Southwestern Surety Ins. Co. v. Farriss

1926 OK 103, 247 P. 392, 118 Okla. 188, 1926 Okla. LEXIS 868
Supreme Court of Oklahoma·Decided February 2, 1926·No. 13749·Published·Cited by 16 cases

Opinions

Only one proposition is presented and argued seriously by plaintiffs in their brief, and that is the proposition stated in the tenth assignment of error as follows:

"That said court erred in not holding as a matter of law by rendition of proper judgment that as to the defendants in error, Alpha Cash, Patterson Shi Cash, Thomas L. Farris, and A. H. Shi, the judgment rendered in the district court of Garvin county, Okla. on the 8th day of June, 1921, in said cause No. 1532, entitled Alvin F. Pyeatt, Guardian, et al. v. Southwestern Surety Co., a Corporation, et al., refusing to vacate and modify the judgment rendered by the district court of Garvin county, Okla., in said action, on the 29th day of January, 1914, was res adjudicata of all questions raised and presented by said defendants in error in this action, and that said defendants in error were estopped thereby from denying the validity of said judgment so rendered in case No. 1532."

It appears that the minors, Tyree Cash, Minnie Ruth Cash, and Irene Cash, and the guardian, Alvin F. Pyeatt, were not parties to the motion or petition to vacate judgment in cause No. 1532, and are therefore not included within the terms of the order denying same. Only Alpha Cash, *Page 190 Patterson Shi Cash, and their grantees, T. L. Farriss and A. H. Shi, were petitioners in that proceeding. As to these four defendants it is earnestly insisted that the order of June 8, 1921, denying the petition to vacate the judgment of January 29, 1914, is res adjudicata and operates as an estoppel to question the validity of said judgment on which plaintiffs base their right of subrogation and their claim of lien in this instant action. Two questions naturally present themselves in the consideration of this contention: (1) Granting the validity of the plea of res adjudicata, do the facts disclosed by the record present equities entitling plaintiffs to be subrogated under the final judgment in cause No. 826? (2) Is the lien here sought to be foreclosed such a lien as a court of equity had power to declare and establish at the time it assumed to do so?

Subrogation, being based upon principles of equity and good conscience, its enforcement must be consonant with right and justice. Unless plaintiffs have shown themselves entitled to this equitable consideration they cannot enforce subrogation against the legal rights of the defendants. As is said in Bispham's Principles of Equity, section 338:

"The right of subrogation being an equitable one, it is consequently subject to the general qualification by which all equities are affected: — namely, that it must not be enforced to the detriment of equal or superior equities existing in other parties, nor where its enforcement would operate to the prejudice or injury of the creditor; and cannot, therefore, be insisted upon until the creditor is fully paid and satisfied. And it has been said that it will not be enforced against a legal right."

In the instant case, prior to the fraudulent sale by the guardian, for whose acts these plaintiffs were sureties, the minor wards held title in fee and unincumbered to the lands here involved. By the final judgment in cause No. 826 (Pyeatt et al. v. Estes et al., 72 Okla. 160, 179 P. 42), they recovered title and possession of these lands, but with an incumbrance of $15,000 thereon. The amount paid to those minors by these plaintiffs under the judgment in cause No. 1532 was the sum of $9,318. Whatever may have been the view of the trial court as to the probable result of the proceeding in error in cause No. 826, as justifying the judgment for subrogation in cause No. 1532, it is clearly evident that when that final decision was rendered it left equities in the minor wards superior to those here asserted by plaintiffs under the judgment of subrogation. Plaintiffs merely discharged their legal and contractual obligations by paying the $9,318, while the minor wards were compelled to pay $15,000 to clear the title to their lands, which would not have been incumbered but for the fraudulent and criminal acts of the guardian for whom plaintiffs were sureties. The minor wards, who stand in the relation of creditors, have not been fully paid and satisfied, and to enforce the right of subrogation against them under such circumstances would be to prejudice and injure them in their legal rights, as well as to wholly ignore their superior equities.

This claim of plaintiffs would be clearly enforceable against any property of the absconding guardian through subrogation to the rights of the wards against it. They being creditors, or standing in that relation at least, and having received the full amount for which plaintiffs were legally and contractually bound, their rights of recourse against the property of the absconding guardian would inure it to the benefit of plaintiffs, under the doctrine of subrogation, to the extent of the payment so made. No authority has been called to the attention of this court which would authorize a surety, after making good the default of his principal, to recover back the amount so paid from the creditor receiving the payment. This is the effect of the claim of subrogation in this case.

Is the lien here sought to be foreclosed such a lien as a court of equity had power to declare and establish at the time it assumed to do so?

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

Southwestern Surety Ins. Co. v. Farriss, 1926 OK 103, 247 P. 392, 118 Okla. 188, 1926 Okla. LEXIS 868 (Okla. 1926).

1926 OK 103 (Southwestern Surety Ins. Co. v. Farriss) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Read v. Read
2001 OK 87 (Supreme Court of Oklahoma, 2002)
National Bank of Commerce of Tulsa v. ABC Construction Co.
1966 OK 14 (Supreme Court of Oklahoma, 1966)
Bruce v. Miller
1960 OK 266 (Supreme Court of Oklahoma, 1960)
O. C. Whitaker, Inc. v. Dillingham
1944 OK 282 (Supreme Court of Oklahoma, 1944)
Neal v. Travelers Ins. Co.
1940 OK 314 (Supreme Court of Oklahoma, 1940)
Fourth National Bank of Tulsa v. Board of Com'rs
1939 OK 320 (Supreme Court of Oklahoma, 1939)
Hinkle v. Jones
1937 OK 190 (Supreme Court of Oklahoma, 1937)
Latimer v. Vanderslice
1936 OK 554 (Supreme Court of Oklahoma, 1936)
City of Barnsdall v. Barnsdall Nat. Bank
1933 OK 411 (Supreme Court of Oklahoma, 1933)
Tucker v. Leonard
1930 OK 209 (Supreme Court of Oklahoma, 1930)
State Ex Rel. Mothersead v. Kelly
1930 OK 16 (Supreme Court of Oklahoma, 1930)
Peter v. Mozier
1929 OK 262 (Supreme Court of Oklahoma, 1929)
Welch v. Commercial Nat. Bank
1928 OK 759 (Supreme Court of Oklahoma, 1928)
Corbin v. Bucy
1928 OK 646 (Supreme Court of Oklahoma, 1928)
Bilby v. Malone
1928 OK 257 (Supreme Court of Oklahoma, 1928)
Miller v. Tidal Oil Co.
1928 OK 101 (Supreme Court of Oklahoma, 1928)