Stovall v. Border Grange Bank

78 Va. 188, 1883 Va. LEXIS 27
CourtSupreme Court of Virginia
DecidedDecember 13, 1883
StatusPublished
Cited by12 cases

This text of 78 Va. 188 (Stovall v. Border Grange Bank) 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
Stovall v. Border Grange Bank, 78 Va. 188, 1883 Va. LEXIS 27 (Va. 1883).

Opinion

Lacy, J.

(after stating the case), delivered the opinion of the court.

The first ground of exception to the decree complained of is raised by the demurrer, that the bill on its face does not show that a resort to equity was necessary and proper. Executions had issued on the judgments, which were not made part of the bill, and the bill does not show what had become of the executions, although it alleged that they had been issued, and that garnishments had issued on the executions and judgment recovered on them, and there is no statement of how much had been thus recovered ; and that this court should reverse the whole decree for that reason. Also, that the lands of the appellant were ordered to be sold, when it was neither alleged or proved that the complainants had exhausted their remedy at law to obtain satisfaction of their judgments out of the personal estate of the appellant.

By the ninth section of chapter 182 of the Code of 18.73, which is the act of 1849, it is provided that “ the lien of a judgment may always be enforced in a court of equity. If it appear to such court, that the rents and profits of the real estate, subject to the lien, will not satisfy the judgment in five years, the court may decree the said estate, or any part thereof, to be sold, and the proceeds thereof applied to the judgment.” This court, in a late case, quoting the [191]*191above statute, declared tbat, looking to tbe policy of tbe legislature and to the broad and comprehensive language of tbe enactment tbat a judgment creditor, if be should so elect* might resort to a court of equity to enforce tbe lien of bis judgment against tbe real estate of bis debtor, without first proceeding by execution at law to subject tbe personal estate, or assigning any reason for not doing so.

Tbe remedy against tbe real estate in equity is declared* not dependent upon tbe inadequacy of tbe legal remedy to satisfy tbe judgment out of tbe personal estate, or the insufficiency of such estate for tbat purpose, but tbat it may always be resorted to, whether there be or be not personal estate of tbe debtor sufficient to satisfy tbe judgment.

Tbe remedy is given in general terms, and if it bad been intended to limit its application to cases in which there was no personal estate of tbe debtor, or when such estate was not sufficient to satisfy tbe judgment, it would doubtless have been so provided in express terms. Tbe court goes on to say tbat all tbe property of tbe debtor, except what is exempt under tbe law, is liable for tbe payment of bis debts, and if tbe debtor feels aggrieved by tbe attack upon tbe real estate, be can, if be has enough personal property, proceed to sell it himself and pay tbe debt, and so save bis real estate. Tbe ruling of tbe court below upon this point was in accordance with tbe decision of this court in tbat case. Price v. Thrash, 30 Gratt. 515. Tbe second ground of demurrer was tbat one of tbe defendants in the suit at law, in which tbe judgment was obtained, and who was one of tbe judgment debtors, was not made a party defendant in this suit. All persons who are interested in tbe relief sought by a bill should be made parties defendants to tbe bill, unless they are already joined as plaintiffs, and tbe prayer for process must be so framed as to bring all persons interested in tbat relief before tbe court, either as plaintiffs or defendants. This is elementary.

[192]*192But the complaint here is that T. J. Lee is not a party ■defendant, while it is admitted that he is joined as a party plaintiff. The demurrer was properly overruled on that ground also. The plea being dependent upon the same question, was also properly overruled. The first ground of ■exception upon thé merits was that the court erred in deciding that Lee was not equally bound with Stovall under the judgment on the $1,500 debt, and that, though Stovall should pay the whole debt, he would be entitled to no contribution from Lee.

This question depends upon the evidence. The note was as follows:

Danville, Va., June 3d, 1880.
“$1,500.
“ Sixty days after date, we, A. P. Whitfield & Co., principal, and John T. Stovall, Thomas J. Lee, securities, promise to pay Border Grange Bank, or order, fifteen hundred dollars, without offset, negotiable and payable at the banking house of Border Grange Bank, Danville, Va. Value received. We hereby waive our homestead exemption as to this debt.
“A. P. Whiteield & Co.
“Jno. T. Stovall.
“Thos. J. Lee.”

Lee, in his deposition, says he signed this note as security, along with Stovall, to enable Whitfield to raise money to pay him, Lee, a debt of $1,629.27; that Whitfield discounted the note, and the next day paid him his debt; and that Whitfield promised that there should be no trouble about the note; that he, Whitfield, and Stovall, would take care of it. It is not pretended that Stovall was present or knew anything about the promises of Whitfield, outside of the note.

One witness testifies that he declined to sell a lot of tobacco on thirty days’ time to Whitfield & Co., but sold it to Lee, and Lee paid for it.

[193]*193The cashier of the bank testifies that the bank refused to discount the $1,500 note without Lee’s name, and did discount it with Lee’s name, and that the bank considered Lee bound for the note.

We are not favored with any note of argument by the appellee, nor with the reasons of the court for its opinion that Lee was not equally bound with Stovall upon this note. The note itself, Lee’s own act, declares Lee to be a security on the note, and Lee’s deposition shows that he was solicited to become a security upon the note, because the bank refused to discount it without additional security. The bank must have so regarded him when suit was brought upon the note. Under the statute the bank, if so inclined, might have brought suit against all or one of those jointly liable on the said note.

Upon what principle can Lee be held not to be a co-security on the note ? Endorsers are not co-securities unless their endorsement is joint, but are severally and successively liable. But this promise to pay at the banking house is joint; it is we, A. R. W. & Co., J. T. S. and T. J. L., securities, promised to pay, &c. And this Lee signs. The note itself, in terms, fixes the relations of the parties. Lee contracts to be a surety; the note shows it; his deposition admits it. And, as has been said by the court of appeals in another State: “If a person who pledges his responsibility to enable another to obtain credit, wishes to avail himself of a means of discharge which is peculiar to commercial paper, he must see to it that he becomes a party to the security in such a manner as will entitle him to the benefit and the privileges and immunities of commercial contracts. A party who unqualifiedly engages to be security for another has no equity to ask that his contract shall be qualified by annexing the incidents of a strict endorsement, instead of being construed as absolute as his promise, [194]*194upon the faith of which the credit was given.” Chaddock v. Vanness, 35 N. J. p. 527.

The fact which seems to be relied on, that Stovall did not know that Lee was to sign the note, does not affect the question in this case.

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Cite This Page — Counsel Stack

Bluebook (online)
78 Va. 188, 1883 Va. LEXIS 27, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stovall-v-border-grange-bank-va-1883.