Maxwell v. Connor

10 S.C. Eq. 14
CourtCourt of Appeals of South Carolina
DecidedJanuary 15, 1833
StatusPublished

This text of 10 S.C. Eq. 14 (Maxwell v. Connor) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maxwell v. Connor, 10 S.C. Eq. 14 (S.C. Ct. App. 1833).

Opinion

Johnston, Chancellor.

I shall not touch on the defendant’s evidence, but shall decide the case stqted and made out by the plaintiff.

The plaintiff states his case, in the bill. His claim to relief, is, that his intestate was discharged by a contract extending time to his principal, without his intestate’s concurrence. He does not ask this Court to deliver up the paper securities to him, but simply insists that his intestate was discharged and released. All he asks, is, that this Court should declare him discharged.

He states at the same time, that a judgment has been obtained, at law, on the contract, against intestate; which judgment must of course, impliedly assert that he was not discharged from, but bound by, the contract.

The plaintiff, so far from coming here' upon the ground of testimony discovered since the trial at law, states in his bill, that his intestate had the evidence then, which he has now, to prove his discharge, and actually tendered it to the Court. He has, in fact, offered no testimony here, which has arisen since the trial at law. There is no pretence in the bill, or suggestion* in the evidence offered here, that there was any lack of testimony at the law trial, or that any has been discovered since.

This is the plaintiff’s case.

There is no question in my mind, that the extension of credit, by the payee, to the principal maker of the note, is a good discharge of the surety, if made without his concurrence, and under a valid contract, which ties up the hands of the payee. Mere indulgence will not discharge him : mere refusal to sue, will not discharge him Although there are cases to the latter effect. But an obligatory contract to extend time, will; because it is in fact, a new contract, substituting new terms for the old, and therefore discharging the old contract, and whatever discharges the old contract, discharges the parties to it. At all events, if the old contract cannot be enforced against one, it cannot be enforced against any of the parties to it, when all are equally bound.

But a very material inquiry, is, whether the discharge was not as available a defence at law, as it is here. The plaintiff only asks to be discharged, and the question is, whether the Court of law was not as competent to grant him that relief, as this Court. And then follows the question, [16]*16whether, if the defence was available at law, the plaintiff can be heard here, when he states that he has just come out of a trial, of the same case, in a competent tribunal. Shall he have two trials ?

I think it has never been doubted, either by law or equity Judges, when the question- has been suggested, but that when the fact of surety-ship can be reached at law, a Law Court is bound as much as a Court of Equity to rule that an extension of time, such as is set up in this ease, is a full discharge to the surety: or, that when nothing is asked, but to be declared discharged, a Law Court is as competent to grant that relief, as a Court of Equity. The principle of discharge is, in its nature, a legal principle.

It is difficult to conceive why a discharge should not be a discharge, wherever presented; whether in law or equity — there can be no difference in the two Courts on principle, whatever there may be in the mode of-ascertaining the facts and administering some of the remedies.

*I will look to the question, and see how it stands on authority. One or two authorities in this Court, will suffice to show, that this Court never arrogated exclusive jurisdiction of the question, whether a surety was, or was not discharged : but has always admitted that the Courts of law have concurrent jurisdiction, when they can ascertain the facts.

In Rees and Berrington, (2 Ves. 540,) where the form of paper security was that of a joint and several bond, for the payment of money, Lord Loughborough says, “the form of the security, forces these cases into Equity. But take it out of that form ; and suppose in this instance, that the plaintiff was a surety by a proper bond at law as surety. What is the consequence ? Where a man is surety at law, for the debt of another, payable at a given day, if the obligee defeats the condition of the bond, he discharges the security. When they are bound jointly and severally, the surety cannot aver, by pleading, that he is bound as surety. But if he could establish that at law, the principal at law is, that he has an interest in the condition, and if the period is extended, that totally defeats the condition ; and the consequence is, the surety is released from his engagement.” He adds, “the principle is a legal principle.”

When he says “Suppose the plaintiff was a surety by a proper bond at law, as surety,” I understand him to refer to a bond of such form, as, on its face, would have shown the plaintiff to have been a party, as surety only.

In King v. Baldwin, (2 John. Ch. Rep. 557,) Chancellor Kent says, “he, (King,) has made his defence, to a recovery on the note, before a Court of competent jurisdiction, upon the same fact, that he now puts forward, and that defence was overruled — it was observed by the present Chief Justice, in delivering the opinion of the Supreme Court, in the case of The People v. Jansen, (7 Johnson’s Reports, 332,) that there was nothing in the nature of a defence by a surety, to make it peculiarly a subject of Equity jurisdiction, and that whatever would exonerate the surety, in one Court, ought also in the other. The fact being ascertained, he observed, the rule must be the same, in that Court, as in the Court of Chancery. And this was, undoubtedly, the opinion* of Lord Loughborough, in the case to which the Chief Justice refers.”

In the same case, Chancellor Kent also refers to two law authorities [17]*1710 East, 34, and 1 Bos. & Pul. 419 for the purpose of drawing from them the rule, as to what shall amount to a discharge ; and squaring his decision in Equity, by the law rule. Surely he would not have done this, if he had not admitted that the subject was one of law cognizance — and that the rule was the same in both Courts.

In our own Courts of Equity, in no ease, has such a question been raised, so that no opinion can be gathered from our own Reporters — but unquestionably higher authority than that I have quoted, is not required, when the question is, as it is, open in our own Courts.

We have seen the opinions of Equity Judges — let us now turn to those of Law Judges. The authorities are abundant, and the practice of law Courts has been never to turn away, but always to take jurisdiction of the question, whether a surety has been discharged by extension of time, or variation of the contract with his principal.

Nothing is more familiar than the successful defence of acceptors and indorsers, on that ground, of whom Lord Ellenborough in Laseter v. Peat, 2 Camp. 185, says “they stand as surety, and sureties to single contracts, and are discharged by extending time to their principals, without their concurrence.”

It is vain to say, that the defence of discharge to indorsers and acceptors, stands upon the principles of commercial law, differently from other cases. That may be — but the question now before us, is not affected by it. The question is not whether indorsers and acceptors may not be discharged by less laches, or extension of time, than other sureties: but the question is, whether a discharge may not be relied on, in a Court of law, by a surety, as Well as in this Court.

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Related

People v. Jansen
7 Johns. 332 (New York Supreme Court, 1811)

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Bluebook (online)
10 S.C. Eq. 14, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maxwell-v-connor-scctapp-1833.