Lane & Saylor v. Scott & Culver

57 Tex. 367, 1882 Tex. LEXIS 150
CourtTexas Supreme Court
DecidedJune 20, 1882
DocketCase No. 3483
StatusPublished
Cited by30 cases

This text of 57 Tex. 367 (Lane & Saylor v. Scott & Culver) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lane & Saylor v. Scott & Culver, 57 Tex. 367, 1882 Tex. LEXIS 150 (Tex. 1882).

Opinion

Bonner, Associate Justice.

The charge of the court upon the question of the change of time for the performance of the contract, as it affected the liability of the surety, Robinson, is as follows: “ Parties may change their contracts after they are entered into, and an extension of time does not necessarily release a surety; it would release him, provided he was injured by such extension, or if it appears from the evidence that the surety ivas put in any worse condithan he would otherwise have been.”

This charge was excepted to at the time upon the following among other grounds: 2. The charge is defective in submitting to the jury whether the surety ivas injured by the extension, to determine whether the alteration was material.”

In addition to this defendant Robinson asked special charges, Avhich Avere refused, to the effect that any material alteration in the term of the contract between plaintiffs Culver and Scott, and his principals, Lane and Saylor, Avithout the consent of the surety, Robinson, would release him; and that the changes in the dates of the time of performance were material and Avould discharge him. These questions are presented by the assignment of errors, and are the material ones for our decision.

The statement of a few Avell established general propositions will aid in the proper disposition of this case. .

Although a mere gratuitous indulgence by a creditor to the prin[370]*370cipal debtor — unless when demand is made under our statute (R. S., arts. 3660, 3661), by the surety upon the creditor, to institute proceedings — will not discharge the surety, for the reason that the latter has the right to pay off the debt, and be subrogated to the rights of the creditor, yet a valid agreement between the creditor and the principal, made without the consent of the surety, to extend the time of payment or performance for any definite period, will discharge the surety. This rests upon the reason that the surety, who, as such, derives no benefit from the contract, has the right to stand upon its terms strictly as made, and that to change them without his consent makes a new contract to which he is not a party, and which, consequently, is not binding on him. The inducement to have become surety, in the first instance, may have been that, if the contract should be carried out as originally made, he had the means for his own protection, when, if changed, his rights might be prejudiced. One of the essential elements of the contract of. suretyship is the equity of the surety, which depends not so much on his relations with the creditor as on his right to indemnity from his principal, and the consequent obligation on the part of the creditor not to do any act by which this right might be prejudiced. The surety had the right to be subrogated to all the rights and privileges which the creditor had when the original contract was made. The creditor had the right to enforce his legal remedy, by suit or otherwise, as soon as the debt or cause of action became due; and the surety, therefore, had the consequent right, on failure of payment or performance on the part of his principal, to resort to a court of equity to enforce the terms of the contract on the part of the principal, or to discharge the obligation in the first instance, and thereby become subrogated to this right of • the creditor to sue. This, however, he could not do, if, in the meanwhile, the creditor had made a binding agreement, varying in an essential particular the original contract. In such case the surety is not bound by that contract, for it has ceased to .exist; nor by the new contract, for he is not a party to it; and hence he would be without indemnity on it as against the principal. Bethune v. Dozier, 10 Ga., 238.

In support of the above general propositions, reference is made to the valuable and exhaustive notes and citations of authorities found in White & Tudor’s Leading Cases in Equity, vol. 2, part 2 (4th Am. ed.), 1896, notes to Rees v. Berrington; Wait’s Actions and Defenses, vol. 5, title “ Principal and Surety,” 185; Brandt on Suretyship, ch. 15,-400; Yeary v. Smith, 45 Tex., 71.

It is a further well established principle, that when the original contract has been thus varied, a court of equity will discharge the [371]*371surety without further inquiry as to whether he has been prejudiced or benefited by it, for the reason that this question, as a general rule, would not be a practicable one. As said by the Lord Chancellor in the leading case of Rees v. Berrington, supra, “ I cannot try the cause by inquiring what mischief it (the change in the contract) might have done, for that would go into a vast variety of speculation, upon which no sound principle could be built.” 2 Vesey, Jr., 542; Ducker v. Rapp, 67 N. Y., 473; Smith v. Rice, 27 Mo., 507; Miller v. McCan, 7 Paige, 459; Bonney v. Bonney, 29 Iowa, 449; United States v. Corwine, 1 Bond, 344; Bangs v. Strong, 7 Hill, 252; Boschert v. Brown, 72 Pa. St., 375; Clippinger v. Creps, 2 Watts, 49; Bethune v. Dozier, 10 Ga., 238; also White & Tudor’s Leading Cases in Equity, Wait’s Actions and Defenses, and Brandt on Suretyship, above referred to.

Under the above authorities, the court below erred in the general charge as given to the jury, so far as the same affected the rights of the surety, Bobinson, and in the refusal of the charges asked by him upon this point, which must lead to a reversal of the judgment, if the facts were such as to invoke the rules above laid down. This will depend upon the question whether the record shows that there was a valid agreement to change the time of performance of the original contract. Under that contract the beeves were to have been delivered at certain specified dates; and to show that the times of delivery were considered material and of the essence of the contract, and doubtless to provide for the usual contingencies which might delay a prompt delivery in such cases, it was expressly agreed in the original contract that three days should be allowed Culver and Scott within which to make the delivery, after the particular days specified. This, by a well known rule of construction, would show that the question of time had been particularly considered and agreed upon; and the three days additional having been expressly allowed, would negative the idea that it was implied that longer time should be given.

In the amended petition it is averred “ that after the making of said (original) contract, and before the date of delivery of the first lot of said cattle, said Lane and Saylor requested plaintiffs to postpone the delivery of the first and second lots of cattle until about the 25th day of July, 1873, because they could not sooner pay for the same; that in pursuance of said contract, the plaintiffs, in compliance with the request of said defendants Lane and Saylor made under said contract, did have one thousand head of said cattle at Houston, in the county of Harris, ready to deliver to said defendants on the 23d day of July, 1873; that said cattle were then in good condi[372]*372tion, and averaged one thousand pounds gross in weight per head; that on the 25th day of July, 1873, they did tender to and offer to deliver to said defendants Lane and Saylor the said one thousand head of cattle,” etc.

Scott, one of the plaintiffs, testifies that: “ I delayed delivering the first cattle by request of Saylor of date 13th June, first till 8th July, and next (of 27th) till 25th July, by dispatch from Saylor from Austin.

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57 Tex. 367, 1882 Tex. LEXIS 150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lane-saylor-v-scott-culver-tex-1882.