Davis v. Gutheil

Citations

• 87 Wash. 596
• 152 P. 14
• 1915 Wash. LEXIS 945

Syllabus

<p>Bills and Notes—Indorsers—“Secondarily Liable”—Statutes. The indorsement by the payees of a mortgage note renders them secondarily liable thereon, within Bern. & Bal. Code, § 3582, so providing as to all others than the person “primarily” liable, defined as the person who by the terms of the instrument is absolutely required to pay the same.</p> <p>Same—Indorsers—Release—“Alteration” — Statutes. The release from liability of one of the solvent makers of a mortgage note, and part of the security, is not a “material alteration” of the note, within Rem. & Bal. Code, § 3514, providing that a person secondarily liable is released by such an alteration.</p> <p>Same—Indorsers—Release—“Renunciation”—Statutes. A satisfaction, release and discharge of one-half of the mortgaged debt to one of two joint makers, and of that part of the mortgage lien covering her half of the property, coupled with a reservation of all rights against others, is not an “absolute and unconditional renunciation” of all the holder’s rights against all the principal debtors, as contemplated by Rem. & Bal. Code, § 3512, which provides that renunciation of rights against a principal debtor discharges the instrument.</p> <p>Same—Indorsers—Release—“Novation”—Statutes. The release and discharge of one of the makers of a mortgage note, upon payment of half of the debt, and an extension of time to the other maker, is not a “novation” that would release an indorser, where the latter did not consent thereto and there was no new contract bringing in new parties.</p> <p>Same—Indorsers—Release—Discharge oe Maker. Under Rem. & Bal. Code, § 3510, subd. 3, providing that a person secondarily liable on an instrument is discharged by the discharge of a prior party, and subd. 5, providing that a person secondarily liable is discharged by the release of the principal debtor, unless the holder’s right of recourse against the parties secondarily liable is expressly reserved, the release of one of the joint makers of a m