta i n th e righ t of s ub s tituti o n on ly by c o ntrac t Th e ca s es .

wh ic h I h av e refe rred to ill us trate wh o a re n ot to be rega rd e d


5

as vol un te e rs an d s tran ge rs On e was th e c as e of a n i h .

d orse r wh o was s ub stituted to th e j udgm ent c red itor wh os e


,
-

j udgm ent th e proceeds of h is n ote h ad pa id H is in d ors em en t .

w a s vol un ta ry A n oth e r pa id for h is own p rote c tion an e x


.

ec uti on on a p ri o r j udgm en t H e was n ot l ega lly com pe ll e d .

to pay . A th i rd a n d fourth a dv an c ed m on e y on e in fa vo r of ,

an e s ta te a n d on e t o h is w a rd
,
They were all sub roga te d .
,

a n d n ot rega rde d a s stran ge rs I rega rd th e doctrine a s a p .

1
Wright Oroville Mining Cc ,
v . .
5
Mosiers Appeal,
’
5 6 Penn . St .

40 Calif 20; Bush v Wadsworth 60


. .
,

Mich 25 5
. But see Eas tm an c . Cheeseborough v Millard, 1
5 .

J
.

Crosby, 8 Allen , 206 ohns Ch ( N Y ) 409 ; Cottrell s


’
. . . . .

5 Ga
ry 0 Sanders, 77 Tex 278 . AFW L 23 Penn S t 294 ; Silver . .

J
. .

5
C urry 0 Curry, 8 7 Ky 66 7
. . . Lake Bank a North, 4 ohns Oh . . .

5
Burwell 0 Snow, 107 Nor Car . . .
( N Y ) 3 70 ; P a yne 0 H
. athaway,
8 .

8 2 ; B rown 0 Frost, 9 5 Ind 248


. V t 21 2 ; Wallace s Appeal, 5 Penn St
.
’
.

K
. .

Carithers 0 Stuart 8 7 In d 424 ;


.
, . 103 ; elc hner c Forney 29 Penn .
,
.

Bayles v R us ted, 40 H un ( N
. S t 47 ; Greiner s Estate, 2 W atts
.
’

3 76. 41 4 .
sus a oe a n ou or sra m onss
'
. 3 69

p l ic a b le i n a ll cases wh ere a p aym en t h as bee n m ad e un d e r a

l egitim ate and fa ir efl ort to protect th e as certain ed interests '

of party p ay in g and wh ere


th e ,
1 in terven in g righ ts a re n ot

th ereby j eopard i z e d or defeate d wh ate ver . S uch paym en ts,

th eir cfi ect m igh t be at law i n e x ti n gui sh in g th e in d ebte d


n es s to wh ich th ey in equity ,

if c ontrary to equity to t e th e p aym en t


m ust be m a de by one wh o rea lly h as a n i n te rest i n d is ch e r

i
g g n th e dem a n d wh i ch h e p ay s ;
5
o th e rwi s e th e re w i ll be n o

s ubrogati on as if h e m ak es h is paym ent un d er th e m is ta k en


5
,

bel ief th at h e is boun d as surety!


246 I ns t a n oes of th e S ub rog a ti o n o f a P e rs o n o n h is P a y i ng

th e D e b t o f an ot h e r. A groom wh o h as p ai d a farrier s b i ll ’

for sh oeing a h ors e un d er h is ch a rge w i ll n ot be rega rd ed as

a volunteer but wi ll after h e h as fully s atis fied th e farrier


, , ,

be subroga te d his reim b urs em ent to th e farrier s l ien ’

upon th e h ors e . h as a dvan ce d


th e m on ey for of th e c rew on an
ord er drawn by th e c aptain upon th e owners of th e boat will ,

be s ub stitute d to th e ri gh ts of th e cre w as th ei r equitabl e as


s i gn ee
5
but n ot s o if th e m o ney h ad b een advan ced by on e
n ot c onn ecte d i n any m ann er wi th th e bo at 5 or un d e r c i rc um ,

stan ces sh owi ng th at n o such subro gati on was c o n te m pl ate d


5
.

Th e paym en t of a pl anter s drafts in favor of h is l abore ’

wi ll not subrogate th e party pay ing th e d rafts to th e privil ege


of th e workm en A c ounty h aving pai d to th e State th e
5 .
,

1Pease v Egan, 1 81 N Y 262 ;


. Abbott 0 Baltim ore Steam Packet
. .
5
.

Dodge 0 Zim m er, 1 10 N Y 43 ; D rake Cc 4 Md Oh Dec 31 0 See The


. . .

J
. . . .

e Paige , 5 2 Hun (N
. 29 2 Woodland, 104 U S 1 80; The A
. . . .
.

5
Clingm an v H opkie, 78 Ills 1 5 2 Brown, 2 Lowell, 464
. . . .

5 Ba ard v
y 1
15 c 17, 1 Ill
. s Ap
5
Stea m boat W hite v L e vy, 1 0 . . .

184 . Ark ( 5 English) 411 . .

5
Dawson 0 Lee, 83 Ky 49 .
5
The Sarah J Weed. 2 Lowell, . .

J
.

Cas tro, Capehart e Mhoon, 5 ones 5 5 5 . .

Eq (Nor Car) 178


. . .
5
Shaw 0 Grant, 1 3 La Ann 5 2 ;
. . . .

5
Hoover e Epler, 5 2 Penn St Rheeling s Appeal, 107 Penn St
.
’
. . . .

5 22 . 1 61 .

24
3 70 m s u w or sm oe u xon .

am ount of a State ta x for wh ich its treas ure r was in defaul t,


m ay be subr ogated to th e rem e dy of th e S tate agai ns t th e
s ureties upon th e treas urer s wh i le th e
’
oflic ia l bon d ; for,
ul tim ate l ia b i l ity was upon the treasure r th e p aym en t w as ,

for th e relief of th e county an d so c oul d n ot be deem e d to ,

h ave been vol un tarily m a d e 1


S e wh ere th e gen era l a gen t
.
,

of an insuran ce c om pa ny h ad a ppointed a loca l agent an d


tak en from him a bon d runn in g to th e c om p any c on d it i on ed ,

th at th e lo c a l agen t sh ould pay ove r to th e c om pan y a ll


m on eys re ce i ve d by h i m an d th e gen era l agent h ad p a i d to
,

th e c om p any c erta in pre m ium s re ce ived by th e loc a l a gen t


b ut n ot a ccounte d for by h im it was h e ld in a s uit upon th is , ,

bon d brough t in th e n am e of th e com pa n y for th e be ne fit of


th e gen era l agen t th at sin c e th e l atter h a d th e appo intm ent
,

of th e loca l agents an d was boun d n ot on ly by con trac t with


, ,

th e c om pan y but i n o rder to k ee p hi s own po s iti on to pay


, ,

over a ll m oneys re ceived by h is s ubo rd in ates his settl em ent ,

w ith th e c om pany for th e lo c al agent s de fa l cati on did n ot ’

dis ch a rge th e bon d but h e sh ould be subrogated to th e ri gh ts


,

of th e com pany aga in st th e sureties upon th e bon d 5


A n ew .

c o rp ora ti ou h avin g p ai d th e debts of an old c o rpora t i on


,

w h ose pl a ce it was org an i z ed to ta ke m ay be s ub rog ated to ,

th e ri gh ts of th e old c orporati on th ough its on ly ti tle was ,

un d er a n in va l i d recei v er s dee d
5 Wh ere on e be l ie vin g
’
.
,

th at h e w as a s urety upon an a d m in istra tor s bon d s ett l e d


’
,

with th e n ext of kin wh o en te rtain e d th e s am e b el ief it was


, ,

h eld th e d is c ov ery h avi ng b een m a de th at h e was n ot s uch


,

surety an d th e ad m i n is trato r h avi n g b ec om e i ns olve n t th a t


, , ,

h av in g m a d e th e s ettl em ent an d p ai d h is m o n ey un de r a m is
tak e of fact h e was n ot to be d eem ed an in te rm e ddl er but
, ,

m us t be rega rde d i n equity as a purch as er for v a l ue of th e

Elderv Co m m onwealth, 5 5 Penn


1 . .
5
R ough c . E tna Ins Co , 5 7 11111
. . .

St 48 5 ; Hughes v Co m m onwealth,
. . 318 .

48 Penn St 66 . . . S t Louis Coal Cc


5
. . v
. Sandoval
Coal Co 116 Ills 1 70 . .
sus aoeu ros or sm s e- s . 871

clai m s of g th e d i xt of
n istrator an d th e
ne kin a ai ns t th e a m

rea l sureties an d th at h e h a d an eq uity to be subrogate d to


,

th e righ ts of th e n e xt of k in un d er th e a dm i n istrati on bo n d 1 -
.

A n d th e gen e ra l propos iti on h as been l a id down th at on e


wh ose m on ey h as dis ch a rged c l aim s aga inst a trust estate ,

wh ich it was boun d to pay th ough h e can n ot m a intain an ,

th e trus t th e
'

a cti on at law aga in st estate or c es tm


qua trust,

wi ll be su r b ogate d in q
e uit y to th e righ ts of th e h olders of

s uc h c a im s l ;
5
but thi s m us t be l im ite d to th e cas e of one
w h o h as an intere s t in m a k in g th e paym ent on whi ch h e rests
h is l
c aim .
5

247 . S ub ro ga ti o n of o ne i
p y g
a n a Deb t at th e I n s t a nc e of

t h e D eb t or . One wh o p ay s a debt at th e in s tan ce of th e


debtor un der such ci rcum stanc es th at it a ppears to h ave
,

been c on tem pl ated by th e parties th at h e s h ould bec om e en


titl ed to th e ben efit of th e se curity for th e d ebt h e ld by th e
c re d ito r fro m th e deb tor m ay as aga in s t th e d eb to r an d th e , ,

debtor s es tate be sub rogate d to th e ben efi t of such security


’ 5
,

a n d of th e d ebt whi ch h e h as d isch a rge d


5 A nd a p a rty wh o .

has pa id a d ebt a t th e req uest of th e d ebto r un der circum ,

s tan ces wh i ch w ould operate a f ra ud upo n h im if th e de bto r

were afterwards a llowed to in sist th at th e security for th e


d ebt w as di s ch arged by h is paym en t m ay al s o be s ub rogate d ,

to th e s ec urity as a ga in s t th at debto r 5
B ut th is sub roga tion
, .

wi ll n ot be a llowed a gai n s t on e i nte res te d in th e prope rty


h eld as s e curity wh o wa s a stran ger to th e trans action by
,

wh ich th e paym ent was m ad e an d wh o w as un der n o obliga ,

1 Capehart s Mhoon, 5 ones, Eq .


Brown , 13 N J Eq 277 J . Wilson v . . . .

( N o r Ca
. r ) 1 78 Contra , Dawson 0
.
Candle o Murphy 89 Ills 3 5 2 ; Lily
.
. .
, .

Lee, 8 3 Ky 49 . c Dunn, 9 6 Ind 220 ; Rodm an v


.
. . .

5
Hines v Potts, 5 6 Miss 3 46 .
Sanders, 44 Ark 5 04 ; Roy 0 Clarke, . . . .

5 Aut
os , 55 1 2 245 See Parks 75 Tex 28 ; Wahrm und v Merritt,
, . . .

0 Wats on, 20 Fed Re 76 4 60Tex 24, 27 D illon c Kauflm an, 5 8


'
.
p . . . . .

ea rl 0 Hervey, 70 Mo 1 60
5 P
. Tex 6 96 . .
. .

5
Stebbins e Willard, 5 3 V t 665 5.
Stevens 0 King, 84 Maine, 291 .
.

Zell s Appeal, 1 1 1 Penn S t 5 3 2 ; Lockwood v Marsh, 3 Nevada, 13 8


’
. . .

B enton 0 Cole, 3 0 N J Eq 244 ; Oury v Sanders , 77 Tex 278


. . . . . . .
8 72 rm : u w or sm oc arx
ox .

ti on for th e paym ent of ppears th at th e


th e d b 1
e t, un es s l it a

paym ent was m ade not as an e xtin guishm ent of th e d eb t , ,

but in re l iance upon a n d as a purch ase of th e s ec urity ,


5
, .

Th is is a species of c on ven tion al subrogation being a an bre ,

g a ti on by an i m pl ie d c o n venti on or agreem en t 5 A cc o r d .

ingly it w i ll not be a llowe d if it appea rs n ot to h a ve be en


,

in ten de d by th e partie s th ough th is inten ti on if n ot e x


5
, ,

pres sed m ay ord in ari ly be dete rm ined from th e ci rcum sta n ces
,

atten d in g th e tran s a cti on Nor c an on e be s ub roga te d to a n


5
.

equita bl e l ien m ere ly b e c aus e h e h as a dv an ce d to th e rea l

c red ito r th e m o ney wi th wh ich th e loan was m ad e 5


.

248 C o n v e n ti nal S ub rogs fl o n


. It h a s been s a i d th a t
o .

wh en ever a paym en t is m a de by a stran ger to a c re d ito r in


th e expectati on of b ein g s ubstitute d to th e pl ace of th e c re d i
tor h e is en t itl e d to s uc h s ub s tituti on
,
5 B ut th e d oc trin e .

g e n e ra lly a dop t e d a n d th a t of th es e v e,ry c as es wh e n l im i te d


to th e p oin t a c tua lly dec ide d is th at a c on v enti on a l s ub roga ,

ti on c an resul t on ly from a d irect agreem en t e xpres s or ,

im pl ied m a de w ith e ith er th e c red itor or th e de btor and


,
5
,

th at i t i s n ot sufiic ient th at a pers on pa yin g th e d ebt of an


oth er sh ould h ave m erely th e un ders tan ding on h is part th at
h e i s to be sub rogate d to th e righ ts of th e c re d itor th ough 5
, ,

if th e a greem ent h as been m a d e a form a l a ss i gn m en t wi ll ,

n ot be n eces s a ry
15 A n d th e a greem en t m ay be sh own by
.

s u b se q ue n t ac ts w h i c h in d i c ate a p ri o r a g re e m e n t T h u s .
,

1 Wolf 0
. Walter Coe v New ersey Midland R R Co ,
, 56 Mo 29 2 . . . J . . .

5 Candle o Mur h
p y 8 9 Ills . 3 5 2 2 7 N J E q 1
,
10 ; O w e ns v B.
ed ell, 1 9 . . . . .

5 B rice’ s A ea l 9 5 P enn S t 1 45 C an 8 C 13 7
pp ,
. . . . . . .

5 White v Cannon 1 25 I lls 41 2 5


Te xas S t Louis R R C o a
, .
; .
. . . . .

White 0 Ca rd 8 6 Ky 19 1 ; Bunn v McCs ughey, 62 Tex 6 21 .

J
.
. . .
,

Lindsay 9 5 Ashton o Clay 5


New ersey Midland R R Co a . . . .

K
.
,

ton, 27 ans 626 . Wortendyke 27 N J Eq 65 8 revers . .


,

J
.
,

5 Wilcox 0 Lo an 9 1 N or Car
g , . ing in pa rt Coe v N ew erse y.
M id . .

449
J
.

5
V an Winkle 6 William s, 3 8 N .
15
N eely v ones 1 6 W V a 625 ; . .
, . .

J Eq 105
. . . Woods 0 Ridley, 27 Miss 1 20 ; Mor . .

5
Trades m en s B uilding Associa row 0 U 8 Mortgage Co , 9 6 Ind
’
.

J
. . . .

tion 0 Thom pson, 3 2 N


. Eq 1 33 ; 21 . . .
sm ooa rx
on or sram em s . 8 78

wh ere a stranger pays th e am oun t of an executi on wh ich


h as been put into th e h an ds of a sh eriff a s ub sequent as ,

s ignm en t of th e j udgm ent by th e pl a in tiff th erei n to th e pe r

s on m ak in g th e p ay m en t wi ll be rega rde d as sh ow ing th at

th e p ay m ent was m a d e in purch as e a nd n ot in d isch arge of ,

th e j udgm ent 1
A n d n o c l aim by s ubrogation wh eth er c on ,

ven t ion a l or by ope rati on of la w to th e sec uriti es h e ld or ,

th e rem ed ies en joye d by a cre d itor for th e c oll ecti on of h is


d em an d can be enforced until th e wh ol e dem and of th e
, ,
.

c red ito r h as been s a tis fied Unti l th en th ere c an be n o in


5
.

terferen c e w ith th e cre d itor s righ ts or s ec uri ti es which


’

m igh t even by p os s ib i l ity prej ud ic e or i n any way em ba rrass


, ,

h im in th e c oll ect ion of th e res idue of h is dem an d 5


S ub .

je c t to th ese l im itati o ns a n y g
a re e m e n t w h eth e r m ad e by , ,

th e d ebto r or th e c red itor for th e s ubs titution of th e p ers on ,

a dv an c in g m on ey for th e p aym ent of a d ebt to th e se curi ties ,

rem ed ies or p ri o rities of th e c red itor wi ll to th e e xtent of


, , ,

th e agreem en t be enforced in e quity even ag ai us t p arties


,
5
,

h av in g inte rven ing in te res ts in th e prope rty h e ld as s e curity 5


.

249 . C o n v en tio n al S ub ro ga tlo n upo n P a y m en t o f a D eb t. an d

a R em ed y fo r t h e P a y m en t i tse lf. c ann o t o o ex ls t.


-
One Wh o
l
c a im s un der an ass ign m ent of a d ebt an d of th e securities
wh ich were h e ld for its p aym ent or un der a c onventional ,

subro gation to th e righ ts of th e c re d itor wh ich is equiva l ent ,

to s uch an as s ignm en t c annot a l s o c l a im th e bene fit of th e


5
,

paym en t wh ich h e h as m ade for such as sign m ent or conven


tion al s ub rogation as a d istin ct groun d of rel ief a ga ins t th e
debto r If h e e l ects one rem edy h e cann ot a ls o en joy th e
.
,

1
Carter9 Halifax, 1 Hawks ( Nor . . Waterloo Society 5 0Iowa, 262, and 62 ,

48 3 . Iowa, 700; Bruce 9 Bonney, 1 2 Gray .

5
Aztec , 55 70, 1 18, 127 .
( M ass ) , 107 Fuller 0 Hollis , 5 7 Ala
J
. .

5 New ersey Midland R R Cc . . . 43 5 ; Mc Millan 9 Gordon, 4 Ala 716 . .

e Wortendyke, 27 N J Eq 65 8 ;
. . . . Owen 9 Co ok, 8 Tenn Ch 78 ; Wahr
. . .

Pete rs 6 Boum e, 11 Bush


. 55 . m und e Merritt, 60 Tex 24
. . .

5
Grant, is re, U 8 Dis t Court, . . .
5
Shreve v Hs nkinson, 3 4 N J . . .

H u s , 1 4 Am Law Rev 801 Mitch . . Eq 76


. .

all 9 Butt, 45 Ga 162 ; Wom er c


. .
5
As k s , 5 5 .
8 74 m u w or sus aoc u r
os .

oth er .
1
He c ann ot , at th e s am e tim e th at h e tak es th e b en e
fit of th e s ecuri ties, l
c a im a so l th e advantages of h a vin g
e xtin guish ed th em by his paym en t Th i pri ipl
s nc e w as
confi rm ed in a c ase in w h i ch
ppeared th at property wa s it a

c on vey ed to trus tees to ra is e £ 75 000 wi th wh ich to pa y 03


, , ,

p ri or m o rt a
g g es whi ch w i th a r
,re a rs of in te re s t am o,un te d ,

to th at s um Th e trustees did n ot raise th e m oney b ut a l


.
,

lowed a th ird party to pay off th e m ortgages an d to tak e


trans fers of th em and th en m ad e a dee d purpo rti ng to ass i gn
, ,

to h im th e ch a rge of a n d to m o rtga ge th e p rope rty

to h im for th a t s um But it was h e ld th at h e could n ot


.

ch arge in te res t on th at s um but th at h is ri gh t to s tan d u ,

m o rtgagee was l i m ite d to th e p rin c i p a l and in terest due upon

th e m o rtga ges th at h ad been th us trans ferre d to h im 5


Ou .

th e sam e p rin cipl e it h as been h e ld th at a c re d itor w h o h as


,

obta in e d poss ess ion of pro perty of an in so lven t de btor h e l d

in pl e dge by an oth e r c red itor by pay in g ofi th e d ebt due to ,

th e l atte r cann ot afte rwa rds m a in ta in an a cti o n to rec over


,

th e am ount th us pa i d by h im wi th out ofi ering to give up th e


l
p ge d e d p rope rty 5 .

25 0 . C o n v en ti o n a l S ub ro gs uon i n L ouis ia nu In 11 01118 13 113


v o l subrogation to th e righ ts an d securiti es of a
c on en ti n a

c re d itor in fa vor of a th ird pers on pay in g th e d ebt c an ta k e

pl ace on ly by an express an d form al agreem ent to th at e ffec t


e n tere d in to by th e c re d itor at th e ti m e of th e pa ym en t
5 5

A ccordingly in th at S tate one wh o ad van ces m on ey to a


, ,

d ebtor for th e purpose of pay in g an in debte dness secured by


a m ortga ge un d er an agreem ent w ith th e d ebtor th at h e
,

sh a ll for h is security be s ub rogate d to th e benefit of th e


, ,

1
4 mm , ii 41, 1 10 . 43 8 ; Sewel 0 Howard, 1 5 Le Ann l . . .

5
Thom pson 0 H udson, L B 2 . . . 400 .

Ch 25 5 , L 11 2 Eq ce e Watkins, 30 La Ann ,
. . .
5 Bri .
.

612 . Pt I , 21 ; Levy 0 Bee r, 19 La Ann


. . . . .

5
Bym e o. Hibernia Bank , 3 1 La . 46 8 ; Dun e a Ferrari, 26 La Ann . .
.

Ann 81 . . 1 14 ; Surghnor e Beaucham p, 24 In . .

