The Express.
London, England, 1848-08-03 00:00:00

Lab, inttlhgenct.

EQUITY COURTS.
Before Vice-Chancellor Knight Bruce.
BANKREETCY.—Es PAKTE STOKE* HE CL tEK E.—
SCKETT—CONTHIBUTION.-111t. Bacon and Mr. De GPI
supported the petition, which was presented on behalf of
the estate of one of three sureties, who hail joined a princi.
pal debtor in a bond. The other two sun, ties had become
bankrupts, and the affairs of the principal debtor were
wound up under a trust decd. The credit,,r under the hood
had made claims against the separate eaten!! of all four
obligors, and had proved against those of the two b.nkrupts
for the full amount of his demand. He had by these means
been paid the full amount of his debt ; but the estate on be-
half of which the petition was presented hod paid twice as
much as its fair contributive share of the deficiency left un-
paid by the estate of the principal debtor, while the estate
of one of the bankrupt sureties had paid nothing. The
petitioners prayed that they might he at liberty to stand in
the place of His principal creditor against tho estate
which bad paid nothing, and to have the benefit
of his proof against the estate to the ext. rat of the
contributive share which the estate ought to pay.
In support of the petition, " Es parts Atkinson" (Cooke's
Bankrupt Law, 2101," Es parte Rush&rth" (10 Vesey, 409),
and other cars were cited, and it was argued that the prin-
ciple, which long before the 49 Geo. 111., c 121, s. 8 was
paced enabled a surety to stand in the place of a creditor
who had proved as a:alma the debtor's estate, would also
entitle him, independently of any statutory enactment, to
the saute equity against the estate of a en-surety which had
not in.id its contributive share.—Mr. Russell, for the as-
signees, submitted that the cases were not similar, and that
a surety was never held to he entitled to stand in the place
of the principal creditor, unless he had paid the whole
debts; and he referred to " Waltz n. Seinhurn" (1 Exche-
quer Reports), and other cases.—The Vice-Chansellor, alter
hearing Mr. Bacon in reply, reserved his judgment, which
he now delivered, saying that, at the hearing of the petition,
the case did not appear nor slid it now appear free from
difficulty. His Honour had, in the meititime, however, con-
siihred the 61010TitiCI referred to, and hail consulted Mr.
Pitman's valuable work on " Principal and Surety," end
tne cases of " Es pate Helene" (Montagu and Chitty, 311),
and "Greenside v. Benson" (3 Atkins, 213). Assuming
the correctness of the decision in " Wallis o. Swin-
burne," bin Honour did not conceive that it
defeated or was inconsistent with the cairn of the peti-
tioners. The creditor had a right to resort to ell the estates
liable to his demand, as he thought fit, but the mode in
which he er reised this right was not stiff, red in a court of
equity to affect unjustly the relative liability of the different
estates as between one another ; and, on the whole, his
Honour was of opinion that the petitioners were entitled to
the benefit of the proof to the extent of the contribution
due to their estate trom that of the bankrupt, and that the
coats must come out of the bankrupt's separate estate, as
•"ht by the petition.

INSOLVENT DEBTORS' COURT.
Before Mr. Commimloner Phillips.
IN RI ILIALLS.—ItEN•NI).—Mr. SlrjeNNi, for two cr,di
tors, named Greene and Bailee, opposed the immediate re-
lease of this pethioner, on the ground of a vexatious defence
to actions brought by each of the parties. Balls, it appeared,
petitioned the Court of Bankruptcy in 1845, owing at that
period, 2971. An inquiry was instituted before the learned
commissioner regarding the disposal, by insolvent, of two
vessels, to a Mr. Wiscott, who, upon examination, declared
he had purchased and paid f.r them in a regular way. The
truth of the declaration was, however, doubted by the corn-
' miasioner, who adjourned the case sine dio. Shortly after-
wards the amignees brought an action against \Vincott, and
recovered the vessels, which they sold for 2101. Upon this •
day was named for the rehearing of the cue. Upon the day
appoint. d an extra creditor proved a debt of 101., which ex-
tended the full amount to beyond 3001., the utmost allowed
to • trader, and the case was consequently thrown out of
court. The insolvent immediately commenced proceedings
against the assignees, and recovered trona them the whole of
the money they had received from the estate. Instead of
distributing the money proportionably among his creditors
the insolvent favoured certain claimants, particularly his
attorney, to whom he pail, it was said, the whole of the I
costs for bringing his action against the assignees, besides the
come for defending the two actions brought by the opposing
creditors against himself, and by which proceedings he put
Messrs. Bailts and Greene each to 401. additional and unne-
cessary expense. The debts set forth in the present schedule
reached the sum of 3901.
The Commissioner considered the conduct of the petitioner
to have been highly reprehensible, and ordered a remand for
four calendar mouths tram the vesting order.