Junker v. Rush

Citations

• 136 Ill. 179
• 11 L.R.A. 183

Syllabus

<p>1. Surety—•remedy over against the principal—subrogation—limitation. A surety, on payment of the debt, will be entitled to his action at law against his principal, upon the implied contract of indemnity, for the amount paid by him. But the right of action of the surety, being upon an implied assumpsit, is barred in five years after it accrues.</p> <p>2. Where one of several sureties or guarantors is compelled to pay a judgment against the principal and the sureties, he will, in equity, be entitled to be subrogated to the plaintiff in the judgment, for the purpose of enforcing it for his own benefit against his co-defendant. The surety, on payment, does not become, ipso facto, subrogated to the rights of the creditor, but only acquires a right to such subrogation, which he must actively assert before his legal remedy is barred.</p> <p>3. A surety’s right to be substituted to the creditor’s remedy on payment of the debt will be barred in five years after his right of action accrues.</p> <p>4. The equitable right of a surety paying a judgment against his principal and himself and co-sureties, to be subrogated to the creditor’s judgment, and to enforce the same for his benefit, will be barred by the Statute of Limitations, where his remedy at law on the implied contract of indemnity is barred.</p>