Failor v. Wehe

Citations

• 98 Kan. 325
• 158 P. 74
• 1916 Kan. LEXIS 78

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Appeal Bond — Principal Adjudged a Bankrupt — Surety on Appeal Bond Not Released. A surety on an appeal bond is liable thereon, although his principal, the judgment debtor, was relieved from the payment of the judgment by his discharge in bankruptcy.</p> <p>2. Same. The ordinary rule that the release of a principal debtor likewise releases the surety relates to a release by the voluntary action of the creditor and does not apply to a release or discharge by operation of law as in bankruptcy.</p> <p>3. Same — Surety’s Obligation Governed by State Laws. The effect on a surety’s obligation where his principal is discharged through bankruptcy is governed by local law and not by the federal statute.</p> <p>4. Same — Appeal Dismissed — Bankruptcy of Principal — Obligation of Surety. Where a statutory bond is given in an appeal to the district court from a judgment of a city court (Jus. Civ. Code, §§ 121, 129) and the appeal is dismissed for want of prosecution, the subsequent discharge of the appellants by virtue of the bankruptcy act does not bar an action against the surety on the appeal bond.</p>