Fishback v. Bodman & Co.

77 Ky. 117, 14 Bush 117, 1878 Ky. LEXIS 45
CourtCourt of Appeals of Kentucky
DecidedJune 25, 1878
StatusPublished
Cited by2 cases

This text of 77 Ky. 117 (Fishback v. Bodman & Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fishback v. Bodman & Co., 77 Ky. 117, 14 Bush 117, 1878 Ky. LEXIS 45 (Ky. Ct. App. 1878).

Opinions

JUDGE ELLIOTT

delivered the opinion op the court.

On the 25th day of May, 1868, Joseph Donophan sold and conveyed to H. B. Moran and Elliott Fishback a tract of two hundred and seventeen acres of land lying in Bracken County. A lien was retained for the unpaid purchase-price, which was stated at over $5,000.

In 1870 H. B. Moran mortgaged his interest in this land, as stated in the agreed facts in this record, to Bodman & Co., and afterward, on the 20th of February, 1872, H. B. Moran executed a mortgage to R. B. Wiggins to secure him in a large debt, and the Wiggins mortgage was transferred, by regular assignment, to Holmes, Black & Co.

Bodman & Co. and Holmes, Black & Co. brought separate suits in the Bracken Chancery Court to enforce their mortgage securities.

It appears that when the unpaid balance of the purchase-money for the land fell due to Joseph Donophan, he brought his action at law against Moran and Fishback, and, having obtained a judgment at law, the same was replevied by the judgment debtors, with Frederick Fishback the appellant as their security. The replevin - bond was executed on the 2d of September, 1871. At the maturity of the bond an execution issued on it, which was levied on Frederick Fish back’s property, and on the Í5th of February, 1872, he paid off the debt, and the benefit of the same was duly assigned to him, as provided by law.

The suits of Bodman & Co. and Holmes, Black & Co. hav[119]*119ing been consolidated, tbe appellant asked to be made a party to these suits, and, by his answer, alleges that Donophan sold the two hundred and seventeen acres of land to Moran and Fishback, and retained a lien for the unpaid purchase-price; and that, having obtained a judgment at law for this purchase-money, the same was replevied by Moran and Fishback, with appellant as their surety, and at the maturity of the replevinbond he was compelled to pay the debt to prevent a sacrifice of his property, which he did, and the benefit thereof was assigned to him. He made the deed from Donophan to Mox’an and Fishback a part of his answer, also Donophan’s judgment and the replevin-bond and the assignment to him of the debt that he had paid as Moran and Fishback’s surety, and he also filed an assignment by Donophan to him, made on the margin of the deed from Donophan to Moran and Fishback, showing that the amount of the purchase-money which had been retained in the deed was coming to appellant.

After stating the facts, the appellant asked that he be subrogated to the benefit of Donophan’s vendor’s lien, and that the lien in his favor be adjudged superior to that of Bodman & Co., and Holmes, Black & Co. And, on hearing, the court dismissed his answer and cross-petition without prejudice, and he brings the case here by appeal.

In 1 Story’s Equity, 477-8-9 it is laid down as the doctrine of the common law, that a surety who pays the debt is equitably entitled to the benefit of all liens or other securities of tbe creditor, who holds them under an implied trust for the benefit of the surety. In Burk, &c. v. Chrisman, &c. this •court held the same doctrine. (3 B. Mon. 50.) In that case Burk bought a tract of,land at a decretal sale, a lien being reserved for the purchase - price, and gave on the sale-bond Chrisman & Crozier as sureties. Before the sale-money became due, Burk sold the land in parcels to several pax*ties, and failing to pay the sale-notes, the creditor sued Burk [120]*120and his sureties at law, and Chrisman & Crozier, the sureties, had the same to pay, and the court sustained their claim to substitution to the benefit of the vendor’s lien, and decided that Burk’s vendees should contribute to the payment of the sum paid by Burk’s sureties in proportion to the value of the land purchased by each. But in the case supra the sureties had become liable for the purchase-money as Burk’s surety before Burk sold any of the land on which the creditor held a lien.

But suppose that Burk’s vendor had not required security, and after his purchase Burk had sold the land on which a lien was reserved in the deed to him for the purchase-price, and after this sale by Burk, his vendor had sued him at law, obtained his judgment, and appellant had gone on a replevinbond as Burk’s surety, and as such surety had been forced to pay the debt, could he be subrogated to the vendor’s lien of Burk, so as to reach and subject the land in the hands of purchasers who had bought long before appellant had gone on the replevin - bond as Burk’s surety, or in any way become bound for him? If this be so, such sureties stand in as favorable an attitude as purchasers of the vendor’s lien-debt, and who have had the same assigned to them. And therefore if the creditor had two mortgages on the same land, and he was to sue at law on the first mortgage - note, and the defendant replevied the debt which his security on the replevin-bond afterward had to pay, he could file his petition in equity, and be substituted to the rights of the creditor in the first mortgage, and thereby obtain a preference to be paid the amount of the first mortgage-debt before the creditor could get any thing on his second mortgage.

In the case of Patterson v. Pope, 5 Dana, 241, it appeared that Mrs. Chinn had sold to a Mr. Wilgus a tract of land, and took a mortgage for the unpaid purchase-price, after which Wilgus sold the same land to Richard Patterson, and a judg[121]*121raent having gone against Wilgus for the unpaid purchase-money, the same was replevied by him, and a short time thereafter he filed his bill against his vendor, Mrs. Chinn, who had intermarried with a Mr. Hughes, and also against Patterson, and on equitable grounds alleged by him asked the court to rescind the contract.

Mrs. Chinn and Patterson resisted the -rescission of the contract, which resulted in the dismissal of Wilgus’s suit and a dissolution of his injunction, and on appeal to this court in the year 1820, that judgment was affirmed. Afterward Mrs. Chinn sued Wilgus’s surety in the injunction-bond and obtained judgment against him, and, he having arranged her purchase - money debt, she assigned him the benefit of her mortgage-lien against Wilgus, on which he instituted an action for his indemnity, in the name of Mrs. Chinn, for his benefit. Patterson, who had purchased the land from Wilgus, was made a party, and resisted the relief sought by Mr. Pope, Wilgus’s surety in the injunction-bond, on the ground that he had bought the land from Wilgus and paid him for it long before the complainant Pope went on the injunction-bond as surety of Wilgus, and as Pope’s equity had no existence till he went on the injunction-bond, that it could not prevail against him. The lower court adjudged in Pope’s favor, and Patterson brought the ease to this court.

In the opinion it is said by this court that “it is contended in argument in support of the decree that in equity a surety who has discharged the debt is entitled to stand in the shoes of the creditor as to all liens securing the debt. If this be so, and can be applied to this case, the surety who pays the debt may, under any and all circumstances, stand as the assignee and purchaser of all liens for securing it, and his title would of course overreach all intermediate interests in the pledged property arising subsequent to the date of the lien, though prior to the commencement of his obligation. The authori[122]*122ties referred to do not support the position to this extent, nor.

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Cite This Page — Counsel Stack

Bluebook (online)
77 Ky. 117, 14 Bush 117, 1878 Ky. LEXIS 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fishback-v-bodman-co-kyctapp-1878.