W. T. Rawleigh Co. v. Warrington

199 A. 666, 39 Del. 366, 9 W.W. Harr. 366, 1938 Del. LEXIS 31
CourtSuperior Court of Delaware
DecidedMarch 14, 1938
DocketAction of Assumpsit, No. 37
StatusPublished
Cited by2 cases

This text of 199 A. 666 (W. T. Rawleigh Co. v. Warrington) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W. T. Rawleigh Co. v. Warrington, 199 A. 666, 39 Del. 366, 9 W.W. Harr. 366, 1938 Del. LEXIS 31 (Del. Ct. App. 1938).

Opinion

Harrington, J.,

delivering the opinion of the Court:

The question raised by the demurrer is whether, under the facts alleged, Clarence E. Abbott and Robert H. Swain can be joined as defendants in an action against Stephen Warrington on the contract executed by him and declared on by the plaintiff.

The answer to that question largely depends on whether, under their contract, Abbott and Swain are sureties for Warrington, or merely guarantors of the obligations assumed by him.

The defendants, also, claim, however, that in any aspect of the case the contract with the .plaintiff, signed by Abbott and Swain, is separate and distinct from the contract with that company, signed by Warrington, and that they, therefore, cannot be sued jointly with him.

According to the ordinary meaning of that term, a surety is a person “who binds himself for the payment of a sum of money, or for the performance of something else for another, who is already bound for the same”. 2 Bouv. Law Dict., Rawle’s 3d Rev., 3191; 50 C. J. 13, 16.

A suretyship is “an undertaking to answer for the debt, default or miscarriage of another, by which the surety becomes bound as the principal or original debtor is bound.” 2 Bouv. Law Dict., Rawle’s 3d Rev., 3192; see, also, Pingrey on Suretyship and Guaranty, § 4.

As a general rule, it is, therefore, essential to the existence of a suretyship that there be a principal debtor [370]*370or obligor, and a valid and subsisting debt or obligation, for which, the principal is responsible.1 Bernd v. Lynes, 71 Conn. 733, 43 A. 189; Eising v. Andrews, 66 Conn. 58, 33 A. 585, 50 Am. St. Rep. 75; 2 Bouv. Law Dict., Rawle’s 3d Rev., 3192; 21 R. C. L. 946; 50 C. J. 16.

But while the contract of a surety is, in a sense, accessory or collateral to a valid principal obligation contracted by another person, either contemporaneously or previously, his obligation to the creditor or promisee of the principal is direct, primary and absolute, and is, in no sense, conditional on the failure of the principal to pay his debt, or perform his contract, or on notice of such non-perform-ance. Bernd v. Lynes, 71 Conn. 733, 43 A. 189; Northern State Bank v. Bellamy, 19 N. D. 509, 125 N. W. 888, 31 L. R. A. (N. S.) 149; Pingrey on Sur. & Guar., § 4; 1 Bouv. Law Dict., Rawle's 3d Rev., 1386; 2 Bouv. Law Dict., Rawle’s 3d Rev., 3192; 21 R. C. L. 946; 50 C. J. 74.

As was aptly and concisely said in Pingrey on Suretyship and Guaranty, § 4, p. 9, “The contract of a guarantor is collateral and secondary; that of the surety is direct; the guarantor contracts to pay, if, by the use of due diligence, the debt cannot be made out of the principal debtor, while the surety undertakes directly for the payment, and is so responsible at once if the principal debtor makes default.”

Perhaps in most cases, a surety is a co-obligor or a co-promisor in a joint or joint and several obligation, along with the principal debtor, and is, therefore, bound with him by the same instrument, executed at the same time, and on the same consideration. Northern State Bank v. Bellamy, 19 N. D. 509, 125 N. W. 888, 31 L. R. A. (N. S.) [371]*371149; Pingrey on Sur. & Guar., § 2; 1 Bouv. Law Dict., Rawle’s 3d Rev., 1386; 21 R. C. L. 946.

Where that relation exists, in the absence of some limiting clause in the contract, there is a precise identity of obligation on the part of both the principal and the surety, but this does not mean that they must be bound by the same instrument, or even by the same consideration. Westinghouse Electric & Mfg. Co. v. Wilson, 63 Pa. Super. 294; 21R. C. L. 947; 50 C. J. 24, 26.

The sufficiency of the consideration to support the contract made by Abbott and Swain is not questioned, but perhaps I might state that, at least, when the instrument, which is claimed to create the relation of principal and surety, is not under seal, and is executed subsequent to and separate and apart from the contract of the principal debtor, like other contracts, a good and sufficient consideration is essential to its validity (50 C. J. 46, 49); and such consideration must usually be executory in character. Edwards v. Jevons, 137 Eng. Reprint 579; 50 C. J. 49. When, however, the suretyship contract, though not under seal, is made at the same time as the principal contract, and both contracts form parts of the same transaction, there need not be any consideration other than that moving between the obligee and the obligor under the principal contract. See Westinghouse Electric & Mfg. Co. v. Wilson, 63 Pa. Super. 294; Faust v. Rodelheim, 77 N. J. L. 740, 73 A. 491, 27 L. R. A. (N. S.) 189; Savage v. Fox, 60 N. H. 17; Leonard v. Vredenburgh, 8 Johns. (N. Y.) 29, 5 Am. Dec. 317; 50 C. J. 48. This contract was under seal, but that rule was apparently recognized in drawing it.

Persons liable on several and distinct contracts, although with the same person, cannot be joined as defendants in the same action. 1 Woolley’s Del. Prac. 104; see, also, 1 Woolley’s Del. Prac. 107; Register v. Casperson, 3 Harr. 289.

[372]*372Applying that rule, and notwithstanding the nature of the contract of a surety, it seems that at common law a principal and a surety could only be joined as defendants in the same action when their obligations were joint. Pingrey on Sur. & Guar., § 1; Tourtelott v. Junkin et al., 4 Blackf. (Ind.) 483; Faust v. Rodelheim, 77 N. J. L. 740, 73 A. 491, 27 L. R. A. (N. S.) 189; Castner v. Slater, 50 Me. 212; 50 C. J. 202. A surety, therefore, could not be sued jointly with the principal debtor when his obligation arose on a subsequent and entirely separate and collateral undertaking. Pingrey on Sur. & Guar., § 1; Tourtelott v. Junkin et al., 4 Blackf. (Ind.) 483; 50 C. J. 203.

As the liability of a guarantor is merely secondary to that of the principal debtor he cannot be sued at law in the same action with the principal. Northern State Bank v. Bellamy, 19 N. D. 509, 125 N. W. 888, 31 L. R. A. (N. S.) 149; De Ridder v. Schermerhorn, 10 Barb. (N. Y.) 638; 1 Bouv. Law Dict., Rawle’s 3d Rev., 1386; Pingrey on Sur. & Guar., §4; 21 R. C. L. 949.

What may perhaps be termed the primary contract declared on by the plaintiff company is signed by Warring-ton alone, and the contract executed by Abbott and Swain is immediately under that contract and on the same sheet of paper. At the middle of the page, on the lefthand side of it, and opposite the signature of Warrington, the principal in the transaction, there is an acceptance by the plaintiff company, dated January 2, 1936, and it is not denied that this acceptance also applies to the contract signed by Abbott and Swain.

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Bluebook (online)
199 A. 666, 39 Del. 366, 9 W.W. Harr. 366, 1938 Del. LEXIS 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/w-t-rawleigh-co-v-warrington-delsuperct-1938.