Hahn v. Muschlitz

2 Pa. D. & C. 117, 1922 Pa. Dist. & Cnty. Dec. LEXIS 192
CourtPennsylvania Court of Common Pleas, Lehigh County
DecidedJanuary 18, 1922
DocketNo. 73
StatusPublished

This text of 2 Pa. D. & C. 117 (Hahn v. Muschlitz) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lehigh County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hahn v. Muschlitz, 2 Pa. D. & C. 117, 1922 Pa. Dist. & Cnty. Dec. LEXIS 192 (Pa. Super. Ct. 1922).

Opinion

Reno, J.,

The material allegations of plaintiff’s statement, briefly summarized and numbered according to the paragraph numbers of the statement, are: (1) Residence of the parties; (2) that on Feb. 2, 1920, Reuben Helfrich recovered a judgment in this court to No. 110, April Term, 1918, against L. A. Snyder, Granville Hahn, Amanda S. Muschiitz, C. H. Muschiitz, F. A. Muschiitz and F. A. Kreitz; (3) that the said judgment was affirmed by the Supreme Court; (4) that the basis of liability of defendants in that suit “was their accommodation endorsement of a certain promissory note of the Eureka Slate Manufacturing Company, Limited, for the sum of $5500, dated April 11, 1912,” a copy of which is set forth, and which is a promissory note in usual form, payable one day after date to Reuben Helfrich, signed as maker by said company and endorsed by L. A. Snyder, Granville Hahn, Amanda S. Muschiitz, C. H. Muschiitz, F. A. Muschiitz and F. A. Kreitz in the order named; (5) that F. A. Kreitz “was admittedly insolvent;” (6) that the amount of the judgment was $6942.27; (7) that plaintiff (Hahn) paid Helfrich $2314.09 on account of said judgment, “under protest and under threat of having his bail for the appeal to the Supreme Court proceeded against;” (8) that L. A. Snyder paid $2314.09, and that Amanda S. Musch-iitz, C. H. Muschiitz and F. S. Muschiitz paid together $2314.09 upon said judgment, and F. A. Kreitz paid nothing; (9) that there having been five responsible defendants, excluding Kreitz, the insolvent, each defendant was liable to one-fifth of $6942.27, or $1388.45; (10) that Hahn, having paid $925.64 in excess of his legal liability, “seeks contribution from C. H. Musch-iitz” for $308.55, being one-third of $925.64; and (11) that defendant refused to pay said sum due “as contribution.”

[118]*118To this statement defendant has filed an affidavit of defence in accordance with section 20 of the “Practice Act, 1915,” raising the following questions of law for the decision of the court: (1) That the plaintiff, one of several successive accommodation endorsers, asks contribution from one of the later successive accommodation endorsers without averring an agreement between the endorsers to be bound or liable equally or ratably; (2) that under the law there is no contribution between successive accommodation endorsers in the absence of a special agreement; and (3) moving for judgment.

The defendant’s position is supported by the Act of May 16,1901, § 68, P. L. 194-204 (Negotiable Instruments Law), which provides: “As respects one another, endorsers are liable, 'prima, facie, in the order in which they endorse; but evidence is admissible to show that, as between or among themselves, they have agreed otherwise. Joint payees or joint endorsees who endorse are deemed to endorse jointly and severally.” This section of the act is declaratory of the law as it existed before its passage: Russ v. Sadler, 197 Pa. 51: Wolf v. Hostetter, 182 Pa. 292; Reber’s Estate, 15 Pa. Superior Ct. 122. The reason for the rule is stated in Youngs v. Ball, 9 Watts, 130, as follows: “In the case of an accommodation note, the payee who is the first endorser is considered as having lent his name to the maker on the credit of the latter alone; the second endorser as having lent his name on the credit of the maker and the prior endorser; and so every subsequent endorser as having lent his name upon the credit of those who had become parties to the note before him.” This order of liability can be altered by agreement between the endorsers in such manner as they desire, but unless there be an allegation to the effect that such an agreement has been made, the presumption is that the order of liability provided by the statute and recognized at common law prevails: Russ v. Sadler, 197 Pa. 51. In other words, as between endorsers who are not joint payees or joint endorsees there is no joint liability: Wolf v. Hostetter, 182 Pa. 292.

