Brown & Brown Coal Co. v. Antezak

128 N.W. 774, 164 Mich. 110, 1910 Mich. LEXIS 955
CourtMichigan Supreme Court
DecidedDecember 7, 1910
DocketDocket No. 85
StatusPublished
Cited by19 cases

This text of 128 N.W. 774 (Brown & Brown Coal Co. v. Antezak) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown & Brown Coal Co. v. Antezak, 128 N.W. 774, 164 Mich. 110, 1910 Mich. LEXIS 955 (Mich. 1910).

Opinion

Brooke, J.

(after stating the facts). From the foregoing statement of facts, it will be seen that the only question to be determined is whether or not the discharge which defendant obtained in the bankruptcy proceedings operates as a bar to the taking of a judgment against his surety upon the appeal bond. The obligation of the bond is as follows:

“ Whereas, judgment was rendered on the 26th day of February, A. D. 1908, by Louis Ott, one of the justices [112]*112of the peace in and for the county of Wayne, in favor of the above-named Brown & Brown Coal Company, as plaintiff, and against the above-bounden Stanislaus Antezak, as defendant, for the sum of 405.94 dollars, damages, and 3.00 dollars, costs of suit, and whereas the above-bounden Stanislaus Antezak, conceiving himself aggrieved by said judgment, has appealed therefrom to the circuit court for the county of Wayne: Now, therefore, the condition of the above obligation is such, that if the above-bounden Stanislaus Antezak shall prosecute his said appeal with all due diligence to a decision in the said circuit court, and if a judgment be rendered against him in the said circuit court, shall pay the amount of such judgment, including all the costs, with interest thereon, and in case the said appeal shall be discontinued or dismissed, if the said Stanislaus Antezak shall pay the amount of said judgment rendered against him in said justice court, including all costs with interest thereon, then this obligation to be void, otherwise in force.
[Signed] “Stanislaus Antezak. [Seal.]
[Signed] “John Enuth.” [Seal.]

Section 16, National Bankruptcy Law 1898, provides:

“The liability of a person who is a co-debtor with, or guarantor or in any manner a surety for, a bankrupt, shall not be altered by the discharge of such bankrupt.” Act July 1, 1898, chap. 541, 30 U. S. Stat. 550 (U. S. Comp. Stat. 1901, p. 3428).

This identical question was considered in the case of Knapp v. Anderson, 15 N. B. R. 316. The language of the bankrupt act of 1867 is, in effect, the same as that of the act of 1898 above quoted. Act March 2, 1867, chap. 176, § 33, 14 U. S. Stat. 533. The court, after discussing the obligation of an indorser, said:

“So with the surety. He agrees to pay if the event happens which matures his obligation to pay. He assumes to pay, and incurs the obligation to do so, which may become absolute. The design of an undertaking and the effect of it are proper matters of consideration on the question. The undertaking stays all proceedings, and the effect is to prevent the creditor from enforcing his judgment by execution, and in that mode obtaining his debt out of the property of his debtor. The sureties in the [113]*113undertaking prevent him from availing himself of this right and opportunity, to which he is entitled by the law of the land and by his superior diligence. This right can be destroyed in all cases if the debtor, by appeal, and by subsequent proceedings in bankruptcy before a judgment of affirmance, can release himself and his sureties as well. It was doubtless to prevent such and kindred results that the law declared the discharge should not release or affect any person liable for the same debt for or with the bankrupt, either as partner, contractor, indorser, surety, or otherwise. It was a personal relief given to the applicant, or forced upon him, and not to those equally bound with him to answer his creditor. * * * A surety is rarely primarily liable. His obligation usually depends upon a contingency, which is either an event to occur, or the failure of the principal to pay or to do the act required.”

In Holyoke v. Adams, 10 N. B. R. 370, it was held that a discharge in bankruptcy did not release the sureties upon a bond given in attachment proceedings, commenced more than four months before the bankruptcy proceedings were launched.

The case of In re Albrecht, 17 N. B. R. 287, Fed. Cas. No. 145, arose in Michigan, and the opinion was written by Judge Brown, later Justice of the United States Supreme Court. In that case, the authorities are reviewed, and the conflict between them is noted. The court concludes:

“ I deem it inconsistent with the general purpose of the act to hold that the lien of a creditor, lawfully acquired by his diligence, shall be lost by the debtor giving a bond to satisfy the judgment, an action entirely beyond the control of the creditor, and one which was designed to secure, not to defeat, the ultimate payment of the debt. * * * But under the construction given by the Massachusetts courts, the preference of the attaching creditor is lost, if the debtor is sufficiently responsible to obtain a bond, while it is preserved, if his situation is so desperate as to make the release of the property impossible.”

