Opinion ID: 1937073
Heading Depth: 1
Heading Rank: 2

Heading: Janet v. Connie

Text: The preceding discussion of Connie's status demonstrates that each of the four parties, Walter, Connie, Richard, and Janet, has certain rights and obligations with respect to this note which are not affected by his or her marital status. The court below erred in not fully analyzing these separate rights and obligations. It follows that our finding that Connie has no liability to Richard in no way changes any obligation she may have to Janet. Janet, as well as Connie, is a co-accommodation maker on this note. The question is therefore whether one co-accommodation maker who pays more than her proportionate share of the debt has a right of contribution against another co-accommodation maker. The Uniform Commercial Code contains no provision expressly dealing with the right of an accommodation party to contribution from another accommodation party. However, the Code does provide that the principles of the common law remain applicable [u]nless displaced by the particular provisions of the Code. Maryland Code (1975), § 1-103 of the Commercial Law Article. That an accommodation maker has a right of contribution from a co-accommodation maker is a settled principle of the law. The Restatement of Security provides A surety who in the performance of his own obligation discharges more than his proportionate share of the principal's duty is entitled to contribution from a co-surety. [Restatement of Security § 149 (1941)]. Jingles v. Thomas, 104 So.2d 223 (La. Ct. of App. 1958); Deden v. Grosse, 185 Minn. 278, 240 N.W. 909 (1932); Cooper v. Greenberg, 191 Va. 495, 61 S.E.2d 875 (1950); Cost v. MacGregor, 124 W. Va. 204, 19 S.E.2d 599 (1942). Maryland has followed this rule. Jackson v. Cupples, 239 Md. 637, 212 A.2d 273 (1965). Jackson was decided after the effective date of the U.C.C. in Maryland, but the note in question had been executed prior to that date. The Court held that a co-surety who pays a debt has a right of contribution from his co-sureties. This Court has not addressed this question in regard to a note controlled by the U.C.C. Our research revealed only one case which directly confronted the effect of the U.C.C. on the common law rule. The court stated that the U.C.C. does not change the rule of suretyship law permitting contribution by one surety from a co-surety. McLochlin v. Miller, 139 Ind. App. 443, 217 N.E.2d 50 (1966). Accordingly Janet has a right of contribution against Connie. But this right to contribution is an inchoate claim which does not ripen into being unless and until Janet pays more than her proportionate share to Bill and Mildred. Cotham and Maldonado v. Board, 260 Md. 556, 566-67, 273 A.2d 115 (1971). Judgment can be entered on behalf of Janet against Connie, but it must be fashioned so that it may not be enforced until Janet proves she actually paid more than her proportionate share to Bill and Mildred. [1] Baltimore County v. Stitzel, 26 Md. App. 175, 184-88, 337 A.2d 721 (1975).