Cano v. Walker, 297 Neb. 580

Cano sued Walker and Claborn on a joint-and-several promissory note and obtained summary judgment for the full amount against both defendants.
After judgment, Cano and Claborn entered a stipulation (without Walker's knowledge) under which Claborn would pay specified sums and provide services; upon satisfaction, Cano agreed to "forthwith release Claborn completely" from the judgment.
Cano filed a written "Satisfaction" stating Claborn had satisfied the judgment, but also stating the judgment against Walker "remains unsatisfied."
Cano continued collection efforts against Walker; Walker later moved to discharge the judgment, arguing the release of Claborn operated to release him as well under Nebraska common law.
The district court denied Walker's motion but reduced the judgment by $40,000; Walker appealed.

Issue	Cano's Argument	Walker's Argument	Held
Whether the stipulation/satisfaction released Claborn only or all co-obligors	Stipulation/satisfaction reserved Walker's liability; satisfaction limited release to Claborn	Stipulation operated as an unconditional release of Claborn which, under Nebraska common law, releases all joint obligors	The stipulation was an unconditional release upon performance; under Nebraska common-law rule, release of one joint obligor without others' consent releases all; Walker entitled to discharge
Whether the filing labeled "Satisfaction" controlling the scope of release	The satisfaction expressly said Walker remained unsatisfied, so release was limited	The operative release was the stipulation; once performed, it effectuated an unconditional release irrespective of later qualifying language	The stipulation, once performed, controlled; the satisfaction's qualifying language was irrelevant
Whether the appeal was timely and the order appealable	Cano argued appeal untimely and not from a final order	Walker timely appealed the district court's order overruling his discharge motion	Appeal was timely; the order denying discharge affected a substantial right and was final and appealable
Whether Nebraska should abandon the common-law rule releasing co-obligors	Cano urged abolishment of the rule	Walker relied on longstanding Nebraska precedent applying the rule	Court declined to abolish rule; adhered to stare decisis and applied rule to discharge Walker

Lamb v. Gregory, 12 Neb. 506 (1882) (early application of rule that release of one joint obligor releases all)
Bankers Life Ins. Co. v. Ohrt, 131 Neb. 858 (1936) (stating unconditional release of one maker operates as release of all)
Coleman v. Beck, 142 Neb. 13 (1942) (distinguishing surety/assumption contexts from joint obligor releases)
Huber Mfg. Co. v. Silvers, 85 Neb. 760 (1910) (applying common-law rule despite concerns about factual fairness)
Farmers State Bank v. Baker, 117 Neb. 29 (1928) (holding release of one joint maker without consent releases all)