5
Hoyle c. Cazabst, 25 La Ann . . Ann 471 . .
suaaooa rron or STRANGERS . 3 75

m ortgage wi ll n everth el ess h a ve n o such righ t of subroga


,

t ion un l es s th e c re dito r was a l s o a party to th e agreem en t in


,

th e p res c rib ed form 1


Nor wi ll fa cts sh ow ing th e inte ntion
.

of th e parties th at th e pers on m ak in g th e p ay m ent sh ould be


s ubro ga te d to th e b en efit of th e se c uri ti es h e ld by th e c re d itor

be s uffic ien t to effect this s ub stituti on unl ess th is intention ,

a ppe ars to h ave been a ctua lly e x ecute d by a c on ven ti on a l sub

rogati on 5
B ut s in ce a c on v enti on a l s ub rogation in v ests th e
.

pers on in wh ose favor it is m a de with all th e righ ts an d


p rivi l eges of th e cre d itor as fully as an as s ignm ent would
d o on e wh o h as pai d a judgm ent to th e pl a intiff th erein
5
, ,

an d h as b een e xp re ss ly s ub rogate d to h is righ t s m ay ta k e ,

out an ex ecuti on th ere on to h is own us e ; for such an e xp res s

sub ro ga ti on i s a s ufli c ie nt auth ori ty to us e th e c re d itor s


’

na m e for th e rec overy of th e debt from th e j ud gm ent d ebtor 5 -


.

1 H oyle v Cazabat, 25 La Ann


. . .
5
Antes , 5 5 S m ith 0 Wilson,
. .

43 8 ; V irgin s S uccession, 1 8 La 1 1 Rob ( La ) 5 22 ; Oakey v Sheli ff,


’
. . . .

Ann 42 . . 1 3 La Ann 273 .

K
. .

5
Ha rrison 0 Bislands, 5 Rob (La )
. . .
5
ing 0 Dwight, 3 Rob ( La )
. . .

204 ; Cham bliss v Miller, 15 La Ann. . . 2 ; Nugent c Potter, 21 La . .

713 Shaw 0 Grant, 13 La Ann 5 2


. . . . 746.
IN D EX .

[11 11 m em o» m re 11 11 u orrons ).

A B AN D ONMEN T . S ee In s tru m e nt .

A C CEPT OR . S ee N o m '
s AN D B um s .

A CC OMM OD ATION,
a
p yrt to n ote rega rd ed as sure ty , 1 82 a .

th ey are not co sureties if succ essi ve, 150


-
.

A C TION,
sh erifi can not m aintain , upon j udgm ent which h e has paid, 7 .

by ca rrier against ba nk afte r payi n g for des truction of its bills, 10 .

aga inst one to wh om h e h as delivered goods b y m is tak e , 10 .

by purchaser, for am ount paid on prior inc um brance , 21 .

by in cum brancer after sale of pre m ises against original debtor, 22 .

against prim ary deb tor for ben efit of one seconda rily liable, 22 .

by m ortgagor or m ortgagee again st purch aser of prem ises, 24, 85 .

upon n otes tak en up by one wh o h as assum ed th em , 24, 25 , 26 .

for deficiency in prior conveya nce , will not pass to purch aser, 87
or for an y m isre presen tation, 8 7 .

cann ot be m a in tained by purch aser at sh erifi s sale to recover back


’

p rice , 39 .

by m ortgagee against m ortgagor, aftertak ing conveyance of equity, 5 9 .

by purch aser of part of eq uity, for contrib ution or in dem nity, 74


et seq.

by gra n tees of j udgm ent debto r against h im


-
for in dem nity, 77 .

by m ortgagee again st one wh o h as ass um ed m ortgage , 85 .

by sh erifl s sureties on j udgm ent which they h ave pa id for him , 90


’
.

by sureties of j udgm e nt d ebtor again st sh erifi , 9 1


-
.

against constable by sure ty , dam ages ia , 9 1 .

surety s righ t to prin c ipal s set ofl or d efen ce , 101


’ ’ -
.

against pri nc ipal by surety wh ose s urety h as paid th e debt, 106 .

b ail of one defend an t not subrogated to , agai nst another, 1 13 .

failure to prosec ute , agai nst prin c ipal, no discha rge of surety, 122 .

by surety to recover bac k paym en t m ade to c red itor, 125 .

c an not be m ain tained by surety against pr in cipa l in nam e of cred


itor, 130 .
8 78 m en .

A C TI ON continued .

sub rogation of s urety in , against prior sureties, 13 1 et seq .

S ee S e c e s s s xv s S vn rm s .

wh eth er m ain tained by surety on original obli gations , 1 85 a reg .

’
s urety s r j
i ght to original udg m ent agains t princ ipal, 18 5 188 -
.

com m e nc ed aga ins t princ ipa l , s urety s rig h t to continue , 13 7


’
.

on prom i se of n ew firm to pa y d ebts of old , 17 1 a .

ag ainst m a k e r of n ote, afte r in dorse r s pa ym ent , 18 1


’
.

agains t ban k for neglige nce , in dorse r sub r o ga ted to, 1 8 1 .

i nd orsee of note , how far subrogated to, 183 .

n ot for bare tort 188, .

b y 1ns ure rs, in wh ose nam e, 221 , 229 et seq .

for fa ilure to insure, sub roga tion to , 229 .

insurers not subroga ted to, aga ins t ins ured, 223 .

by i nsure rs agains t carrier of ins ured goods , 229 .

ag ainst pa rty at fault for loss by fi re, 230 et se


q .

upon policy taken by m ortgagor for benefit of m ortga gee, 236 .

by life ins urers aga inst pa rty ca us ing th e dea th, 239 .

j
by pe rson in ured to reac h inde m nity of wrong d oer, 244 -
.

a
p y m en t u na u th o rized n o gro un d for , 240 et se q .

j
by person sn fie ri ng fro m in ury d one to a n oth er, 244 .

j
by carrier against se rva nt for in ury to goods, 244 .

j
by udgm ent c reditor against one who has con verted goods of deb tor,
-

244 .

for a pa ym ent, c annot co exis t with conven tional subroga ti on, 249
- .

ADMIN IS TR A T ION OF ES T ATES ,


s ub roga tion to lie u of legac y upon devised la nds, 21 .

de visee of contingent rem ain der subroga ted , 3 6 a .

de bt ex t inguis hed by paym e nt by heir under bond to pay it, 50, 215 .

righ ts of purc hase r of pa rts of la nd ch arged with legac ia , 77, 21 6 .

subrogati on of s ureti es of adm i nis trator, 89 .

s ubroga ted to property held by ad m i nistrator, 100 .

righ ts of s ure ty upon note given by pe rson al re prese n tati ve, 100 .

executors sub roga ted to lien upon a legacy, 100 .

represe ntative ca nn ot bind esta te by ne w c ontrac t, 100 .

sureties of one ex ec uto r no t s ub rog ated aga ins t the oth er, 1 13 .

legacies purchas ed at di scoun t reckoned only at cost. 1 5 1 .

subrogation of personal represe n ts tive to deb “


which he has pa id, 202 .

only for ac tual value of pa ym e nts , 202 .

surety of represen ta ti y e subr o ga ted in sam e way. 20 2 .

n ot allo wed upon pa ym e nt m ad e for his own relief , 20 2 .

righ t pa ra m oun t to th at of d is tributees, 202 .

sub rogation to righ ts of legate e , 202 .

on e executor sub r ogated to ch arge waived by th e other, 20 2 .

executors not lia b le for eac h oth er s was te , 20 2


’
.

this subrogation m us t be seas on ably cla im ed , 203 .

not allowed to prejudi ce of creditors , 202, 208 .

h as no priority over other debts of estate , 203 .


um ax . 3 79

AD MINIS TRATI ON OF ES T A TES —


continued .

sub rogation to righ ts of overpaid c red itors, 203 .

t rustee subrogated forpaym ents m ade to protect trust estate, 203 .

subrogation of credi tors of deceased , 204 .

to ne wly d is covere d assets, 204 .

m a rsh a lli ng of m eta am ong th em , 204 .

creditor subro gated to righ ts of vendor, 204 .

b ut not of h e irs
,
204 .

creditors m ay h old pro perty purch as ed with fun ds of estate, 205 .

sub rog ated to ex ec utor s righ t of re im b ursem ent , 206


’
.

th ough ha vi ng no rem edy di rectly against estate, 206 .

recovery of trade deb ts, 206 .

on c ontrac ts m ad e by th e ex ec utors , 206 .

wh ere c red itor m ay hold both real and personal es tate , 207 .

w h en req uired first to exh a ust one fund , 207 .

s ubrogation of ten a nt for life again st rem ain d erm an , 20 7a .

wh ere red em pti on m ad e by ten an t for life , 207 a .

subrogation i n fa vor of legatees , 208 a seq .

m a rs halli ng o f asse ts fo r th eir be nefi t , 208 .

legatees sub rogated to the righ ts of cred itors , 208 .

an d of ven d ors , 208.

wh e re d eb t pri m a rily ch argeab le upon devis ed lan d , 208 .

legatees subrogated again s t liens , 208 .

not as aga i n st devisees , 208 .

subrogation of purch as er from pe rson al re presen tative , 209 .

n ot allowed to person al re pres e nta tive if h im self purc h aser, 209 .

j
wh ere legate es h a ve paid ud gm ents aga in st th e es ta te , 210 .

s ub roga ted to ch arge wh ic h th ey are com pelled to pay, 210 .

widow sub rogated for dower to rights of c reditors, 210 .

subro ga tion of spec ific devisees a n d lega tees , 21 1 .

to debts wh ich exec utor ough t to h ave pa id , 211 .

th eir lien c red itors h ave sam e righ t, 211


-
.

wh ere spec ific legac ies sold for paym en t of d ebts , 21 1 .

of d evis ees to sub seq uently ac q uired a ssets , 212 .

c red itors h ow s ub roga te d to th is rig ht , 212 .

righ ts of h e irs , de visees , or leg atee s against eac h oth er, 21 3 .

s ubroga ted against pri m ary de bto r, 213 .

contributi on to m a k e up los s of one, 218 .

specific beq ues t c harg ed with expe nse of its protection, 214 .

ex ecutor s ubrogated to lien of suc h c h arge , 214 .

co legatees subrogated against each oth er, 214


-
'
.

subr o gation again st h eirs to burd e n d isc h a rged by one , 21 5 .

heir sub rogated if ex em pt prope rty tak e n for debts of ancestor, 215 .

not to b e r e fus ed subrogation as stra nge r, 245 .

righ ts of purc h ase r from h ei r or de vis ee , 21 6 .

subrogate d agains t his grantor, 21 6 .

h is land lia ble in inverse orde r of conveyances , 216 .

creditors sub rogated to li gh ts of legatees , 217 .


38 0 m en .

A D MINI S TR ATION OF ES TATES continued .

when their fund has paid the legac ies , 217 .

an d to pri or liens disch a rge d out of fun ds available to M 217 .

election as a groun d of subrogation , 218 et seq .

disappoin ted devisee subrogated to what declined by election, 218


et seq .

S ee Eu c rxon '
.

subroga tion to d evise upon condition, 220 .

cond ition to support c om plied with by anoth er, 220 .

A DMINI S TR ATOR . S ee Am m us m
'
rron or Esra n s .

sub rogati on of one ad van c ing m oney to pay lien in , 248 .

A D VERSE C LAIM ,
purc h aser un d er, not subroga ted , 31 .

A GEN CY,
agent not subrogated to righ t of principal whom he has satisfied, 5 .

unless liab le as gua rantor or sure ty, 5 .

ca rrier s agent subroga ted to rights of ca rrier, 10


’
.

agent whe n s ubrogated ,


10a .

agent of rea l deb tor n ot subrogated, 46 .

j
n otice of righ ts of unior to age n t of prior cre ditor, 72 .

cre dito r boun d b y no tice to his a ttorn ey , 8 1 .

agent not refused s ubrogation as volunteer, 245 .

gene ral age n t s ub rogated on a i


p y gn debt of subord in ate, 246 .

A GR EEMEN T . S ee C on rn s c r; Cor
w '
nn rron i r S ua noe a rxox
. .

AL AB AMA ,

original obligati on preserved after surety s paym ent, 187


’
.

ass ign m en t to surety, effect of, in , 187 .

A PPEAL,
j
from udgm ent aga inst princ ipal, allowed to surety, 101 .

righ ts of s ureties 011, agains t c red ito r, 1 17 .

th eir righ ts aga inst eac h oth e r, 13 1 .

S ee S e c e s ss m Se a m u s .

APPLI C ATION ,
of value of property prim a rily liable , 79 .

of securi ty, c re d itor s righ t to m ak e against surety, 1 17, 129


’
.
,

of deposi ts , to paym ent of ban k , 124 .

of security h eld for severa l d ebts wi th sure ty , 129 .

of sec urity h eld b y sure ty to paym en t of deb t, 15 4 a se


q .

S ee S va s rrrun on .

of security of difi erent owne rs h e ld for sam e debt, 172 a seq .

S ee Jo w r Ds a ro ns .

of security given for notes an d bills , 187 et seq .

S ee N o u s m Bi n s .

APPO RTIONMENT ,
am on g co s ure ti es
-
S ee C o m
. .

of freight after s hu d onn ent of sh ip, 225 a say .


111111111 . 8 81

APPR OPRI ATI ON ,


of deposi ts to paym ent of debt to bank , 123 , 124 .

of sec urity b y one co s urety, 140 et seq


-
.

of surety s securi ty to paym ent of debt, 15 4 et seq


’
.

of security to paym en t of note, 187 .

of m erc h an di se to paym ent of bill drawn against it, 189 .

wh a t is sufi cient , 19 3 et seq .

direction to charge bill to consignm ent not enough , 19 5 .

or th at b ill was given in pa rtia l paym ent for property, 19 5 .

or th at b ill was tak en on cred it of th e fun d , 1 97 .

to railroad, bon dh olders not s ubrogate d to , 167 a .

AR KA N S A S ,
origin al obligation d estroyed at law by surety s paym 18 7
’
ent, .

r ese rved in eq ui ty, 13 7


p .

but n ot again st cc s ureties, 137 -


.

A S S E S S ME N T S . S ee Ta x e s .

A S S ET S . S ee MA RS H A LLI G N or A ss n rs '
.

A SSIG N EE IN B ANKR U PT CY . S ee B m urror A N D Inso nm


'
cr .

A SS I GN MENT ,
co nve ntion al subroga tion e q ui valen t to, 5 .

to be disti nguish ed from s ubroga tion , 6, 45 .

sub rogation of insure r eq ui va le nt to , 6 .

j
of udgm ent paid by a sh erifi , 7 .

releas e to on e en titled to s ub rogation eq uivalen t to, 13 , 1 4, 20, 24 .

disch a rge fraudulently m ad e eq uivale nt to , 1 9 .

of m ortgag e to m ortg agor when no extin guish m ent, 22


.
.

n ot ne eded w here on e e n titled to s ub roga tion , 28 .

wh en n ecessa ry for pre se rva tion of inc um bra nce, 29 .

of m ortgage, by fore c los ure sa le , 3 1 .

of d eb t , ca rries c olla te ra l sec urit , 3 4


y .

righ t of on e entitled to sub rog a tion to dem and, 45 .

to on e boun d to pay d eb t, ta n tam o unt to d isc h arge , 47, 50, 74 .

of m ortgage to purc h ase r efi ec t upon dower, 49 et seq


, .

to wi dow, cfi ect oi , 5 1 .

S ee Do w s a .

of m ortgage to own er of eq uity h ow far a n extinguishm ent, 58 , .

S ee M E RGE R .

sure ty s sub rogation eq uiva le nt to 8 7


’
. .

no s ub roga ti on to un ass ign a b le lie n , 9 7 .

b y pri n c ipa l of deb t due to him fro m surety , 102 .

of sure ty s righ t of sub rogatio n , 107


’
.

of origi n a l ob liga tion , righ t of s urety to req uire , 1 3 7 .

of s urety s in dem n ity , wh en a n ex tin guish m en t , 13 9, 1 5 8, 150


’
.

j
of oin t d eb t a fter paym e nt by on e d e btor, 1 80
, .

of fun d , by b i ll dra wn aga in s t it, 19 3 , 197 .

by ch ec k d ra wn for it, 200 a .

j
to in dorser, of udgm ent agains t m ak er of note, 201 .
8 82 m ax .

A S S I GNMEN T continued .

aba n do nm en t to insure rs eq uivalent to, 221 a say .

m ay be evid e nce of conve ntions l s ubro a tion , 24&


g
AS S UMPTIO N ,
of m o rtgage by purc h aser of prem is es, 22 cl seq .

S ee Pn a c n s s na .

of m ortga ge pre ven ts subrogation agai n st it, 46 .

ex ception in Pe nns ylvan ia , 3 5 .

by purch aser of part of prem ises , 82 .

rem edy of m ortgagee aga inst on e assum ing m ortgage , 85 .

of deb t by a s urety , efi ect of, 1 12 .

A TT A C H M E N T ,
righ ts of succ ess ive attac hi ng creditors in m ort a ed rem ises, 2
g g p .

d issolved by ba n kruptcy, sub rogation to, 28 .

s ubrogation of one purc h asing pr o perty un der, 88 .

upon prope rty con veye d i n fra ud of c red itors , ri h ts 01 rantee, 40


g g .

j
s ubrogation of fi rs t purc h ase r sub ect to, 84 .

ho w far s urety discha rged by cred itor s re lease oi , 122


’
.

aga ins t prin c ipal, preserved after s urety s paym ent , 137
’
.

A TTORN EY ,
s ub rogated to righ ts of c li en t, 10a .

s ub roga tion upon paym e nt to attorn ey, 15 .

c redi to r b oun d b y n otice to h is , 8 1 .

D
AV OI A N C E O F S A LE . S ee Po n c m na .

B A IL,
sherifi s neglec t to assig n bon d oi , ground of s ub r ogation , 7
’
.

of one d efe nd an t h as n o righ t against an oth er, 1 18 .

of sh ipm as ter not s ub roga ted aga i nst owne rs, 1 13 .

s ubroga tion oi , again s t prior s ure ties , 13 1 et seq .

S ee S e c e s s srv n S e a m u s .

ca n recove r con trib ution on ly for ac tua l paym en t, 1 5 1 .

of on e partn er n ot sub rogated aga inst th e firm , 17 1 .

in c rim inal cas es, not sub rogate d , 168 .

B ANK,
ca rrie r subrogated aga in st , upon i
p y g
a n for destroyed b ills , 10 .

s ub ro ga tion of d epos itor again st, 10a .

rig h t to a pply depo si ts of its debtor agai nst sure ty , 123 .

h ow far s urety d isch arge d by n eglect oi , to apply depos its, 124 .

n ot com pe lled to a pply s urety s d eposits , 124


’
.

securities h eld by, aga i ns t acce pta n ces, a vaila ble to h o lders of bills , 190 .

righ ts oi , to d epos its , aga ins t eq uities of third parties, 192, 197 .

sub roga tion upon pa ym en t of ch ec k, 4 .

s ub rog a tio n of hold er of ch eck , 200 a .

indorser s ubrogated aga inst, for its negligence, 18 1 .


INDEX .

B ANK RUPT CY AN D IN S OLVEN CY ,


assign ee redeem in g pled ges subr oga ted to righ ts of pledge s , 28 .

subrogated to se c uri ty waived by pr oof of c laim , 23 .

to lien of dissolved attach m ents, 28


f
.

an d to action aga inst pri m ary debtor, 23 .

ass ignee s avoida n ce of pri or lien will n ot ad vance j unior, 28


’
.

ur c h ase rs s ub rogated to lie n of ta xes in , 3 5


p .

as signm en t of i n c um bra nce to de btor s ass ignee in , n ot a m erger, 49


’
.

s ub roga tion of sure ty be fore paym en t, in c ase of, 9 7 .

e ntitles surety to ben efi t of pri n cipal s se t o fi , 101


’
-
.

of pri nc i al r
p , gi h ts of suret u on
y p , 102 .

righ ts of wife as surety aga ins t h us b an d s estate ih , 104


’
.

c reditor s wai ver of sec urity by proof i h , how far disch arges surety,
’

efi ect of surre n der of le ase ih , 126 .

s ure ty m ay h a ve de b t proved aga inst estate of princi pal in , 130 .

s urety s in dem n ity ava ilab le to credi tor upon , 1 60 1 62


’ -
.

p roo f in , aga i n s t m ak e r of n ote af te r pa ym e n t by in dor ser, 1 82 .

in dorse r s ubroga te d to proof by m ak er, 182 .

security of indom e r availa ble to h older on, 1 87 .

sec uriti es h eld by acceptor in , a vailable to holders of bills , 190 .

S ee N o rs s A N D B 1 LL s .

acceptor s in dem n ity availa b le to h older of bill only u on, 1 9 8


’
p .

acceptor sub roga te d to se c urities of h older upon , 198 .

righ ts of m ortga ge s to m ortgagor s ins urance i n , 233


’
.

B L I L OF L AD IN G,
righ ts of h older of b ill d ra wn aga inst , 189 et seq .

B ILL IN E Q UITY . S ee Eq urrr .

B I LLS . S ee B A N K .

B ILLS AN D N O T ES . S ee N ors e A ND B ra .

B ON A F D I E
H OL D ER,
of n ote , tra n eferso of s ubstituted to ri hts of, 1 83
g .

of sec urities for paym e n t of n ote , 192 .

B ON D . S ee In c um s a a x c s ; R A ILW A Y S s c un rrm s; S ucc nssm


C nm us .

issue d ultra viree, s ub rogation for, 1 9 .

for title , rights of gra ntee of on e wh o holds, 34 .

s ubroga tion o f s urety o u, 8 6 et seq .

on a ppeal , righ ts of s ureties against c red itor, 117 .

agai n st each oth er, 13 1 c l se


q .

sec ured b y m ortgage to gove rn m e nt , sub ro ation of h olders oi , 167 a


g .

s ure ty o u , h ow disch arged by act of c reditor, 1 19 et se , 126 a


q . .

bon dh old ers not sub rogated to appropriation to railroad, 167 a .

p urc h as e of cou p on s , 243 a .

loa n of m on ey to pay coupons, 243 a .


0 .

CALIFORNIA ,
surety s ubrogated to origi nal obligation ih , 13 .

b ut n ot m ere join t debtor, 18 7 .

righ ts of purchaser at foreclosure in, 32 .

C AN AD A,
subroga tion of insurers in , pro tas te, 23 2 .

