Breedlove v. Stump
Tennessee Supreme Court
If the maker of a note, or drawer of a bill, deposite a note on a third person, or other funds, with a trustee, as a collateral security for his endorser against liability upon the note, the en-dorsees or holders of the note have a right to come into a court of equity and have the fund decreed to satisfy the note. In such a case, a judgment at law against the endorser is not necessary to be had before equity will give relief.
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If the maker of a note, or drawer of a bill, deposite a note on a third person, or other funds, with a trustee, as a collateral security for his endorser against liability upon the note, the en-dorsees or holders of the note have a right to come into a court of equity and have the fund decreed to satisfy the note. In such a case, a judgment at law against the endorser is not necessary to be had before equity will give relief. The beneficiary will be presumed to have accepted the fund deposited or raised for the ultimate satisfaction of his demand. __ It is the trust fund, and not the trustee…
1Opinion of the Court
White, Special J.
delivered the opinion of the court.
The original bill in the first cause, states, that on the 22d of October 1818, the defendant, Christopher, drew a hill of exchange on Stump, Eastland and Cox, at New Orleans, in favor of defendant Thomas H. for $8,200, payable one hundred and eighty days after date, which hill was accepted by the drawees, hut not paid, and endorsed by the said Thomas H. to the complainants. The drawees, about that time, became insolvent. The defendant Christopher becoming embarrassed, agreed to place a certain note for $8,000, of which he was the holder and…
2Cases cited3 opinions
- Russell v. Clark's ExecutorsSupreme Court of the United States · 1812
- Coddington v. BayCourt for the Trial of Impeachments and Correction of Errors · 1822
- Beekman v. FrostNew York Supreme Court · 1820
3Cited by5 opinions
- Matter of Petition of KellyCalifornia Court of Appeal · 1914
- Frohman v. BonelliCalifornia Court of Appeal · 1949
- WR Grace & Company v. TaylorCourt of Appeals of Tennessee · 1965
- Martin v. Defendefer (In re Butcher)United States Bankruptcy Court, E.D. Tennessee · 1987
- Rowland v. American Federal Savings & Loan Ass'nCourt of Appeals of Tennessee · 1975