Lead Opinion
Opinion
In this certified appeal,
The following relevant facts and procedural history are set forth in the opinion of the Appellate Court. “In April, 2006, the plaintiff instituted an action in multiple counts alleging, inter alia, fraud against the defendant, among others. That action subsequently was transferred to the Complex Litigation Docket in the judicial district of Hartford. On February 23,2007, the defendant filed a counterclaim, alleging a cause of action for equitable contribution.
“In his counterclaim, the defendant alleged the following facts. In a guaranty agreement dated June 11, 2001 . . . the plaintiff, the defendant and [Otto Paparazzo and OJP Development Corporation] each agreed jointly and severally to guaranty the liability of Pond Place Development II, LLC (Pond Place), to First Union National Bank under anote in the amount of $7,875,000.
“When the court rendered judgment of strict foreclosure [on August 8, 2005], it found that the debt [owed] to Wachovia, not including fees and costs, was $2,400,834.96 and that [on the basis of appraisals] the value of the property being foreclosed was $295,000. [Neither the plaintiff nor the defendant redeemed the property in connection with the foreclosure action. Thus, on December 12,2005, titled vested in Wachovia.] To avoid the substantial risk of liability for a much larger deficiency judgment, the defendant negotiated and settled Wachovia’s deficiency claim for $275,000 by virtue of a stipulated deficiency judgment. Subsequently, the defendant paid Wachovia $275,000 and obtained a satisfaction of judgment. In his counterclaim, the defendant alleged that, as a joint obligor under the guaranty of the promissory note, the plaintiff was liable to him for $137,500, [which represents] the plaintiffs proportionate and equitable share of the defendant’s payment to satisfy the deficiency judgment.
“On April 13,2007, the plaintiff filed a motion to strike the defendant’s counterclaim. The plaintiff argued that, as a matter of law, the defendant had no right of contribution against him because the deficiency judgment rendered in the foreclosure action, for which the defendant sought contribution, was not a joint obligation. The defendant subsequently filed an objection to the motion to strike.
“On October 10, 2007, the [trial] court granted the plaintiffs motion to strike the defendant’s counterclaim. The court noted that the plaintiff and the defendant had been jointly hable on the guaranty of the note underlying the . . . mortgage but that liability was extinguished by the foreclosure obtained by Wachovia. The court concluded that because only the defendant was hable for the deficiency judgment, and the plaintiff was not, the defendant had no equitable right to contribution from the plaintiff for a portion of that deficiency judgment.” Id., 51-53.
Thereafter, the trial court rendered judgment for the plaintiff on the defendant’s counterclaim, from which the defendant appealed to the Appellate Court. Id., 51. In his appeal to the Appellate Court, the defendant claimed that the trial court improperly had concluded that he had no right to equitable contribution from the plaintiff because the plaintiff was not liable under the deficiency judgment. Id., 53. The Appellate Court disagreed. Id. In its decision, the Appellate Court concluded that Wachovia’s failure to obtain personal jurisdiction
Before addressing the defendant’s claims, we set forth the applicable standard of review. “The standard of review in an appeal challenging a trial court’s granting of a motion to strike is well established. A motion to strike challenges the legal sufficiency of a pleading, and, consequently, requires no factual findings by the trial court. As a result, our review of the court’s ruling is plenary. . . . We take the facts to be those alleged in the [pleading] that has been stricken and we construe the [pleading] in the manner most favorable to sustaining its legal sufficiency.” (Internal quotation marks omitted.) Sullivan v. Lake Compounce Theme Park, Inc.,
The defendant’s first claim is that the Appellate Court’s decision conflicts with well established Connecticut law concerning a coguarantor’s right of contribution when the coguarantor has made a payment on a joint obligation. Specifically, the defendant claims that the right of contribution between coguarantors is based on equitable principles and the theory of implied contract and, therefore, arises from the relationship between the coguarantors alone, and not the relationship between the creditor and the coguarantors. The defendant argues, on the basis of this principle, that it is irrelevant to the defendant’s right of contribution that Wachovia failed to serve the plaintiff properly in the
We begin our analysis by setting forth the legal principles that govern the right of contribution between cogu-arantors. Under Connecticut law, the right of contribution between coguarantors is based on the theory of implied contract. Waters v. Waters,
The only parties to this implied contract are the cogu-arantors. The creditor is not a party. Indeed, “[t]he creditor has nothing to do with the right of the [coguar-antors] for contribution among themselves, and has no right to do any act tending to impair it.” 18 Am. Jur. 2d 42, Contribution § 32 (2004). Accordingly, “the discharge of one [coguarantor’s] direct liability to the [creditor] will not relieve [him or her] from his or her liability to contribute to the other [coguarantors] . . . whether the discharge results from contract or from operation of law.” Id., pp. 41-42. In addition, “the fact that a creditor sues only some of several [coguarantors], or recovers judgment against fewer than all of them, does not excuse those not sued or not included in the judgment from paying their part of the joint debt. Accordingly, as a rule, one or more of the [coguarantors] against whom the judgment is recovered may, upon paying the creditor, compel contribution from all other [coguarantors].” Id., § 35, p. 44.
