Harnsberger v. Yancey

33 Va. 527
CourtSupreme Court of Virginia
DecidedSeptember 15, 1880
StatusPublished

This text of 33 Va. 527 (Harnsberger v. Yancey) 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
Harnsberger v. Yancey, 33 Va. 527 (Va. 1880).

Opinion

BURKS, J.

Under the decree of December 1, 1868, rendered in the consolidated causes of Yancey, receiver, v. Yancey & others, the same v. Teel & others, and'Conrad’s gdn. v. Conrads & others, the appellees, William B. Yancey and Bernard P. Teel, were the principal ^debtors; George W. Mauzy was the surety of the said William B. Yancey, and James M. Weaver and the appellant, H. B. Harnsberger, were the separate sureties of said Teel for equal amounts, and the lands ordered to be resold stood as a primary security for the payment of the sums decreed against the principals and their respective sureties. Weaver and Harnsber-ger, though bound for the same principal, were not bound for the same debt, but by different instruments for distinct portions of the, same debt, and, as between themselves, under separate and distinct contracts. Although, therefore, they were sureties, they were not co-sureties. 1 Lead. Cas. Eq., (Dering v. Earl of Winchelsea,) 108,side p., and cases there cited. That decree, on appeal to the district court, was there affirmed, and on a further appeal from that court to this, the decree of the district court was affirmed here. The relations of the original parties inter se under the decree remained the same after affirmance as before, unless they were altered, and except so far as they were altered, if altered at all, by the appeals taken and the appeal bonds which were given.

According to the view of the court below', the legal effect of the bonds was to substitute the obligors to the liabilities of the original debtors — of Yancey, the principal debtor, as well as of Weaver, the surety — and not only to preclude these obligors from all right to indemnity from the principal and contribution from the surety for whatever the obligors might be compelled to pay on the bonds, but also to require them to exonerate the principal and surety from all liability for any balance against them on the decree of December, 1868. after applying thereto the proceeds arising from a resale of the lands under that decree. This view resulted in the decree complained of in the present appeal. The liability of the appellant, PI. B. Harnsberger, *as surety for Teel, under the decree of December, 1868, was for the sum of $8.817.87, with interest from August 7, 1864. This was his only liability under that decree. The amount was subsequently reduced by the sale of the lands purchased by Teel to the sum of $6,268.71, principal money, which was paid by said Harnsberger under a decree of the court, Teel (the principal debtor as to this sum) having become bankrupt. Of the obligors in the bonds, H. B. Harnsberger was the only one (except Teel) embraced in the decree of December, 1868. After the resale of the lands and application of the proceeds to the decrees, the receiver, by leave of the court, instituted actions at law on the appeal bonds and recovered the full amount of the penalties combined, $20,000. Of this sum Stover and Trundle, who were sureties in the second bond, paid $4,500 besides a portion of tne costs, and the appellants paid the residue, $15.500, of which the sum of $5,000, though not actually paid down, was. under an arrangement between the parties, treated as paid. The net amount — $19,500—after deducting cost of collection, was applied rata-bly to the decrees against Yancey and Weaver, excluding H. B. Harnsberger altogether, $13,167.91 going to the benefit of Yancey, and $6.432.09 to the benefit of Weaver. Thus, it is seen, that H. B. Harnsberger has been compelled to pay as surety for Teel, who is insolvent, upwards of $6,000, and together with some of his co-obligo.rs. $20,000 in addition, all of which latter sum (less cost of collection) has been applied to the discharge pro tanto of the liabilities of the original debtors, and it is claimed that the parties who have thus suffered have no recourse either for indemnity or contribution against those debtors, and that this is a consequence of the peculiar conditions of the appeal bonds. It cannot be denied that the conditions of these bonds are singular enough, *and they must, indeed, be very peculiar if they bring about the results deduced from them by the court below, and now contended for here by the learned counsel for the appellees.

We have only one of the bonds with .the condition subjoined copied into the record, but it seems to be agreed, that the conditions of each bond, so far as it relates to the questions raised on the present appeal, is in substance the same. After the usual recitals, the condition runs thus: “If, therefore, the said B. P. Teel. Chas. Price, H. B. Harns-berger, J. M. C. Harnsberger, A. J. Johnson, Chas. H. Sowers and, R. S. Harnsber-ger, shall prosecute the said suit with effect and shall pay the judgment aforesaid [523]*523and all such costs and damages as shall be awarded in case the said judgment be affirmed, also any deficiency in the funds arising from the land sales decreed, in meeting and discharging the sums decreed vs. the parties respectively in case the said decree complained of be affirmed or the appeal or supersedeas be dismissed, then the above obligation to be void, else to remain in full force and virtue.”

Literally construed, this is an undertaking, in case the decree appealed from be affirmed or dismissed, not only to pay all costs and damages awarded and the amount of the decree appealed from, but “also” the “deficiency” mentioned. In other words, the obligors bind themselves to pay, on the happening of the contingency named, the whole of the decree with the costs and damages, and, in addition thereto, the deficiency in the land sales, that is, either to pay a portion of the debt twice to the creditor or once to the creditor and then again to the original purchaser of the land or their sureties. An interpretation that leads to such absurd consequences cannot be tolerated for an instant in any court, much less in a court of equity. Nor is the construction contended for by the appellees much less ^objectionable. Their contention, if I understood it, is, that the instrument binds the obligors to the payment of the decree, costs, and damages, and “also” to indemnify the original purchasers and their sureties against all loss on resale of the lands.

A sufficient answer is, the language employed -does not reasonably admit of any such construction. There is not a word about indemnifying anybody and nothing from which an intention to indemnify can be justly inferred. If the design had been such as is supposed, other and very different terms would have been employed. A provision for indemnity, involving possible or probable results of so grave a character, would never have been couched in language so inappropriate, vague and indeterminate.

I think I have discovered the source of all the trouble and difficulty in this matter.

Recurring to the decree of December. 1868, it will be seen, that it was a personal decree against Yancey and his surety Mauzy for $17,545.91 with interest from August 7, 1864, and against Teel and his sureties for equal parts of $17,629.74 with interest from the same date. The principal of these combined sums with interest till the date of allowance of the appeal was upwards of $45,000.

The decree, as before stated, also ordered a sale nisi of the lands to satisfy the sums decreed. An appeal bond with the usual condition to pay costs and damages and to perform and satisfy the decree in case of affirmance or dismissal, would have required a penalty of a very large amount, not looking to the land which stood as a primary security for the sums decreed.

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Bluebook (online)
33 Va. 527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harnsberger-v-yancey-va-1880.