Hauser v. King

Citations

• 76 Va. 731
• 1882 Va. LEXIS 73

Syllabus

<p>1. Girts, &c.—Insolvent debtors cannot release or surrender without consideration, rights available to their creditors any more than they can give away their property.</p> <p>2. Subrogation—Surety—Creditor.—Surety is entitled to all means of payment held by creditor against principal debtor; and creditor hath reciprocal rights to all securities which principal debtor may have furnished for surety’s indemnity.</p> <p>3. Idem:—Voluntary release—Case at bur.-—Insolvent committee of lunatic sister made trust deed to secure, first, K and A, his sureties in his bond as committee, and J, his surety in debt to C; afterwards, other debts. Lunatic was supported by committee, who received her estate, but charged her no board. Reasonable charge for board would absorb her estate and leave no liability on the sureties on his bond. J died insolvent without paying anything on the debt for which he was surety. On bill to distribute the trust funds—</p> <p>Held:</p> <p>1. Committee was entitled under Code 1873, ch. 82 § 48, to apply lunatic’s personalty to her support, so far as nece.-sary, and having maintained her out of his own. means, has a claim against her estate for his reimbursement, which claim he has no right to release, and thus put a burden on the sureties on his bond.</p> <p>2. Though J died insolvent without paying the debt for which he was surety, the creditor is entitled to have the debt paid out of the trust fund provided by the principal debtor for J’s indemnity. -</p>