Price v. Carlton

68 L.R.A. 736, 48 S.E. 721, 121 Ga. 12, 1904 Ga. LEXIS 2
CourtSupreme Court of Georgia
DecidedOctober 17, 1904
StatusPublished
Cited by24 cases

This text of 68 L.R.A. 736 (Price v. Carlton) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Price v. Carlton, 68 L.R.A. 736, 48 S.E. 721, 121 Ga. 12, 1904 Ga. LEXIS 2 (Ga. 1904).

Opinion

Fish, P. J.

(After stating the foregoing facts.) 1. As a general rule, a surety on an eventual condemnation-money bond has no right to be heard in the proceeding against his principal, in which the bond was given. In Holmes v. Langston, 110 Ga. 861, 869, sureties on a bail-bond in an action of trover, one of the obligations of which was, like the bond in the present case, to pay the eventual condemnation-money, sought to intervene in the bailtrover proceeding. Their prayer to be made parties was denied; and this judgment was affirmed by this court. In the opinion (on page 869) it was said: The securities “are bound by the judgment against their principal, but they do not become parties to the case until judgment is entered. If there is any law authorizing such securities to be heard in the case, we are not aware of its existence.” The court added, however, that even if they had become parties to the case under consideration, there was no merit in their defense. It has been held that in a suit on an administrator’s bond the sureties might defend, even though the principal does not, and set up any reason which would relieve the principal, as well as any fact which would discharge them though [18]*18the principal be held liable. Bird v. Mitchell, 101 Ga. 46. We need not, however, discuss now the question as to what would be the rights of a surety on a bond given in a judicial proceeding where suit was brought directly on the bond and no judgment was entered against the surety in the main case. There may be instances where equity would permit a surety on an eventual condemnation-money bond to intervene for his own protection. If, for example, the principal is insolvent and declines to defend, the surety ought to have a right to be heard. Or if the surety has a defense peculiar to himself, and one which the principal is under no obligation to urge, the surety may be permitted to intervene. In Coburn v. Smart, 53 Cal. 742, it was held: “The sureties of a defendant in an action of replevin, upon an undertaking given to effect a return of the property in controversy to the defendant pending the action, have an interest in the action which entitles them to intervene if the defendant is insolvent, and the action is not being defended in good faith.” See also Hoffman v. Steinau, 34 Hun, 239; 16 Enc. P. & P. 937 — 8; 1 Brandt on Suretyship (2d ed.), §250;'2 Id. § 506; Guthrie v. Capelle, 1 Har. 368. Certainly equity will not permit an insolvent principal to render a solvent surety liable by collusion with the creditor and a failure to urge defenses which would discharge himself and the surety as well. Under the code, judgment may be entered in the main proceeding, against the surety on an eventual condemnation-money bond. Civil Code, § 2978. Of course, if such a surety had a defense peculiar to himself, equity would permit him to resist the enforcement of the judgment against him. And the judgment may be impeached for fraud, collusion, or mistake. Charles v. Hoskins, 14 Iowa, 471. But will it require him to wait until after judgment is entered ? We think not. Equity always seeks to avoid circuity of action and a multiplicity of suits. And where the surety has a defense which would discharge him, and which the principal is under no legal obligation to make, as where the principal is insolvent and is not defending in good faith, we see no good reason why equity should not, and many reasons why it should, permit the surety to intervene and set up his defenses in the main proceeding. This conclusion does not conflict with the ruling in Holmes v. Langston, supra. Language used there is somewhat broad; but there was no suggestion in that case that [19]*19the principal was not i defending in good faith, nor did the sureties seek to set up a good defense peculiar to themselves which the. principal was under no legal obligation to plead, even if he could do so. We think, therefore, that the court did not err in overruling the demurrer to the application of Smith, the surety, to intervene. His right to intervene and set up defenses peculiar to himself as surety would not give him a right to file any defense which his principal could make. Holmes v. Langston, 110 Ga. 869. And hence he could not-set'up such a defense unless he established his allegations of collusion and bad faith on the part of Price, the administrator of Hawkins. There was no evidence introduced in support of these averments. We have, however, in the discussion which follows, given Smith the benefit of these allegations and dealt with them as if they had been established by evidence. Inasmuch as we have reached the conclusion that there is no merit in any of the defenses relied on by him and which are properly before us, it is unnecessary to determine what effect the failure to verify the answer to his intervention would have, when the intervention was sworn to; or whether, if the answer is to be disregarded, the allegations of the petition should be taken as true, or should still, under the decision in Hudson v. Hudson, 119 Ga. 637, be proved by him. Smith filed two amendments to his intervention. Both of these were stricken on demurrer. He excepted pendente lite to the striking of one of the amendments, but, so far as the record shows, no exception was taken to the striking of the other. The only ground of the amendment to the striking of which exception was taken, which was argued in this court, was that one which sets up that the' judgment in Clarke superior court in the suit brought by Hawkins against Dearing and Newton’s executor was not binding upon Smith, the surety. For this reason, this ground only of the amendment will be dealt with.