A coguarantor, however, is not entitled to contribution for any amount paid to the creditor toward the common debt. Rather, under Connecticut law, a guarantor’s right of contribution from a coguarantor arises only when the guarantor “has paid in excess of his share of the whole [outstanding] obligation,” and the amount of contribution he is entitled to collect is limited to “the amount he has paid in excess of his share of the whole [outstanding] obligation.”
This rule is echoed in the Restatement (Third) of Suretyship and Guaranty,
In the present case, the Appellate Court concluded that Wachovia’s failure to properly serve and obtain personal jurisdiction over the plaintiff in the foreclosure action, and subsequent inability to obtain a deficiency judgment against him pursuant to General Statutes § 49-1, “[f]unctionally . . . allowed a limitations period to expire against the plaintiff . . . .” Lestorti v. DeLeo, supra,
We conclude that the Appellate Court’s conclusions were improper because (1) the court did not apply the theory of implied contract to the defendant’s claim for contribution, and (2) they contradict the express terms of the parties’ guaranty agreement. First, under the theory of implied contract, the defendant’s right of recourse and, more specifically, his right of contribution from the plaintiff was not impaired by Wachovia’s failure to obtain jurisdiction over the plaintiff in the foreclosure action because Wachovia was not a party to the implied contract between the plaintiff and the defendant and, therefore, could not unilaterally impair the right of contribution between them. See, e.g., 18 Am. Jur. 2d 42, supra, § 32. Because the defendant continued to have a right of recourse against the plaintiff, no part of the defendant’s obligations to Wachovia
The Appellate Court’s conclusions also contradict the express terms of the guaranty agreement between the parties and Wachovia. The guaranty agreement provided that Wachovia could, “without impairing or releasing the obligations of [any] [guarantor . . . [a]dd, release, settle, modify or discharge the obligation of any . . . guarantor ... for any of the [liabilities” or “[t]ake any other action which might constitute a defense available to, or a discharge of . . . any other . . . [guarantor . . . .” Because the defendant contractually agreed that the release of a coguarantor would not result in a corresponding release of his own obligations under the guaranty agreement, the Appellate Court’s conclusion to the contrary was improper.
The defendant’s second claim is that the Appellate Court’s decision is improperly based on an assumption of a fact that is not part of the record. As an alternative ground for affirming the trial court’s decision to grant the plaintiffs motion to strike, the Appellate Court stated that “the defendant’s contributive share was presumptively half of the obligation, which, at the time of the deficiency judgment, was more than $1,050,000. His payment of $275,000 would not appear in the circumstances to be anything other than a portion of his own contributive share. [Therefore] . . . the defendant is not entitled to reimbursement from the plaintiff.” Lest-orti v. DeLeo, supra,
The defendant alleged in his counterclaim that, “[o]n or about August 8,2005, the court [rendered] a judgment of strict foreclosure in the Pond Place action in favor of [Wachovia]. At the time of the judgment, the court found that the debt owing to [Wachovia], not including fees and costs, was $2,400,834.96 and that, based on [certain] appraisals, the value of the property being foreclosed was $295,000.” The defendant further alleged that, “[i]n order to avoid the substantial risk of liability for a much larger deficiency judgment, [the defendant] negotiated and settled [Wachovia’s] deficiency claim for $275,000,” and that, “on or about August 15, 2006, the court [rendered] a stipulated deficiency judgment [in accordance with the settlement] in the Pond Place action . . . .”
We conclude that the Appellate Court improperly determined that the outstanding debt at the time of the deficiency judgment was the difference between $2,400,834.96 and $295,000, or approximately
Nonetheless, we disagree with the defendant to the extent that he claims that the stipulated deficiency judgment either establishes or represents the full outstanding balance due on the note for purposes of determining whether the defendant has paid more than his contribu-tive share and, therefore, is entitled to contribution. In the present case, the amount of the deficiency or outstanding obligation was never litigated by the defendant or Wachovia, or determined by the trial court in the foreclosure action. Rather, the defendant and Wachovia agreed to settle Wachovia’s claim against the defendant in the amount of $275,000. Moreover, the defendant expressly alleged in his counterclaim that, “[i]n order to avoid the substantial risk of liability for a much larger deficiency judgment, [the defendant] negotiated and settled [Wachovia’s] deficiency claim for $275,000.” (Emphasis added.) Thus, the defendant acknowledges in his counterclaim that the outstanding deficiency was actually “much larger” than $275,000. Accordingly, we disagree with the defendant to the extent that he claims that the
As a final matter, we conclude that, in order for a coguarantor to state a claim for contribution, he must allege that he has paid more than his contributive share of the whole outstanding obligation. The defendant’s counterclaim does not contain such an allegation. Nevertheless, in light of the fact that the defendant did not have the benefit of our decision in the present case when he drafted his counterclaim and the fact that the plaintiff did not raise this ground in his motion to strike, we decline to affirm the Appellate Court’s judgment on this alternative ground. See Meredith v. Police Commission,
In order to recover any amount of contribution from the plaintiff, the defendant will have the burden of proving that he has paid more than his contributive share of the whole outstanding obligation to Wachovia. The defendant thus must prove that the value of the subject property as of December 12, 2005, was not $295,000 but, rather, was greater than $1,850,834.96,
The judgment of the Appellate Court is reversed and the case is remanded to that court with direction to reverse the judgment of the trial court and to remand the case to the trial court for further proceedings according to law.