C APTUR E,
ins ure rs subrogated to re m edy of insured for, 222 e! seq .

CARRIER,
subr ogated to righ ts of owners of goods wh om he has sati sfied , 10 .

an d to lien of antecede nt carrier, 10 .

agent oi, subrogated lik e , 10 .

c harges of pled ges subrogated to , 12


,
.

sh erifi s ub rogated to c h a rges of, wh ic h h e h as pa id , 12 .

how far bound by fra ud ulent bill of lading , 189 a .

of ins ured good s , insure rs s ub roga ted agains t, 229 .

n ot subroga ted upon paym ent for wh ich h e was not lia ble, 241 .

ac tion agains t se rva nt for inj ury to goods , 244 .

CESSI ON S ee As s 1e ux s rc r
.
'
.

of creditor s rem ed ie s by sub rogation, 11


’
.

C HECK ,
s ub roga tion upon pa ym ent of, 4 .

applica tion of de posits to pay ch eck s , wh en release of surety, 128 .

s ub rogation of h older of, to righ ts of drawer, 2000 .

CH ILD . S ee PA N RE T .

s ub rogation against , for necessaries, 243 .

I
C R C UI TY O F A CTION ,
cred itor th rown upo n pri m ary fund to avoid, 208 .

CIT Y . S ee Gov nn rm n rr .

I IL
C V LAW,
defin ition of subrogati on in th e, 2 .

allows subroga tion for whose be nefit, 2 .

sub roga tion o f in sure rs by , 23 2 .

C LERK O F C O U RT ,
sub r
o gation of sureties oi , 89 .

laches oi , in oflic ial s et , no defence to surety , 121 .

C OLL ATERAL S EC UR ITY . S s c un ru ss .

C OLLECT O R .
not s ubroga ted to claim of
go ve rnm en t, growi ng out of his
wrong , 4 .

m ay be subrogated to lien of taxes after a m ent, 7


py .

C OLLI SION,
insurers subrogated to rem edy of insured for, 222, 228 .
m ax . 3 85

C OMPR OMISE,

C ON DITI ON .

waiver of devise upon , 220 .

perfo rm a n ce of, by stran ger, gives hi m i gh t


no r to devise, 220 .

un les s accom panied by claim and recogniti on , 220 .

C ON N EC TI C UT ,
righ t of solvent surety to surrender indem nity, 1 61 .

C ON SID ERA TION . S ee Cox rna c r


' '
.

CON S IGN MEN T ,


sub rogation of consig nee, 1 0 a .

agains t whi c h bill drawn , lien of holder upon, 18 9 .

C ON S T ABLE . S ee S n nnm r .

CON T R AC T S ee C om ma rron u S o nnoe a rrou


‘
'
. . .

subroga tion does not d epe nd ou , 1, 1 1, 9 3 .

to assum e m ortgage , righ ts of parties to , 24 et seq , 46 . .

for conveyance, not to be rescinded after accruing of others inter


’

ests, 3 4 .

invalid, holder of, subrogated, 3 6 a .

waiver of righ t of subrogation by , 41 , 42 .

for ben efi t of an oth er, rem edy upon 8 5 , 17 1 a . .

surety s ubrogate d in depe nd en tly of privity, 9 3 .

m ad e by creditor, surety sub ro ated to benefit of, 9 5


g .

C ON TR I B U TI ON ,
sub roga tion for th e purpose of obtainin g, 45 .

by and to dowress , upon red em ption of incum brance , 49 et seq .

pu rc h a ser of part o f inc um bered esta te , wh en en titled to , 74 .

S ee P HAS URC ER .

between successive purch asers i n Iowa and K entucky, 76 .

from prior to subseq uent purch aser of parts of incum bered


79 82
-
.

am ong purch asers an d devisees , 84 .

j
‘

to an d aga inst subseq uen t and udic ial sureties, 13 1 ci seq .

S ee S ucc e s s w n S ua s rm s .

ob tained by sub rogation am ong c o s ureties , 140 et seq -


.

n ot en forc ed between gua ran to r an d s urety , 1 5 0 .

S ee Co— s ua n rm s
'
.

j
am ong oin t debtors , 169 et s eq .

S ee Jo w r D a n rons ' '


.

am ong h eirs devisees , or leg atees , 213


,
.

C ON V EN TION AL SU BROG AT I ON ,
wh at it is , 5 .

eq uivale nt to absolute assignm ent, 5 .

m ust be m ad e a t sa m e ti m e as paym ent, 5 .

necessary to pass c laim for d am ages, 37 .

of accepto r of bill to sec urity of prior parties, 199 .

25
3 86 u wax .

CONVE N T ION A L SUBRO G ATION contin ued .

res ults from d irec t agree m e nt , 248 .

s ubseq ue nt agr e e m en t m ay be evi d ence of, 248 .

a n t i n full ess e n ti al to, 248


p y m e .

can not c o e xist w ith ac tio n for paym e n t itself, 249 .

rules gove rning , in Louis ian a , 25 0 .

C O—
O B LI GO R . S ee Jo m De m ons ; Pa m e m u. a m ) Sc am .

C OR PO R AT IO N ,
s ub roga tio n against , for m oney bo rro we d ultra c irca , 19 .

sub r o gat io n to lie n oi , upon s toc k of its sh a re h olde rs, 6 1 .

lim ite d s ub rogation to sec on d a ry lia bility of sh areh olde rs, 68 .

s ure ty subroga ted to lie n o f aga in s t sh a re holders , 9 2 .

wh e n sure ty d isc h a rge d by , n ot e nforc ing s uc h lie n, 123 .

s ub rogation of d irec tor aga i ns t , 245 .

of s toc kho lde r, 245 .

C O S URET IES ,
-

sub ro ga te d to priori ty of cred ito r against eac h othe r, 88 .

s ure ty does not waive s ub roga tio n by ex one ratin g his , 103 .

p ri va te a rra n
ge m en t a m on g , w i ll n o t s h oo t rig h t s ag a in s t pr i nc i a
p ,l
108 .

succes sive s uret ies for sa m e deb t are not , 13 1 .

s ubroga tion of s ucces s i ve s ure ties aga ins t e ac h oth er, 13 1 et seq .

S ee S vc c s s s w n S us an ne .

wh ethe r deb t extinguish ed b y on e surety s paym ent, 13 7


’
.

j
subrog a tion to origi nal ud gm ent in Ma ryland , 1 3 7 .

sub rog a tion a ga i ns t, upon o n e s ure ty s pa ym e nt , 140 et seq


’
.

allo we d as m ea ns of ob ta in i n t rib u t i 14 0
g con o n , .

righ t passes to c redito rs a n d gra n tees of s ure ty w ho h as aid, 140


p .

s urety a llo w ed us e of c re ditor s rem edies ag ain st, 140


’
.

when a n d ho w fa r in Mas sac h use tts , 140 .

e n titled to be n efi t of sec urities h e ld b y eac h oth e r, 141 .

a ppo rtion m e nt of i nd em n ity a ga i ns t va ri ous liabilities , 141 .

righ t no t los t by e x ti ng uish m e n t of ano th er sec urity, 141 .

se c urities given by on e s ure t to th r 1 4 1


y an o e , .

ca n n ot h a ve c on trib ution with out ac coun tin f r sec u rit ies 1 42


g o ,
.

e ve n th o ugh sa le m ad e to h i m self 142 , .

th is a pplie s o nly to fun d provid ed by princ ipal , 142 .

s ure ty h old in g sec uri ty re ard e d as trustee for, 143


g .

liable fo r h is neglige nce o r o m ission, 143 .

surety s righ ts a n d lia bilities to , as to se curity , 144


’
.

s ure ty m ay preve n t d isc h ar e of sec urit h ld b 1 45


g y e y, .

security h eld by on e w ho is b oth c re d itor a n d s ure ty, 146 .

he m ay appropria te it to h is own claim , 146 .

but not to afte r acq uire d c lai m s , 146


-
.

m us t c o ntrib ute to cos t of sec uri ty w h ich th ey c laim , 147 .

w a ive r b y sure ty o f righ t again st co s ureties 147 -


, .

w hen s urety m ay ob tain se parate i ndem nity for him self, 148 .

m a y stipula te for it o n bec om i ng s uret , 148


y .
m nnx. 3 87

CO—
S UR T E IE S c ontin ued .

m ay obtain it from third party , 148 ,


j
a n d aft er loss a d uste d or lia bili ty fix ed , 148 .

called upo n for con tri bution , a re e ntitled to s ub rogation, 149 .

r ve ti n g con tri bution , n o t to have subro ation , 149


p e n g .

subseq uent s ureties h ave n ot righ ts oi , 1 5 0 .

s uccessive acc om m od ati on parties to n ote, 15 0 .

m ere dif erenc e of tim e or co n trac t not enough , 150 .

wh o are , an d wh o are not , 1 5 0 .

righ ts of , becom ing also s ub seq uent sureties, 1 50 .

of gua ra n to r an d s ure ty , 1 5 0 .

ex tent of rig h t of s ub rog a tion a m ong, 15 1 .

on ly to ob ta i n con trib utio n fo r ac t ual paym en t, 1 5 1 .

n ot e nti tle d to sec urity h eld for o th e r de bt , 15 1 .

dis ch a rged pro ta nto by c red ito r s interference with righ t, 15 1


’
.

one s ure ty h old in g sec urity h old s i t for whole debt , 1 5 2 .

sec urity to be us ed for protec tion of co s ureties , 15 2 -


.

j
s ub roga ti on oi , sub e c t to lega l righ ts of th ird parties , 1 5 3 .

y ie lds to rig h ts acc rui n g to o th ers on a ppa re n t title,


1 53 .

successive parti es to n ote, 188 .

C O—T EN A N T S . S ee J om r Ds s ro n s , P HASE
'
URC RS .

righ ts oi , on redeem i ng fro m tax sa le , 172 -


.

C OU N TY . S ee G O ER
V N M EN T .

COU PON S . S ee B O N DS .

C RE D IT O R ,
subroga tion puts person in place of, l .

p y g
a i n d e b t p re fe rre d to h is , s ub rog a te d b y civil la w , 2, 3 , 5 .

righ ts , re m ed ies a n d se c uri ties oi , go to perso n s ub rogate d , 2


,
.

m e ritorious , re lieve d b y sub rog a tio n 4 . .

j
righ t oi , n ot to b e pre ud ice d by an oth er s s ub roga tion , 4
’
.

w ill n ot b e s ub roga te d aga in st h is o wn wro ng , 4 .

rem edies a n d se c urities of pas s to pers on sub rogated , 1 1


, .

righ t oi , to pay pri or c red itors , 12 et s eq .

S ee S uc c e s s rv s C nu m s .

rig ht of prin c ipal to b ecom e sure ty w ith o ut con se n t of, 25 .

ur h r u n de r d ec ree i n fav o r of, s ub ro ga ted , 3 1


p c ase .

sub roga tion of purc h as e r a t ex ec utio n sa le , 3 8 .

not lia b le to refun d price of prope rty sold on ex ec ution , 3 9 .

co n ve ya n c e s in fra ud oi , righ ts o f gra n te e , 40 .

rea l d eb tor no t s ub rog a te d 46 , .

j
h olding un ior lie n , s ub roga te d to b e nefit of prior lien , 6 1 et seq .

S ee M a n s n a nnm c or A s s n rs '
.

eq ui ta b le s ubs ti tuti on of, to se c urity o b ta ined by debtor, 85 .

sure ty pa yi ng , s ub ro ga ted to rig h ts oi , 8 6 et seq.

s ure ty s ub ro gate d to agre em e n t oi 9 5 . .

of w ife , s ub rog ated to h er righ ts a g a in s t h er h usb and 104


’
s es tate , .

righ ts oi , again st surety or a ppe al bo n d , 1 17 .

S ee Pa m c xra n AND S URE TY .


8 88 m un .

CRED ITOR continued .

substi tuted to security held by a sur ety, 15 4 et seq .

S ee S uns rrru rros ' '


.

subroga tion of j oint deb tors , 169 et seq .

creditor m ay h old all until fully paid , 169 .

of d eceased person , m arshalling of asse ts for, 204 .

m ay follo w property purch as ed with fun ds of estate, 205 .

S ee Am m u s ru rxo x or Es ru l s ' ' ' '


.

devisees sub rogated to righ ts of, 212 .

righ t to ins uran ce be tween deb tor and , 283 a seq


h olding ins ura nc e on h is de b tor s life , 23 9
’
.

not substit uted to deb tor s r em edy against wrong doer, 244
’
-
.

CRIMIN AL PROCEEDING S ,
o gation not applied to bonds ih , 168
subr .

CU S T OM S . S ee Ta n s .

DEB T S ee C nnn rroa ; a


. c rru li im S o n s “ ; S e ces ss m Cu m s .

h eld to subsist for one on titled to subrog ation w ho h as pai d it , 13 .

w h en , m ust be d ue and payable , to give ground for s ubroga tion , 18 .

how far e x ti nguished by surety s paym ent , 13 5 et seq


’
.

by j oint d ebtor s paym ent , 180


’
.

DEBTOR S ee C RE DIT OR
. .

D EC E ASED PERSON S . S ee Am rm rs ra a n ox or Es u rns '


.

DEGREE S ee Pna c rrc s


.
'
.

DEED S ee R s c o a n s
. .

n eglect to bar to sub rogation , 9 , 3 0


record , no .

h older un der in vali d , sub rog ated , 3 6 a .

sub rogation of a purc h aser lim ited b y term s oi , 37

gi ve n in fr a ud of c redi tor s , s ub ro g a tion un de r, 40 .

q uitc la i m , of m o rt a e
g g , p o e rat i n g as assig nm en t, 40 .

estoppe l b y, n ot e nfor ced for one claim ing against, 5 8 .

DEFINIT ION ,

of subroga tion , 1 .

in civil law , 2 .

DELAW ARE ,

s urety on bon d en titled to ass ignm ent on pa ym ent 137 ,


.

a nd to origin al j udgm en t against princ ipal , 13 7 .

DE POSITS S ee Bu m . .

DEPUT Y S HERIFF . S ee S unni " .

DEVI SE ,

sub rogation of purch aser from devise e, 3 5 .

devisee of c ontingent rem ain d er s ubrogated, 8 6 a .


INDEX .

E IE
D V S c ontinued .

s ubj ec t to paym en t of legac ies , righ ts of purchaser, 77 .

te nant for life s ubrogated again st rem ain d erm an , 207 a .

subrogation agains t, for debt c h argea b le upon it, 208 .

sub rogation of d evis ee or legatee to liens a gain st es tate , 210 .

and to claim s whi c h ough t to h ave be e n paid from es tate , 211 .

to subseq uen tly acq uired assets , 212 .

c ontrib ution am ong devis ees , 213 .

ch arged with expense inc urred for its pr tec ti on , 214


o .

lost by election of anoth er, subrogation for, 218 .

S ee B a rro n .

DI SCHAR GE T
S ee PAY M EN ; Ra m s es ; S uc c e ss m
. Ch a n t s .

of ob ligation esse n tial to s ubrogation , 5 , 6 .

of inc um b rance , wh en a ground of s ubrogation , 8 .

of m ortg age preven tin g subrogation to its lien, 8 , 29 .

of lien , s ubrog a tion of on e pa yin g for, 1 9 .

of old a nd taking of ne w m ortgage 9. b ar to subrogati on, 20 .

takin g a, wh en a waiver of righ t of s ubrogation , 29 .

assignm en t to on e bo und to pay d ebt ta ntam oun t to, 47, 50 .

m erger not always operate d by, 5 5 .

j
of prior for be n efit of un ior li en b y partial release, 72 et seq .

of surety, by interfere n ce with his s ubroga tion , 1 19 et se


q .

of cc s ure ties , b in terf r n e with th eir s ubro a tion, 1 5 1


y e e c g
-
.

I
D SC EETIO N ,
subro ga tion is m atter of eq uitable, 4 .

DISTRES S ,

s urety of lessee cannot com pel lan dlord to resort to , 1 15 .

wh eth er s ubrogated to righ t of, 1 1 5 .

DOWEB ,
sub rogation of one re dee m i ng from , to claim oi , 15 .

not barre d on avoidance of h usb and s d eed to wife , 40


'
.

subrogation of on e en titled to , 48 .

righ t oi , against purc h as er wh o h as paid prior incum brance , 49 .

release oi , ope rates es toppe l for wh om , 49 .

let in by d isc h arge of i n c um bran ce , 49 .

not ba rred by fals e represe nta ti on s of h usban d , 49 .

not let in by assignm ent of m ortgage to m ortgagor s ass i gnee in ih


’

solve n cy, 49 .

how afl ected by sale of eq uity of redem ption to m ortgagee , 49 .

let ih , if debt pa id b y one b oun d to pay it, 50 .

widow s righ t of re de m ption an d sub roga tion , 5 1


’
.

rules adopte d in Massa c h usetts , 5 2 .

sub rogation of w idow to rights of c reditors, 210 .

subrog ation of devisees , wh ere widow tak es , by election, 218 .

DR A W ER . S ee N o rs e AND Bum s .

DUTI ES . S ee Tu na.
3 90 um ax .

ELECTION ,
m ortg agee, when not c om pelled to m ak e , 25 .

of on e e ntitled to sub rogatio n, 41 .

of s urety to take s ubr


o ga tion 110 .

S ee Ma u n a u m o o r As s a rs, Wa rm '

of s urety between s ub r ogation and i ndem n ity, 1 10 .

s ubrog ation of devisee or lega tee disappointed by, 218


'

for com pe nsa tion out of righ t w ai ved by, 21 8 .

w here widow waives pro vis ions of will, 218 .

exten t of th is s ub rogation , 219 .

to th e rights of party m ak i ng th e , 219 .

does n ot include be q uest m erely upon condition , 220 .

betwee n s ubrogation and in dem n ity, 249 .

EN DOR S E R . S ee N o u s ar
m B 11 1 s . . .

EN GLAN D ,
rig h ts of j unior inc um brancer ih , 1 6 .

res tricti on of sure ty s s ub rog ati on ih , 1 19


’
.

origi nal o b ligation not e xti nguish ed by suret 1 3


’
y s pa ym en t , 5 .

m ortga ged real es tate of d ecease d fi rs t applied on de bt, 21 1 .

ri ghts of separate in sure rs on sh ip a nd fre igh t, 227 .

Q
E UIT Y ,
s ub rog ati on is a doc tri ne oi , 1 .

but extended to com m on law, 1 .

to be carried out with eq uita b le discretion , 4 .

will s ub rogate sh erifl to j udg m e n t wh ich he h as been com pelle d to


p y. 7
a

th rows b y subrogation d ebt upon party wh o ough t to pay it, 11 .

treats purch aser wh o h as ass um ed m ortgage as prin cipal debto r, 24, 25 .

re in states i neum bra nce d isc h a rge d in ignorance of i ntervening lis u m .

subroga tes holde r un de r i n va lid d ec re e, 8 6 a .

re in sta ting d isc h a rge d m ortg age 20, 5 5 , .

wh en , req uires assignm e n t to c arry out subrogation , 45 .

rules of, as to m e rge r, 5 3 et seq .

S ee M a s o ns .

m arsh alli ng of assets ih , 61 .

S ee M a a s n a nu x e o r A ss ure .

righ ts in of purch asers of parts of m ortgaged estates, 74 cl seq.

S ee Pun c ru s na s .

e m ed y of m ortgage e
r in , aga i nst on e ass um ing m ortgage , 8 5 .

subrog ation of s ure ties in , 86 et s eq .

S ee Pa rs o n “ A N D S una rr .
'
.

lien of s urety ih , upon fun ds in h a n ds of princ ipal, 100 .

sure ty m ay com e to , to com pel princ ipal to pay de bt, 130 .

will give relief to surety, h ow, 130a .


m ax . 3 91

EQUI TY c ontin ued .

will en force righ ts of oo sureti es to sec urities of each oth er, 140
-
.

ena bles creditor to reach sec urity h eld by s uret , 15 4 at se


y q .

S ee
g iv es com pen sation to devi see d is a ppoi n ted b e l
y ection of anothe r,
218 a seq .

will e nforce agreem en t for con vention a l s ubro gation, 248 .

EQ UITY O F RE EM D PTI ON . S ee R s n nu n xox .

ERR OR . S ee W a rt or Enn o n .

ESTA TE S OF DE CE AS ED PER SON S . S ec A m um s rn s rxox


' '
on
Es u rxs
' '
.

ES T O PPEL S ee W A l v z a
. .

n o subroga tion ag ai ns t interests ta k en on fai th of record, 17, 20 .

d isch arge of m ortgage b a rs m ortgag ee, 20 .

form al disc h arge m ay n ot be, if n o oth er righ ts in terve ne , 20 .

subrogation upon , of in c um bra nce r, 29 .

usury in ta kin g n e w security no b ar to subrogation , 42 .

in orig in al tra nsac tion would be a bar, 42 .

h ow for n egligen ce will be nu, 43 .

sub rogati on w ill not relie ve o n e again s t h is own wrong , 44 .

on e cannot be s ubroga ted again st h is o wn warra nty , 46 .

by release of dow er, 49 .

of own er of eq uity to c laim a. m erger, 5 6 .

by deed , n ot enforced for o ne c laim ing agains t th e deed , 5 8 .

of m ortgagee ag ainst purch as er of part of th e es ta te , 78 .

sure ty subrogate d to princ ips l s righ ts by, 101


’
.

of surety, again st a purc h ase r of sec urity for th e debt , 109 .

of ca rrie r by fraud ulent b ill of ls d i ng, 1 8 9 a .

of insurer no b ar to s ubrog ation , 223 .

EVI DENC E,
righ t of subrogation m us t be sh own by, 11 .

p arol th at con voyan ce s ub ec t to m ortg g


a e , 8 2 j .

of inte nt as to sec urity h e ld for debt by s urety, 1 5 8 .

j
righ t of oin t deb tor m ust b e sh o wn b y , 179 .

of rela tion to each oth er of parties to note , 1 8 1 .

