Lashbrooke v. Cole

186 S.W. 317, 124 Ark. 48, 1916 Ark. LEXIS 10
CourtSupreme Court of Arkansas
DecidedMay 15, 1916
StatusPublished
Cited by1 cases

This text of 186 S.W. 317 (Lashbrooke v. Cole) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lashbrooke v. Cole, 186 S.W. 317, 124 Ark. 48, 1916 Ark. LEXIS 10 (Ark. 1916).

Opinions

Smith, J.

Later, upon the issuance of an execution, Lashbrooke paid this judgment, and he thereupon demanded of Cole that he pay one-half thereof, and upon Cole’s refusal so to. do brought this suit and has prosecuted this appeal from a judgment of the court below 'denying him the right of recovery.

A number of interesting questions are discussed in the briefs, among others, the sufficiency of the notice given by Cole to Mrs. Briant to sue. But, we think those questions are concluded by the judgment above mentioned.

It is now urged by appellee that the judgment in his favor, in the suit of Mrs. Briant against 'him and his co-surety, exonerates him from any liability in favor of Lashbrooke, and we think the decision of that question is decisive of all other questions raised in the case.

Appellant says first that there has been no judgment in Cole’s favor, but we do not agree with him in this contention. The judgment sets out the verdicts of the jury in Jiaec verba and upon these verdicts judgment is pronounced in favor of the plaintiff against Jacobs and Lashbrooke only and the necessary effect of this recital and judgment is to exclude Cole from liability to Mrs. Briant on account of this note.

The real question in the ease is whether or not the judgment is res adjudicata of the right of contribution between these sureties. We find a sharp conflict in the authorities on this subject, and the leading cases are cited in the note to the case of Central Bank & Security Co. v. U. S. F. & G. Co., 80 S. E. 121, 51 L. R. A. (N. S.) 797. This is an opinion by the Supreme Court of West Virginia, and there are well considered opinions by the judge who delivered the opinion of the majority, and by the judge who delivered a dissenting opinion. The majority opinion supports appellant’s view, and in doing so, overruled in effect the former opinion of that court in the case of Hood v. Morgan, 47 W. Va. 817, 35 S. E. 911. In this case note, it is said: “And the principles applied and decision reached in the Central Bkg. & Security Co. case are in full accord with those of Koelsch v. Mixer, 52 Ohio St. 207, 39 N. E. 417, wherein it was held that it was no defense to an action for contribution between co-sureties that the defendant surety had been exonerated by the jury in the original action, which had been brought by the obligee jointly against both sureties, the ground being that they were not adversely interested in the original action, and that the conclusiveness of the judgment therein depends upon the question whether an issue was joined between the parties and determined material to their respective rights in the action for contribution.”

In reviewing the oases on the subject, the author of this case note says: “One line of cases is authority for the rule that the original judgment is not res judicata as between the sureties, unless such sureties are adversely interested in the original action, and held that sureties, when jointly sued, are not so adversely interested. These cases, however, seem hard to justify, because the sureties, although co-defendants, are in effect adversely interested, since exoneration of one ordinarily increases the liability of the others. This would certainly be true where the surety or sureties held liable would have a right to question the exoneration of the other sureties in an appellate court.

“The other, and seemingly the better, rule is that the judgment in the original action is conclusive as between all those who were parties thereto, even though they were not in form adverse parties, and irrespective of the objection that the cause of action between the obligee and the sureties is technically different from that between the sureties for contribution. ’ ’

This case note cites as foremost perhaps among those cases which adopt the view we approve, the case of Ruff v. Montgomery, 83 Miss. 185, 36 So. 67. This Mississippi case is identical with the case under consideration. Chief Justice Whitfield, speaking for that court, said: “Montgomery’s defense was that the judgment in the first suit before the justice of the peace, releasing him from all liability, is a bar to any recovery against him by Ruff for contribution, the said judgment of the justice of the peace standing unreversed. Ruff should have appealed from the judgment of the justice of the peace holding him and releasing Montgomery. On such appeal there would have been presented for decision not only the right of the creditor to hold Ruff, but the rightfulness of the release of Montgomery. Ruff had the right, necessarily, to have that question also examined and determined on appeal because of the fact that the release of Montgomery directly affected the measure of Ruff’s liability to Blackard, the plaintiff. He had an appealable interest in the rightfulness of the determination of the justice of the peace in discharging Montgomery. As said in 2 Cyc. p. 633: ‘In legal acceptation, a party is aggrieved by a judgment or decree when it operates on his rights of property, or bears directly upon his interest,’ * * * The extent of Ruff’s liability was directly affected by Montgomery’s discharge, and the relation between Ruff and Montgomery was such, arising out of their suretyship contract and the principles of contribution flowing therefrom, that it would have been perfectly proper on the appeal to have determined the rightfulness of Montgomery’s discharge. This being,so, the judgment constitutes a bar to any recovery from Montgomery, as properly held by the circuit judge. ’ ’

Other cases supporting this view are cited in this case note.

In the dissenting opinion in the West Virginia case, the learned judge who delivered that opinion quoted the rule applicable to such cases as stated-in 2 Black on Judgments, section 591, as follows: “Where, in a suit against one of two sureties, judgment is fairly obtained against him, and no collusion existed between him and the party recovering the judgment or the principal obligor of the bond, if notice of the pendency of such suit has been given his co-surety, the latter stands virtually in privity with him against whom the judgment has been obtained.

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Bluebook (online)
186 S.W. 317, 124 Ark. 48, 1916 Ark. LEXIS 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lashbrooke-v-cole-ark-1916.