Bank of the Old Dominion v. Allen

Citations

• 76 Va. 200
• 1882 Va. LEXIS 19

Syllabus

<p>1. Subrogation.—Endorser for accommodation paying off judgment against himself and the maker on protested negotiable note is entitled to be subrogated to all the rights of the holder. He is under no obligation to appeal from the judgment, as he could not know that relief could be thus obtained. The law imposes no such unreasonable burden on a surety.</p> <p>2. Idem—Merger.—At different terms separate judgments were had against endorser and maker. On the judgment against endorser, a judgment was obtained in Illinois, which judgment endorser satisfied.</p> <p>Held :</p> <p>This did not extinguish the lien of the judgment against the maker, and eo instanti endorsor paid it, he and his assignees were entitled to be subrogated to lien of that judgment.</p> <p>Qucere: Did the obtainment of the Illinois judgment merge even the Virginia judgment against the endorser?</p> <p>3. Limitations.—Last of notes given to satisfy the Illinois judgment was paid January, 1880. Vet the Illinois judgment was marked satisfied December, 1869. General creditors’ bill filed July, 1873, to enforce judgment against maker, and order of account of debts, &c., entered October, 1873.</p> <p>Held :</p> <p>The statute of limitations does not bar the claim of endorser or his assignee to be subrogated to plaintiff’s rights in judgment against maker. Order of account entered, all lien creditors became parties, and at liberty to assert their demands in that suit.</p>