Shannon v. McMullin

25 Va. 211
CourtSupreme Court of Virginia
DecidedJune 15, 1874
StatusPublished

This text of 25 Va. 211 (Shannon v. McMullin) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shannon v. McMullin, 25 Va. 211 (Va. 1874).

Opinion

MONCURE, P.

It is well settled that a surety is entitled to be relieved from his liability to pay the debt of his principal, either in toto or pro tanto as the case may be, if the creditor, without the consent of the surety, make a new contract with the principal, founded on valuable consideration, to postpone the day for the payment of the debt for a certain period (however short) beyond the day on which it was to be paid by the terms of the contract on which the surety was liable; or i f the creditor, without the consent of the surety, release any lien which he may have on any property of the principal for the security of the debt. The extent of the relief to which the surety is entitled in the former case being in toto, without regard to the extent of damage actually sustained by the surety by reason of such new contract, or whether any such damage was sustained at all or not; and in the latter case being in toto or pro tanto, according as the value of the property released was as much as or less than the amount of the debt.

The principle on which rests the right of the surety to relief as aforesaid is, that his rights cannot without his consent be impaired by the act of the creditor; *that he has a right, at any time while he is surety, to pay the debt, or by a bill quia timet to compel the principal to pay it; and to be subrogated to the place of the creditor in regard to any liens the latter may have on any property of the principal for the security of the debt.

The appellant, Shannon, who was the surety of Thomas and Williams in a forthcoming bond on which judgment was recovered in the County court of Smyth, and on which judgment an execution was issued and levied on the property of the principal debtor Thomas, and was more than nine years thereafter renewed, obtained an injunction to the said renewed execution, so far as he was concerned, on a bill filed by him in the Circuit court of said county, in which he complained that the appellee, McMullin, who was the only defendant to the bill, for whose benefit the said execution was endorsed, and who was entitled to the use of the same, had directed the sheriff, who had levied the said execution, to hold it up, and not to sell the property levied on; that the said execution was accordingly held up, and the said property not sold, by direction of said McMullin without the authority or consent of the complainant. In the language of the bill: ‘ ‘Nine years have elapsed; the affairs of said Thomas have become extremely embarrassed, and nothing can be made upon execution against him. His property levied upon is all gone, or put beyond the reach of execution by emancipation, sale, wear and tear, and deeds of trust, &c. He has held and disposed of since said levy large amounts of property ; has handled and paid large sums of money, and has carried on a very large business.” And the complainant claimed to be discharged from liability as surety on said judgment and execution by the interference of *said McMullin. He further charged, that by the direction of said McMul-lin, a new execution had, on the 18th day of August, 1869, been issued on the said judgment, was then in the hands of the sheriff of said county, and that complainant had reason to know that the sheriff would proceed to levy the same upon the property of complainant unless restrained by injunction. He also claimed that other credits, which are enumerated in the bill, in addition to a credit of $500, endorsed on said [362]*362execution, were property applicable thereto. And he prayed that McMullin might be made defendant to the bill, and be enjoined from all further proceedings on said execution against the complainant or his property ; that the complainant ' might be discharged from all liability as surety in said forthcoming bond and upon the judgment and execution thereon, and for general relief.

Among the exhibits filed with the bill was a copy of the original execution on the forthcoming bond and of the endorsements thereon. The execution bore date on the 23d day of June, 1860, and was returnable to the next August court of said county, being the Tuesday after the third Monday in that month. Among the endorsements ■on the execution the following appear, and in the following order:

“Levied on the following property, together with other executions, to wit: one negro man George, Ered, Campbell, Stephen and David; one woman Ellen and Polly; one boy James, Hiram and King; one girl Mary, Deemy and Ann; 10 horses, 6 wagons, one carriage, one buggy, 30 head of cattle, one steam saw mill and fixtures, one reaper and thresher, Aug-ust 20th, 1860.

V. S. Morgan.”
215 ^“Received of V. S. Morgan on the within execution five hundred dollars.
E. McMullin.
Jan’y 22nd, 1862.”
“The above payment of 1500, Jan’y 22nd, 1862, was paid by J. H. Gilmore for A. Thomas, being all that Thomas has paid on this execution.
V. S. M.”
“This execution held up and property not sold, by direction of E. McMullin.
V. S. Morgan, S. S. C.”

It thus appears that the appellant claims no relief upon the ground of any new con-fract made by the creditor with the principal debtors whereby the creditor’s right to enforce the payment of the debt by the principal was suspended for a single instant; but he claims relief only upon the ground that by the levy of the execution, the creditor acquired a specific lien on property of the principals sufficient in value for the payment of the debt, and that this lien was, in effect, released by the creditor without the consent of the surety.

The ground r.elied on by the surety for his discharge from liability for the debt is amply sufficient for the purpose if it be sustained by the facts, and the only question is: Do the facts of the case sustain it?

Without stopping to inquire whether the facts as set out in the bill are sufficient to sustain the ground relied on for the discharge of the surety, I will proceed to inquire whether, upon the whole case, ne is entitled to such discharge. We have seen what is stated in the bill; let us now take a brief view of the answer and the proofs.

The creditor, the appellee McMullin, in his answer, *admits that the execution was endorsed for his benefit on the 3d of July 1860, by James H. Gilmore, for whose use the judgment had been obtained and the execution issued; but, he says, hé had no knowledge of the existence of such an execution until the 25th of August thereafter, when, calling on said Gilmore for the payment of money' due from him to respondent, said Gilmore, to meet the just demands of respondent, gave him an order on V. S. Morgan, the sheriff of .Smyth county, for the amount of said execution ; which order is filed with the answer as part thereof. This order, respondent asserts, gave him the first information of said execution, and he says he knew nothing of the endorsement thereon for his benefit until since the filing of the bill. The return day of the execution, as well as the levy of the same, were both prior to the 25th day of August 1860, the date of the order from Gilmore to respondent. The return of “levied,” &c., dated 20th day of August 1860, and signed by the sheriff, was a complete return, and by it- the said sheriff became bound as sheriff to account to respondent for the full amount of said execution. The pretended supplemental or additional return (“This execution held up and property not sold, by direction of E.

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18 Va. 13 (Supreme Court of Virginia, 1867)

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Bluebook (online)
25 Va. 211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shannon-v-mcmullin-va-1874.