Lewis v. City National Bank

Citations

• 72 Ill. 543

Syllabus

<p>1. Injunction bond—executed by a stranger, conditioned to pay the debt of another. The mortgagee in a chattel mortgage took possession of the mortgaged property before the debt secured thereby became due, and a third party brought a suit in chancery to restrain the mortgagee from selling the property before the maturity of the note, and in compliance with the requirement made by the court as a condition to granting the injunction, entered into a bond, containing an absolute covenant to pay the mortgage debt to the mortgagee, upon maturity. In a suit upon the bond, there was nothing in the record showing that the defendant occupied the relation of surety to the debtor in the chattel mortgage, or that his position was other than a mere stranger entering into the bond to pay the debt of the mortgagor debtor, without even so much as a request, on the part of the debtor, to do so: Held, that there was no available defense to the suit on the bond under such a state of facts, except performance of the covenants, or such legal defense as would overthrow the instrument itself.</p> <p>2. Subrogation. When a third party enjoined the sale of property by the mortgagee under a chattel mortgage, being no surely for the mortgagor, and in the suit gave an injunction bond conditioned for the payment of the mortgage debt on dissolution of the injunction, it was held, in a suit on the bond, that the doctrine of subrogation had no application to the case.</p>