Culliford v. . Walser

52 N.E. 648, 158 N.Y. 65, 12 E.H. Smith 65, 1899 N.Y. LEXIS 649
CourtNew York Court of Appeals
DecidedJanuary 10, 1899
StatusPublished
Cited by7 cases

This text of 52 N.E. 648 (Culliford v. . Walser) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Culliford v. . Walser, 52 N.E. 648, 158 N.Y. 65, 12 E.H. Smith 65, 1899 N.Y. LEXIS 649 (N.Y. 1899).

Opinion

Parker, Ch. J.

The facts, so far as they need be stated in order to present the point we are to decide, are as follows: Culliford, this plaintiff, in a civil action against Gadd, obtained an order of arrest; to secure the latter’s discharge therefrom Walser and McHugh (these defendants) became bail in the *67 sum of one thousand dollars that Gadd would at all times, render himself amenable to the process of the court during the pendency of the action and to any mandate issued to enforce the final judgment against him; the result of the action was a judgment in favor of the plaintiff in the sum of $1,338.90 ; from such judgment an appeal was taken to the General Term, upon which an undertaking was given for the purpose of staying the judgment with Ellis and Wands as sureties, whereby they agreed to pay the amount of such judgment and costs in case of the affirmance thereof; the General Term affirmed the judgment, with costs, and thereafter executions wrere duly issued on the judgment against Gadd to the sheriff, and by him returned unsatisfied; Culliford then commenced an action against Ellis and Wands as sureties upon the undertaking given on appeal to the General Term; the day following the commencement of such action an appeal to the Court of Appeals was perfected, upon which an undertaking was given by Gadd, with two sureties, to pay the judgment and costs in the event of an affirmance; notwithstanding this appeal judgment was taken by default in the action brought against Ellis and Wands on the undertaking given upon the appeal to the General Term, and an execution was thereafter issued thereon to the sheriff, who levied upon the real property of Ellis situated within the county. Ellis then paid to this plaintiff, Culliford, a sum equal to the amount of the judgment recovered against him, an arrangement being made between them that Culliford should commence an action in her own name, partly for her benefit, but mainly for the benefit of Ellis, against these defendants, the bail of Gadd, and that she should account to Ellis for all moneys received by her in such action for his benefit; hence this action, which has resulted in a judgment at the Trial Term in favor of the plaintiff, in the penal sum of the bond, with interest and costs and an affirmance by the General Term.

The plaintiff was entitled to but one satisfaction; she could have collected the entire amount of the judgment from the *68 sureties on appeal to the Court of Appeals, or from the sureties on the appeal to the General Term, with the exception of the judgment for costs entered in the Court of Appeals, which she might have recovered from the sureties on the bond given to perfect the appeal to that court, or she could have recovered the sum of one thousand dollars from the bail, these defendants, on their failure to cause Gadd to render himself amenable to the mandate which the plaintiff caused to be issued against him to enforce final judgment. The plaintiff chose to proceed against Ellis and Wands, the sureties or. the General Term judgment, and she has received from Ellis all that is her due, except on the judgment for costs in the Court of Appeals. At the time of the commencement of this action, therefore, the only sum that she was personally entitled to recover against these defendants was the sum due on the judgment for costs in the Court of Appeals, which, at the time of the entry thereof, was $110,34. She has been allowed to recover, however, a judgment- in the penal sum of the bond, for the benefit of Ellis, who claims that the primary liability rests upon the bail, and, hence, that he is entitled to all the rights that this plaintiff had as against them when she elected to prosecute Ellis and Wands on théir undertaking.

These defendants challenge the position taken by the plaintiff and Ellis, and insist that, as between the several sets of sureties, the sureties upon the appeal to the Court of Appeals were primarily liable, the sureties upon the undertaking to the General Term were secondarily liable, and these defendants were liable last of all. So if the plaintiff had elected to collect of these defendants in the first instance, they would have been entitled to be reimbursed by the sureties on the bond upon the appeal to the Court of Appeals, and if a sufficient amount could not have been collected from them, then the defendants could have resorted to the sureties on the bond upon the appeal to the General Term for the sum remaining unpaid.

In Hinckley v. Kreitz (58 N. Y. 583) this court held that, as between the two sets of sureties upon appeals to the Gen *69 eral Term and to the Court of Appeals, the primary liability rests upon sureties on appeals to the latter court. In that case a judgment creditor released the sureties upon appeal to the Court of Appeals, and attempted to collect from the General Term sureties the amount of the judgment and costs, but the court held that the effect of the release of the sureties upon the appeal to the Court of Appeals was to discharge all liability upon the part of the General Term sureties upon the undertaking which they had given to pay the judgment. In the course of the opinion the court said: “We think, upon principle and authority, that the later sureties are primarily liable as between them and the first sureties, and it follows that the release of such later sureties by the creditor discharging the defendants, because it deprived them of a remedy over to which they would otherwise have been entitled.” That case has been recognized by the profession as establishing the rule which fixes the liability of different sets of sureties as against each other, and it has not, so far as we have observed, been departed from.

In Chester v. Broderick (131 N. Y. 549) an appeal was taken to the General Term from a judgment of foreclosure and sale, the amount of the bond to stay execution of the judgment on appeal being fixed at seven thousand dollars. The judgment was affirmed, and on appeal to the Court of Appeals the amount of the bond was fixed at nine thousand dollars. The decree was affirmed in this court and a sale of the property had, which resulted in a deficiency of between eleven and twelve thousand dollars. Thereupon the plaintiffs collected from the sureties on the second or Court of Appeals bond the full amount thereof, and then brought action against the sureties on the first or General Term bond for the deficiency, which was about twenty-five hundred dollars. The defense interposed was that, by collecting the full amount of the bond on appeal to the Court of Appeals, the plaintiffs had exhausted the liability of the sureties who were primarily liable for the debts secured by both bonds, and thereby the sureties on the first bond were discharged. But this position was *70 held by this court not well taken, and the recovery had was sustained.

The rule then being settled that, as between different sets of sureties who undertake to secure the same debt, although in different stages of legal proceedings, the primary liability rests upon the last set, the inquiry next in order is whether bail are sureties and, therefore, within the same rule.

In Rathbone v. Warren

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Bluebook (online)
52 N.E. 648, 158 N.Y. 65, 12 E.H. Smith 65, 1899 N.Y. LEXIS 649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/culliford-v-walser-ny-1899.