EXECU TION ,

a
p ym e nt of , by oflioer, when a groun d of s ubrogation , 7 . .

inte rest tak en by purch ase r a t sale un de r, 17 .

subrogation upon levy oi , upo n m o rtga ged lands , 21, 22 .

levy oi , npo n parts of an eq uity of re de m ption , 22 .

assig nee in ba n kruptc y sub rogated agai nst levies und er, 23 .

subrog ation of purch aser of prope rty sold ou, 38 .

allowe d aga i nst the debtor s c laim s , 3 8


’
.

wh ere th e pm pe rty recovered by th ird parties, 39 .

release of debtor s la nd from levy, h ow for releases la n d of his


’

too, 80 .
89 2 m m .

release of levy on person al ro er


p p y,t 80 .

n pon sure ty s se curity ex tinguish es surety s lien , 163


’
levy ’
.

EX ECUTOR . S ec An u m xs rm
'
u ox or
'
Ee n ' '
t sa .

E XONERATION ,

of secondary fund by release of prim ary fun d , 78 .

of purch aser of pa rt of inc um bered estate by credi tor s purchasing


’

th e rem ainder th ereof, 83 .

of s ure ty by interference with his subrogation , 1 19 .

p y
a m e nt by in dorser d oes no t ex on e ra te m a ker of n ote , 1 82 .

EXPRESS C O MPANY S . ee C A RB I l B .

EXTENT S En 00 1 m l
. ec .

EXTI N G UI S H MEN T S . ee Pa n am a

of m ortga ge by release from m ortgagee , 12 .

of old m ortgage by its di sc h arge and ta k ing of new, 20 .

of incum brance by ass ig nm ent to purc h aser unde r unior li en, 22 j .

Op era ted by s i m ple d isc h a rge aga i n st un ior lien , 29 j .

of in cum brance by purc h as e m oney a ground of subrogation 30


-
. .

of in cum bran ce by ass ign m e nt to one bound to pa y it, 47 , 5 0 .

w h at pa ym ent wi ll am ount to, and wh at to s ubro gation , 60 .

by assign m ent of m ortgage to ow ner of eq uity, 5 3 cl seq .

S ee Ma no n .

n ot operated as to principal by suret 87 1 3 5


’
y p y s a m en t , , a seq.
of surety s indem n ity by its assign m en t, 18 9 , 168 , 15 0
’
.

of lien ba rrin g s ub rogation to it, 176 .

j
of oint deb t upon pa ym en t by one d e btor, 1 80 .

of note upon paym e nt by a stra nger, 1 86 .

of n ote aga ins t m ak er, upon ind orser s paym ent, 201
'
.

of debt upon volun tary pa m ent by a stranger 241


y . .

FAT HER,
n ot to be subrogate d for support of ch ild , 8 .

FIRE . S ee In s uns x c n .

O
F RE C LO
S URE ,
decree of, ho w far a bar to subrogation, 18 .

of prior m ortgage, b f v r l o rt a ees 27


y on e o se e a oo m g g
-
,

righ ts and lia b ilities of urc h aser un der, 8 1, 3 2, 38


p .

by conveyance of eq uity of re dem ption to m ortgagee, 57


righ t of j un ior m ort a e e in such cases , 5 7
g g .

ri gh t to ord er of sa le to be c la im ed before , com leted, 75


p .

of m ort a e i d b u r t u br ti u 128
g g p a y s e y, s og a on po n , .

FORFEIT URE,
FRAUD ,
fraudulent discharge of inc um brance will not bar subrogation , 8 , 19
sub rogation for pre vention oi , 19 , 20, 5 8 .

of m ortgagor obtain ing n ote and m ortgage, no bar to foreclosure , 20 .

ex cept against innoce nt purc h asers for va lue , 20 .

h b d n dor s ac tion for, 8 7


’
p u rc ase r n ot s u ro g at e to v e .

righ ts of purc has er in , of ven dor s c reditors, 40


’
.

wh en subrogated to ch arges w hic h he h as paid , 40 .

p y
a m e n t of d eb t b y o n e g u ilty of , n o g roun d o f s ub rog ation, 44 .

of h us b and , n ot im puted to w ife, 49 .

p rio r i nc u m b ra n ce d isc h arg e d b y ,m ay b e rei ns ta te d, 5 8 .

wh ere agreem e n t to assum e inc um brance ob ta ined by, 79 .

where draft sec ured by fraud ule nt b i ll of lading , 1 89 a .

FREI G HT,

s ubrogation to c arrier s lien for, 10, 12


’
.

i nsurers of sh ip en titled to, after aba n donm ent, 225 at seq .

ab an d on m en t of sh ip will not release insurers of, 226 .

righ ts of insurers of, against ins urers of ship, 226, 227 .

GEORGIA ,
righ ts in , of purch ase rs of parts of incum b ere d estate , 76 .

origina l deb t prese rved i n eq uity after surety s paym ent, 13 7


’
.

b ut extinguish ed at law , 13 7 .

s urety s righ t does n ot exten d to j oi nt d ebtors , 137


’
.

subrogation ref use d against gran te e of a co pn rch aser, 174 -


.

GOV ERNMEN T ,
ofi cer not subrogated to claim of growing out of h is own wr ong,

prior ity of, passes to purc h asers of goo ds on in


p y g
a d uties, 85 .

surety to , s ubroga ted to priori ty of, 88 .

but not in com petition wi th , 8 8 .

lach es n ot to be im puted to , 121 .

h old ers of bonds sec ured by m ortgage to, subrogated, 167 a .

certificates of in deb ted ness is sued by, subrogation upon , 183 .

GR AN TOR . S ee Punc tu s nn .

GU AR AN TY . S ee PRIN CIPA L AN D

guarantor and surety n eed not con tribute , 150 .

GUAR D IAN ,
surety of , sub rogated to righ ts of ward , 89 .

not disch arge d by act agai n st wh ich bon d tak en, 126 a .

ward substi tuted to m ortgage given by, to his surety, 168 .

but not in New Jersey, 166 .

subrogated to liability of form er, which he h as paid , 245 .


394 uw s x .

H .

HEIB . S ee An m m s rna rxon o r Es ru ns


' ' ' '
.

subrogate d on payi ng de bts of s uc ceu ion, 3 , 5 .

not to d ebts which h e h as pa id as m a tter of bount , 215


y .

of surety succ eeds to h is s ub ro ga tion , 86 .

of wife, s ubrogated aga inst h us ba n d , 104 .

con trib ution am ong he irs to m a ke up loss of one , 213 .

subrogated agai nst oo h e irs to b urde n which h e h as discharged , 215


-
.

and aga ins t dis tri b utees of pe rso nalty, 215 .

HOME S T EAD S ee S U C C t s s xv : C L A m s
. .

sub roga tion aga ins t, upon paym en t of pri or inc um b rance, 21 .

rig h t of, agai ns t purc h aser w h o h as pa id prior incum brance, 49 a seq .

junio r c a nnot c om pel prior c red itor to resort to , 64 .

th o ug h prior c red itor h as purc h as ed , 64 .

but prior c red itor m ay resort to, against debtor, 64 .

w he n prior c redi to r m us t resort to , 64 .

p ro tec tion of, in d ifi e re n t S ta tes , 64 .

e fi ec t of wai ve r of righ t of, 64 .

H US B A N D A N D W IFE . S ee Dow ns .

sub rogation ng aius t wife , upon a


p ym e nt of prior c h arg ,
s 8 .

refus ed
in Ten nessee , 1 9 , n 1 . .

righ ts of wife where d ec eased h us band s real an d l


’
person a p pe rty
ro

ple d ged for sa m e d e b t , 6 1 .

inc um bra nce upon his real es ta te not to be so charged as to save


do we r, 5 1 .

wh ere h us b and m ak es voluntary con veyan ce to his wife of an inc a n


be red es ta te , 82 .

sub roga tion of wife wh o is s urety for h er h us band, 104 .

agai nst h is ass ignee i n insolve ncy 104 . .

securities m ars h alled for wife s urety of h us ban d. 104, 1 14, 180 a .

wh ere divorced h us band an d wife a re j oin t de btors, 170 .

I GN OR A N CE . S ee s u xs
'
.

ILLIN OIS ,
origi n a l obligation preserved i n, after sure ty s paym
’
e nt, 187 .

IN CU M B R AN C E S ee S uc c ns s xv n Cu m s
. .

sub roga tion of one who pays d ebt to rem ove , from h is property,

forec los ure of senior, gives n o ri gh t to red eem from j unior, 3 .

subrog ation of one wh o h as ad vanced m oney to pa y, 8 , 19 .

fra ud ule n t disch a rge of, will n ot pre ven t subrogation , 8 .

s ubroga tion of on e wh o pays a n, for h is own protec tio n 9 .

of one com pelled to pay taxes , 9 , 14 .

subrogation of j unior inc um bra n cer on paying prior, 12 .


INDEX .

IN C UMBB AN C E contin ue d .

efi ec t of paym e nt oi , b y one not th e deb tor, 13 .

m ay be tre a te d as subs isting th ough form ally di sch arged , 14 .

righ t of j un ior on paym ent of prior in c um bra n cer, 15 , 16, 17 .

li m ita tio ns of righ t of j unior incum b ra nce r, 18 .

s ub roga tion of one advan cing m oney to pay, 1 9 .

w h ere n e w, give n for old, 20 .

righ ts an d liab ili ties of purch as er of incum bered property, 22 a seq .

28 ci seq.

S ee Pun c n a s nn .

righ ts of co m ortgage es against eac h oth er, 27


-

n eed n ot be assigned to o ne en titled to sub roga tion , 28 .

S ee A s s xo m us x r '
.

wh en ex tin guish ed by ta k ing dis ch a rge , 29 .

sub ro ga tion of o n e purc h asing und er, 3 1 , 3 2, 88 .

h olde r of i nvalid , s ubro gated , 3 6 a .

n o s ubrog ati on to, if ex c lud e d by te rm s of sa le, 8 7 .

tran sfe r of, to purc h ase r in fra ud of c reditors, 40 .

wh en s ub rogation to , gives righ t to assig n m en t of, 45 .

rea l d ebtor ca n n ot be s ub roga ted to 46 ,


.

ass ign m en t to on e boun d to pa y, ta nta m ount to d isc h arge , 47 .

p y
a m en t of , b y do w re ss , e n ti tles h e r to s ub roga tio n,
48 .

efi ect of paym ent oi , upon d ow er, 49 et s eq .

S ee o w ns D .

not m erg ed by ass ign m e n t to de btor s ass ignee in i nsolvency, 49


’
.

wh en e x tinguish ed by ass ign m e nt to o wne r of eq uity , 5 3 ci seq .

S ee M ERGER .

wh e n prior inc um bran c e r pos tpon ed b y h is purc h ase of eq ui ty,


5 7 et seq .

sub rogation of j un ior incum bra ncer wh ose securi t pa s prior, 6 1


y y .

S ee M A R BH A L L IN G or As s n rs '
.

efl ec t of release of , upo n j un ior incum b rancer , 72 cl seq .

j
lie u of udgm e n t tre ate d lik e othe r 77 , .

efi ec t of pa rtia l re le ase of , upon oth er part c onveyed , 72 et se , 78


q . .

n o e fi ec t, un less pri or cred itor h ad bee n n otifi ed , 8 1 .

surety upo n paym en t sub rogate d to, 8 6 et seq .

subrogation of cc pn rch asers of i nc um bered r r t 1 72 t


p o pe y e seq
-
.
,

S ec Jo w r Ds s ro ns ' '
.

n o s ubrogation to afte r ex t in uis h m ent oi , 176


, g .

upon es tate of de ce ased , h ei rs or devi sees s ub rogated to , 218 .

trustee subrogated to o ne, which h e h as paid , 214 .

IN DEMN ITY . O R U
S ee C N T I B TION .

obtai ned by subro gation , l l .

of sure ty wh o is h eld to pay debt , 86 et se


q .

subroga tion of surety s ind em n ifi er, 106


’
.

of surety ext in guis h ed by h is releas e from li abili ty, 189 .

co sureties en titled to sh are i n , 141


-
.

S ee Co sm m rm s -
'
.
3 96 m u .

IN DEMNITY con tinued .

of surety, creditor s righ t to reach , 1 57 et seq


’
.

S ee S U B s rrru rl ox ' '


.

of solven t indors er, not a vailable to h older of note, 188 .

insure r subrogated to, of insure d, 221 et seq .

S ec lx s vns uc n .

-
j
of wm ng doer, person in ure d not substituted to, 244 .

INDIAN A ,
origin al ob lig ation k ept ali ve after surety s paym en t, 137
’
.

right to be sh o wn in origin al suit, 13 7 .

I ND OBS ER . S ee N ou s u m B ru s .

IN FAN S , T
subroga ti on again st , upon paym en t of incum brance , 8 .

for necessa ries , 243 .

IN SOLVEN CY . S ee BA N K R U PTC Y u m Ixso nm c r.

IN S UR AN E C ,

subro ga ti on und er, equivalent to assignm ent, 6 .

subroga tion of m ari ne insure rs, 221


aban don m e n t eq uivale nt to as sig nm ent, 221 .

m ay brin li b l i w 221
g e n o n n a m e,
.

s ub roga te d by pa m ent with out ab andonm ent , 221


y .

insure rs pa ym e nt n o d e fe nce to wrong d oer, 221


’
-
.

subrogated to rem edy of in sure d agains t wm ng d oer, -

re li eved from liability by loss of th eir s ubroga tion , 222 .

lim ita tions of th eir sub rogation , 223 .

will not include gi ft to in sured, 228 .

m ere ly a s uccess ion to re m ed ies of insur ed , 223 .

b arred by th eir lach es , 223 .

not barred by insure r s esto ppel , 223


’
.

n ot sub ro g ated upon com pro m ise of th eir li ability, 221 .

efi ec t of a b an don m e nt to ins ure rs, 225 .

agen ts of ins ured becom e agents of in sure rs, 225 .

ins urers of sh ip becom e e ntitled to its earnin gs , 225 .

an d liab le for its ex pe nses , 225 .

sub rog ated to purc h ase by ins ured , 225 .

ab andon m en t of sh i will not avoid i ns urance on freight, Q 6


p .

aba ndon m e n t of sh ip an d freigh t separa te ly ins ured, 226 .

ins ure rs of ship entitled to subseq ue n t freight, 226 .

tota l loss allowed on eac h to ins ure d, 226 .

rule in England , 227 .

in surers of fre igh t s ubro gate d again st insured , 228 .

subrogation against carrier of insured goods , 229 .

ulti m ate re spon sibility npon c arrier, 229 .

carrier can not contest ri gh tfulness of ins urers pa m ent, 229


’
y .

carrier m ay by contrac t h ave ben efi t of insuran ce , 229 .

not b y im plication m erely, 229 .

subrogation to ac tion for breach of contract to insure, 229 .


uw sx . 8 97

INSUR AN CE continued .

insurers against fire sub rogated to claim on railroad , 280,


rem ed y m ust be in n am e of ins ured , 280 .

re lease b y nom inal plaintifi no bar to ins urers , 280 .

ins urers h ave only righ ts of insured, 280 .

m odes of en forc ing right of i n sure rs 23 1 , .

s ubroga tion again st other pa rties liab le for fire , 28 2 .

in whose n am e suit to be bro ught, 28 2 .

ins urers li ab ility m ere ly secon da ry , 282


’
.

in sured fi rst to be fully com pe nsa ted , 28 2 .

subro gation pro tan to allowed in C an ad a , 23 2 .

subs ti tution of m ortga ges to ins uran ce of m ortgagor, 288 .

m ortgagee as s uch n ot entitled to it , 288 .

n or h older of m ech an ic s lien , 288


’
.

un les s agree d to be proc ured for him , 28 8 .

an d th en h is righ t valid in ba nkruptcy, 28 8 .

valid aga in st in sure rs only if th ey h ave n otice, 288 .

by creditor, on property on wh ic h h e h as a lien , 28 4 .

insurers h ave not righ ts of s ureties for th e debt, 28 4 .

th eir righ t of sub rogation to th e deb t , 284 .

righ ts of m ortgagor in insurance of m ortgagee, 28 5 .

disti nct in terest of m ortgagee and m ortgagor, 285 .

m ortgagor not en ti tle d to be n efit of it, 28 5 .

unle ss agreed to be proc ured or h eld for h i m , 285 .

sam e rule between ven dor an d purch aser, 23 5 , 288 .

s ubroga tion of m ortgagor to m ortgagee s i nsurance, 28 5


’
.

obtain ed by m ortgagor for ben efi t of m ortgagee , 28 6 .

to be a pplied upon m ortgage d ebt, 28 6


-
.

righ t of action upon s uch a policy, 28 6 .

wh ere policy provides for subrogation of insurers , 287 .

e fl ec t of its forfeiture as to m ortgagor, 23 7 .

wh ere policy preserved by agreem ent with m ortgagee, 287 .

m ortgagee can not recoverafterdes troying righ t of sub roga ti on, 287 .

m ortgagee s dem an d m ust be paid before subrogation , 287


’
.

righ ts in, of lessors and lessee with opti on to purc h ase , 28 8 .

of ven dor a n d purch a ser, 28 8 .

lessee not entitled to lessor s, ex cept by ag reem ent, 28 8


’
.

sam e rule between ven dor an d purc h ase r, 288 .

s ubrogation of in sn rers to benefi t of purch as e , 28 8 .

subrogation of life ins urers. 289 .

not allowed to righ ts of insured, 28 7 .

righ ts of debto r to creditor s insurance upon h is life, 289


’
.

T
IN ER ES T ,

one sub rogated to debt entitled to, 1 5 .

cannot be increased to prejudice of junior li en, 17 .

T
IN ERME DDL
ER ,
will not be subrogated, 1 .
39 8 m ns x .

I OW A ,

ord er of liability after successi ve sales of parts of inc um b ere d


tate, 76 .

ori gin al obligation preserved afte r s urety s paym e n t, 187


’

b ut his righ t m ust be en forced by action , 18 7 .

he m ay take assignm en t of original obligation . 187 .

JOIN T DEB TO RS ,
cc o bligo r sub rogated on payi ng wh ole debt, 8 , 5
-
.

sub rog ation of one, on paym e n t , 41 .

s ub rog a tio n a ong


m c re d i to rs o f , 6 9 —71 .

c re d ito rm ay h o ld ea c h for wh ole deb t , 69 .

h ail of on e , n ot s ubroga ted agai ns t an oth e r, 1 18 .

not al ways s ub roga ted to origi nal de bt , 1 3 7 , 1 69 , 180 .

subro gated to prope rty h e ld agai nst th e de bt , 1 69 .

s ub roga tion of, aga in st each oth er, 16 9 .

som eti m es refuse d , 169 .

cred ito r m ay h old un til fully pa id 16 9 , .

wh ere on e h as ass um ed ulti m a te liab ility, 170 .

th e oth er subrogated aga i ns t h i m , 170 .

rule be twee n d ivorce d h us b a n d a nd wife, 170 .

righ ts of c redito r not to be d im inish ed 170 , .

a nd no subro ga tion it righ t waived , 170 .

in cases of pa rtne rs hip, 17 1 .

n o sub roga tion with out se ttlem en t of a r t n e r s h i p 1 7 1


p , .

subro ga tion of se pa ra te c re dito r agai n s t fi rm , 1 7 1 .

re tirin g part ne r s ubro ga ted a ga i ns t those rem ain ing , 17 1 .

s ubs titution of c re ditor to sec uri ty of re tirin r t e r 1 7 1 a


gp a n , .

to agreem e n t ta k en by retirin g partn er, 17 1 a .

ac tion on pro m ise of n e w fi rm to a d b t o f o l d 17 1 a


p y e s , .

wh ere sec uri ties of d ifi e re n t o wn e rs h eld for s am e de bt , 172 .

s ubrog atio n of o ne wh ose r rt 1 7 2


p p yp y
o e a s , .

s ub ro ga ti on of cc m o rt a ors a n d co u r h r s 1 7 2
g g p c as e
- -
.
,

if property of o ne purc h as ed by c red ito r, 172 .

ri gh ts o f co te n an t red e e m in fr t x a le 1 72
g o m a s
-
.
,

wh ere la nd of s evera l ow ne rs s ubj ec t to o ne m o rtga ge , 178 .

s ubrogation o f th e o n e i t h d b t 1 78
p y g
a n e e , .

sub rogat io n ag a in s t g ra n te e o f a co u r h r 1 7 4
p c ase
-
.
,

re fused in Geor i a , 1 74
g
s ub ro ga tio n of j un io r m ort a ees a ain s t e ac h oth er, 17 5
g g g .

n o sub ro ga tion to lie n th a t h as bee n e x ti n uish ed , 1 76


g .

w h ere o ne of th e o wn ers o f th e s ec urities is ultim a tely lia ble , 177 .

h is lia b ility n ot ex tin gu ished by a noth er s paym ent, 177


’
.

a pplic a tion of rule to co m ort a ors a n d u r c h ase rs 17 8


g g p
-
.
,

wh e re on e purc h ase r pa ys sh are of oth ers , 178 .

exten t of sub rog a tion a m o n 1 79


g ,
.
INDEX . 89 9

JOINT DEBTORS contin ued .

li m ited to act ua l paym ent a nd proportionate sh are , 179 .

an d to case of lia b ili ty or com puls ion , 179 .

wh eth er origin al obligation ex tinguis h ed upon paym en t by one , 1 80 .

g e n e rally pr es e rved i n eq ui ty g
a a ins t th e oth ers, 1 80 .

n ot so ge n era lly subrogated as s ure ties , 1 8 0 .

joi nt i n dorse r s n ot subrogate d , 1 8 1 .

J UD GM EN T .S ee Ex s c urxo n ; In c w s na n c n
'
.

w h e n paym en t of, by sh e rifi e ntitles h im to subrogation to, 7 .

p y
a m e n t of,
to c lie n t, sub ro atin
g g a ttorney,
10 a .

levie d upon m ortgaged la n ds , 21 , 22 .

aga ins t ven dor, s ubro ga tion of purc h as er to , 8 6 .

s ubroga tion of purch ase r of goods , so ld on , 3 8 , 89 .

la n d so ld un der, s ubroga tion of purc h ase r, 88 , 8 9 .

lie n of, tre ated like othe r inc um b ra n ce , 77 .

m arsh alling of asse ts to preserve lie n oi , 6 1 .

efi ec t of re lease of levy on prope rty prim arily liable, 8 0 .

rights of purc h as e r of pa r o f
la nd s ub ec t to lie n of, 8 3
t j .

subrog ati on of sh erifi s s ure ties w h o h ave bee n co m pe lled to pa , 90


’
y .

b e twee n credito r a nd princ ipa l, sure ty m ay se t up, 101 .

subrogatio n to , of hail of on e de fe nd a nt , 1 13 .

s ub rogation of s ureties for, agai n s t prior sureti es , 1 8 1 cl se q .

sure ty subroga ted to be n e fi t oi , 18 5 1 8 8 -


.

join t debtors , h ow fa r sub ro ate d to, 180


g .

i n dorsers s ubrogated to be n efi t of, 201 .

