In Re Harvey Cole Co., Inc.

MEMORANDUM DECISION

SIDNEY C. VOLINN, Bankruptcy Judge.

This matter involves a dispute between two claimants. One is a guarantor who, when called upon to pay a creditor of the bankrupt, secured a full release on his guaranty by paying only part of the debt. The guarantor claims that by virtue of subrogation he is entitled to a dividend from the estate to the extent he paid the debt. The creditor, however, contends that subrogation and payment are not available to the guarantor, despite the release, until the creditor has been paid in full on the original claim.

The creditor, Milton Bradley…