Hanby's Adm'r v. Henritze's Adm'r

7 S.E. 204, 85 Va. 177, 1888 Va. LEXIS 25
CourtSupreme Court of Virginia
DecidedAugust 2, 1888
StatusPublished
Cited by15 cases

This text of 7 S.E. 204 (Hanby's Adm'r v. Henritze's Adm'r) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hanby's Adm'r v. Henritze's Adm'r, 7 S.E. 204, 85 Va. 177, 1888 Va. LEXIS 25 (Va. 1888).

Opinion

Lacy, J.,

delivered the opinion of the court.

The case is as follows : On the 24th day of March, 1862, Jonathan T. Hanby became one of the sureties upon the bond of Samuel H. Millard, as the executor of the estate of John Worley, deceased, with Archimedes Davis and John Byburn as his [179]*179co-sureties. John L. Worley and Anna A. Stevens, who were beneficiaries under the will of John Worley, brought .their suit against the said Samuel H. Millard and his sureties in- the circuit court of the United States for the western district of Virginia, where a decree was obtained against the said Millard and his said sureties; and a decree was rendered for the sale of the said Millard’s land. The land was sold under the court’s decree for an amount sufficient to pay the said decree in full, and the said Samuel H. Millard became the purchaser, and executed bonds for the purchase money, with H. M Millard and James Henritze as his sureties thereon. The said Millard, holding his said land as purchaser, again defaulted—this time in the payment of his bonds—and upon suit, the first bond falling due, there was judgment obtained, and execution issued, and only a small amount realized; whereupon the land was again sold by proper proceedings, and this time sold for much less than enough to pay off the said debt; whereupon proceedings were taken against the said H. M. Millard and James Henritze to recover the residue due upon the purchase-money bonds upon which they had become securities upon the first sale of the land of Millard; whereupon they claimed their homestead exemption, which was allowed to them; and, there being then nothing more to be made out of them, the beneficiaries, under the will of John Worley, proceeded against the securities of the said Samuel H. Millard on his executorial bond, the said Jonathan T. Hanby, Archimedes Davis, and John Ryburn, to recover the residue of their claim against the said executor still due to them, and the said residue was recovered and paid to the said beneficiaries under the Worley will, by the said Hanby and Davis and Ryburn, the securities on the executorial bond of the said Samuel H. Millard, executor of the said John Worley, deceased. The said Jonathan T. Hanby then, in his life-time, filed the bill in this cause, alleging that property in excess of the amount allowed by law had been assigned and set aside, under the said homestead proceeding, to the said H. M. Millard, praying for a [180]*180re-assignment of homestead in Millard’s case, and a sale of the reversion in both Millard’s and Henritze’s case. The said Henritze departed this life pending these proceedings, as also his widow; and, his youngest child coming of.full age, an amended bill was filed, praying that the same might be heard along with a creditors’ suit which had been brought by R. Boyd, for, etc., against James Henritze’s administrator, and that the claim of the said Hanhy might be allowed against the said Henritze’s estate, in the order of its priority, and for an injunction to restrain the sale of Henritze’s real estate until that was done; which injunction was awarded, hut subsequently, upon demurrer, on the 22d of February, 1887, a decree was rendered in the cause, sustaining the said demurrer and dismissing the bill. Whereupon the said appellant, James F. Hanby, administrator of Jonathan T. Hanhy, applied for and obtained an appeal to this court.

The grounds upon which this decree is sought to be sustained are: (1) That the appellant had no cause of action against the appellee by reason of the circumstances above recited; (2) because it does not appear that the debt could not have been made out of the principal debtor, Samuel H. Millard ; (3) because the question of subjecting the homestead of H. M. Millard and James Henritze was res adjudicata; (4) because the complainant had no ground for relief when he filed his original bill, and, having no cause of action then, appellant could not file an amended and supplemental bill for causes of action arising thereafter.

As to the first ground cited above, the claim is that the sureties on the executorial bond of Millard had no claim for compensation against the sureties on the purchase-money bonds at the sale of the debtor’s land. But it is insisted by the appellant that the sureties on the purchase-money bonds, by their act in becoming such, became primarily liable for the payment of the decrees against their principal; and, the said sureties on the executorial bond being thus secondarily liable to the creditors, > [181]*181and having been compelled to pay the debt, or such part as remained unsatisfied, they are entitled, so far as they have so paid, to be substituted to the rights of the creditors against the said sureties on the executorial bond. There is nothing better settled than that the security who pays the debt of his principal is entitled to be subrogated to the rights of the creditor, and to all collateral securities which the creditor has obtaiued. See the late case in this court of Rosenbaum v. Goodman, 78 Va. 126, and the authorities there cited, and 3 Minor, Inst. 394, where it is said: “Where several or successive obligations of suretyship are not in substance (the form is of no consequence) those of original sureties for the same thing, the application of the doctrine of contribution requires several distinctions to be noted. Where the original surety will be exempt from contribution to the later surety, and will be entitled to full indemnity from him.” “ If one be bound, either personally or in his property, as original surety for a debtor, and upon the creditors bringing suit against the principal a third person becomes the latter’s surety in a bail-bond, prison-hounds bond, a delivery-bond, an appeal-bond, an injunction-bond, or any like secondary -obligation, this latter surety, upon paying the debt, has no recourse whatever a-gainst the original surety or his property. And the converse proposition, namely, that the original surety, if he pays, has a right to enforce the obligation of such secondary surety for his own indemnity, seems to be scarcely less obvious and certain, although, perhaps, not so universally admitted.” Citing Dering v. Earl of Winchelsea, 1 White & T. Lead. Cas. Eq. 100, and other cases. There can be no doubt that the sureties on the purchase-money bonds for the sale of the debtor’s land were liable primarily to the creditors before the sureties on the executorial bond of the debtor, and the said sureties on-the executorial bond, having discharged the debt for which the other set of securities was primarily liable, have a right to pursue for their benefit the right of the creditor against the said second set of sureties, and this is their cause of ac[182]*182tion against the said second set of sureties, the defendants in the circuit court.

As for the second contention of the appellee, that the proceedings do not show the debt claimed could not have been made out of the principal debtor, we may remark that execution against the principal debtor has been returned unsatisfied, and the principal debtor’s lands have been sold at public auction, and the debt is still unsatisfied, and if there exists any possibility of making the debt out of any property belonging to the debtor, it is to their interest, primarily, so far as these appellants are concerned, to direct legal proceedings in that direction, because, as we have already said, as to the appellant, they, the appellees, are primarily liable, it being clear that if they comply with their undertaking, which has inured to the benefit of the. appellant, then the appellant will be compensated for his loss.

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Cite This Page — Counsel Stack

Bluebook (online)
7 S.E. 204, 85 Va. 177, 1888 Va. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanbys-admr-v-henritzes-admr-va-1888.