S ee S uc c ns s rv n S us a n na .

JUNI OR IN C UMB R AN CE . S ee S uc c nss xv s C nm s .

K A NS A 8 .

original obliga tion d in , after s urety s


’
prese rve p y
a m ent, 187 .

K ENT U C KY ,

order of liab ility after success ive s ales of pa rts of incum bered es

ta te , 76.

s urety m ay prese rve origin a l obligation after h is py


a m en t , 18 7 .

L ACHES ,

is a w aiver of the righ t of sub rogation , 41 , 110, 228 .

is waiver of righ t of m arsh allin g assets , 66 a .

of c red itor, ca us in g loss of sec urity , m ay d isc h arge s uret ,


y
c re ditor s c la im to s ubs ti tution m ust be s eason ab le 15 6
’
, .

of ex ecuto r barring h is subrog a tion , 203


, .

L AN D LORD AN D TEN A N T . S ee La s sa .
400 m on .

LEA S E,
s ubrogation of lessee , on redeem ing from prior m ortgage , 14 .

or of m ortgages of lessee, 14.

surety of lesse e cannot com distress by landlord, 115


pe l .

whether s ub rogated to righ t of dis trou , 1 15 .

discharged by s urrender of lease , 126 .

b ut not as to re nt alre ady dne, 126 .

rule lim ited in bank ruptcy, 126 .

righ t of lessoran d lessee to eac h oth a s insurance, 28 8


'
.

LEG AC Y ,
s ubrogation to lie n of, upon purch ased land , 21 .

righ ts of purch ase r of lan d ch arged with , 77 .

surety paying, entitled to prope rty h eld for, 100 .

lien on , of sure ty s executors who h ave paid debt of legatee, 100


’
.

legatee of partner s ubroga ted lik e h im , 171 .

cha rge d with debt of legatee paid by exec utor, 202 .

subrog ation i n fa vor of legatees, 208 .

legatees s ubrogated to liens which th ey h ave paid, 210 .

if th ey pay to pre serve prope rty to which th ey look, 210 .

wh ere specific legac ies sold for testa tor s debts , 21L
’

con tri bution a m ong legatees, 218 .

c h a rged with expense inc nrm d for its pr otec ti on , 214 .

cre dito rs sub ro gated to rights of lega tees , 217 .

subrogation for, los t by election of another, 21 8 .

S ee Eu o rros '
.

LE GAL PROCEED IN G S,
sub roga tion of sure ties in , against prior sureties , 18 1 cl seq .

S ee S uc c nssm S n az rm .

LESSEE S ec La s s a
. .

LETTER —C ARRIER ,

subroga tion oi , 10 .

LEVY OF E EC UTION X . S ee En c im ou .

LIBEL ,
in surers subrogated m ay bring , in own nam e, in adm iralty,
LlEN . S ee In c uu s na xc s ; S uc c a s s xvs Cu m s .

s ub rogation of one disc h a rging , 8 , 9 , 19 .

of ca rrier, subseq ue n t carrie r subrogated to, 10 .

l
p ge d e s su b roga te d to ca rri er
’
s , 1 2 .

cre ditor satisfyi ng prior, subrogated to it, 8 , 12 .

s h erifi subrogated to carrier s, 12


’
.

of taxes, pa ssin g to one wh o h as paid th em , 14 .

of dower, party redeem i ng from , s ub rogated to, 15 .

sub rogati on of one who h as dis ch arge d , 19 , 20 .

p r ior, a vo ide d by b a n k rup y j


tc u n ior, n ot ad va nced, 28 .

disch a rge of, of record , wh en set aside, 20 .

subrogation of one purch as ing under, 81 88 -


.

righ ts of assignee of 84 .
m ax 401

LIEN continued .

assi gn m en t of m aritim e , 84 .

h o lder of invalid, subro gate d , 86 a .

sub roga tion to, not allo wed, if ex cluded by term s of sale , 87 .

of purchas er at exec ution sale , 8 8 .

wh en one subr o gated to, m ay req uire assign m ent of. 45 .

on e wh o h as a ss um ed , n ot s ub r ogated , 46 .

des troyed by assign m ent to one bound to pay it, 47 .

S ee M R E GER .

righ ts of holder of si ngle, aga ins t prior h olde r of two, 6 1 et seq .

of corporation on its o wn s toc k , s ubrogation of credi tor to, 61 .

subrogation of s urety to, 92 .

S ee M a a s n s u n m o r A s s a re '
.

cfi ect of release oi , upon ho lde r of subseq uent, 7 2

on property of purch aser, released by release to d ebtor, 78 —


.

80 .

s ure ty s ubroga ted to , of corpora tion upon its sto c k , 92 .

s urety oi purch ase r s ub rog a ted to of vendor, 96 , 9 7, 109 , .

no s ubroga tion to, un ass ignab le, 97

e q uita b le , s urety s ubr


o g ated to, 98 .

ven d or s surety subroga ted to , of po rch aser, 98


’
.

sure ty s rig ht to, of corporation wh en not e nforc ed npon stock , 128


’
.

of govern m ent, bon dholders s ub roga ted to , 167 a .

of h older of b ill upon prope rty aga in st wh ich drawn, 18 9 a se


q .

of m ortgages upon m ortg agor s i nsura nc e, 23 8


’
.

insurance by c redi tor upon pro pe rty sub ect to , 28 4 et seq j .

LIFE EST ATE S T . ee m u m r ro n


'
Li n .

LIFE IN S UR A N C E S I . ee n st m s xc z .

LIMIT ATION S S TATU TE


,
O F ,

a bar to s urety s s ubrogation 11 0


’
.

w hen sta tute begins to rn n , 1 10 .

no sub rogation to lien barred by lapse of tim e, 176 .

LOUIS I A N A,
doctrin e of subrogation, 5 .

subroga tion in, of late r aga in st prior s uret , 1 84


y .

surety s ub rogate d to original ob ligation on pa m ent, 187


y .

con ven tional s ubrogation in , 250 .

M AINE ,

no rem ed y allowed in, betw een s ucce ssi ve s ure ties , 184 .

subroga tion in , of s ure ty, to satis fi ed j udgm en t, 188 .

M A R IN E IN S U R ANC E S ee Ins tru m e nt


. .

M AR RIED W OM EN S ee H o s s u m A N D Wu
.
'
s.

M A R S H A LLIN G O F AS S ET S ,

not req uired in favorof debtor or h is grantees , 25 .

where wife s pro perty h eld for h us band s debt, 5 1


’ ’
.

26
402 m nzx .

MARS H ALLIN G O F A SS ET S c ontinued .

doctrine of two funds , 6 1 .

j un i or cre ditor subrogate d to prior c red itor s lien , 6 1 , 62


’
.

if his fund tak en to pay prior c reditor, 6 1 , 62 .

p rio r c redi to r req ui re d to e x h a us t fun d e x c lus i vely h is , 6 1 .

w he re prior cred itor h as lie n upon t wo fun ds , 6 1 .

’
for holde rof m ec h an ic s lien , 6 1 .

j
doctri ne not applied if un us t to sen ior c re ditor, 68 .

nor un less fi rst fun d s uflic ie n t to s a tisfy h im , 68 .

or if fi rst fund a va i la ble on ly by litig ation , 68 .

j
or if rec ourse to a no th e r uris d ic tio n necessa ry, 68 .

o r wh e re on e h as o bta ined fun d un a v a ila ble to oth ers , 68 .

i d s ubr o ga ted a ft er prior c re d ito r s atis fied , 68


j un o r c re itor .

whe re prior c reditor h as tak e n un ior liens, 6 8 j .

j
wh en o ne of th e funds sub ec t to prior inc um brances , 64 .

th ough purc h ased by prior c reditor, 64 .

j un ior ca n not com pe l pri or cre ditor to resort to ho m estead, 64 .

b ut prior c red itor m ay do so agains t de btor, 64 .

whe n com pelled to d o ao , 64 .

d octrine of two funds for benefit of debtor 64


not a pplied ,
.

j unior cannot m ak e sen ior c reditor redeem from inc um brance, 64 .

not allowed to work in j us tic e to th i rd pa rties , 65 .

n ot m ad e to th e pre j ud ice of purch as e rs 6 5 ,


.

or aga in s t pro pe rty not o w ned b y d eb tor, 6 5 .

wh e re one of th e fun d s pri m arily liable for both debts, 66 .

no s ubroga tion for be n efit o f fun d pri m arily liable , 66 .

a m on g fi rm a nd sepa rate c re di tors . 66 .

lia bility w ill n o t be cas t upon othe r fund , 66 .

cred itor s waive r o f righ t , 6 6 a


’
.

ri gh t m ust be c la i m ed be fore prior cre dito r ac ts 6 6 a .

m ere n eglec t of prior cred ito r wi ll n ot ad va nce Jun ior, 66 a .

j unior cre ditor m ust n oti fy prior, 6 6 a .

j u n io r c r e d it o r no t s u b r
o g a te d to lie n cre a t ed a ft e r h i s o wn , 67 .

c an n ot co m plain till h is sec uri ty di m i n is hed , 67

on ly to fund wh ich o ugh t to h ave pa id th e debt paid b his


y
fun d, 68 .

lim ited cred itors not to tak e righ ts of general creditors , 68 .

not sub rog a ted to a secon d ary liabili ty, 68 .

wh ere eac h cred itor h as lie n on sa m e fund, 6 8 a .

doctrine of two fun ds a pplie d on ly if de btors are th e sam e , 69 .

does n ot preven t cred itor from holdin g eac h debtor, 69 .

n ot as betwee n two sets of debtors , on e a com m on one, 69 .

p ri o r c r e d it or n o t to b e t h ro w n u pon one d e bt or, 69


.

b ut real debtor m ay be first h eld, 69 .

j un io r c r e d it o r n ot s ub ro ga te d ti ll p rior s a tis fie d , 7 0 .

application of th is sub r o ga tion i n Pen ns lva nia , 71


y .

release by prior credito r of h is prim ary fund , 72 .

will postpone claim of prior cred itor, 72 .


m ns x . 408

MARS HALLIN G OF AS S ET S continued .

waste or m isa pplic ation m e as release , 72 .

not if m ade in good fa ith an d with out n otice, 78 .

or if re m ain ing f un d s ufficient for all de m ands , 78 .

p u rc h aser
’
s fund ex on e ra te d b y re lease of pri m ary fund , 78 .

righ ts of s uccessi ve purch asers of parts of inc um bered es tate , 74 et se


q .

S ee Pun c n a s s a s .

o f d ifi erent sec uri ties , in favor of s urety again st creditor, 1 14 .

in favor of c redito r against s urety, 1 17, 129 .

a m ong cc s ure ties , 141


-
.

a m ong creditors of dec eased r n s 204


p e so , .

in favor of legatees , 208 .

am ong h eirs , devisees , or legum es, 218 .

MAR Y L AN D ,

i b ution
no co ntr in , betwee n prior and later sureties , 18 4 .

sure ty on paym ent en titled to b e n efi t of origin a l obligati on, 187 .

sure ty subrogated aga inst co s ureties in , 18 7


-
.

MAS S A C H USET TS ,

wido w s dower in in c um bered estate, 5 2


’
rules as to .

no re m edy allowed betwee n pri or and la ter sure ties , 1 84 .

origi na l obligation ex ting uis h ed by s urety s paym en t , 1 8 8


’
.

judgm en t n ot to be ass ign ed to on e d ebtor on h is paym ent, 188 .

surety h ow fa r s ub rogated aga inst h is co s ureties , 140 -


.

righ t of cred itor to sec urity of sure ty wh o is a lso a cred itor, 1 5 6 .

rule as to m ortgagee s ins urance i n , 28 4


’
.

M AX IM ,

sic m ere tuo ut alien a m n on lwd as , 4 .

M EC H A NIC S LIEN
’
,

m arsh a llin g of assetsfor pro tec tion oi , 6 1 .

h old er of, not sub roga ted to own er s ins urance , 28 8


’
.

MER GER ,

wh en c aused by paym ent by on e n ot th e d eb tor, 1 8 .

w h e n no t ca use d by re lease of m ortg age to m o rtgagor, 22 .

by ass ignm ent of m ortgage to a purc h as e r of th e prem ises , 26 , 8 7 .

not ca used by q uitc laim of m ortgage to purc h ase r in fraud of cred

i tors, 40 .

c re ated or n ot by assignm e n t, as req uired by jus tice , 47, 49 ci se


q .

O
wh en pe ra ted by s ale of eq uity to m ortgagee , 49 .

b y ass ign m en t of m ortgage to owner of eq uity, 5 8 cl seq .

j
accord in g to us tice a n d in ten t of pa rties , 5 8 .

p rev e n ted by i n te r ve n in g inc um b r a n ce , 5 8 , 5 7 , 60 .

te s ts by wh ich determ ined , 5 4 .

n o t pres um e d , if contrar to i nterest, 5 4


y .

or w h ere inte res t h eld in d ifi e re nt righ ts, 5 4 .

p re ve n te d o n ly f or in n ocen t u
p pr o s e , 5 4,
5 5 .

j
not prevented to pre udice of bone fi dc purchaser, 5 5 .

though disch arge taken , 5 5 .


404 m u .

MER GE R c ontin ued .

o erated
p if so in tended at ti m e of paym ent , 5 5 .

by ass ignm ent to principa l debt or, 5 6 .

or to age nt ( if pri nc ipa l debtor, 5 6 .

or to purc h aser c h arge d w ith in c um brance, 5 6 .

o wn er of eq uity esto pped from c lai m ing, 5 6 .

not c rea te d by as sign m e nt to d e b tor as trus tee, 5 6 .

by conveyance of eq uity to prior inc um brancer, 5 7 .

r ven ted b y express agreem e n t, 5 7 , 5 8


p e .

d eterm in ed by in te nt o f pa rties , 5 7 .

rete ntion of evide nc e o f d e b t is e vi d e nce against m erger, 5 8 .

where ca ncella tion o f prior i nc um b rance procured by fraud , 5 8 .

whe re purc h ase of e q uity is a voided , 5 8 .

w he n m ortgage deb t pa id by c onveyance of eq uity to m ortgagm


-

in Massach usetts th e inte nt to pa y m us t a ppear, 5 9 .

els e wh ere th e c ontra ry inte nt m ust appea r 5 9 ,


.

ro t n to, ope ra ted by co n veya n c e of pa rt of eq uity, 5 9


p a .

c fi ect of co n veya nce of eq uity to sa ve fo rec los ure, 60 .

w h en prior i nc u m b ra n ce postpo n ed by s uc h conveyance, 60 .

not pres um ed w h ere th ere is in terven in g c h arge, 60 .

unless in te rve ning c h a rge c rea ted by sa m e o wn er, 60 .

operatin g d isch arge of sec uri ty, 1 5 7 .

MICHIG A N ,
origin al ob liga tion preserve d in eq uity after surety s pa ym ’
ent, 187 .

MIN N E S OT A ,

origin al ob lig ation pre se rved in, after surety s


’
p y
a m en t , 1 87 .

M IN O R S ee In s a n e r
. .

M IS S IS S I PPI ,

s ubrogation of sh erifi or h is sureties lim ited ia , 90, n 5 . .

efi ect oi s urety s pa ym e nt on origina l indeb te d ness, 18 7


’
.

j
s ubrog ation to udgm e nt against princ ipa l, 18 7 .

righ t of c re ditor to sec urity of s ure ty who is a lso a cre di tor, 1 5 6 .

no contribution a m ong spec ific lega tees for com m on c har e, 218
g .

MI S S OU R I,
sub ro g ation o flater against prior sure ty, 18 4 .

subroga tio n pro ta n to allowed in , after partial paym ent, 127 .

origi n a l obligati on k ept alive after sure ty s paym en t , 18 7


’
.

MI S T AK E ,

s he rifi sub roga ted j


to ud gm ent paid under, 7 .

o gation of one wh o h as paid inc um b ra nce under, 19


subr .

of one wh o h as s urre n d ered m ortg age und er, 20 .

of o ne ta k i ng disch arge in ignorance of oth er incum brance, 29 .

of lega tee for m oney ad vanced un d er, 218 .

M OR T G AGE . S ee In c on s nu c n ; S o cc s s s m C um s .

pr ior n ot s ubs ti tuted ag ai ns t s ubse q ue n t m ortgagee , 8 .

to pri ncipal , exti nguish ed by age nt s pa ym ent of debt, 5


’
.

h olde r of i nvalid, subrogated to ch arge which it h as paid, 8 .


n mu . 405

M ORT GAGE c ontin ued .

one a i
p y gn n ote s ec ured by, sub rogated to, 8 .

disch arged, will n ot be re vived for ben efi t of later m ortgagee, 8 .

s ubroga tion to , of on e h a ving j unior i n te res t, 12 .

a
p y m e O
n t of ,
p e ra tes d isc h arge or eq ui tab le assi nm ent , as ustice 18
g ,
j .

s ubordi nate interes ts m ay re dee m fro m , 14 .

j
debtor not relieved by un io rc re ditor s paym ent, 1 5
’
.

d ecree for forec los ure oi , h o w far a bar to subrogation, 18 .

subr o ga tion of one ad va nc in g m oney to pa y, 19 .

o f o n e pa yin g at deb tor s re q uest, 19 , 20


’
.

i i f n ew, for sa m e d eb t sec ured b ld 20


g v n g o y o , .

disch arge of, wh en set as ide, 20, 5 5 .

j
levy of exec ution npon lands s ub ect to, 21 , 22 .

rights a nd liabilities of purch ase rs of la n d sub ec t to, 22, 28 a seq j .

ass um ptio n oi , by purch aser of es tate , 24 .

sub rogation of m ortgagor upon pa ying , 24 et seq .

action upon notes sec ured b y , taken up by gra ntee sub ec t to, 26 j .

sub roga tion upon estoppe l of m ortgagee , 29 .

m ortga gee no t com pelled to e lect be tween rem edies, 25 .

S ee Po a c n a s s n .

foreclos ure of prior, by one of several c o m ortgagees , 27 .

q ui tc lai m g ra n te e of m o t
r g g
a o r b oun d by , 8 7 .

p ur c h as er u n d e r, s ub ro
ga te d t o lien oi , 8 1 .

h e]der of invalid, subro gated , 8 6 a .

real debtorcan not b e subro gate d to , 46 .

assum ption oi , preven ts s ub rogation against, 46 .

wh en m erp d by assignm ent to own er o f eq uity, 5 8 et seq .

S ee Mim o s a .

efi ec t of relea se of, upon subsequent m ortgage es , 72 et seq .

snb rogation of purc h ase r of part of estate subjec t to, 74 et seq .

successive of d ifi e ren t pa rcels , efi ect of, 7 5


,
.

efi ect of partial rele ase of, afte r co nveyanc e of a noth er part, 78 .

subseq uent gran tees of es ta te bound to notify holder of, 8 1 .

rem edy of m ortgagee against one as s um in g, 85 .

subroga tion of sure ty to be nefit oi , 86 srs eq .

S ee a c rp a r A N D S
. TY URE .

exti ng uish ed upon paym e nt by principal deb tor, 116 .

to gove rnm en t , subrogation of holders of bonds , 167 a .

forec losure of partly paid by surety, subrogation upon, 128 .

subrogation of cc purc h ase r of estate sub ec t to, 172 at seq


-
j .

S ee Jo w r Ds n ro ns
'
.

in dorser of note secured by, di sc h arged by release oi, 182 a .

pa ss e s b y tr a ns f e r of d eb t, 1
. 8 5
insurance between parties to, 28 8 et seq .
406 m on .

N EBRA SK A,
i gin al obligation preserved after s urety s paym ent, 187
’
or .

sure ty m ay h ave j udg m ent assigned to hi m self , 187 .

NE C ES S ARIES . S ec IN F AN T .

NEGLECT,
of sh erifi to levy executi on , wh en ground of subrogation , 7 .

of purch aser to record de ed no ba r to sub rogation , 9 .

p j
re u di c i ng o th e rs is a ba r to s ub roga ti on , 48 .

of prior c re d itor wi ll not ad van c e j un ior, 66 a .

of sure ty, h ow fa r a w ai ver of his s ubroga tion, 1 10 .

of c reditor a bo ut sec urity, h o w far disch arge s s urety 120 a . seq.

o f b an k , ind orser s ubroga ted to ac tion for, 18 1 .

NE V A D A ,
origi nal obligation exti nguis h e d by surety s paym e nt, 188
’
.

N EW H AM PSH IRE ,
origin al obligation not ex ti nguish ed by surety s paym ent, 187
’
.

s urety subrogated to pending attach m ent aga ins t pr i ncipa l, 187


NEW J ERS EY ,
s ub rogation of lessee redee m ing from pr i or m ortga ge , 14 .

sure ty s ub rogated to original obliga tion in, 18 7 .

w ard not subs tituted to m ortg age give n by guardia n to surety, 166 .

rule as to m ortgagee s
’
ins ura nce in , 28 4 .

N EW Y O RK ,
origin al ob liga tion not ex tin g uish ed by surety s paym e nt, 187
’
.

righ t of creditor to sec urity of sure ty wh o is also a creditor, 15 6 .

sub rogatio n of an ac com m od a tion accepto r, 19 9 .

rea l es ta te of dec eased first appli ed to pa y m ortgage , 21 1 .

N OR T H C A ROLIN A ,
surety on a t m a y dem and assign m e nt to a trus tee , 1 87
p ym e n .

without s uch assig n m e nt, origina l obligat ion exting ui sh ed, 187 .

ri gh t to be enforced i n sepa ra te ac tion , 187 .

j
does not ex ten d to m ere oin t debtor, 18 7 .

