Hochensmith v. Warren

Decided December 6, 1872

Court of Appeals of Kentucky · decided 1872-12-06

<p>Principal and Surety — Amount of Indebtedness — Presumption.</p> <p>•Wbere a principal and ibis surety undertakes to pay another an amount found due from a third party upon settlement with the latter, the principal is presumed to know the amount of the indebtedness, as found by arbitrators, and it is the duty of the principal to derive his information in regard to the matter from the debtor.</p>

Decided 1872-12-06

¶1Opinion by

Judge Pryor:

¶2The obligation by the appellee, Warren, was a direct undertaking by him to pay the appellant whatever sum of money might be due the latter upon settlement with Sebree.

¶3The inducement or consideration, even if required, for the execution of the writing by the appellee, is fully set forth, and his undertaking to pay, places him in default upon his failure to pay the sum found due on the settlement.

¶4If the .principal can be made liable without notice the surety can also, and the principal certainly is presumed to know the amount of the indebtedness and the result of the arbitration. It was the duty of Warren to have derived his information from Sebree and not from the appellant.

¶5The judgment is reversed and cause remanded with directions to overrule the demurrer and for further proceedings consistent with this opinion. Lowe v. Beckwith, 14 B. Monroe 150.

¶6-, for appellee.