Thompson v. Metropolitan Building Co.

Citations

• 95 Wash. 546
• 164 P. 222
• 1917 Wash. LEXIS 852

Syllabus

<p>Principal and Surety — Release—Pledges. One who pledges his own property as security for the debt of another is a surety, and is released, if, without his consent, the principal, upon consideration, accepts a new obligation.</p> <p>Same — Release—Modification of Contract. Mere silence upon the part of a surety when informed of the modification of a contract does not imply assent on his part that would prevent his release.</p> <p>Same. Where plaintiff deposited collateral as security for the demand note of another, and the holder surrendered the note without the consent of the plaintiff, under a composition agreement with creditors to.hold the collateral for ten years, plaintiff’s pledge was thereby released, and the release is not waived by the fact that the plaintiff took a note as indemnity, where the note was worthless.</p> <p>Trover and Conversion — What Constitutes. Where pledged property was released by a modification of the contract without consent of the surety, refusal to deliver the pledged property upon demand will constitute a conversion.</p> <p>Principal and Surety — Release—Modification of Contract — Defenses. Where stock pledged by a surety for the debt of another was surrendered without the consent of the surety under a composition agreement with creditors, thereby releasing the pledge, surrender of the stock upon demand cannot be defeated by asserting that the composition agreement was void because of nonperformance by the trustee, where there was no substantial departure from the agreement, and where defendant continued to hold the bonds without offer to rescind the agreement.</p> <p>Same — Bonds — Measure of Damages — Burden of Proof. In trover for the conversion of a negotiable bond, prima facie the face value is the true value, and the burden is upon the defendant to overcome this presumption; and where the action is against the one primarily liable thereon, he is not permitted to question the face value of the obligation.</p>