Henderson v. Huey

45 Ala. 275
CourtSupreme Court of Alabama
DecidedJanuary 15, 1871
StatusPublished
Cited by9 cases

This text of 45 Ala. 275 (Henderson v. Huey) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henderson v. Huey, 45 Ala. 275 (Ala. 1871).

Opinions

PETERS, J.

This is a bill filed by George Elrod and James G. L. Huey, to restrain the administrator de bonis non, with the will annexed, of the estate of Edward Huey, deceased, from enforcing the collection of a decree rendered in the probate court of Talladega county, in favor of said administrator against the administratrix-in-chief of said estate and her sureties, for the sum of $5,921, upon the grounds that the said administratrix was the principal legatee of said estate, and that she had conveyed to a trustee her interest therein, in favor of her said sureties, a part of whom are the complainants, for the satisfaction of said decree; which interest abovesaid was in possession of said administrator. The judgment of the probate court was enjoined, and the injunction was made perpetual. From this decree of the chancellor Henderson appeals to this court.

[277]*277The complainants are the only living and solvent sureties of said administratrix now left. The bill alleges that the administrator had paid out to the administratrix of the funds so mortgaged, about eight thousand dollars, without interest thereon; and said payments had been made without their consent and in fraud of their rights, and after the execution and record of said conveyance for their indemnity.

The bill was demurred to by the administrator, and four several grounds of demurrer were assigned. 1st. There is no equity in the bill. 2d. The complainants do not propose to pay the amount due on the decree sought to be enjoined. Bd. That the bill does not show that the payments made to the administratrix were made without the knowledge and consent of complainants. 4th. That the bill does not show that complainants or their trustee in the deed ever notified the administrator not to pay the administratrix money. This demurrer was overruled by the court below, and the error assigned upon it must first be disposed of, before considering the merits of the case.

In the case of Perrine v. Fireman’s Insurance Company, it is laid down as a well established principle, that, “ where a creditor has the means of satisfaction in his hands, and chooses not to retain it, but suffers it to pass into-the hands of the principal, the surety to that extent will be discharged. — 22 Ala. 585. But there must be, in such case, some lien or some right to hold such means and apply them in satisfaction of the principal’s liability. A principle almost identical with this had been previously maintained and affirmed in the case of Allen, Adm’r, v. Greene, 19 Ala. 34. There, Chilton sold a tract of land to Bruton on a credit, and gave bond for title in the penalty of four thousand dollars, upon condition if a sufficient title in fee simple was made to Bruton, then the bond to be void. Greene was the surety of Chilton on this bond. Bruton died before making any payment of the purchase money, and, after his death, Allen as his administrator brought suit at law on the bond against the surety, and alleged a failure to make title as a breach of the bond. There was’no title in Chilton when he sold the land, but he bound him[278]*278self to get title and make a sufficient conveyance to Bruton. At tbe time of tbe sale Chilton was in possession of considerable property, but afterwards and before suit on the bond be became insolvent. Greene set up as bis defence, that shortly after the execution of tbe bond be informed Bruton, who bad gone into possession of tbe land, that Chilton bad no title to tbe same, and that be might not be able to procure a title ; and notified Bruton not to pay tbe purchase-money, unless be paid it at bis own risk. In this case, tbe court laid it down as a principle, that tbe administrator might maintain a suit at law on the bond upon breach of tbe condition. “ And if tbe obligee had not violated tbe contract on his part, tbe non-payment of tbe purchase-money would go in reduction of tbe damages, not in discharge of the action.” — 19 Ala. 42. Besides this, the contract of suretyship requires, as one of its legal incidents, entire good faith and confidence between tbe parties in regard to tbe whole transaction. Tbe creditor is bound not to do any act injurious to tbe surety, or inconsistent with bis rights. He is likewise bound not to omit to do any act, when required by tbe surety, which his duty enjoins him to do, and which, if omitted, would prove injurious to tbe surety, 'If be does, tbe surety is discharged to tbe extent of tbe injury. This is tbe case, “ at all events in equity.” — 1 Story Eq. §§ 324, 325, 326.

These principles, applied to this case, show that tbe chancellor did not err in refusing to sustain tbe demurrer for want of equity.

Tbe second ground of demurrer is not well taken. Tbe bill does not show that there would be any balance due on tbe decree, after the funds in tbe bands of tbe administrator were applied to its satisfaction. Tbe decree was for something less than six thousand dollars; tbe funds received for its payment were above eight thousand dollars. This was equivalent to an allegation that there was nothing to be paid on tbe decree after applying tbe funds secured by tbe mortgage, which were in tbe bands of tbe administrator de bonis non.

Tbe third ground of demurrer is not sustained by tbe record. It is alleged that tbe payments to tbe administra[279]*279tor were made “without the consent” of the sureties. This waj enough ; it was not necessary to allege that they were made without their knowledge.

The fourth objection raised by the demurrer is also ill taken. The deed devoting the funds in the hands of the administrator de bonis non to the satisfaction of the decree, was properly executed and recorded. This was notice to all the world of its purpose and its contents. — Rev. Code, § 1543. Such notice was enough to show that the property conveyed in it could not be paid to the administratrix without a violation of the trust. The deed was made for the indemnity of the sureties, and this forbid such a payment as was made and complained of in the bill, without a reservation of a sufficiency to satisfy the debt intended in the mortgage to be secured. The funds having been placed in the administrator’s hand for the payment of the debt secured, it was, pro tanto, a payment of the debt, unless the funds were lost or destroyed without his fault, before they could be converted into money and applied, as required by the deed. The administrator, de bonis non was the creditor, and as such he was entitled to hold on to the funds deposited in his hands for the payment of his debt, and it was his duty to do so. The trust was created for the better security of the debt, and attached to it. — Ohio Life Insurance and Trust Co. v. Ledyard, 8 Ala. 866; Feagan et al., Adm’rs, v. Kendall, 43 Ala. 628. This disposes of the demurrer, as well as the motion to dismiss for want of equity.- — Calhoun v. Powell, 42 Ala. 645.

The decree of the probate court was rendered in 1858. It was in favor of Henderson, as the administrator de bonis non, against Mrs. Simmons, as the administratrix-in-chief of the same estate, upon her final settlement. The deed to indemnify her sureties by subjecting her interest in her deceased husband’s estate to this purpose, was executed and recorded in 1856. The conveyance by herself and husband to Knox, as her trustee for this purpose, was a valid deed.

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Bluebook (online)
45 Ala. 275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-v-huey-ala-1871.