Chappell v. John

45 Colo. 45
CourtSupreme Court of Colorado
DecidedSeptember 15, 1908
DocketNo. 5563; No. 3241 C. A.
StatusPublished
Cited by7 cases

This text of 45 Colo. 45 (Chappell v. John) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chappell v. John, 45 Colo. 45 (Colo. 1908).

Opinion

Chief Justice Steele

delivered the opinion of the court.

The plaintiff and the defendant were sureties upon the promissory note of W. A. Burnett for the sum of ten thousand dollars, dated November 12, 1888. During the year 1890, default having been made by the principal, the defendant paid one-half of the amount due upon the note. Afterwards the note was transferred to one McKeough, who obtained judgment against the plaintiff. The plaintiff paid the judgment, amounting to the sum of $9,076.36, and in July of 1900 brought this action against the defendant (defendant in error here) to recover the amount so paid in satisfaction of the judgment.

The amended complaint contains four causes of action. ' In the first two the plaintiff asks judgment [47]*47against the defendant upon the ground, as alleged in the first cause of action, that after the note was executed and the defendant had signed his name as surety, he requested the plaintiff to sign the note, and that the plaintiff did sign the note at the request of the defendant, and not otherwise; and in the second count, as an additional ground, that at the time the plaintiff signed the note at the request of the defendant, the defendant assured him, the plaintiff, “that he would not and should not .be subjected to any loss by reason of his signing said note.”

A demurrer was sustained to the first two causes of action, and the case was tried upon the third and fourth causes of action.

The averments of the third and fourth causes of action are, in substance, that the money received from the note of ten thousand dollars was used by Burnett in reducing his indebtedness to one F. D. Wight, which indebtedness was secured by first mortgage on certain cattle and lands, and that the defendant held a second mortgage on the same property; and that the defendant had received from Burnett certain land in Colorado and New Mexico as an indemnity for the signing of the note as surety, and that the lands so conveyed have been sold,’ but the amount received from the sale thereof has not been accounted for.

The jury returned a verdict for the plaintiff in the sum of $593.60. The plaintiff took the case by writ of error to the court of appeals.

The plaintiff assigns as error the sustaining of the demurrer to the first and second causes of action, and he claims* that as he signed the note solely because he was requested to do so by the defendant he is entitled to recover from the defendant any amount he may have been required to pay by reason of his suretyship.

[48]*48The .principle on which one surety is regarded as liable as a principal to another surety is that a state of facts is shown to the court.from which it appears positively or by fair inference that such surety intended to stand in the character of principal-to the subsequent signers.—Cutter v. Emery, 37 N. H. 567.

The cases are reviewed in Bagott et al. v. Mullen, 32 Ind. 332, and the court finds that in the cases considered there was something more than the mere request, of one surety to another to execute the note or paper as security. There was either a promise, •written or verbal, to indemnify, or a taking of security from the principal, and from either of these circumstances the courts hold such surety released from contribution.

In the case of McKee v. Campbell, 27 Mich. 497, the court has this to say: ‘ ‘ The law implies from all joint obligations a prima facie liability to contribution, which may be overcome by showing that one is bound to protect the other. This may be either because he is a principal debtor on his own account, or because he has undertaken to save the other harmless: But the mere request to another to join him as co-surety would upon all ordinary rules of construction mean that he was to enter upon the same responsibilities and become bound on equal terms. Such we conceive to be the doctrine of the authorities, in spite of some careless expressions which do not, we think, fairly interpret the doctrine applied. We find in several cases, not only discussion, but conflicting decisions, upon the question whether a positive agreement for such a modified liability could be created by parol—which would have been an idle in- . quiry if a mere signing by request would operate as a claim to indemnification. The authorities which contain actual decisions upon the point before us [49]*49indicate that the change of responsibility must be founded on a plain understanding to that effect.”

The decisive weight of authority is, that to relieve a party from liability to contribution there must be a contract expressed or implied for such immunity. -Burnett v. Millsaps, 59 Miss. 333.

In the case of Bishop v. Smith et al., decided by the supreme court of Few Jersey in 1904, and reported at page 874, vol. 57, of the Atlantic Eeporter, the court, speaking of the doctrine that he who becomes surety at the request of one who is already surety upon the same obligation or note is exonerated from any liability to the first surety because of such request, says: “But I think the doctrine contended for is not sound. The later and better doctrine is that ‘the mere fact that the defendant became surety at the plaintiff’s request is not sufficient to release him from liability, though such a request is a good consideration for a promise of indemnity.’ ”

Upon the authority of these cases the court properly sustained the demurrer to the first cause of action.

The second cause of action states that the plaintiff was “assured” by the defendant at the time he was requested to sign the note that “this plaintiff would not and should not be subjected to any loss by reason of signing the said note.” But we cannot regard this as stating a contract of indemnity. It is nothing more than the expression of "an opinion by the defendant that the sureties would not be called upon to pay the note. The demurrer to the second cause of action was properly sustained.

The plaintiff, when called as a witness, was asked to relate a conversation between the plaintiff and Burnett, the maker of the note. Objection to the question wás sustained. Plaintiff then offered the [50]*50affidavit of Burnett, in which Burnett sets forth the history of the transaction concerning the note and the agreement and understanding with the defendant at the time when certain property in Trinidad was conveyed by Burnett to the defendant. The court, upon objection, refused to receive the affidavit. The plaintiff was then asked to relate a conversation between him and Mrs. Burnett, the wife of the maker of the note, concerning the property conveyed by her to her husband and by her husband to one S. J. Alexander as trustee. Upon objection this testimony was excluded. The plaintiff then offered in evidence a portion of the deposition of Mrs. Burnett, taken in the matter of. the estate of her husband upon a. claim presented by her against the estate. The offer was rejected. Four of the plaintiff’s assignments of error are based upon the court’s refusal to receive the foregoing offers. It is claimed that the declarations of Burnett were admissible as part of the res gestae, but. we think the declarations made by Burnett ten days after he executed the deed cannot be regarded as so connected with the transaction as to entitle them to be received; and no error was committed by the court in rejecting them. We know of no rule of evidence that authorizes the admission of the affidavit of Burnett or of the deposition of Mrs.

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Bluebook (online)
45 Colo. 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chappell-v-john-colo-1908.