Plaintiff leased property to defendant, who in turn assigned his rights under the lease to one Garber, the latter assuming the covenants to pay rent and against commission of waste. Plaintiff did not release defendant from the lease. After the expiration of the lease plaintiff recovered judgment for $2,844.75 against defendant, for breaches of the covenants, and then recovered a similar judgment against Garber. Subsequently Garber paid the plaintiff $2,000, and plaintiff gave him a receipt acknowledging "full satisfaction of the judgment rendered against me in the within action. The receipt of said sum is not a release of any legal right of the plaintiff herein to enforce his judgment against defendant in cause No. A 35993." Now plaintiff seeks to have his judgment declared a lien on property owned by the defendant. Held, the principal debtor by the terms of the release was fully discharged from the debt and therefore the reservation of right to enforce the claim against the surety was ineffectual. Gholson v. Savil, 137 Ohio St. 551, 31 N. E. (2d) 858 (1941).
Raymond H. Rapaport,
PRINCIPAL AND SURETY - EFFECT OF RELEASE OF PRINCIPAL DEBTOR WITH RESERVATION OF RIGHTS AGAINST SURETY,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol40/iss2/21