Neal v. Buffington

26 S.E. 172, 42 W. Va. 327, 1896 W. Va. LEXIS 85
West Virginia Supreme Court·Decided November 18, 1896·Published·Cited by 10 cases

Opinion

BraNnoN, Judge:

In a chancery suit of Johnson, Sutton & Co. against G. W. Buffington & Co. certain judgments were adjudged to be liens on land of G. W. Buffington, and the lands were rented under decree in it, Buffington himself becoming renter; and he gave five notes for the rent, withD. R. Neal, W. J. Robb, and P. D. Neal sureties; and the Neals paid off the first bond, and judgments were had on the others, a part of one of which judgments was paid by said Neals, and the others yet remain unpaid. These sureties brought this suit against Buffington and others to compel Buffing-ton to pay the debt in exoneration of them, and to reimburse their payments, claiming the right to be subrogated to the liens against Buffington declared in the Johnson, Sutton & Co. case. A decree gave the plaintiffs relief by decreeing them repayment of what they paid, and Buffing-ton appeals.

One point made by appellant is that there was no replication to his answer, and on this point stress is laid. The decree says that the cause was heard on the answer of G. W. Buffington, Sr., and G. W. Buffington, Jr., “with general replication to each of said answers.” There is no more formal or prior entry of a replication, but this affirms that the court heard the case on an oral general replication, thus showing there was one. That is common practice and sufficient.

IJpon the demurrer and merits we must decide the material question whether plaintiffs can maintain this suit. It is contended that, as the sureties have not discharged the liability in full, they can not have subrogation to the liens decreed in the first suit. So the general rule is put in the books. Brandt, Sur. § 306; Sheld. Subr. § 127. A surety can not have a decree in his favor for the money, or compel the creditor to assign or cede or in any way detract from his securities until full payment. Till then he can not prejudice the creditor. But, when he pays part, he is substituted to the creditor’s lien to that extent, sub[329] ject to the creditor’s priority for the balance. But, before paying anything, he has rights. On the principle of quia timet, he can sue to compel the principal to pay the debt to his relief. In Stephenson v. Taverners, 9 Gratt. 398, 404, Judge Moncure said: “When this suit was brought, the appellant had not paid the debt, and probably has not paid it yet. But he is entitled, nevertheless, the debt being due, to come into equity, by bill quia timet against the creditor and debtor, and compel the latter to make payment, so as to exonerate himself from responsibility. Story, Eq. Jur. §§ 327, 639, 849. He may enforce, for his exoneration, any liens of the creditor on the estate of the principal.” He could not sue the debtor alone, claiming the right to payment in order that he might discharge the debt; but where is the reason, when he has paid part, against his bringing creditor and principal debtor in, and enforcing the lien for the payment of the balance to the creditor first, and then to reimburse him his partial payment? This is clearly law in many cases. Sheld. Subr. § 130. The surety can make the debtor do what he ought to do — pay his own debt out of his own property to save the surety’s property.

But it is strenuously urged that, when Buffington’s land was rented, that satisfied the judgment, so that there is nothing for the sureties to be substituted to. For this Judge Johnson’s opinion in Rose v. Brown, 11 W. Va. 122, is cited, wherein he said that renting land was as much enforcing the liens of judgments as if sales were directed. Certainly. There are two modes of enforcing judgments against land, by sale and rental. If a man’s land be sold or rented to third parties, whether the money be realized therefrom or not, he may say his liability is paid. But how if he himself purchases or rents? Can he say to his sureties for the rent or purchase money’, “You pay it; but you can not come back on me or my property, because the renting or sale satisfied the liens?” Here Buffington rented and promised to pay the money to discharge these very judgments, but failed to do so. Surely he can not, in equity, say to sureties who have furnished the money to pay the debts he agreed to pay that the renting satisfied [330] them. He can not thus take advantage of his own wrong against his good friends, the sureties. He yet owns the land, pays no rent, but tells them the liens are gone. If he can do so in this case, a debtor might deny subrogation to his surety in any case, on the ground that the surety had destroyed the lien. This debt never was paid. The debtor only gave further security for it in the rent bonds, like a debtor gives further security in a forthcoming bond; and Hill v. Manser, 11 Gratt. 522, says: “A surety in a forthcoming bond is a surety for the debt, and, when he pays it, he is entitled to all the rights of the creditor against the original debtor subsisting at the time he became bound for the debt.”

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Neal v. Buffington, 26 S.E. 172, 42 W. Va. 327, 1896 W. Va. LEXIS 85 (W. Va. 1896).

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