NOTES A N D B ILLS ,
s ubroga tion upon p y
a m e n t of c h eck , 4
.

sub roga tion of o ne le ndin g n otes as s urety, 8 .

due to princ ipal, e xti n g uis h ed on pa ym e n t by agent, 5 .

g u a ra n to r oi ,
s ub r o ga te d o n a
p y m e n t to ri gh ts of h old e r, 87
i ndorse r oi , not s ubro ga ted to lien paid from proc eeds of, 96 .

g iv e n b yp e rso n a l re p rese n t a ti ve, righ ts of s ure ty pu o n , 1 00 .

s ure ty who h as paid , ca n n ot reiss ue, aga ins t pri n cipal, 105 .

surety of secon d s ub rogated ag s i ns t firs t indorser, 108 .

suret o n n e w n ot s ub rogate d to sec urity for old , 1 1 8


y , .

u r to r f in d ors er, h o w fa r s ub roga te d, 1 18


g a a n o .

indorser of, entitled to m arshal se c uri ties gi ven for, 114 .


m on . 407

NOTE S AN D BILLS —contin ued .

d uty of ba nk to apply deposits of principal upon, 124 .

in dorse r not s ubrogated upon partial paym ent, 127 .

surety upon, m ay ta k e up a nd 187 sue , .

p y
a m e nt b y i n d orser s tOps s ui t a g a i n s t m ak er in Georgia, 187 .

ex tin guished in N evada by s ure ty s paym 18 8


’
en t , .

rule in C aliforn ia , 1 8 7 .

i not e n ti tled e ach othe r s 1 5 0 ind em n it


’

part es to, to y ,
.

prom i se by secon d i n d orse r to a l


pp y i n de m n ity to p ya , 1 50 .

success ive acc om m oda tion parties , not co s ure ties , 15 0 -


.

wh ere fi rst in dorse r k ept q uiet by sec ond, 15 0 .

sec uri ty h eld by one un der c on tingen t lia bility upon , 15 7 .

holder ca n not re ach indem nity of i ndorser wh ose lia bility n ot fixed ,
15 7 .

suc h in de m nity un a vaila ble un til ind orser da m n ified , 1 60 .

un less it be sec urity for pa ym e nt of note , 160 .

sub ro gatio n o f in dors er upon h is pa ym ent, 18 1 , 1 82 .

pa rtia l p y
a m e n t by i n d ors e r, n o d e fe n c e to prior pa rti es , 1 8 1 , 1 82 .

j
in dorser re m ai n s s ure ty after oini ng in bo n d with m aker, 18 1 .

subrogated agai nst ba nk for its neglige n c e , 1 8 1 .

subrogatio n of joint indorse rs re fuse d , 18 1 .

m ak ers of, n ot e n titled to ben efit by indorser, 182


of p y
a m e n t .

in dorser sub rogated to pro of in ba n kruptc y, 182 .

indorser subrogated as sure ty, 182 a .

also accom m odation m ak er, 1 8 2 a .

trm sferee of bona j d a h old er s ubs tituted to his righ ts , 188 .

th ough him se lf ch argea ble wi th eq uities , 18 8 .

in dorse r not subrogated against h is o wn fa ult , 188 .

subroga tion of ac ce pto r supra protes t, 1 84 .

h is righ ts an d lia bilities sam e as indorse r s , 1 84


’
.

transferees oi , en titled to sec urities he ld for pa ym en t of, 18 5 .

indorse m ent of m ortgage note passes m ortgage , 1 8 5 .

h older of sec urity can n ot d isc h arge it aga inst th em , 18 5 .

th ough origin al holde r could not h ave e n forced it, 1 8 5 .

unless they tak e note overd ue or w ith n otice , 18 5 .

n ot always s ub roga ted to ve ndor s li en , 1 85


’
.

rights of a stranger upon paym e nt of, 186 .

no s ubroga tion for h im , 18 6 .

wh e n h is pa ym e nt m ay be re voke d 186 , .

ra tifi catio n of stra nger s pa ym e nt, 1 8 6


’
.

one wh o h as agree d to be h old en n ot rega rd ed as strange r, 1 86 .

strange r will be dee m ed purch as er if so inte n d ed , 1 86 .

holder oi , entitled to sec urity given by one party to a noth er, 187 .

even th ough disc h a rged by no m i n al m ortgagee , 18 7 .

m us t be sec uri ty give n for pa ym ent oi , 18 7 .

availab le to h olde r n po n i nsolvency of parties , 1 8 7 .

holder ca n c laim indem nity of pa rties on ly upon i nsolvency, 188 .

accom m odation parties not cc s ureties, 188 -


.
408 nm s x .

NOT ES A N D BILLS — contin ued .

indorser s in dem nity di scharge d by his release, 188


’
.

wh ere bill m ade a lien upon a con sign m ent, 189 .

r
p p yp
o er t asses to i n d orse e, 1 89 .

on fra ud ule nt bill of lad in g , 18 9 a .

h olders m a y res ort to securities held by ac ceptoragainst , 190 .

w here security i ns ufficien t, 1 90 .

a ll prior pa rties s ub rogated to such securi ties, 19 1 .

i ndorser disch arged by releas e of security , 19 1 .

r
p p y
o e rt i n sec ur i ties g iv e n b y d ra w er t o a cc ep tor , 1 92 .

j
rem ai ns in dra wer, sub ect to trust for paym ent of bills , 192 .

wh ere security held by one under no liabili ty , 19 8 .

h older ca nno t c laim it, unless appropriated to bill, 198 .

w hat is s uffic ien t appropria tion , 1 9 8 .

extent of h o ld er s righ t to acceptor s sec uriti es , 1 94 , 1 98


’ ’
.

yie ld s to p ri or cr edi to rs o f d ra w e r a nd acce t or, 194


p .

j
s ub ec t to genera l lie n of ba nk e rs , 194 .

holder s right no grea ter th a n th a t of dra wer, 19 5


’
.

ca nnot appropria te sec urity if d ra wer c ould not, 195 .

ca n not pre vail again st bona fid e purch a ser, 1 9 5 .

letter of advice not snfi ci en t appropriation , 195 .

holder s righ t parishes with th a t of th e give rof th e security , 196


’

th ough bill tak en on cred it of th e sec urity, 1 97 .

unless bill operates eq uitab le assignm e nt, 197 .

holder ca n c laim only righ ts of ac ceptor 19 8 . .

can claim acc e ptor s i nde m nit onl on his insolvency, 198
’
y y .

righ t of acc e ptor to security h eld by prior pa rties, 199 .

not en titled to i t unles s b a ree en t 1 99


y g m , .

th ough a n aecom m odation accepto r, 199 .

but m ay h ave hold er s security in Ne w York , 199


’
.

acceptor s se c urity is for all ac c epta nces al ik e 200


’
.
,

those who rea lize fund ind em nifi ed for expenses, 200 .

a nd m ay com pe l o th e rs to realize th eir sec ur i ti es , 200 .

h older of ch ec k h ow far sub roga ted 200 a , .

wh e n ch eck d ra wn against w h ole of spec ific fund , 2000 .

wh ether, ex tinguish ed upon paym e n t by ind orsers , &c , 201 . .

j
if se pa ra te udgm ents agai nst m aker an d in dorser, 201 .

in dors er m ay tak e ass ig nm ent agai ns t m ak er, 201 .

or be sub rog a ted w ith out ass ignm ent, 201 .

lim ita ti on s of th e sub roga tio n, 201 .

drawn in favor of laborers no subrogation to th eir lien, 246


, .

when one payi ng, regarded as eq uitab le assignee , 246 .

N O I I CE,
' '

j
to unior, of waive r of righ ts of i
incum brancer, 17
pr or,
.

n o subrogation again st u r h r w ith u t 17


p c ase o , .

pu rc h ase r wi th s ub r
o g a te d to rig hts of cr e di tor wi th out, 8 1 .

not esse n tial to ri h t of subrogati on , 42


g .

h ow far necessary to m arshalling of assets , 66 a .


m ax . 409

NOTI CE con tin ued.

to prior c reditor, of righ ts of j unior, 72 .

to agent of prior creditor, 72 .

j
of un ior i n teres t m us t be gi ven to prior creditor, 78 .

of rig hts of prior pnrch aser of part of m ortga ed estate , 75


g .

to m ortgagee, of subse q uent conveya nces of prem ises, 8 1 .

m ore recordi ng of subseq uen t con veyances n ot sufi cien t 8 1


, .

un less spec ial d uty to ex am ine record s , 8 1 .

b ut k nowledge of attorney in th at m a tter is , 8 1 .

p o ees i f s ub u t g antee is no t, to prior inc um brancer,


r
gi
on o se q e n

of righ ts of creditor by record of m ort a e to surety, 15 5


g g .

OFFIC ER . S ee Cou xc roa ;


'
Pos r On'
-
xc s ; S a nm rr .

OH IO ,
origin al obligation m ay be preserved after suret
’
y s p y
a m ent , 187 .

ORD ER S ,
p y
a m ent of, wh en s ubroga tes to original ri h ts ,
g 246 .

PARENT ,
n ot s ubrogated for expense of s upportin hild 8
g c , .

son s ubrogated upon paying de bt oi, in So Can , 187 . .

PA R T N ERS H I P,
m a rsh allin g of as se ts am on g credi tors of, 66, 69 .

s ubroga tion of one partner s cred itors , 69


’
.

sure ty of on e partn er not sub roga ted agai nst firm , 1 18 .

righ ts of s ure ty both of o ne pa rtn er and of fi rm , 1 1 8 .

sure ty of, s ub rogated to bonds give n by one partner to another, 168 .

sub roga tion a m ong th e partn ers , 17 1 .

right exte n ds to th eir c redi tor s an d legatees , 17 1 .

credito rs substituted to sec urity of part ners , 17 1 a .

an d to agree m e n ts of retirin g partn er, 1 7 1 a .

action on pro m ise to pay d eb ts of old firm , 171 a .

PAY M ENT ,
obliga ti on extinguis he d b y, k ept ali ve by subro ation , 2, 28
g
O
.

wh en , pe rates ext inguish m e nt , 8 .

essenti al to subroga tion , 8 , 5 , 6 , 45 , 89 , 1 18, 127 .

m ust be co m pulsory, 8 , 1 1 .

of d ish onore d c he c k , s ub roga tion upon, 4 .

by agen t, of de bt d ue to pri nc ipal , exti nguishes it. wh en , 5 , 10a .

if not m ad e under ob li gation, 5 .

by sh erifl , of execution for which he has becom e liable , subm gates


h im , 7 .
410 m on .

PA YMEN T contin ued


.

of a n in c um b ra nce, whe n a gr ound of subrogation , 8 .

of th e d ebt of anoth er, wh e n s ub roga tion follo ws, 9 .

by b ank depositor, ground of s ub roga tion , 10a .

by agen t , when will sub roga te h im , 10 a .

by a ttorney, gro und of sub rogation , 10a .

wh eth er, operates extin g uish m en t of de b t or subrogation , 1 1 .

j
of pri or in c um bra nce , will s ubrog ate un ior cre di tor, 12, 15 .

to a ttorn ey, s ubroga tion upon , 15 .

of carrie r s c harges, w ill s ub roga te sh e rifi to h is li en , 12


’
.

of m on ey d ue upon m ortgage , by o n e n ot th e debtor, 18 .

of m ortgage by one en titled to red ee m , 18 .

by o ne whose ti tle it m igh t h a ve de fea ted , 14 .

m us t be m ad e i n full be fore s ub rogation, 1 4, 19 , 25 , 70, 88 .

j
by un ior cre ditor, w ill not relie ve de btor, 15 .

o n prior in c um b ranc e, goes to b e n efi t of unior m editor j , 17 .

rig h t o f j unior to in sist on payin g prior c re d itor, 18 .

of i nc um bra nce r with m oney ad va nc ed by a noth er, 19 .

subroga tio n aga ins t one re q ues ti ng , 19 , 20 .

of o ld m ortgage by ne w , 20 .

j
by purch ase r un der a un ior lie n, 21 , 22 .

of m ortga ge by m o rtga go r, wh e n no extin uis h m ent, 22, 24 a seq


g .

wh en m ortgage ass um ed by an oth er, 24 .

j
by one wh o h as purch ased sub ec t to it, 26 .

by a purchase r of th e pro perty , 28 et seq .

S ee Po n c n a s s n .

m ad e for the protection of on e s in teres t will subrogate h im , 88 , 8 5


’
.

b y purch ase r of property, of debts ch a rgea ble upon it, 8 5 .

by h olde r of in valid ti tle , 8 6 a


.

of i nc um b ra n ce m ad e by purc h ase r i n fra ud of credito rs, 40 .

o f d ebt by purc h aser i n h is own w ro n , 44


g .

by rea l de btor no ground of s ub roga ti on , 46 .

by one wh o h as ass um e d inc um b ranc e, 47


of prior in c um bra nce by d o wrem w i ll s ub ro ate her, 48
g .

b y a n oth er, efi ec t oi , upon dowe r, 49 et seq .

by on e bo un d to pay de bt, e xtin guis h es it , 50, 5 2 .

by owner of eq uity, wh en a n extinguish m ent, 58 a seq .

S ee MERGER .

by con veya nce of eq uity of rede m ption, 5 8 , 59 .

of prior cred ito r out of fun d pled ed to unior, 6 1 a se


g j q .

S ee M a ns n s nm n o o r A s s a re '
.

by surety, e ntitles h im to subrog ation , 8 6 et seq .

d oes not ex tin guish sec urities as to de btor, 87


in full, n ec ess ary to s ure ty s subrogatio n , 89 , 1 18 , 127
’
.

surety s ubrog a te d be fore , n pon pri n ci a l s insolve nc , 97


’
p y
Ope ra ted f o r s ure t b
y yp r i n c i pa l
’
s-
s e t o fi , 101 .

by s urety , cred itor can not d isc h arge sec urity after, 108 .

n eed not h a ve been coe rced on exec ution 1 10


, .
m nnx . 411

indebted n ess to principal necess ary to surety s subrogation , 1 12


’
of .

of debt by pri nc ipa l ex tinguish es security, 116 .

o f in depen d en t claim to de btor will not disch arge surety, 128 .

by pri ncipa l, wh en no discharge of s urety, 128 .

by pri nc ipa l, m ad e afte r, by sure ty, 125 .

need n ot c om e wholly fro m sure ty, 1 28 .

by s ure ty, how far ex ting uish es origin al ob ligation , 185 18 8 -


.

by indorser of note , efl eot on s uit pe n din g against m ak er, 187, 182 .

w hen , en ti tles th ird person to surety s ind em nity, 18 9


‘
.

sub rogation of s ure ty ag a ins t h is cc sureties , upon , 140 a seq


-
.

S ee C o s ua s rm s -
'
.

by a co surety, tak en at m oney value , 1 5 1


-
.

j
upo n , sub roga tio n of oint d eb tor aga inst th e oth ers, 169 a seq .

S ee Jo w r Dn s ro as ' '
.

b y one debtor, h ow far an e xti nguish m ent of debt, 180 .

by indorse r of note , subroga tes him to rights of payee , 18 1 .

m ak er n ot e ntitled to be nefi t oi , 1 82 .

by prior pa rties , s ubseq uen t pa rties h ave benefi t oi , 182 .

of note by stra n ge r, 1 86 .

of b ill, by prope rty appropri a ted th erefor, 1 89 cl seq .

of d ebts of deceas ed , personal represe nta ti ve sub roga ted upon,

by legatee , a ground of s ub rogation , 208 , 210 .

of loss by in sure rs en ti tles th em to s ubro a tion , 221 st seq


g .

of d ebt b y a s tran er e xtin uish es it , 1 , 240


g g .

in full, esse ntial to convention al sub roga tion, 248 .

ac ti on for, ca n not coex is t with sub roga tion, 249 .

PENN S Y LV A NI A,
purc h as er subroga ted to deb t ass um ed b y hi m 85 . .

judgm ent not exti ng uis hed by s ure ty s paym e nt, 187
’
.

PLED GE . S ee m ; S nc m u rr
'
.

POLIC Y . S ee In s ua a nc z .

POS SES S I ON ,
o f s ubse q uent ur h r n t ti to ri r i u branc er 8 1
p c ase , o n o c e p o n c m ,
.

POS T O FFI C E,
-

s ub roga tion of letter ca rrier, 10


-
.

PRA CTI C E,
s ubroga tion to be carried out wi th e uitable discr e ti n 4
q o , .

not to be e nforced a a inst le al ri h t , 4


g g g .

of sh erifi upon payi ng a ud m e n t , 7


g j .

of attorne t ri h t f l i t 10
y o g s o c en , a .

burden of proof on one clai m ing s ub roga tion , 11 .

how far b arred by dec ree of forec los ure , 1 8 .

two co m ortgagees m ay red ee m fro m th ird, wh o holds prior


-
m ort

g g
a e , 27 °

rem edies of purch aser under decree of foreclosure 80, 8 1


, .
412

PRA CTI CE continued .

S ec Wa m a
9 .

when righ t of subrogation gives right to assignm ent, 45 .


re m e dy of purc h aser of pa rt of la n d subject to lien, 88 .

surety subroga ted before paym e nt if de btor insolvent , 97


allowed bene fit of principa l s se t ofi or defence , 101
’
-
.

allo wed writ of error on j udgm ent against principa l , 101 .

m ost elect between subro gat ion and re m edy a t law, 1 10 .

m a y in eq uity com pel paym en t of de bt by principal, 180 .

eq uitable righ ts of, 18 0a .

righ ts of sureties on s ucc ess ive appea ls , 18 1 .

S ee S o c c nss rv z S us a n na .

whethe r origi nal de b t ex tinguis h ed by surety s paym ent, 185 18 8


’ -
.

eq uity en forces righ ts to cc s ure ty s sec urity , 140 c l seq


’
-
.

j
wh eth er exti ng uish ed by one oint debto rs paym ent, 180
'
.

subs titution of credi tor to sec urity held by s urety, 15 4 et seq .

s ub roga tion of accom m oda tion acceptor, 199 .

cre ditors of de visees, ho w subr o ga ted , 212 .

insurers m ay bring libel i n o wn n am es , 221 .

subroga tion of ins urers aga ins t fire in nam e of insured , 229 , 280 .

m ode of enf orc i n g th eir rem edy, 28 1, 282 .

ac tion upon policy procured by m or tgagor for m ortgage s , 286 .

PREFERENC E . S ee Pm om n .

PRIM A R Y FU N D . S ee Ma a s n a nnm o or Ass ure .

PRIN C I PAL AN D A GEN T . S ee A G I N CY .

PRIN C IPAL AN D S UR ET Y ,
sub rogation of surety by c i vil la w , 2, 8 , 5 .

s urety no t s ubrogated if his cla im ba rred at law, 4 .

s urety of tax collec tor s ubrog a ted , 7


-
.

s ub roga tion of one w ho h as lent h is n otes, 8 .

of agen t bo und as gua ra n tor or s urety, 10a .

s ub rogatio n not confined to ca ses of s ure tyship, 11 .

s urety pos tponed to on e whose m oney has paid prior lien , 19. 30 ‘

action agai ns t prim a ry for bene fi t of s ubs idia ry de btor, 28 .

m ortga go r re arded as s ure t f w h o h as a s sum e d m ortgage,


g y o o n e

24, 25 .

p rin c ip a l beco m i ng surety 25 , .

s ure ty entitled to assi nm ent, to ca rr out his subr o g ati o n


g y ,

sec uri ty m e rged b i t t ri i l r hi t 5 6


y ass gn m e n o p n c p a o s ag e n , .

appa rent pri nc ipal wh en reall sure t , 182 a


y y .

surety s righ t of s ub r l 8
’
o g ation a ains t h is
g pr i nc ip a , 5 .

wi ll pa ss to h is assignees or c red itors, 86 .

and to h is h eirs an d r t 86
g an ees , .

not to be defea ted b r d it r 86


y c e o , .

surety d isc h a r e d if c red itor in terferes with his subro ation 86


g g , .

tak es no greater rights th an creditor had , 86 .


m ns x . 413

PRINCIPAL AND S UR ETY conti nued .

surety s righ t res ults from eq uity ra th er th an contract, 86, 98


’
.

is an eq ui table assign m e nt to s ure ty, 8 7 .

not lim ited to origin al sec urities of c reditor, 8 7 .

relates bac k to contrac t of s ure tysh ip, 87, 102 .

even th ough sure ty did n ot rely upon sec urity , 87 .

i nclud es sec urities tak en a fter s ure tysh ip, 87, 119 .

surety s ubrogate d to priority of c re ditor, 8 8 .

not to pre rogative righ ts of go vern m e nt, 88 .

p re fer re d to d e bt o r
’
s gra n tee ,
88 , 9 7 , 9 8 , 104 , 10 9 .

of trustee s ubr ogated to righ ts of c estui que trust, 89 .

an d to rem edies of trustee, 89 .

of g uard ia n , to righ ts of w ard , 8 9 .

aga inst gua rdian a nd a ll pri m ary pa rties 89 , .

b ut on ly w h en c red itor fully sa tisfi e d , 8 9 .

of c lerk of c ourt , to righ ts of c re d i to rs , 8 9 .

of ad m in is tra tor, to ri gh ts of d is trib utees , 8 9 .

of s he rifi, to righ ts wh ich th ey sa tisfy for hi m , 90 .

of j udgm e nt d ebtor aga i ns t s h erifi , 9 1


-
.

subrogated to rem edy of prior c re ditor, 9 1 .

w h ere s ure ty s loss c a use d by s he rifi s defa ult, 9 1


’ ’
.

lim itation of subrogation agains t sh erifi , 9 1 .

surety s ub rogated to c orpora tion s lie n o n s toc k , 9 2


’
.

d isc h arged if th is lie n a ba ndo ned by corporation, 92 .

but powe r to c rea te lie n not e nough , 92 .

subrogate d, th ough not in privity with principal , 98 .

th o ugh no contribution a t la w, 98 .

a nd for part of debt for wh ich n ot liable, 9 8 .

on bon d , s ubrogated to prior bo nd for sam e deb t. 94 .

a nd to any o th er bond he ld for sam e debt, 9 4 .

sub rog ated to ag ree m en t m a de by c reditor, 9 5 .

of purc h aser, s ubrogated to ven dor s righ t of rescission , 96


’
.

to all re m edies of c redi tor, 9 6 .

but not to those waived by the co ntract, 9 6 .

a nd to lien re ta ined by ven dor, 9 7 , 109 .

b ut n ot to m ere ly person al an d unassignable lien , 97 .

of vendor, s ub roga ted to righ ts of purc h aser, 98 .

an d to purch aser s eq uitab le lien, 9 8


'
.

righ ts of v e nd or beco m ing s urety fo r vendee , 99 .

s urety enti tled to fun ds in h a nds of h is prin cipal, 100 .

sub rogated to property agre e d to be pled ed for the debt, 10 0


g .

a nd to pri nc ipal s m ea ns of ind em n it , 100


’
y .

upon note gi ve n by personal re presentative , ri hts of, 100


g
ex ecutors of s uret subr t d t li l
y o g a e o e n u po n e g y, 00
ac 1 .

righ ts of sure ty in pri nc ipal s se t off or defence , 101


’
-
.

m ay set up es to ppel of form er udgm ent, 1 01


j .

surety is a cred itor of h is pri nci pa l, 102 .

assignm e nt by principal of debt d ue from sur ety, 10 2 .


