United States v. Price

50 U.S. 83, 13 L. Ed. 56, 9 How. 83, 1850 U.S. LEXIS 1413
CourtSupreme Court of the United States
DecidedApril 10, 1850
StatusPublished
Cited by34 cases

This text of 50 U.S. 83 (United States v. Price) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Price, 50 U.S. 83, 13 L. Ed. 56, 9 How. 83, 1850 U.S. LEXIS 1413 (1850).

Opinion

Mr. Justice GRIER

délivered the opinion of the Court.

As the decision of one of the points raised in these cases will rule them both, it will be unnecessary to notice the others.

The complainant' seeks a remedy in equity against the assets of a deceased surety, in certain bonds given for duties. The *91 bonds- were joint and several, but a joint judgment had been recovered on them against all the obligors. The principal in the bond survives, but is insolvent.

The question for our consideration will, therefore,' be, whether a court of equity will interfere to . give a remedy against the personal assets of a deceased surety, when the remedy at law has been lost by the election of the obligee to take a joint judgment on a joint and several obligation.

The obligation of suretyship arises only from positive contract. This contract is construed strictly both .at law and equity, and the liability of the surety cannot be extended by implication beyond the terms of his contract. If he contracts jointly with his principal, it is a legal -consequence known to all the parties, that his personal estate will be discharged in case he should die before his principal. Such being the law. it may be considered as a part of the written condition of the bond. And equity will not interfere to extend the liability, as against' his estate, on the ground that such discharge arises from the mere technicalities of the law.

So, where a surety enters into a joint and several obligation with his principal, the obligee and all the parties are supposed to. be aware of the doctrines of law connected with such securities, and to incorporate them therein, as part of the contract. The obligee knows that this bond will entitle him to either a joint or several judgment, at his election; he knows also that he cannot have both, that his bond is extinguished by his judgment, or merged in.it, as a security of a higher nature, and he knows that, if he elects to take a joint judgment, and: neglects to have execution levied in the lifetime of the surety, his -personal estate will be discharged at law.

Assuming, as we have a right to do, that these known and established principles of law form a part of the written conditions of the bond, it -is not easy to perceive how a chancellor could interpose in the latter case, more than in the former, without disregarding the terms of the contract, and extending the liability of the surety beyond the letter and spirit of his bond.

It is true that, in cases of fraud, accident, or mistake, equity will relieve as well against the surety as the principal. Thus, in case of a lost bond, equity will set it up .against a surety, or where a bond has been made joint, instead of joint and several, by mistake of a scrivener; but it will require a very clear and strong case where a surety is concerned. (3 Russell, 539.)' On the contrary, where the • parties are joint debtors, and there is no surety in the case, equity will reform the bond, on *92 the. mistake presumed from the fact that both are bound in conscience to pay, and therefore intended to bind themselves severally.

In the present case, we have no allegation of fraud, accident, or mistake. The bill assumes that the legal liability of the surety is goneKby coming into equity for relief, and it shows, affirmatively, that the loss of legal recourse to the assets of the surety has resulted from the voluntary election of the obligee to extinguish the several remedy on his bond, without any allegation of mistake or surprise.

If the obligee of a joint bond by two or more agree with one obligor to release him, and do so, and all the obligors are thereby discharged at law, equity will not afford relief against the legal consequences, although the release was given under a manifest misapprehension of the legal effect of it, in relation to the other obligors.” (Hunt v. Rousmaniere’s Adm., 1 Peters, 1.)

If equity would not interfere in such a case to. revive the legal obligation, even as against the principal debtor thus unwittingly released, it is difficult to perceive on what principle it should interpose to revive an extinguished remedy against a surety who is not bound beyond his legal liability, and who has been discharged therefrom by the voluntary act of the obligee, without any allegation of surprise or misapprehension' of the law.

That equity will not hold a surety liable, where he is discharged at law, seems to be well settled both in England and in this country, as a reference to a few of the decisions on this subject will fully show. In Wright v. Russel, 3 Wilson, 530, it is said, that courts of equity are favorable to sureties, and where they are not strictly bound at law, equity will not bind them.” And in Simpson v. Field, 2 Ch. Cas. 22, it was held, “ that, where a surety is not bound at law, he will not be made liable in equity.” In the case of Waters v. Riley, 2 Harris & Gill, 310, the Court of Appeals of Maryland say, “ A surety is bound .only by the bond itself, and is not under a moral obligation to pay; equity will not therefore interfere to charge him beyond his legal liability.” The same doctrine- is established by. the Court of Appeals of Virginia, in Harrison v. Field’s Ex., 2 Washington, 136, and by the Supreme Court of Pennsylvania, in Weaver v. Shryock, 6 S. & R. 206, and Kennedy v. Carpenter, 2 Wharton, 361.

The only case which asserts a contrary doctrine is that of • United States v. Cushman, 2 Sumner, 426.

Although, as a Circuit decision, it is not binding in its authority upon this ‘ court, yet, proceeding from so eminent a *93 judge, it is entitled to high respect. The case is precisely par; alie! with the present in all its circumstances, and the positions there assumed have been urged upon the court in this case,, as sufficient to entitle the appellant to a decree in his favor. The opinion of the court in that case, and the argument of the learned counsel for appellant in this, are based on the two following propositions, to neither of which is this court prepared to give its assent.

1st. “ That when a party enters into a joint and several obligation, he in effect agrees that he will be liable to a joint and a several action for the debt; and if so, then a joint judgment can be no bar to a several suit: that by electing a joint suit, the obligee does not waive his right to maintain a several suit; and that a joint judgment is not per se a satisfaction of a joint and several contract.”

2d. “That even if the joint judgment■ could be treated at law as a merger of. the several obligations, so far from that constituting a ground in equity to refuse relief against the assets of the deceased party, it furnishes a clear ground for its interference; for it is against conscience, that a party who has severally agreed to pay the whole debt should, by the mere accident of his own death, deprive the creditor of all remedy against his assets.”

1st. The first of these propositions proves too much for the case.

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Bluebook (online)
50 U.S. 83, 13 L. Ed. 56, 9 How. 83, 1850 U.S. LEXIS 1413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-price-scotus-1850.