Guild v. Butler
Massachusetts Supreme Judicial Court
Contract on a promissory note for $975.24, dated August 10, 1875, signed by the defendant, payable to the order of Robert W. Dresser & Co., and by them indorsed.
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Contract on a promissory note for $975.24, dated August 10, 1875, signed by the defendant, payable to the order of Robert W. Dresser & Co., and by them indorsed. At the trial in the Superior Court, before Bacon, J., it appeared that, on September 18,1875, Robert W. Dresser & Co. borrowed of the plaintiff the sum of $3000 and gave him their promissory note therefor; that, at the same time, they delivered to him, as collateral security for the loan, three other promissory notes, one of which was the note of Hamlin & Co. for $1826.17, and the other two the notes of the defendant, one of which is…
1Opinion of the CourtGray, C. J.
It is well settled that in equity a surety is entitled to the benefit of any property or collateral securities- received by the creditor from the principal debtor, and that if the creditor, knowing the relation between the debtors, surrenders such property or securities, in whole or in part, without the consent of the surety, he exonerates the surety to the amount so surrendered. Baker v. Briggs, 8 Pick. 122. American Bank v. Baker, 4 Met. 164. The fact that one debtor is a surety for the other is no part of the contract with the creditor, but is a collateral fact showing the relation between…
2Cases cited1 opinion
- Landrum v. Trowbridge, Dwight & Co.Court of Appeals of Kentucky · 1859
3Cited by61 opinions
- Union Mutual Life Insurance v. HanfordSupreme Court of the United States · 1892
- Union Trust Co. v. McGintyMassachusetts Supreme Judicial Court · 1912
- Fanning v. MurphyWisconsin Supreme Court · 1906
- Haddock, Blanchard Co. v. . HaddockNew York Court of Appeals · 1908
- Goodwin v. Massachusetts Loan & Trust Co.Massachusetts Supreme Judicial Court · 1890
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