In Hill v. Harding, 107 U. S. 631 (8 Sup. Ct. 404), Mr. Justice Gray, speaking for the court, said:

[114]*114“ The stay does not operate as a bar to the action, but only as a suspension of proceedings until the question of the bankrupt’s discharge shall have been determined in the United States court sitting in bankruptcy. After the determination of that question in that court, the court in which the suit is pending may proceed to such judgment as the circumstances of the case may require. If the discharge is ref used, the plaintiff, upon establishing his claim, may obtain a general judgment: If the discharge is granted, the court in which the suit is pending may then determine whether the plaintiff is entitled to a special judgment for the purpose of enforcing an attachment made more than four months before the commencement of the proceedings in bankruptcy, or for the purpose of charging sureties upon a bond given to dissolve such an attachment.”

This case was again before the United States Supreme Court (130 U. S. 699 [9 Sup. Ct. 725]), where it said:

“If the bond was executed before the commencement of proceedings in bankruptcy, the discharge of the bankrupt protects him from liability to the obligees, so that, in an action on the bond against him and his sureties, any judgment recovered by the plaintiffs must be accompanied with a perpetual stay of execution against him; but his discharge does not prevent that judgment from being rendered generally against them ”—citing Wolf v. Stix, 99 U. S. 1.

A very well considered case involving the question in dispute will be found in Fisse v. Einstein, 5 Mo. App. 78. After discussing the Massachusetts decisions and those of some other States to the contrary, the court says:

“ To hold that the surety in this appeal is to be released because there can be no formal entry of judgment against his principal in the appellate court, though there is a solemn admission in that court of the perfect correctness and justice of the judgment from which this appeal is taken, is to denaturalize the transaction, and to give an interpretation to the appeal bond quite foreign to its scope and meaning.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

GOULD PLUMBING AND HEATING, INC. v. Capitol Indemnity Corp.
230 N.W.2d 19 (Michigan Court of Appeals, 1975)
In re Quaker City Cold Storage Co.
45 F. Supp. 570 (E.D. Pennsylvania, 1942)
Butler Bros. v. Twineham
7 P.2d 531 (Supreme Court of Kansas, 1932)
Bracewell v. Hughes
242 N.W. 66 (Supreme Court of Iowa, 1931)
R. C. Mahon Co. v. Molin
233 N.W. 431 (Michigan Supreme Court, 1930)
Wright v. Dorman
291 S.W. 1064 (Tennessee Supreme Court, 1927)
Stone v. Hole
223 P. 1085 (Supreme Court of Colorado, 1924)
Leon v. J. M. Radford Grocery Co.
259 S.W. 318 (Court of Appeals of Texas, 1924)
Alvaton Mercantile Co. v. Caldwell
119 S.E. 25 (Supreme Court of Georgia, 1923)
Brown v. Four-In-One Coal Co.
286 F. 512 (Sixth Circuit, 1923)
Guaranty Security Corp. v. Oppenheimer
243 Mass. 324 (Massachusetts Supreme Judicial Court, 1923)
Lamenza v. Shelton
114 A. 96 (Supreme Court of Connecticut, 1921)
Sprague, Warner & Co. v. Fischer
165 N.W. 858 (Michigan Supreme Court, 1917)
Cermak v. Aldrich
209 Ill. App. 204 (Appellate Court of Illinois, 1917)
Steinhauer & Wight Inc. v. Adair
93 S.E. 280 (Court of Appeals of Georgia, 1917)
Failor v. Wehe
158 P. 74 (Supreme Court of Kansas, 1916)
Light v. Hunt
87 S.E. 763 (Court of Appeals of Georgia, 1916)
Butterick Publishing Co. v. E. F. Bowen Co.
80 A. 277 (Supreme Court of Rhode Island, 1911)

Cite This Page — Counsel Stack

Bluebook (online)
128 N.W. 774, 164 Mich. 110, 1910 Mich. LEXIS 955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-brown-coal-co-v-antezak-mich-1910.