414 um ax .

PRINC IPAL AHD SURETY contin ued .

efl ec t o f surety s agreem en t eties , 108


’
to exonerate cc sur -
.

s ubrogation of one who pled ges h is proper ty for another s debt, 104
’
.

of wife who h as bec om e sure ty for h er h usband, 104 .

h e r righ ts agains t h is assignee in insolvency, 104 .

extent to which surety s s ub roga tion ca rried , 105 , 1 11


’
.

only so far as needed for h is indem nity, 105


,
.

not to re im burse him for gifts , 105 .

subroga tion of sure ty of s ure ty, 106 .

ho w far carried, 106 .

on ly to ri gh ts of im m edi ate pri nc ipal, 106 .

not aga inst princ ipal wh o h as pa id h is own surety, 106 .

indem nifi er of surety subrogated , 106 .

h ow far c reditors of s ure ty m ay b e s ubrogated, 107 .

whe n sure ty is appare nt princ ipal, 107 .

credito r not to discha rge sec urity after surety s pa ym e nt , 108


’
.

sur ety preferred to oth er c laim s of creditor, 108 .

subroga ti on of surety s i nde m n ifl er, 106


’
.

i nsta nces of sub rog atio n of s ure ties , 109 .

waiver of surety s right of s ubroga tion, 110


'
.

s urety s righ t of elec tio n , 1 10


’
.

lost by lapse of tim e , 1 10 .

not by m ore de lay a n d ta k ing of other security, 110 .

un less rights of oth e rs h a ve ac c rued , 110 .

ho w far barred by lac h es o r neglige nce, 1 10 .

barred by S tatute of Lim ita tion s , 1 10 .

wh en statute begin s to run , 1 10 .

elec tio n of s ur e ty b e twee n s ubrogation and law, 110 .

not lost by contes ti ng valid ity of sec urity, 1 10 .

’
j
surety s s ub roga tion s ub ec t to c re d itor s righ ts , 1 1 1
’
.

righ ts of creditor acc ruin g in ign orance of sure tyship, 11 1 .

wh ere purch ase r s right accrues before s uretysh ip, 1 1 1


’
.

s ure ty s righ t s upe rio r to a ll s ubs eque nt c la im s , 1 1 1


’
.

s ubroga tion refus ed to s ure ty ind e b ted to h is princ ipa l, 112 .

w here s ure ty h as as s um ed paym en t of the deb t, 1 12 .

wh ere sure ty has becom e princ ipa l on ne w obliga tion , 1 12 .

s urety s righ t con fined to con tra c t for wh ich he is s ure t , 118
’
y .

g ua r a n tor o f i ndorser s ub roga te d on l


y to rig h ts of i n d o rs er, 1 18 .

bail of o n e defe n d a nt n ot s ub ro gated against anoth er debtor, 1 18 .

s ure ty on on e n ote no t s ub rog a te d und er anoth er, 1 18 .

sure ty fo r o ne pa rt ne r n o t s ub roga ted against others , 1 18 .

of s h ipm as ter not s ubroga te d aga ins t owners, 118 .

of o ne e xec utor not s ubroga ted against th e other, 118 .

s ure ty s right to m ars h al sec urities , 1 14


’
.

sam e righ t be tween h usb a n d a nd wife , 114 .

sure ty ca n not drive c re ditor fi rs t to se c urit , 1 15


y .

m us t pay d ebt be fore h is righ t acc rues , 8 9 115 .


,

whether subrogated to righ t of d istress , 115 .


416 m a .

PRIN C IPAL AN D S U RETY continued .

o ga ted until
s urety not s ub r wh ole debt paid , 127 .

sub roga tion pro (a uto all owed in Mim onri, 127 .

or wh ere s ubroga tion would com pel re paym ent by cre ditor, 127 .

pri n ci pal c a n n o t objec t c re di to r


’
s n on sa tis fac ti o
-
n , 128 .

p y
a m e n t n eed n ot com e who lly i rom s ure ty, 128 .

need o nly be to sa tis faction of c red itor, 128 .

whe re sec urity held for se veral de bts , 129 .

p a rti al p y
a m e n t of m ortg g
a e b y s ure ty pre a i d o n fo re ela l ue , 128 .

sure ty m ay com pe l pri nc ipa l to pa y debt , 180 .

m ay 00m a pplica tio n of princ ipal s property, 18 0


’
.

m ay h ave dec ree for s ub roga tion on future paym ent, 180 .

ca nnot s ue i n nam e of c re dito r, 180 .

e n titled to wha t eq ui ta ble relie f, 180 a .

a sse ts m ars h alled for h is be ne fit , 18 0a .

un disturbe d pe ndi ng w ri t o f e rror, 180 a .

o ga ted to be n e fi t of h is pri nc ipa l s purc h ase , 180a


’
sub r .

subroga tio n of s ucces s ive sure ti es agai ns t eac h other, 18 1 4 seq .

S ee S uc c ns s w s S un t rm s '
.

wheth er original debt e xting uish ed by surety s paym ent, 185 a seq
’
.

rule in Eng la nd , un de r de cisions an d s tatute, 18 5 .

g ene ra llyp rese rve d fo r s ure ty i n U n i ted S ta t es , 1 8 6 .

s ure ty ta kes righ ts th e c redi tor h ad be fore pa m en t, 18 6


y .

j
not s ubroga ted to fore ign udg m e nt , 1 8 6 .

S tates i n wh ich origi n al de b t preserved for surety, 187 .

S tates in wh ich old En glish rule followed , 188 .

s ub rogation som e ti m es lim ited to indepen de nt secur i ties , 188 .

an d origina l d ebt ext inguish ed by surety s paym ent, 188


’
.

S tates i n w h ich th is rule is adopted , 18 8 .

surety s i n d em n ity d isc harged by h is release , 18 9


’
.

w h en i t will pass to a th ird person , 18 9 .

s urety s s ub roga tion agai ns t h is co s ureties , 140 et seq


’
-
.

S ee C o s ua s rm s
-
'
.

substitution of cred itor to sure ty s sec urity, 15 4 st seq


’
.

S ee S us s rrru rron ' '


.

re lation of , between j oi nt debtors , 16 9 a seq .

S ee Jo w r D nnro a s
'
.

b ail in c rim in al c ases not s ubrogated , 1 68 .

surety of one j
oi nt d e b tor s ubrogated against the other, 178 .

wh at pa rti es to note or b ill are sure ties, 182 a .

surety for pre existi n g debt not s ubrogate d agains t prior r ti


pa es
-

242 .

n ot sub rogated if m istak e of li abili ty, 245 .

P RI O R IN C UMB R ANC E . S ee S ocos s srn CLAM .

PB I O RITY ,
of cre ditor, surety sub rogated to , 88 .

PRIV IT Y . S ee Con ra a c r .
m nnx . 417

PROMI SSORY NOTE . S ee N ou s u r


n Bru s.

PUB LIC OFFIC ER S ee C o nm c ro a ; S us a n s


'
. .

PURCH A S ER . S ec S o c c xs s rvn Cu m s .

p y g
a in i nc u m b ra nce o n p u rc h ase d es ta te, subro gated , 8 , 5 , 9 ,
2 8 .

s ubroga ti on aga ins t, for price , 8 .

a m e n t of m ortgage by on e who h as b argained for pr em is e s 16


p y ,
.

subr o gation not a llowed aga i nst record , 17 .

la te nt eq uity not e nforced agai nst , 17 .

j
of m ortgaged lan ds under unior lie n , rights of , 21, 22 .

j
of land sub ec t to a legac y, s ubroga ted to th at c h arge , 21 .

sub roga tion of origina l d ebtor aga inst , 22 .

n ot person ally li a ble for de bt he h as n ot assum ed, 22 .

of part of an eq uity of redem ption , righ ts of, 22 .

assum i ng m ortgage , m ortga gors ubroga ted agai ns t, 24 .

g r an tee o i , w ith w arr a n ty ,


ri gh ts of, 24 .

righ ts of m ortm ag ainst, as s um in g m ortgage , 24, 85 .

righ ts of m o rtg agoragains t m ortgagee a nd s uch purch aser, 25 .

h ow fa r rights of m ortgage s afiected, 25 .

j
sub ec t to m ortgage , m ortga gor subroga ted aga i nst, 26 .

but not against m ortgagors warranty, 26


’
.

subroga te d upon pay m g i nc um brance wh ich h e did not assum e, 28 .

his righ t of subro gation w ill pass to his grantee , 28 .

rights oi , upon disc a rge of inc um b ran ce, 29


h
of b are e uity, ac q ui res n o in teres t m o th e r securities for debt, 29
'
.

q .

subrogated upon avoidance of h is purch ase, 80 .

un der decree in favor of credi tors sub rogated , 8 1 .

under a m ortga ge or lien subrogated to lien , 8 1 , 88 .

but not if purch ased under adverse title, 8 1 .

with notic e , tak es righ ts of cre di to r with out notice, 8 1.


un der adverse ti tle, wh en not sub roga te d , 8 1 .

how allow ed s uch subro gation in C aliforni a, 8 2 .

ordi narily subr o gated to righ ts of ve ndor, 8 4 .

with notice , takes righ ts of ven dor w ith out, 84 .

sub roga ted upon payi ng d ebts with wh ich pr o perty ch argeable, 8 5 .

subrogated to righ ts of cred itor agains t ven dor, 86 .

righ t of se t ofi aga ins t note s g ive n for price , 8 6


-
.

set o fi m ust b e pro ra ta again s t h old ers of notes, 8 6 .

subroga ted , although title invalid, 8 6 a .

li m itation s of h is righ t of sub rogation , 8 7 .

d oes not tak e ven dor s re m ed y fo r m ore tort , 87


’

not subroga te d to title superior to wh at h e bough t, 87

by quitc lai m , can not defend aga inst m ortgage, 8 7 .

un der ex ec ution sa le subr


-
ogated aga ins t d eb tor, 8 8 .

not if prope r t y recovered by th ird pa rties , 8 9 .

subr o gated wh ere purch ase avoided by vendor s creditors , 40


’
.

not subroga ted aga inst h is own wron g , 44 .

n or aga inst m ortgage wh ich h e h as assum ed, 46 .

or any c harge wh ich boun d to pay, 46 .

27
418 m a .

PUR CH ASER confi ne d .

ass ign m ent in such case tantam ount to discharge, 47, 5 2 .

sub rogation oi , against widow s dower, 49 a u


’

q .

S ee Do wn .

when m ortgage m erged by assignm en t to, 5 8 a reg .

m erge r not preven ted to prej nd ice oi , 5 5 .

S ee ME RGER .

sale of eq uity of rodem ption to prior incum branc er, 5 7 d seq .

not to be prej udiced by creditors m ar s h a lling oi an ots, 65 .


’

of portion o f inc um be r ed es ta te , rig h ts oi , 74 ct seq .

wh en s ub roga te d upon payin g incum brance , 74 .

whe n entitled to no subrogation , 74 .

orde r of liab ility of parcels sold s uccessively, 75 .

effec t of conveyance m ade wi th wa rre n t , 75


y .

righ t oi to cas t b urden on rem a in ing esta te , 75 .


,

a nd on es ta tes of subseq ue nt purc h a sers , 75 .

suc cessi ve m ortg ages h ave sam e efi ec t , 75 .

success ive co nveyan ces to sam e purc h aser, 75 .

conveya nces of undivided in teres ts, 7 5 .

righ t m us t be seasonab ly c lai m ed , 75


K
.

rule varied in Iowa , entucky, a nd Georgi a , 76 .

no distin ction between m ortg age an d other lie ns , 77 .

righ ts of success ive gra n tees of j udg m en t d e btor in Tonnes “, 77


-
.

of parts of la nd ch a rged w ith legac ies, 77 .

disc h arged pro ta s te by release of land prim arily li able, 78 .

secondary fund re leased by re lease of pri m a ry fun d , 78 .

b ut n ot as between real debtor and c red itor, 78 .

or unless it oug h t in j us tic e to be release d , 79 .

wh en pm perty oi , not exonera ted by s uch release, 79 .

wh ere full va lue on ce applied , 79 .

not h avi ng pa id price , m us t co ntribute for s ubs eq uent grantee, 79 .

wh ere s uccessi ve m ort gages follo wed by a bsolute sales, 79.


releas ed b y release of any rem edy to wh ich h e would be subro

ga te d ,
8 0.

by releas e of levy, 80 .

i ncum bra ncer m ust h ave notice of rig hts oi , 8 1 .

m ore reco r d of conveyance no t suc h notice , 81 .

m ortgagor m ay vary orde r of lia bility by stipulation, 82 .

assum ption of m ortgage by, b i nds la nd purc h ased, 82 .

ca n not d ispute m ortga ge wh ic h assum ed , 82 .

sub seq ue nt, sub rogated against suc h ri r ur h ser 82


p o p c a , .

rig h ts of volunta ry grantee against d e btor, 8 2 .

subj ect to m ortgage , m us t contrib ute , 82 .

h aving ass um ed spec ifie d pa rt of m ortgage , 88 .

m ortg agee 3 rights n ot dim inish ed ,


’

purch aser m us t seasona bly e n force righ t, 88 .

exonerated by creditor s acq uiring rem ai ning parcels with


’
notice, 88 .
420 m on .

REC OR D continued .

right of purch as er of part incum bered estate sh own by, 75


of .

of subs eq uen t deeds , m ortg agee not affected by, 8 1 .

unless special duty to exam ine , 8 1 .

disch arge of s ure ty by c reditor s failure to m ak e, 121


’
.

not by fail ure of pub lic ofi cer to m ak e, 121 .

of m ortgage to sure ty, notice of c r editor s righ ts , 15 5


’
.

n o sub rogation t o lie n lost for lack oi , 176 .

R EDEMPTI ON See In c uu s a a n c s MO R TG A G I ; S uc c t ss m
. Ch m
of inc um bran c e , subro gation upo n, 18 et se q .

lim itati ons of righ t of j unior c reditor, 18 .

when incum bere d lands sold under junior lien, 21, 22 .

of pledge by ass ignee in bank ruptc y, 28 .

by co m ortg age es fro m eac h o th er, 27


-

from prior incum b ra nce, cfi ec t of, upon dower, 49 a seq .

right of dam to m ak e, 49 et seq .

S ee Do m
by difi erent o wners of sec uri ties for sam e debt , 172 a reg .

by co tenant , rights npon , 172


-
.

S ee Jo m Dm rrons .

REIM B UR SEMEN T,
of one who has paid ofl prior incum b rance , 12 a reg .

S ee S ucc nss rv s Cu m s .

subrogation allowed only for purpose of ob taining, 21 .

of surety upon h is pa ym en t of debt , 86 cl seq .

S ee PRIN CIPA A N D S L E TY UR .

c re di tor substituted to h is d eb tor s claim for, 167


’
.

but not to his d ebto r s rem edy for a tort, 244


’
.

im plied agreem ent for, avoide d by subro gation , 249 .

RELEASE ,
from prior to j un ior m ortgagee extinguis h es lien 12 .

to on e en titled to subrogation trea ted as assign m e nt , 18 , 14,


of inc um b ra nce fra udule ntly m ade tre a ted as ass ignm ent , 19 .

of m ortgage to purch aser in fra ud of credito rs, 40 .

O
of d ower perati ng estoppel, 49 .

by prior creditor of fun d prim arily liable, 72 .

waste or m isa pplication re garde d as , 72 .

will not prej udice creditor with out notice of j unior interest, 78 .

of pri m ary fun d disc h arges sec on da ry fun d pro ta s te , 78 .

but not as be twee n real d ebtor an d c red ito r, 78 .

or unless it ough t in j ustice to do ao 7 9 ,


.

disch arges purc h as er entitled to sub roga tion , 80 .

if c reditor h as noti ce of purch aser s righ t, 8 1


’
.

of surety by in terferen ce with h is subrogati on , 1 19 et seq .

by in terferen ce with co sureties sub rogatio n , 15 1


-
’
.

g iven to surety for transfer of his indem n it , 15 8 , 1 59


y .
m on . 421

REMAIND ER . S ee Am m u s rna rr
o n or Es u rxs ; Tan n er roa Li n .

REMEDY S ee P A R CTIC E
—
. .

i t
aga ns p rim r
a y fun d , efi ec t of release f
o , 7 , 78 80
2 .

of insured, insurers subrogated to , 221 st seq .

S ALE . S ee Punc m na .

SATIS FA C TION . S ee Pa m nx r .

SEC O N D ARY FUN D . S ee M a a s n a u m o or Asat '


ra .

SE C URITIES S ee In c uu s a a x c n ; S o c c s s s xv n Cu m s s
. .

of creditor, availa ble to party s ub rogated , 2 .

p r ese r ved b y s ub ro ga ti on aft e r p y


a m e n t o f de b t, 1 1 .

s ub roga tion of ass ignee i n ba nk ruptcy to , 28 .

of m ortgages , purch ase r of e q uity acq uires n o interest in, 29 .

ass ignee of deb t sub rogate d to, 8 4 .

tak ing oi , n ot a bar to s ub rogation, 42 .

sub rogati on be tween success ive holders o i , 6 1 .

S ee MA S H A NR LLI G
o r As s s rs .

ob tain ed b y d eb tor, s ubs tituti o n of creditor to , 85 .

of c re dito r, subrogation of sure ty to, 8 6 cc seq .

S ee PR N PA I CI L
A ND S Y URE T .

m arshalli ng oi, for surety aga in st c reditor, 1 14 .

righ t of cred itor to apply, 1 17 , 129 .

sure ty can not com pe l cred itor fi rst to resort to, 11 5 .

of one co s urety , subr


-
o gati on of oth ers to, 140 cl seq .

S ee C o sm m rm s -
'
.

of surety , substitution of cre d ito r to, 1 5 4 .

S ee
g iv en b y oj
in t d eb to rs , s ub rog a tio n to , 1 69 et s e q .

S ee Jo w r Da n ro as ' '
.

for notes or b ills , indorsees entitled to , 18 5 .

S ee N o rs s A N D B um s '
.

S ET O FF,
-

of de m a nd of m ortgagor again st difi eren t m ortgagees , 27 .

of ve ndor s de bt pa id by purc h ase r aga inst price , 8 6


’
.

e nforced pro ra ta ag ains t difi eren t ass ig nees of price , 86 .

of prin c ipal, h ow far ava ilab le to s ure ty , 101 .

of surety s d em an d agai nst princ ipa l, 1 12


’
.

of lo ss a n d ga in upon sec urities , for s urety 1 1 4 , .

of indepe nd ent claim s, c re d itor n eed not m ak e for surety, 128 .

un less princ ipal insolvent 128 , .

SETTLEMENT OF ES TA T ES . S ee An n m s rns n on or
' '
Es u rxs
'
.

S H AR ES . S ee C OR POR A TION .

S HER IFF ,

sub roga te d to j udgm en t wh ich com lled t py 7


pe o a , .

exten t and lim ita tions of righ t, 7 .


subro ga tion of s ure ties of, 90 .

lim ite d i n M iss iss ipp .i 90 , n .

su b r t io n o f d e b tor
’
s s u reties against , 91
og a .

S HIP,
s ubrogat oi n o f ins u r e rs o i , 22 1 et s eq .

ub r tion to m a riti m e l i e ns 8 4 248


s oga .
, ,

S HIPM A S TE R ,
ha il of, not s ubrogated aga ins t owners , 118 .

S OUT H C ARO LIN A ,


surety sub o gate d
r to o rig in al debt upon p y
a m ent, 187 .

and son again st fa th er, 18 7 .

S TATE . S ee Gova m m m rr .

S T AT UT E OF LIMI TA TION S . S ee Lu xu ri ous .

S TOC K . See C ORPO RA TIO N .

S TOPPA G E IN T RA NS ITU,
ofi c er sub ro gated to carriers lien for ch arga 12
‘
’
. .

