Johnson v. Martin

Citations

• 83 Wash. 364
• 145 P. 429
• 1915 Wash. LEXIS 693

Syllabus

<p>Principal and Surety — Remedies oe Creditors — Recourse oe Indemnity to Surety — Subrogation. Where a contractor gave a bond to secure the faithful performance of a building contract, obligating both principal and surety to pay in any event, and was required by the surety to execute to it a trust deed of certain realty to secure it against “any loss or damage” it might suffer on account of such bond, the obligee in the bond is entitled to be subrogated to the rights of the surety in the trust deed, 'although it may have been collateral to his own agreement with the building contractor and without his knowledge, and although the surety, by reason of its insolvency, may never be subjected to “any loss or damage” as distinguished from a “liability” on account of its undertaking.</p> <p>Trusts — Execution—Want oe Trustee — Equity. Equity will not permit a trust to fail for want of a trustee, but will seize upon and execute a trust when derelict between debtor and creditor when the subject-matter of the trust has been pledged by the debtor to meet a specific primary obligation of the debtor and but for which the trust would not have been created.</p> <p>Subrogation — Nature and Theory oe Right — Contract. Subrogation of a creditor to indemnity given by the principal debtor to a surety for the debt will not be denied on the ground of want of privity of contract, or that it does not grow out of contract, since the right of subrogation will be allowed when the equities of the case demand it.</p>