Merchants National Bank v. Great Falls Opera House Co.

45 L.R.A. 285, 57 P. 445, 23 Mont. 33, 1899 Mont. LEXIS 74
CourtMontana Supreme Court
DecidedJune 6, 1899
DocketNo. 1,088
StatusPublished
Cited by7 cases

This text of 45 L.R.A. 285 (Merchants National Bank v. Great Falls Opera House Co.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merchants National Bank v. Great Falls Opera House Co., 45 L.R.A. 285, 57 P. 445, 23 Mont. 33, 1899 Mont. LEXIS 74 (Mo. 1899).

Opinion

MR. CHIEF JUSTICE BRANTLY

delivered the opinion of the court.

This is an appeal from an order made and entered in the district court of the Eighth judicial district in [35]*35and for Cascade county on January 30, 1897, directing execution to issue in favor of C. M. Webster, H. O. Chowen, and Ernest Crutcher against their co-defendant and and co-surety, F. P. Atkinson.

On December 22, 1892, the plaintiff herein recovered judgment against the Great Falls Opera House Company, a corporation, as principal, and C. M. Webster, Charles Wegner, H. O. Chowen, F. P. Atkinson, Ira Myers, and Ernest Crutcher, as sureties, for the sum of $2,212.50, with interest at 10 per cent, per annum from the date thereof. The motion for execution herein against F. P. Atkinson was made upon the same day as the motion made in the case of Northwestern National Bank v. Great Falls Opera House Co., et al., ante p. 2, 57 Pac. 440. It was heard at the same time, and upon substantially the same proof. The right to contribution from Atkinson in this case, however, is based upon a formal assignment of the judgment by the plaintiff to the moving defendants after payment of the same by them. This payment was made on December 23, 1892, and the facts with reference to it are set forth in full in the opinion in Northwestern National Bank v. Great Falls Opera House Co., et al., supra. The affidavit of the moving defendants herein differs from the affidavit made in that case in that it predicates the claim of contribution upon the assignment of the judgment. It also appears from the affidavit that, though assigned to the respondents, the judgment was thereafter formally satisfied by the attorneys for plaintiff at the request of some one of the respondents, in order that it might not appear as a lien upon the real estate of the respondents, which they were selling from time to time. This formal satisfaction is alleged to have been made for this purpose only.

The defenses alleged in the counter affidavit of Atkinson in this case are the same as in the former case. The action of the court upon the defense based upon the alleged contract of Atkinson with Webster, Chowen, Crutcher, and Myers, and also upon the plea of the statute of limitations, was the same. The contract sought to be made available herein is the same [36]*36as the one alleged in that ease, Atkinson claiming that the agreement of release in consideration of the loan of $3,200 by the Cascade Bank on February 14, 1893, applied to both judgments.

After the proof was heard, the court below ordered execution to issue against Atkinson for $448.50, or one-fifth of the judgment, with interest; it appearing that Ira Myers had contributed his share of the judgment, and that Wegner was. insolvent. From this order Atkinson appeals.

Besides the assignments of error made in the former case, which were therein considered and disposed of, and will not, be here again examined, the appellant asks a reversal on two-grounds:

(1) That the court erred in granting the motion for the reason that no notice of payment and claim of contribution was filed as provided by Section 1242, Code of Civil Procedure; and

(2) That the court erred in granting the motion for the-reason that the judgment had been satisfied of record.

1. The contention is here made that the respondents,, having failed to give the notice required in order to avail-' themselves of the provisions of Section 1242, cannot have the-relief sought under the assigned judgment; and this is equivalent to saying that, because the legislature has provided a. summary mode by which a surety may enforce reimbursement or contribution under the judgment, the respondents may not, therefore, resort to the remedy invoked here. We understand, however, that the remedy provided by this section is cumulative, and that all the rights and equities existing in favor of the sureties in this regard will be enforced by the courts in proper cases, notwithstanding the existence of the statute providing the summary mode. The surety may proceed to obtain relief by any recognized mode. (McDaniel v. Lee, 37 Mo. 206; Peters v. McWilliams, 36 Ohio St. 155; German American Bank v. Fritz, 68 Wis. 390; 32 N. W. 123.) In the case of Peters v. McWilliams, supra, in commenting upon asimilar statute, the court say: “The effect of-[37]*37this statute upon the case at bar is to give the plaintiff, who had an existing demand on defendant, a cumulative remedy. ’ ’ It clearly appears in this case that the respondents at the time of payment took an assignment of the judgment, intending to keep it alive in order to enforce contribution from their co-sureties. The question presented by this contention therefore is, may a surety who has paid a judgment against himself and his co-sureties take an assignment of it to himself, and avail himself of it to enforce contribution from his nonpaying co-sureties ? The right of a surety who has paid the judgment against himself and his principal to keep it alive by having an assignment made to a stranger for his benefit is well settled. (Freeman on Judgments, Sec. 470; Black on Judgments, Sec. 996.) He may also, as against his principal, be subrogated to all the rights of the creditor under the judgment, where such is the intention at the time payment is made. (German American Bank v. Fritz, supra; Eddy v. Traver, 6 Paige, 521; Goodyear v. Watson, 14 Barb. 486; Flemming v. Beaver, 2 Rawle, 128, S. C. 19 Am. Dec. 629; Freeman on Judgments, supra.) And this may be done whether an assignment be made for the benefit of the surety or not. (Scribner v. Hickock, 4 Johns. Ch. 530; Flemming v. Beaver, supra, with notes.) The court will, in such case, make the substitution, and grant such relief as may be proper. It is held, also, that a voluntary payment of the judgment by one of several defendants primarily liable thereunder inures to the benefit of all, and extinguishes the judgment. (Freeman on Judgment, See. 472.) “Whether one of the several persons against whom a joint judgment has been recovered may pay the judgment, and still keep it on foot by any means or for any purpose, is a -question upon which the authorities are very equally divided. ’ ’ (Id.) It is held in New York that this cannot be done. (Harbeck v. Vanderbilt, 20 N. Y. 395; Booth v. F. & N. National Bank, 74 N. Y. 228.) This rule is recognized in Massachusetts, Yermont, North Carolina, Indiana, and Alabama. (Hammatt v. Wyman, 9 Mass. 138; Porter v. Gile, 44 Vt. 520; Sherwood [38]*38v. Collier, 14 N. C. 380, S. C. 24 Am. Dec. 264; Preslar v. Stallworth, 37 Ala. 402; Klippel v. Shields, 90 Ind. 81.) But there is an intimation in these cases cited from New York,. Indiana, and North Carolina that this is not the rule where, there are special circumstances in the case, and the judgment be assigned for the benefit of the paying defendant, or where he occupies the position of a surety, and not that of one who is primarily liable. In Klippel v. Shields, supra, the court say: “There are cases where a different rule applies; as where the person who pays the debt occupies the position of surety, or some similar relation. ”

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Bluebook (online)
45 L.R.A. 285, 57 P. 445, 23 Mont. 33, 1899 Mont. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merchants-national-bank-v-great-falls-opera-house-co-mont-1899.