S TR ANGER .
not sub roga ted npon voluntary p y
a m e nt of a noth er s
’
debt, 1 .

p y
a m e nt of obliga tion by , exti ng uis hes it, 8 .

m ortgage to pri ncipal extinguish ed by age nt s paym e nt , 5


’
.

sub roga tion wh en allowed, 8 .

ca nnot se t up s atisfi ed m ortgage as bas is of title , 12 .

not s ub roga ted by payi ng pa rt of d eb t at d eb tor s re q uest, 19


’
.

sub rogation whe re paym en t m ad e on req ues t, 19, 20 .

voluntary purc h ase rs of de btor s interest n ot subrogated, 89


’
.

son sub rogated aga ins t fa th er in 8 0 C ar , 1 8 7 . . .

i d ebt, m ay h ave security by agreem en t, 155


p y g
a n .

efi ec t of paym e nt of note b y 186 , .

not e ntitled to s ubrogation , 240 .

volun tary pa ym e nt of debt by, ex tinguish“ it, 241 .

no ground of ac tion or of subro ation , 241


g .

so with s urety for pre exis ti n -

g d eb t ag a i ns t pr ior parti es , 242 .

or on e wh o loa ns m oney for paym en t of a deb t, 248 .

unless h e h as a n in terest in its disc h arge , 248 .

or unle ss so agreed or un derstood , 243 .

or unless fraud would be opera ted , 248 .

or h as k ept th e li en alive for h im self, 248 .

s ubroga tion again st infa nt for neces sa ries , 248 .

urch ase of cou o ns on sec ured bon ds b tr r 248


p p y s a ng e , a .

len ding of m oney to pay inte rest on secured bonds , 248 a .

creditor n ot substituted to de btor s rem edy against wrong doer, 244


’ - .
428

S TR AN GER continued .

who regarded as volunteers , 245 , 246 .

not on e wh o was under lia bili ty, 245 .

n or di rector or stock h older to corporation , 245 .

nor c osm ic qua W a i t to trustee, 245 .

nor age ntto principa l, 245 .

n or widow or childre n to d ecease d, 245 .

nor on ep y gi
an to pr otect h is ow n in terest, 245 .

one m istaki ng h im s elf for surety, 245 .

instances of subrogation of one paying debt of another, 246 .

of groo m paying for sh oe in g h orse , 246 .

of clerk of steam boa t pa ying wages of crew, 246 .

of d ra wee payi ng drafts in fa vor of laborers , 246 .

of co unty aga inst its treas ur e r, 246 .

of general agent paying debt of subord in ate, 246 .

of corpor ation payi ng deb ts of its predecessor, 246 .

of one payin g d ebt unde r m istak en idea of liabi lity, 246 .

subrogation of one payi ng debt at instan ce of de btor, 247 .

wh ere th is was intended by th e parties , 247 .

intent in ferred from c ircum s tances, 247 .

not allowed against third pa rties , 247 .

m ore paym ent of deb t not enough , 247 .

subrogation oi, by agreem e n t , 248 ci seq .

will be enforced in eq uity, 248 .

S ee C NV EN O NA TIO L
So s noe a rrou '
.

SUBRO G ATI ON ,
definition an d na ture oi , 1 .

derived from c ivil law, 1 .

applica tion oi , at com m on la w, 1 .

des igne d to sec ure jus tice , 1 .

is in depe n dent of con tract, 1, 1 1 .

of on e payi n g debt which a noth er should have paid, 1, 24 .

not a llowed for volunteers or in term eddlers, 1 , 240 a n o .

or wh ere it would work inj ustice, 1 .

definition in ci vil law, 2 .

who en titled to, 8 .

in sure rs , 8 .

purc h ase r e x tin guish i ng in c um b ra nce on estate, 8 .

co obligor or s urety on pa ym ent of debt, 8


-
.

h eir payin g debts of succes sion , 8 .

cred itor to debtor s rem ed ies, 8 , 1 5 4 et seq


’
.

on e pa ying h is own debt ass um ed by anoth er, 8 , 24 .

py
a m en t es se n ti al to , 8 , 6 , 14, 1 9 , 25 , 45 , 7 0, 1 18 , 127 .

not allowed if against righ ts of oth er creditors , 4 .

wrong, 4, 44
or a gainst on e s own
’
.

wh en a n d for whose benefit allo wed in Louisia na, 5 .

to be distinguished from assignm ent, 6 .


424 m ax .

S UB R O GA TION conti nued .

ives n ly righ ts a lre ady e xi stin g, 6


g o .

sub rogation of she rifi com pelled to pay a j udgm ent, 7 .

of one wh o h as advanced m on ey to pa y in cum brance, 8, 19 .

of one com pelled to pay deb t of another, 9 .

of a ca rrie r, 10 .

of carri er s agent , 10
’
.

ofle tte r ca rrier, 10


-
.

of co nsignee or age nt, 10a .

ral doctrin e oi , 1 1
ge ne .

com pels disc h a rge of deb t b y pa rty ulti m ately liab le, 11 .

allowed only on susta ining b urden of proof, 11 .

wh ere th ere are success ive c laim s on s am e property, 12 cc seq .

S ee S uc c nss rv n C u m s .

of o ne who h as paid 03 an inc um b rance , 13 ci seq .

n ot a llowed aga i nst i nteres t tak en o n faith of record , 17 .

la tent eq uity oi , aga ins t purc h aser, 17 .

allowed only for protection an d re im b urse m en t, 18, 21 .

of one advanc ing m oney to pay in c um bra n ce , 1 9 .

of o ne taki ng n e w incum b ran ce for old , 20 .

allowed only if inten de d or n e c ess ary, 1 9 .

again st corpora tion for m on ey borrowed ultra s ires, 19 .

against one at wh ose req uest m oney pa id , 19 , 20 .

of an d again st a purc h aser un der a j unior lien , 21 , 22 .

of an assign ee in b an kruptcy, 28 .

of m ortga gor paying h is own m ortgage, 24, 25 , 26 .

of and a ga i ns t purc h ase r of inc um be red pro perty , 24 28 at seq -


.

npon estoppel of i nc um b ra nc er 29 .

S ee Punc n a s nn .

of cc m ortgagees against eac h oth e r,


-
27
righ t o i , w ill pass to gra n tee of one entitled to, 28 .

of purc h ase r un d e r d ecree ,


81 .

d to protect one s in tere st, 88


’
upon a
p ym e nt m a e .

not allowed for c la im s w h ich c ould n ot h ave been enforced, 85 .

of on e whose ti tle in valid , 8 6 a .

of purch a se r o f prope rty sold on ex ec ution , 8 8 , 89 .

volun ta ry purc h as er of d ebtor s interest not entitled to, 89


’
.

w aiver of righ t oi , 41, 42 .

righ t oi , los t by negligence pre ud ic ial to oth ers , 48j .

p y
art see k i n g , m u s t n ot b e i n h i s o wn w ron g , 44 .

w hen on e en titled to , m ay req uire ass ignm ent, 45 .

th e real debtor not en titled to , 46 .

d owress entitled to , on paying prior in c um brance, 48 .

of purch aser agains t widow s d ower, 49 et seq


’
.

S ee owns D .

of purch aser, to m ortgage ass igned to him , 58 a 009 .


S ee Ma non .
m ax . 425

SURR O G A TI O N con tin ued .

j
of u ni or c red i tor wh ose fund h as pa id prior creditor, 61 .

S ee MA RS H A LLIN G Ass z rs or
'
.

of c re ditor of one partne r aga inst firm , 69 .

of purch aser of part of i ncum be re d estate, 74 .

S ee Po nc ru ss n .

effect of cre ditors interference with righ t oi , 78 a seq


’
.

in cases of suretysh ip, 86 ct seq .

S ee Pam c rp u a rm S on s “ . .

of c re dito r to r em e dy of s ure ty , 15 4 c i seq .

S ee Suas u ro n orr .

j
am ong oin t debtors , 1 69 et seq .

S ee Jom r Dns ron s


' '
.

am ong parties to bills and notes , 18 1 cl seq .

S ec N 01 3 8 A N D B LS IL .

up o n certifi ca te s of in d eb b dn ess iss ue d b ygo ve rnm ent, 1 88 .

in th e adm in istration of estates , 202 et seq .

S ee A n u m rs ru rro n o r Es ra u s .

under contracts of ins urance , 221 cc seq .

S ec ln s o na n c n .

of strangers, 240 cl s eq .

of stock h older in corporation , 245 .

S ec S rn a n o na s
'
.

conventional sub rogation , 248 et seq .

SUBS IDI AR Y LI ABILIT Y . S ee Pa m c n uu. A N D Sm " ; S ucc u


sm Cu m s .

S UB S TI T UTION ,
of creditor to security held against h is dem and , 8 5 .

to security h eld by surety, 15 4 .

to security held by trustee for surety, 15 4 .

to security given by principal to surety, 15 4 .

security of surety is trust for paym en t of debt, 15 5 .

creditor entitled to its applic ation , 1 5 5 .

m ay be pass ed to stranger payi ng debt , 15 5 .

sure ty s creditors an d gra ntees can not defeat trust, 1 55


’
.

to sec urity of surety wh o is also a creditor, 15 6 .

applied pro ra ts in K
entuck y an d Mississ i pi, 1 5 6
p .

c red itor preferred in N ew Y ork an d Oh io, 1 5 6 .

surety preferred in Massach usetts, 15 6 .

inten t of parties t o be carried out, 15 6 .

creditors righ t m eas ured by th at of surety, 1 5 7


’
.

ca n be en forced only wh en surety s c ould h ave been 15 7


’
.

does not include indem nity given by stranger, 15 7 .

to surety s indem nity not allowed after s ure ty s discharge, 158


’ ’
.

efl ect of transfer of surety s indem nity to creditor, 1 59


’
.

surety m ay apply it to pa ym ent of deb ts, 15 9 .

and cred itor m ay com pel th is applica tion , 15 9 .

to surety s in dem nity allowed on ly on insolvency, 160


’
.
426

S UB S TITUTION c ontin ued .

m ay be di sch arged in m ea n ti m e, 160 .

sure ty wh ile solve nt m ay surre nd er in de m nity, 1 61 .

to sure ty s indem nity allowed upo n insolve ncy, 162


’
.

but sure ty m ust b e deb tor of th e cre ditor, 162 .

and e ntitled to e nforce indem nity, 162 .

surety s indem n ity som etim es trea ted as aeonrity for debt, 168
‘
.

not allowed to prej ndice parti al surety, 164 .

indem n i ty appli ed first to relieve snrety, 164 .

allowed only to sec urity crea ted aga in st de b t, 165 .

instances of credi tor s, 1 66


’
.

to m ortgag e given b y princi pa l to surety, 166 .

to m ortgage given by m ak er to i ndorser of note, 166 .

of ward , to m o rtg age given by g uardian to s urety, 166 .

of credito r to h is de btor s c la im for re im b ursem en t, 167


’
.

to m ortgage given to govern m ent. 167 a .

to sec urity of sure ties , in crim inal recogn izanc e , 168 .

j udgm ent m ust first be obtained against sureties , 168 .

of firm credi tors, to righ ts of re tirin g pa rtner, 17 1 a .

of cre ditors of decea sed , to righ ts of exec utors , 206 .

to rem edy of de btor for a to rt, not allowed to cre di tor, 244 .

S UCC ES S I O N . S ee An x rm s rn a rxon or
' '
Es u ' '
rns .

SUC CES SI V E C L AIMS ,


upon sam e r
p p y
o ert , s ub rogation of pa rties having, 12 .

of jun ior inc um b ra n c er t o prior in c um b ra n c e, 12 .

j
s ub rogation m ad e ac cordin g to us t inten t of parties , 18 .

efi ec t of paym en t of m ort gage by o ne en ti tled to r edeem , 18 .

by one whose title it m igh t h ave defeate d , 14 .

by m ortgagee of lea sehold estate, 14 .

by tenan t for life or years, 14 .

j
by un ior in cum bran cer, 15 .

m ad e to attorn ey, 1 5 .

j
righ ts of unior inc um b rancer in England , 16 .

j
ex ten t of unior incum brancer s righ t, 1 7
’
.

lim itations of h is righ t, 18 .

sub rog a tion of one ad vanc ing m oney to pay incum brance, 1 9 .

wh ere adv ance m ade on new security, 19


refus ed against m arri ed wo m an in Tenn , 19. .

wh ere pa ym en t m ade und er m ista ke, 19 .

agai ns t one req ues tin g paym ent, 19 , 20 .

wh ere n ew m ortgage gi ven in place of old , 20 .

disc ha rge of m ortgage set asid e, whe n, 20 .

sub roga tion of holder under a judgm ent lien , 21 -

j
where incum be re d la nds sold under uni or lien 21, 22 .

subroga ti on of debtor aga in st pur c h aser unde r unior lien, 22 j .

righ ts in m ortga ged estate of success ive attac hi ng creditors , 22 .

subrogation of ass ign ee in bank ruptcy, 28 .

to pledges red eem ed , 28 .


m u . 427

S UC CES SIV E CLAIMS contin ued


.

to securities waived, 28.

righ ts and li abilities of purc h aser of incum bered esh te, 24 a seq .

S ee Punc n a s s n .

rights of eo m ortgagees against eac h other, 27


-
.

subroga ti on a llowed only for re im b urse m ent, 8 5 .

ri or c re d it o r n ot sub roga ted to j unior li en , 8 5


p .

voluntary purch as er of d ebtor s in teres t n ot subrogated , 8 9


’
.

waiver of right of subrogation, 41, 42 .

righ t los t by n eg ligence prej udicing s ubseq uent interests , 48 .

when righ t of subro gation gives rig ht to ass ig nm ent , 45 .

no sub rogation ag ains t inc um b ra nce assum ed , 46 .

or ch arge whi c h pa rty bound to pay, 46 .

in c um brance discharge d by assign m ent to one bound to pay, 47 .

dowre ss sub roga ted on payi ng pri or in c um bra nce , 48 .

efi e ct on dower of paym ent of prior i nc um b ra nce , 49 et seq .

S ee D o wn s .

ex tingnish m en t oi incum bra nce by assignm en t to own erof equi 5 8


ty, .

S ee MERGE R .

efi ect of co nveyance of eq uity in paym ent of prior lien , 5 8, 59 , 60 .

when pri or lien postponed by s uc h conveyance , 60 .

subrog ation of j unior creditor wh ose fund pays prior creditor, 61 .

S ee Ma ns n a nu x o o r A s s a rs .

i d i not subrogated till prior c red itor aid, 70


ju n o r c re to r p .

subrogation of purchas er of pa rt of i ncum bered es tate , 74 .

S ee Po n c n a s na .

S U CCES SIV E S UR ETIES ,


subroga tion oi , ag ains t each oth er 1 8 1
,
.

h ave n ot eq ual ri ghts , 18 1 .

not allowed to surety on suit agains t prior s urety, 181 .

but prior surety subrogated aga inst him , 18 1 .

b ut liable after subseq uent sure ties exh austed , 18 1 .

later cannot cla im indem nity given to prior s urety, 18 1 .

rights of surety for paym en t of a jn d gm e nt , 182 .

s urety for deb t m ay h old surety for j udgm ent, 182 .

wh ere laten snrety is s urety for original sureties , 188 .

surety s ub rogated agains t all h is pri ncipals, 188 .

when prior sureties are princ ipals of ne w s urety , 188 .

exceptions to us ual rule of success ive s ure ties , 1 84 .

i n Louisia na, later sub roga te d against prior, 184 .

sam e rule in Missour i , 184 .

in V irgi nia , subrogated agai nst prior purch aser, 184 .

but n ot ag ainst prior sure ty, 184 .

in Massac h usetts, no rem edy be tween th em , 184 .

sam e rule in Main e, 18 4 .

in Maryland, n o contrib ution between them , 184 .

subseq uen t, n ot cc sureties wi th prior, 15 0


-
.

not entitled to indem nity of prior, 15 0 .


S UCCES SIVE S URETIES c ontin ued .

wh o are co sureties, and who successive sureties , 15 0


- .

righ ts of co s ureties becom ing subseq ue nt s ure ti es, 1 50


- .

SUPER S ED EAS B ON D ,
pri o r s ure ty for de bt sub rogate d agains t surety on , 182 .

S UR E T Y S ee Ps m crru a m ) S o nn y
. . .

TA XES S ee Com oros ; Gova m m m


. ; In s om ni a .

subroga tion of om cer who has paid , 4, 7 .

of surety of ofi ce r, 7 .

u r h as e r s ub o gated to lien of, on i m por


r ted goods, 85
p c .

one bo un d to pay, not to b e s ubrogated for, 46 .

righ ts of co ten an t red eem ing from sale for, 172


- .

TENAN T FO R LI FE, .

m ay redeem fro m m ortgage an d be subrogated , 14 .

sub roga ted against re m ainder m an , 207 a


-
.

TEN A N T FOB Y EARS . S ee Las sa .

TEN A NT I H C OMMON . S ee Jo m r Du m as ; Ponc n a sa n .

T ENNE BSEE,
subrogation refused agai nst wife ih , 19 , n 1 . .

assets m ars h alled in, be twe en firm credi tors, 66 .

righ ts of succes si ve gran tees of ud gm ent d ebto r, 77 j -


.

sure ty upon paym en t enti tled to origi n al obligation, 187 .

th is righ t n ot exte nd ed to m ore oint deb tors , 18 7 j .

TE XA S ,

s ure ty upon p y
a m e n t entitle d to orig inal obliga tion , 187 .

sub roga ted to j ndg m ent an d pen di n ttach m en t 18 7


g a , .

right m ust be s h own in origin a l s uit, 18 7 .

TITLE . S ee Po a c n a s s n .

stranger cannot set up sa tisfi ed m ortgage as basis of , 12 .

j
but unior claim a nt wh o paid it to protec t his ti tle m ay, 12 .

urch aser m us t accept, to h a ve ri h t to rede em , 1 6


p g .

to incum bered prem ises s uccess ive ly attach ed by difi erent credi tors, 22 .

p urc h ase r un der a d v e rse , s ub r


o ga tion of, 8 1 .

righ ts of gra ntee of one h o ld i ng bond for, 84 .

in validity of, n o bar to s ub rogation , 8 6 a .

acq uired on faith of record, n o s ub roga ti on against, 158 .

a nd un de r Statute of Lim itation s , 176 .

T ORT ,

sub rogation to rem edy for, 10 .

of purc h as er to ven d or s rem edy for, 8 7


’
.

indorsee of n ote , h ow far subroga ted to ac tion for, 188 , 201 .

insurers subrogated to rem edy of ins ured for, 222 et seq .

creditor not s ubstituted to debtor s r em edy for, 244


’
.
m ns x . 429

T OWN . S ee Go va m m .

T RA DE,
righ ts of creditors wh ere trust property em b arked in, 206 .

TR AN S FE R . S ee Ass m xn nn r '
.

T R AN SPOR T ATI ON . S ee Ca na a n.

TR U S T,
sec urity h eld by surety is , for paym en t of debt, 15 4 et seq .

T R US T EE,
sub ro gati on of suret
y of 89 .

subrogation of to righ ts of ove rpaid credi tors, 208 .

sub rogation of cre di tors again s t, 205 , 206 .

to inc um b rance wh ich h e h as rem oved , 214 .

for paym e nts m ad e to protec t trus t esta te, 208 , 214, 28 9 .

ces tuis que trustent subrogated aga inst, 245 .

S ee An x m rs rna n on o r Es ra rns ' ' '


.

TWO FUN DS . S ee M a ns m u m o or Ass s rs


'
.

ULT RA VIBE S . See Cons ona n on .

UN DER W RIT ER . S ee In s n na x c n .

UN ITED S T ATE S . S ee Go vz m m nn r.

U S UR Y ,
h ow far a bar to subrogation , 42 .

V ALUED POLICY ,
subrogati on of insurers upon i
p y g
a n am oun t oi, 222 .

V EN DOR AN D PURC H A S ER . S ee Pnnon a s na ; S rorra e a '

T ru m an '
s .

VEN DO R S LIEN ,
’

enforcem ent of after m esn e con veyances , 84 .

surety of purch aser sub rogated to, 9 6 , 9 7, 109 .

b ut not if person al and n n assignable , 9 7 .

ass ign ee of note secured b y, not a lways subrogated to, 185 .

subrog ation of sim ple contrac t credi tor to , 204


-
.

of legatee to , 208 .

of e xec utor to, 210 .

VERMON T ,
surety s
’
p y
a debt ex tinguishes it, 188
m e nt of .

ward subs tituted to m ortgage given by g uardian to surety, 166 .


480 m ax .

V IRGINI A ,
later sure ty subrogated against prior purchaser, 184 .

b ut not against pri or surety 184 ,


.

ori gin al surety allowed no contrib ution from later, 184 .

V OLUNT A R Y C ON V EY AN C E . S ec Pvac na san .

V OLUN TEE R,
will not he sabrogated , 1 .

W AIV ER S ee Es rorrnn
.
'
.

ass ignee s ubrogated by, of creditor, 28 .

of sec urity in ba nkruptcy, efi ect oi , 28 .

to whom available ,
28 .

of sub rogation by takin g d is cha rge of i ncum b ranc e , 29 .

of righ t of subrogation in ge n era l, 41 , 42 .

by elec ti on of re m edi es , 41 .

by con veyi ng property with out setting up claim , 41 .

by agree m ent for difi erent appropriation of property, 41 .

by lapse of tim e, 41 .

tak ing ne w security m ay not be, 42 .

usury i n ne w security is not , 42 .

agreem en t co nsis te n t with s ubro ga tion is not , 42 .

of righ t of h om este ad, efi ect of , 64 .

of right of m arsh alling assets, 66 a .

of purch aser s righ t to h a ve h is lan d sold last fordebt of h is grantor, 88


’
.

by surety, of obj ac tio n to pri ncipa l s assignm e nt of his deb t, 102


’
.

of surety s subr ogati on , n ot m ad e by exonerating h is co sureties , 10 8


’ -
.

no r by agreem e nt to reconvey sec urity to principal, 104 .

of s urety s righ t of subroga tion , 1 10


’
.

wh a t is and wh at is n ot, 1 10 .

of s ubrogation a m on g co s ureties , 1 47 -
.

of d evise upon con dition , sub rogation npon , 220 .

of rem edy at la w , by con ven tio na l s ubrogation, 249 .

W AR D . S ee G UA RD IAN .

W AR RAN TY ,

gran tee with , of m ortgage d p p ty, righ ts of,


r
o er 24, 28 .

o ne can not be subrogated against


his , 46 .

liability of pa rts of incum be red prem ises conveyed with , 75 .

rights of grantees without, 77 .

b reach oi , to principal, how far a defence to surety , 101 .

W A ST E ,

responsible for each oth er s ,


’
cc -exeenters not 202 .
INDEX . 48 1

WID OW . S ee Am rm rs rn a rxox
' '
or ES TA TES ;
WI SC ON SIN ,

j udgm ent in ,
not exting uish ed by s urety s paym
’
ent, 18 7 .

W RI T OF ER ROR,
surety m a y m ain tain , on j udgm ent a gainst pri nc ipal, 101 .

surety to be un dis turbed pending principal s, 18 0a


’
.

WRON G—
D OER ,

c arrier s ubrogate d against, 10 .

den ial of subrogati on to , 44 .

ins urers sub rogated to re m edies of ins ured agai nst, 222 .

creditor not substi tuted to debtor s rem edy against , 244


’
.

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