Whittemore v. Judd Linseed & Sperm Oil Co.

27 N.E. 244, 124 N.Y. 565, 36 N.Y. St. Rep. 881, 79 Sickels 565, 1891 N.Y. LEXIS 1398
CourtNew York Court of Appeals
DecidedApril 14, 1891
StatusPublished
Cited by18 cases

This text of 27 N.E. 244 (Whittemore v. Judd Linseed & Sperm Oil Co.) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whittemore v. Judd Linseed & Sperm Oil Co., 27 N.E. 244, 124 N.Y. 565, 36 N.Y. St. Rep. 881, 79 Sickels 565, 1891 N.Y. LEXIS 1398 (N.Y. 1891).

Opinion

*573 Brown, J.

The appellant claims that Hubbell’s discharge from the judgment was accomplished in two ways.

First. By the release executed by the defendant lord and delivered to him on August 8,1874.

Second. By the release of Taylor by the oil company by the instrument of January 5,. 1874.

The first ground is the one upon which relief was based in the complaint. The second is not there mentioned or made the basis of the judgment asked for.

While 1 have grave doubt whether the second claim is available to the appellant under his complaint or whether the question was raised at the trial by any proper and sufficient request to the court thereon ; as the facts upon which the claim is now made appear in the findings of the court the point is considered as if it was properly before us. x

The second ground upon which the discharge is claimed will be considered first.

The strict common-law rule i? that if two persons be bound jointly and severally in an obligation, and the obligee voluntarily and unconditionally releases one of them, both are discharged and either may plead the release in bar.

But the legal operation of a release of one of two or more joint debtors may be restrained by an express provision in the instrument that it shall not operate as to the other.

This question was recently considered in this court in the case of Hood v. Hayward (35 N. Y. State Rep. 229, 237; 124 N. Y. 1).

In that case one surety upon a non-resident executor’s bond, was released and discharged by the devisees and legatees under the will and • the appellant’s contention Avas that by virtue of that release to his co-surety he also was released.

That contention was overruled and it was held that he was not discharged, and the decision rested upon an express provision in the release that it should not be construed as in any Avay affecting any claim or demand which the releasors had or might have against the non-resident executor or against the appellant as surety on his bond.

*574 In addition to the authorities cited by Judge Potter in support of that opinion I refer to the following: (1 Parsons on Contracts [5th ed.] p. 29; Kirby v. Taylor, 6 John. Ch. 246; S. C., Hopkins’ Rep. 309-334; Rogers v. Hosack, 18 Wend. 319; 25 id. 313; see opinion of Cowen, J.; Solly v. Forbes, 2 Brod. & B. 38; North v Wakefield, 13 Ad. & El. 536; Burke v. Noble, 48 Penn. St. 168; Yates v. Donaldson, 5 Md. 389; E dwards v. Varick, 5 Denio, 665-699; Lysaght v. Phillips, 5 Duer, 106-116).

The rule deducible from all the authorities is that equity always gives to a release operation according to the intention of the parties and the justice of the case, and although many early cases may be cited to the effect that the rule applied by courts of law was otherwise, and that a saving clause repugnant to the nature of the grant was void and that the grant remained absolute and unqualified, such is not the modern rule of construction.

The equitable rule now prevails and a release is to be construed according to the intent of the parties and the object and purpose of the instrument, and that intent will control and limit its operation.

Testing the releases in this case by the clear and manifest intention of the parties and the occasion of giving it its operation will be confined to Taylor and it in no way tended to release or discharge Hubbell.

By the terms of the contract, Hubbell was to remain liable, and under all the authorities the release of Taylor operated to discharge him alone.

But the two papers appear to have been delivered by Hub-bell’s attorney on August 8, 1.874, and for the pm-pose of this appeal, we must assume their delivery to have been Hubbell’s act.

The purpose of their execution and delivery is shown by the tripartite agreement executed by and between the surviving assignees and Taylor and Hubbell.

This agreement looked to the settlement of the several estates and the discharge of the assignees, and to accomplish *575 that object Hubbell professed to have procured, or to be able to procure, releases to said assignees from all outstanding creditors of the joint estate and from his individual estate, except four, one of whom was the oil company, and it was therein expressly stated that the four excepted claims were to remain -outstanding. Such agreement between them provided that a certain claim against the United States, arising out of the destruction of a ship by the Confederate cruiser Alabama, was ■not a part of the joint estate assigned, but belonged to Taylor and Hubbell individually, and other claims, with the consent •of Taylor, were to be assigned to Hubbell to enable him to procure releases from creditors of the joint estate.

Pursuant to this agreement, the two releases in question were delivered by Hubbell, and he must be held to be bound by the express stipulation that the oil company’s claim was to remain outstanding against him, and that so far as the release to Taylor was concerned, it expressly limited its operation to Taylor, and was intended to discharge him alone.

In other words, he must be deemed to have consented to the latter provision.

In Rogers v. Hosack (18 Wend. 336), Judge Cowen •said, in speaking of the rule that the release of one of two joint debtors operates to discharge both: “ The rule has generally, if not universally, been applied to cases where such co-debtors were released without the consent of the other. * -x- * The release is like the leaving off of the seal from ■a bond which subverts the whole contract. * * * But the case is different when the alteration is by the consent of all the parties, accompanied with an intention that those only should be discharged whose names or seals are torn off in the case supposed, or who are released as in the case at bar.”

After discussing the facts of the case before Mm, he reaches the conclusion that the debtor, who claimed the benefit of the strict rule, intended to remain liable, and said: Upon principle there is nothing to prevent such an agreement.”

To the same effect is Burson v. Kincaid (3 Penn. 57).

*576 Upon the assumption, therefore, that the judgment against Taylor and Hubbell was joint, our conclusion is that Hubbell was not discharged by the release of January, 1874.

But the conclusive fact in this connection is that no joint judgment ever was entered against Taylor and Hubbell.

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Bluebook (online)
27 N.E. 244, 124 N.Y. 565, 36 N.Y. St. Rep. 881, 79 Sickels 565, 1891 N.Y. LEXIS 1398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whittemore-v-judd-linseed-sperm-oil-co-ny-1891.