2. Smith contends that the judgment in the litigation in Clarke county was not conclusive upon Hawkins as to the issue raised by the distress warrant and counter-affidavit in' Oglethorpe county; and that even if that judgment was res adjudicata as to Hawkins and his administrator, it was not so as to Smith. “ An adjudication of the same subject-matter in issue in a former suit between the same parties, by a court of competent jurisdiction, should be an end of litigation.” Civil Code, § 3741. “ A judg[20]*20menfc of a court of competent jurisdiction is conclusive between the same parties and their privies as to all matters put in issue, or which under the rules of law - might have been put in issue in the cause wherein the judgment was rendered.” Civil Code, § 3742. “ The judgment of a court of competent jurisdiction is conclusive between parties and privies, as to the facts'which it decides, until reversed or set aside.” Civil Code, §5348. Mr. Freeman, in his work on Judgments, states that to make a matter res adjudicata, there must be a concurrence, (1) of identity of the subject-matter; (2) of the cause of action; (3) of persons and parties; (4) in the quality of .the person against whom the claim is made. § 252. The rule laid down in Massachusetts is that the court will inquire, (1) whether the subject-matter of the controversy has been brought in question and within the issue in the former proceeding, and has terminated in a regular judgment on the merits; (2) whether the former suit was between the same parties in the same right or capacity, or their privies claiming under them; (3) whether the former judgment was before a court of competent jurisdiction. See 1 Gray, 299. The rule stated by the Supreme Court of the United States in Cromwell v. County of Sac, 94 U. S. 351

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hill v. Wooten
279 S.E.2d 227 (Supreme Court of Georgia, 1981)
Houston General Insurance v. Stein Steel & Supply Co.
215 S.E.2d 511 (Court of Appeals of Georgia, 1975)
Ford v. Herbermann
186 S.E.2d 501 (Court of Appeals of Georgia, 1971)
Pickett v. Chamblee Construction Co.
186 S.E.2d 123 (Court of Appeals of Georgia, 1971)
Escambia Chemical Corp. v. Rocker
184 S.E.2d 31 (Court of Appeals of Georgia, 1971)
O'Leary v. Smith
168 S.E.2d 886 (Court of Appeals of Georgia, 1969)
Barendrecht v. Clark
419 P.2d 603 (Oregon Supreme Court, 1966)
Sargeant v. Starr
116 S.E.2d 633 (Court of Appeals of Georgia, 1960)
Merck v. Flynn
54 S.E.2d 646 (Court of Appeals of Georgia, 1949)
Franklin v. Dorsey-Jackson Chevrolet Co.
20 So. 2d 220 (Supreme Court of Alabama, 1944)
Ford v. Eskridge
186 S.E. 204 (Court of Appeals of Georgia, 1936)
MacRae v. Betts
14 P.2d 253 (Arizona Supreme Court, 1932)
Longshore v. Collier
140 S.E. 636 (Court of Appeals of Georgia, 1927)
United States Casualty Co. v. Smith
129 S.E. 880 (Court of Appeals of Georgia, 1925)
Connally v. Morris
116 S.E. 338 (Court of Appeals of Georgia, 1923)
Allen v. Allen
115 S.E. 17 (Supreme Court of Georgia, 1922)
Paulk v. South Georgia Building & Investment Co.
111 S.E. 26 (Supreme Court of Georgia, 1922)
Wilson & Co. v. Sims
87 S.E. 890 (Supreme Court of Georgia, 1916)
Faricy v. St. Paul Investment & Savings Society
125 N.W. 676 (Supreme Court of Minnesota, 1910)
Bedingfield v. First National Bank
61 S.E. 30 (Court of Appeals of Georgia, 1908)

Cite This Page — Counsel Stack

Bluebook (online)
68 L.R.A. 736, 48 S.E. 721, 121 Ga. 12, 1904 Ga. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/price-v-carlton-ga-1904.