Hooper v. Hooper

Citations

• 81 Md. 155
• 31 A. 508
• 1895 Md. LEXIS 35

Syllabus

<p>Guaranty — Measure of Liability of Guarantors — Limitations—Payment — Interest on Interest — Contribution Between Guarantors.</p> <p>A guaranty is a mercantile instrument to be liberally construed, according to the intention of the parties, as manifested by the terms of the guaranty taken in connection with the subject-matter, and in order to ascertain the intention of the parties, the circumstances of the whole transaction may be considered.</p> <p>The Statute of Limitations begins to run in favor of a guarantor from the time he is liable to suit, and this may or may not be the same time the principal debtor becomes so liable.</p> <p>When a guarantor agrees to pay a certain debt of the principal upon thirty days notice, his liability is not enforceable until after the expiration of the designated time, and the Statute of Limitations does not begin to run before that time.</p> <p>The liability of a guarantor is coextensive with that of the principal, unless it be expressly limited. And, so, where the principal debtor makes a part payment before the Statute of Limitations has attached, this fixes a new date from which the statute begins to run as to a guarantor or surety.</p> <p>Where one of several guarantors pays the debt before it has been barred by limitations, he is entitled to demand contribution from the other guarantors, and the Statute of Limitations does not begin to run against such demand until the date of such payment.</p> <p>Mere delay by the creditor in demanding payment from the principal debtor will not discharge a guarantor, unless the delay has been unreasonable and loss and injury have resulted therefrom to the guarantor. If, during the whole time, the principal debtor was unable to pay, the delay has not injured the guarantor.</p> <p>A was indebted to the W. Co. to the extent of $41,224. The W. Co. was indebted to B in the sum of $23,000, and to C in the sum of $60,000, and these sums stood to their credit on the books of the company. B and C