Fischer v. Gaither

51 P. 733, 32 Or. 161, 1898 Ore. LEXIS 32
CourtOregon Supreme Court
DecidedJanuary 17, 1898
StatusPublished
Cited by5 cases

This text of 51 P. 733 (Fischer v. Gaither) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fischer v. Gaither, 51 P. 733, 32 Or. 161, 1898 Ore. LEXIS 32 (Or. 1898).

Opinion

Mr. Chief Justice Moore

delivered the opinion.

This cause was instituted by H. F. Fischer against Beal Gaither, T. H. Horning, B. F. Jones, J. J. Gaither, Alfred Stanton, Peter McDougal, and William J. Wade, to compel contribution by solvent co-sureties. The plaintiff alleges, in substance, that on February 17,11891, Beal Gaither, as principal, and the other defendants and himself, as sureties, executed to one I. it. Dawson their joint and several promissory note for $5,681.50, payable in one year from that date, with interest thereon after maturity at the rate of 10 per .cent, per annum; that on February 19, 1892, he was compelled to and did pay to the owner and holder of said .note the amount due thereon; that he was reimbursed on account of such [163]*163outlay in the sum of $4,897.70 only, which was paid by Beal Gaither; that Jones, J. J. Gaither, and McDougal are insolvent, so he is informed and believes, and prays judgment against Beal Gaither for the sum of $1,374.40, and interest at 8 per cent, per annum from May 2, 1893, and also a judgment against Horning, Stanton, and Wade, each, for one-fourth of said sum and interest. The plaintiff, after issuing a summons herein, caused certain real property of the defendants to be attached as security for the satisfaction of any judgment that he might obtain. A demurrer to the complaint for the reasons that several causes of action were improperly united, and that the complaint did not state facts sufficient to constitute a cause of action, having been sustained, the cause was dismissed, and plaintiff appeals.

The action of the court of which plaintiff complains was doubtless predicated upon the assumption that equity alone could afford the relief demanded, and that as plaintiff sought to recover from the solvent co-sureties, in an 'action at law, more than an aliquot part of the liability originally assumed, he invoked the aid of the wrong forum; and that, even if the cause so instituted was treated as in equity, the complaint did not state facts sufficient to entitle plaintiff to the relief demanded, and hence the dismissal of the cause. The important question, therefore, which the appeal presents for ■consideration, is whether the cause so instituted is an action at law or a suit in equity.

1. The right of a surety who has been compelled [164]*164to pay the debt or discharge the obligation . of his principal to enforce contribution from his co-sureties, is based upon the theory that all the parties to the original undertaking are equali jure, and, under the maxim that “equality is equity,” each must bear the burden equally: Van Winkle v. Johnson, 11 Or. 469 (5 Pac. 922, 50 Am. Rep. 495); Wells v. Miller, 66 N. Y. 255; Strong v. Mitchell, 19 Vt. 644. In Durbin v. Kuney, 19 Or. 71 (23 Pac. 662), Lord, J., in speaking of the right of contribution, and the courts competent to enforce it, says: “It rests upon the broad principle of justice, that when one has discharged a debt or obligation which was a common charge for the benefit of all, he has a right to call upon his co-debtors for contribution. Originally it was enforceable only in courts of equity, but in later days courts of law haye assumed jurisdiction, on the ground of an implied promise on the part of each joint debtor or surety to contribute his share to make up the loss.” This rule is founded upon the assumption that each surety, by becoming a party to the original contract, impliedly promises his co-sureties that he will bear an equal part of the burden imposed, or pay an equal portion of the loss entailed, if the principal fail to keep his engagement: Powers v. Nash, 37 Me. 322; Hichborn v. Fletcher, 66 Me. 210 (22 Am. Rep. 562); Bachelder v. Fiske, 17 Mass. 464; Mason v. Lord, 20 Pick. 447; Baggott v. Mullen, 32 Ind. 332; Bradley v. Burwell, 3 Denio, 61; Johnson v. Harvey, 84 N. Y. 363 (38 Am. Rep. 515); Camp v. Bostwick, 20 Ohio St. 338 (5 Am. Rep. 669). [165]*165“Courts of law,” says Johnson, J., in Oldham v. Broom, 28 Ohio St. 41, “ took jurisdiction of actions for contribution on the ground that, as equity and good conscience demanded that, as among co-sureties, there should be equality of burdens, there was an implied assumpsit, which would support an action at law.”

When one surety has been compelled to pay more than his share of the common obligation imposed upon all by the default of their principal, he may maintain separate actions at law against each co-surety for the recovery of the aliquot part which each impliedly promised to pay the other at the time they became parties to the original undertaking: 1 Brandt on Guaranty and Suretyship, § 291; Bay lies’ Sureties and Guarantor, 447; Powell v. Matthis, 26 N. C. 83 (40 Am. Dec. 427); Morrison v. Poyntz, 7 Dana, 307 (32 Am. Dec. 92). In Van Petten v. Richardson, 68 Mo. 379, Sherwood, C. J., in discussing this principle, says: “ Courts of law, however, although they borrowed their jurisdiction in regard to contribution from courts of equity, and enforced their newly-acquired jurisdiction in accordance with common-law forms of action, still felt themselves so hampered in the exercise of their newly-found powers that they refused to allow a surety who paid a debt to recover from his co-surety more than his aliquot or proportional part of the payment thus made; and this was the sole measure of recovery, notwithstanding the insolvency of one or more of the sureties.” Mr. Justice Field, in Chipman v. Morrill, 20 Cal. 130, further elucidat[166]*166ing this doctrine, says: “This jurisdiction of the common-law courts did not, however, impair the concurrent jurisdiction of equity. Indeed, in many cases, especially where the sureties were numerous, and some of them insolvent, or where some of the sureties had died, courts of equity were alone adeequate to afford complete remedy.” The rule is well settled that if, by reason of the death or insolvency of a party to the original undertaking, a surety seeks to recover from a co-surety more than his aliquot part, he should pursue his remedy in a court of equity, which, by having all the parties before it, will decree a ratable contribution: 1 Story’s Equity Jurisprudence, § 496; Wayland v. Tucker, 4 Gratt. 267 (50 Am. Dec. 76); Dodd v. Winn, 27 Mo. 501; Samuel v. Zachery, 26 N. C. 377; Newton v. Pence, 10 Ind. App. 672 (38 N. E. 484). Mr. Justice Miller, in Easterly v. Barber, 66 N. Y. 433, in discussing this question, says: “There seems to be a propriety in the rule that where sureties are called upon to contribute, and some of them are insolvent, that all the parties should be brought into court, and a decree made upon equitable principles in reference to the alleged insolvency. There should be a remedy decreed against the insolvent parties, which may be enforced if they become afterwards able to payf and this can only be done in a court of equity; and when they are parties to the action.”

2. Plaintiff having procured the attachment of certain real property of the defendants shows that he regarded the case at bar as an action at law, for an attachment is a special auxiliary remedy created [167]*167by statute, and belongs exclusively to a court of law: Drake on Attachment (6th Ed.), § 4a.

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Bluebook (online)
51 P. 733, 32 Or. 161, 1898 Ore. LEXIS 32, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fischer-v-gaither-or-1898.