Sherman's Adm'r v. Shaver

75 Va. 1, 1880 Va. LEXIS 1
CourtSupreme Court of Virginia
DecidedNovember 11, 1880
StatusPublished
Cited by6 cases

This text of 75 Va. 1 (Sherman's Adm'r v. Shaver) 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
Sherman's Adm'r v. Shaver, 75 Va. 1, 1880 Va. LEXIS 1 (Va. 1880).

Opinion

Burks, J.,

delivered the opinion of the court.

The case to be decided, omitting names of parties, is briefly this:

An execution, sued out by a creditor on a judgment which bound lands of the debtor, Avent into the hands of a deputy sheriff, who levied the same on personal property of the debtor sufficient to satisfy the writ. He never made sale of the property, but left it in possession of the debtor, who converted and disposed of it to his own use. For this default, the creditor, by motion, recovered a judgment against the sheriff for the amount of the debt, interest and costs in the execution, which the sheriff paid, and, in turn, recovered against two of the sureties of the deputy, on the indemnifying bond of the latter to him, a judgment for the like amount, which one of the sureties (the other two as well as the deputy being insolvent) paid, and thereupon filed his petition in a pending chancery cause, wherein the lands of the original debtor were being subjected to the satisfaction of judgments binding the lands, praying to be [4]*4substituted to the lien of the judgment on which the execution referred to had issued. The claim was resisted by junior lien creditors on the ground that the right of subrogation did not apply in such case, at least as against them; and on the hearing the court below by its decree denied the prayer for relief and dismissed the petition. The question, on appeal allowed the personal representative of the surety who died after the petition was filed, is, whether there is error in said decree.

The whole record has not been brought up. From such parts of it as we have, it appears that the judgment on which the execution was sued out is the first lien on the debtor’s lands. Those lands, it seems, have been sold, and the proceeds in the hands of the court not being sufficient to satisfy all the liens, the controversy is as to the application.

“ A surety,” says Chancellor Wythe, “ is one bound that something shall be done, not by himself in the first instance, but by some other hand, and in case of default by this prime agent, that the obligor shall perform the act, or compensate for non-performance.” Wythe’s Reports (Minor’s Edition), 281. To make one a surety he must be bound by contract or engagement entered into at the request of another who is the real debtor. Such request, though generally express, may be implied in some cases, as, for instance, from a subsequent promise of the principal to indemnify the surety for money paid by the latter for him.

The appellant’s intestate was not surety for the original debtor in this case. He was no party to the contract of that debtor with his creditor, nor did he ever undertake for bim or with him to pay his debts. He bound himself as surety for the deputy only by the bond (not a statutory obligation) given to the sheriff with the usual condition, as is supposed, that such deputy should faithfully discharge [5]*5the duties of his office, and indemnify the sheriff and save him harmless against any loss or damage he might incur or sustain by reason of the deputy’s default. It was for a breach of this condition by the deputy that the liability was incurred by the surety, for which the sheriff recovered against him the judgment which he paid. Upon such payment being made, the surety, according to well settled principles, became entitled in equity to be substituted for his indemnity to all the liens, securities, rights, remedies, and means of payment held by the deputy’s creditor (the sheriff) for the liability of the deputy which was discharged by the surety. This right of substitution, so far as it related to the deputy and his property, was worthless, as he was insolvent, had removed beyond the jurisdiction of the court, and there was no judgment against him. But if the sheriff was entitled to securities and remedies against other parties primarily bound to discharge the judgment which had been recovered against him, and which was the foundation of his recovery against the surety, then the surety was also entitled to the benefit of those securities and remedies. Therefore, if the sheriff had the right to be substituted for his indemnity to the lien of the judgment which he satisfied to the creditor by paying the recovery against himself, the surety through him had the same right. This may be illustrated by a reference to the case of Pinckard v. Woods, 8 Gratt. 140. An administrator with the will annexed committed a devastavit or breach of trust by selling bonds of the estate at a heavy discount, when the necessities of the estate did not require such sale, and converting the proceeds to his own use. In a suit in equity by the legatees, they recovered against the administrator and his sureties the amount of the bonds thus converted, which (the administrator being insolvent) the sureties paid. They thereupon brought their bill against [6]*6the purchaser of the bonds as well as the administrator, charging the breach of trust and active participation therein by the purchaser, and praying indemnity from him. The relief prayed for was granted by decree below, and that decree was affirmed here. Thus, it is seen, that the sureties in that case were substituted to the rights and remedies of the legatees not only against their principal (the administrator) but also against a third party, for whom they were not bound and with whom they had no connection, the purchaser of the bonds being held liable to the sureties as substituted to the remedies of the legatees, on the principle, more distinctly announced in a subsequent case (Barksdale and others v. Finney and others, 14 Gratt. 338), that all who participate in a breach of trust are jointly and severally liable.

• If in this case the surety has any equity, it is through the sheriff; and the inquiry is, was the sheriff, whose rights and remedies were acquired by the surety, entitled by substitution to the lien of the original judgment which was satisfied to the creditor by him ? After what has been said, it is hardly necessary to add that the sheriff was not the surety of the original debtor. His only obligation was that of a public officer, and the liability he discharged was incurred by the default of his deputy, for whose acts in the exercise of his delegated authority, the sheriff was civilly responsible. The judgment against him is evidence conclusive, that he was held to account for the violation of official duty in the person of his deputy; and the first question suggested is, will a court of equity, upon the principles which regulate the administration of justice in that forum, extend to such delinquent the same relief it accords to a surety ?

The principle of subrogation is certainly very comprehensive, and it is said, that the rule is broad enough to include every instance where one pays a debt for which an[7]*7otlier is primarily liable, and that should in equity and good conscience have been discharged by him. 1 Lead. Cas. Eq. (4th Amer. Ed.), Part 1, top p. 148, and cases cited in notes to Bering v. Winchelsea. Again, “ Wherever one is liable in person or estate to a charge which ought to be borne primarily by another or his estate, the person first-named will have the equity of a surety, and he is entitled to the securities and remedies of a creditor as a means of carrying that equity into effect.” Wilks v. Harper, 2 Barb. Ch. R. 338, cited 2 Lead. Cas. Eq. (Ed. supra), Part 1, top pp. 282, 283—notes to Aldrich v. Cooper.

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Bluebook (online)
75 Va. 1, 1880 Va. LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shermans-admr-v-shaver-va-1880.