Sec. 3159. Effect On Liability Of Co-Debtor
Description
This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
Sec. 3159. Effect On Liability Of Co-Debtor
The bankrupt act of 1898 provides: "The liability of a person who is co-debtor with, or guarantor or in any manner a surety for a bankrupt shall not be altered by the discharge of such bankrupt."1 This section is not affected by the amendment of 1903. Accordingly, a discharge does not affect the liability of other parties.2 The bankruptcy of the principal does not operate as a discharge of the surety.3 Even in the absence of a specific statute the discharge of 'one debtor in bankruptcy is not a bar to an action against those who were jointly liable with him on contract.4 Hence, the discharge of a maker does not discharge the indorser,5 even if the note in question is not proved as a claim against the bankrupt's estate.6 The discharge of a partner does not release his copartner.7
32Frey v. McGaw, 127 Md. 23, L. R. A. 1916D, 113, 95 Atl. 960.
33 United States. In re Blumberg, 94 Fed. 470.
Georgia. Evans v. Rounsaville, 115 Ga. 684, 42 S. E. 100; Philmon v. Marshall, 116 Ga. 811, 43 S. E. 48.
Maine. Stickney & Babcock Coal Co. v. Goodwin, 95 Me. 246, 85 Am. St. Rep. 408, 49 Atl. 1039.
Maryland. Frey v. McGaw, 127 Md. 23, L. R. A. 1916D, 113, 95 Atl. 960.
North Dakota. John Leslie Paper Co. v. Wheeler, 23 N. D. 477, 42 L. R. A. (N.S.) 292, 137 N. W. 412.
34Frazee v. Nelson, 179 Mass. 456, 88 Am. St. Rep. 391, 61 N. E. 40.
35 Rochester Lumber Co. v. Locke, 72 N. H. 22, 54 Atl. 705.
1 See Sec. 16 of Act of 1898.
2 Polk v. Stephens, 118 Ark. 438, 176 S. W. 689; First National Bank v. Hoffman, 102 Kan. 465, 171 Pac. 13; Wilcox v. Hersch, - R. I. -, 110 Atl 409.
Judgment may be rendered against all the obligors, with a perpetual stay of execution against the bankrupt. Wilcox v. Hersch, - R. I. -, 110 Atl. 409.
3 Mace v. Wells, 48 U. S. (7 How.) 272, 12 L. ed. 698; Leader v. Mat-tingly, 140 Ala. 444, 37 So. 270; Empire State Surety Co. v. Des Moines, 152 la. 531, 131 N. W. 870; First National Bank v. Hoffman, 102 Kan. 465, 171 Pac. 13; Wolfboro Loan & Banking Co. v. Rollins, 195 Mass. 323, 81 N. E. 204.
4 Illinois. Sandusky v. Bank, 81 III. 353.
Indiana. Post v. Losey, 111 Ind. 74, 60 Am. Rep. 677, 12 N. E. 121.
Kentucky. Edwards v. Coleman, 9 Ky. (2 A. K. Mar.) 249.
Massachusetts. National Bank v. Sawyer. 177 Mass. 490, 83 Am. St. Rep. 292, 59 N. E. 76.
New Jersey. Linn v. Hamilton, 34 N J. L. 305.
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