The defendant does not controvert this as a proposition of law. Both in the argument and in his brief he admits the correctness of this statement of the principle. But he does contend that this principle does not rule the case at bar; that the plaintiff is seeking contribution from a co-defendant in a joint judgment rendered against plaintiff and defendant, and that he is not pursuing defendant as a later endorser. In short, he contends that, because judgment has been entered in an action by the holder of the note against all of the endorsers, and because plaintiff paid more than his share in satisfaction of the judgment, he is entitled to contribution from the defendant, not in defendant’s capacity of a co-endorser of the note, but in his status of a co-defendant in the judgment. Or, to state his contention differently, he asks us to hold that the judgment against all of.the endorsers enlarged his right of action so as to include not only prior endorsers, but also subsequent endorsers, and that, by the entering of that judgment, a right to contribution which he did not possess as co-endorser accrued to him as co-defendant. No authority in Pennsylvania or elsewhere is cited in support of this contention.

It will be observed, in the first place, that to sustain this contention we should be obliged to hold that plaintiff grounded his action exclusively upon the judgment and upon the liability of a co-judgment — defendant to respond by way of contribution. Clearly, plaintiff has not done this. He has not only recited the judgment as the basis of his action, but he has gone further and averred that “the basis of the liability of the defendants ... in the suit to No. 110, April Term, 1918, was their accommodation endorsement of a cer[119]*119tain promissory note:” which, is followed by a copy of the note and the endorsements thereon. Are we obliged to close our eyes to this averment, and, notwithstanding it, hold that the action is founded upon the liability created by the rendition of a judgment against joint defendants? We think not, and, therefore, we have determined, from an examination of plaintiff’s statement, that he, one of several successive accommodation endorsers, is seeking contribution from one of the later accommodation endorsers upon a note whereon the payee thereof recovered judgment against all of the endorsers.

Hence, the precise question presented for decision is: Is there a right of contribution by a prior endorser against a later endorser - (when they are not joint payees or joint endorsers), when the holder of the instrument has recovered judgment against both? That is, having already observed that there is no right of contribution before judgment, does the judgment create the right? This we cannot affirm, for if we did, we should be obliged also to hold that the right to contribution existed as between joint tort-feasors whenever a joint judgment was rendered against them, and this would be clear error: Boyer v. Bolender, 129 Pa. 324. Indeed, the right to contribution is not in any wise founded upon or dependent upon the recovery of judgment. It may exist even when a judgment was recovered against only two of the five co-obligors: Horbach’s Admin’rs v. Elder, 18 Pa. 33. Nor are the defendants in a joint judgment concluded by it so that they cannot thereafter, in a suit for contribution, show that the judgment was rendered upon a liability as to which there is no contribution: Boyer v. Bolender, 129 Pa. 234, 23 Cyc., 1104.

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Related

Horbach's Administrators v. Elder
18 Pa. 33 (Supreme Court of Pennsylvania, 1851)
Armstrong County v. Clarion County
66 Pa. 218 (Supreme Court of Pennsylvania, 1870)
Boyer v. Bolender
18 A. 127 (Supreme Court of Pennsylvania, 1889)
Wolf v. Hostetter
37 A. 988 (Supreme Court of Pennsylvania, 1897)
Russ v. Sadler
46 A. 903 (Supreme Court of Pennsylvania, 1900)
Albright v. Albright
77 A. 896 (Supreme Court of Pennsylvania, 1910)
Reber's Estate
15 Pa. Super. 122 (Superior Court of Pennsylvania, 1900)
M'Nair v. Burns
9 Watts 130 (Supreme Court of Pennsylvania, 1839)

Cite This Page — Counsel Stack

Bluebook (online)
2 Pa. D. & C. 117, 1922 Pa. Dist. & Cnty. Dec. LEXIS 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hahn-v-muschlitz-pactcompllehigh-1922.