Moore v. Bray

10 Pa. 519, 1849 Pa. LEXIS 273
Supreme Court of Pennsylvania·Decided June 11, 1849·Published·Cited by 16 cases

Opinion

Bell, J.

It is conceded that Samuel Woods, Jr., and William Moore, were the sureties of N. W. Woods, in the judgments recovered against them by Bray & Barcroft. According to the statement of the petitioning creditors of Woods, Jr., the sum of $1,168.59, applied by William Moore in part satisfaction of those judgments, was derived from the principal debtor, under the mortgage assigned by him to Moore. The balance due under the judgments, $1,525.26, and which was paid in full satisfaction of them, was made from the sheriff’s sale of the real estate of Woods, Jr., and applied in detriment of his subsequent lien-creditors. If this statement is true, Woods, Jr., one of the sureties, paid all that remained due, after the means of the principal debtor were exhausted; for Moore was but the agent of the latter in the collection and application of the mortgage-moneys. For the present, I put out of view the judgment confessed by N. W. Woods to- Moore and Capt. S. Woods, about which there appears to be no dispute. The case thus presented is the ordinary one of a co-surety, who has paid the- debt of his principal, calling upon his fellow to bear his proportion of the common burden, with this addition, that here the call is made in favour of the paying surety’s lien-creditors, who have been baited of payment of their several judgments by the application of their debtor’s encumbered estate, in discharge of a prior lien, one-half of which the defaulting surety ought to have satisfied. The means proposed to reach the non-paying surety, is to give to the petitioning creditors, as against Moore, the benefit of Bray & Barcroft’s judgments, by subrogation, to the extent of Moore’s default. That, under the circumstances which have place here, the paying surety is entitled to this equity, does not, with us, admit of doubt: Fleming v. Beaver, 2 R. 128; Croft v. Moore, 9 W. 451. O’Neil v. McClure, and Neff v. Miller, 8 Barr, 347, establish that it may also be extended to the disappointed lien-creditors of the surety, at least with his assent, where no countervailing equity resides in the antagonist party. This is not asserted here, and consequently the path, upon the statement of the creditors, lies unobstructed before them.

But Moore denies that any portion of the mortgage held by N. W. Woods was transferred to him for the purpose of applying its avails in satisfaction of Bray & Barcroft’s judgments, and we are left to infer — for there is no direct assertion to that effect — that the [523] money actually paid by him in part discharge of the judgments, was derived from his own resources. He therefore claims to occupy the position of one who has paid nearly his proportion of the common debt.

The controversy is thus reduced to a simple question of fact, to be determined upon all the evidence. The witness upon whom the petitioning creditors principally rely, is James H. Graham, Esq. He distinctly proves Moore’s acknowledgments, that the consideration which moved to the assignment of the mortgage, was the liability of the latter, as the surety of N. W. Woods, and the desire of the principal debtor to secure and indemnify him against this liability. Accepting this testimony as competent, no room is left for hesitancy as to the fact. We think, however, it is more than doubtful whether it ought to be received for this purpose. All that Mr. Graham knows on the subject, was derived from Moore himself, and it pretty clearly appears these communications were made to the witness professionally, while in the exercise of his vocation of attorney at law. In direct connexion with the transactions that gave birth to this dispute, Mr. Graham was called on by Moore, to prepare an amicable confession of judgment, by N. W. Woods, in favour of Moore and Capt. Woods, the avowed object of which was to cover the liabilities of these gentlemen, as sureties of the defendant in that judgment. This was communicated to Mr. Graham professionally. On this point, however, no difficulty is made, for, that such was the consideration of the confessed judgment, is everywhere conceded.

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Moore v. Bray, 10 Pa. 519, 1849 Pa. LEXIS 273 (Pa. 1849).

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