Green v. Milbank

56 How. Pr. 382
CourtNew York Supreme Court
DecidedOctober 15, 1878
StatusPublished

This text of 56 How. Pr. 382 (Green v. Milbank) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green v. Milbank, 56 How. Pr. 382 (N.Y. Super. Ct. 1878).

Opinion

Van Vorst J.

When this case was, on a previous occasion, brought on for trial, from the evidence then introduced, it appeared to me that a complete determination of the plaintiff’s rights, and the equities existing in favor of the defendant Lanier, required the presence of Cornelius K. Gcm'rison as a defendant. The reasons for such conclusions were then given (Vide Green agt. Milbank, 3 Abb. N. C., 138, 155).

Garrison has been brought in as a defendant, and the case comes on for a further hearing, in pursuance, of the order then made; and in his behalf additional evidence has been introduced. Mr. Andrews, the counsel for Mr. Garrison, who now first appears in the case, stated that he did not propose to reargue any of the questions raised, or passed upon, at the former hearing of the action.

But he now urges that a point, which he deems decisive of the case, was not, at tlie former hearing, raised by counsel, nor considered by the court.

The point suggested is, that as between the plaintiff and the defendant Fullerton, the action of Mr. Fullerton’s firm, in procuring the entry of the order “ secured on appeal,” released plaintiff from all obligation to contribute to Mr. Fullerton, and that the plaintiff, having paid Mr. Fullerton vohmtamihf, and when he was under no legal obligation to do so, and with knowledge of that order, cannot now enforce the Brookman judgments out of the lands conveyed to the defendant, Garrison.

It has been previously decided, in this case, that the plaintiff had neither done nor omitted any act so as to be prejudiced by the order making the judgment “ secured on appeal,” and that his rights were the same as though the order had not [384]*384been made. This was a right of subrogation to the claims and remedies of the creditor, to enforce the judgment, against all property upon which it was a lien when he became surety, unless the lien was lost through some act or omission of the creditor. It was also decided that the creditor had neither done, nor omitted to do, any thing to discharge his complete remedy against the sureties; that his claim against them was wholly unaffected by the order, making the judgment “ secured on appeal.”

It appears by the evidence, now introduced, that the creditor commenced an action against Fullerton and the plaintiff, the sureties, to inforce their liability on the undertakings on appeal. It appears by the evidence of judge Reynolds, that both defendants were served with process in that action. His register shows that.

After the commencement of that action Mr. Fullerton had an interview with the plaintiff, in which, as he testifies, it was agreed between them that Mr. Fullerton should pay the full amount and take an assignment of the judgment for the benefit of himself and plaintiff, and that plaintiff would after-wards reimburse him half the sum paid.

Mr. Fullerton accordingly, in June, 1813, paid to the creditor the amount of the judgment and took an assignment of the same, in his own name, and that ended the action of the creditor against the sureties.

In the view I have taken of this case, the creditor having neither done, nor admitted to do, any thing to impair his remedy against them, could have recovered in his action the amount of his judgments against both sureties had the same not been adjusted. And the fact that the same was paid, under the circumstances disclosed by Mr. Fullerton, is an admission on their part of their liability upon the undertaking.

After the payment of the judgments Mi'. Fullerton demanded of the plaintiff the payment of the one-half thereof, and he failing to respond Fullerton commenced an action against him for moneys paid out and expended for his use and at his [385]*385request. An answer containing a general denial was interposed to the complaint. But after one or more interviews between the plaintiff, his attorney and Hr. Fullerton the plaintiff finally agreed to pay one-half of the judgments, and on the 30th day of October, 1873, through his attorney, he actually paid the amount and received an assignment of one-half the judgments. It is now urged by the counsel for defendant Garrison that the payment of one-half of the judgments to Fullerton by the plaintiff was a voluntary act, and after knowledge of the defects in the proceeding to have the judgment marked secured, and that, as a consequence, the plaintiff must fail in this action.

When the case was before me on the previous hearing there was nothing to show that the plaintiff had any knowledge of that order, and, hence, in the opinion it was stated that the plaintiff, “ without any knowledge ” of the order, paid Hr. Fullerton. It was also stated that if the action of Hr. Fullerton’s firm in obtaining the order had had the effect to cancel the lien of the judgments as to the plaintiff, it may be that he could not have maintained an action for contribution against his co-surety; “but as the order did not have that effect his claim for contribution was good.”

The facts that the action of Hr. Fullerton’s firm had not canceled the lien of the judgment as to the plaintiff, and that he had not been released by the creditor, are important and controlling in this controversy. Under a sense of his legal liability, of which he was satisfied, he agreed that if Fullerton paid the claim he would reimburse him one-half. If the claim had been invalid as to the plaintiff, his agreement to pay one-half could not have been enforced; but the claim in favor of the creditor was good, and so acknowledged. Fullerton, acting upon the plaintiff’s admission, in the creditors’ action pending against him, and at his request, advanced the money to pay the plaintiff’s proportion upon his promise to repay, and that was a good consideration to sustain Fullerton’s subsequent suit for moneys paid out and advanced. Although [386]*386the action in favor of Mr. Fullerton was not technically for contribution but upon the plaintiff’s promise, yet the promise arose out of a conceded liability to contribute.

But it is urged by the defendants’ counsel that although the plaintiff yielded to the claim of Fullerton, he was not legally bound to pay him; that his act was voluntary.' I think he was liable ; I do not see how he could have avoided answering to his promise upon which Fullerton advanced his proportion of the money.

In support of his proposition the defendants’ counsel urges that the law firm of Mr. Fullerton had, by their action, impaired the security which was the plaintiff’s indemnity; that the remedy to enforce the judgment'was, by the order which that firm had obtained, abridged; that in order to enforce the remedy of the sureties against the property of the defendants, the order must be set aside, which burden impaired the availability of the security.

To sustain this view reference is made to Fielding agt. Waterhouse (40 Supr. Ct. R., 424). Sedgwick, J., who delivered the opinion in that case, carefully considers the duties and obligations of sureties to each other. His reasoning and conclusions are satisfactory.

As is stated by him “a co-surety has, of course, the same responsibility for keeping alive securities in favor of his co-surety, from whom he claims contribution, as a creditor has in behalf of sureties ” (American Leading Cases [5th ed.] vol. 2, p. 400, 452).

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Related

Green v. Milbank
3 Abb. N. Cas. 138 (New York Supreme Court, 1877)

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Bluebook (online)
56 How. Pr. 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-v-milbank-nysupct-1878.