In this opinion KATZ and McLACHLAN, Js., concurred.
Notes
We granted the petition of the defendant Louis A. Lestorti, Jr., for certification to appeal, limited to the following issue: “Did the Appellate Court properly affirm the trial court’s decision granting the plaintiff’s motion to strike the defendant’s counterclaim for equitable contribution?” Lestorti v. DeLeo,
The plaintiff filed a complaint against numerous defendants. At issue in this appeal is the plaintiffs motion to strike the counterclaim of the defendant Louis A. Lestorti, Jr. In the interest of simplicity, we refer to Louis A. Lestorti, Jr., as the defendant throughout this opinion.
On July 2,2003, the plaintiff and the defendant executed a general release in favor of Paparazzo and OJP Development Corporation, releasing them from, inter alia, all claims in connection with the guaranty agreement.
“[I]n its memorandum of decision, [the trial court] referred to‘Wachovia’s successor in interest’ The plaintiff noted in his memorandum of law in support of his motion to strike that shortly before the judgment of strict foreclosure was rendered, Wachovia assigned its interest to another entity.” Lestorti v. DeLeo, supra,
General Statutes § 49-1 provides in relevant part: “The foreclosure of a mortgage is a bar to any further action upon the mortgage debt, note or obligation against the person or persons who are liable for the payment thereof who are made parties to the foreclosure and also against any person or persons upon whom service of process to constitute an action in personam could have been made within this state at the commencement of the foreclosure; but the foreclosure is not a bar to any further action upon the mortgage debt, note or obligation as to any person liable for the payment thereof upon whom service of process to constitute an action in personam could not have been made within this state at the commencement of the foreclosure. ...”
In Waters, we stated that, “if one debtor is compelled to pay the full amount of the debt, a right of contribution against the other at once arises for the amount he has paid in excess of his share of the whole obligation.” (Emphasis added.) Waters v. Waters, supra,
To be clear, the value of one’s contributive share is measured by the amount of the outstanding debt, not the original value of the debt. The following illustration demonstrates how to calculate a party’s contributive share and right to contribution under Connecticut law: A loans B $1000. C and D each agree to equally guarantee the debt. B subsequently repays $200 to A and, thereafter, becomes insolvent. At this point, the outstanding debt is $800, which represents the full amount of the debt ($1000) less the amount that B had paid ($200). Therefore, the contributive shares of C and D are each one half of the amount of the outstanding debt ($800), or $400. Thus, if A sues G, and C settles and discharges the entire outstanding debt by paying A $600, then C has a right of contribution against D in the amount of $200, which represents the amount of money C had paid in excess of his share of the outstanding debt.
We previously have relied on the Restatement (Third) of Suretyship and Guaranty to fill gaps in and support our common law. See, e.g., Ames v. Commissioner of Motor Vehicles,
Chief Justice Rogers, in her concurring and dissenting opinion, rejects Connecticut precedent and cites to no case in support of any alternative theory, rejects the Restatement (Third) of Suretyship and Guaranty, seeks to apply an exception to the rule that she rejects by citing to the Restatement of the Law of Restitution, which exception is premised on facts not pleaded in this case, and relies on a statement drawn from an inapplicable case from Maine, which does not support her view or even deal with the relevant subject matter. See footnote 11 of this opinion. The theory behind the law of joint tortfeasor liability is not even remotely the same in theory or development as that of the law of suretyship. Finally, even if we were to adopt the theory espoused by Chief Justice Rogers, it would be for the first time and, therefore, would affect numerous existing guarantees that are still in force.
Illustration 1 in the Restatement (Third) of Suretyship and Guaranty, § 55, provides in relevant part: “P borrows $1,000 from C. Si and S2 are cosureties for P. Si and S2 agree that the contributive share of Si is $600 and the contributive share of S2 is $400. Both Si and S2 are liable to C to the extent of $1,000. . . . Thus, Si has a right of contribution against S2 to the extent that Si has liability to C in excess of $600. Similarly, S2 has a right of contribution against Si to the extent that S2 has liability to C in excess of $400.”
Chief Justice Rogers, in her concurring and dissenting opinion, does not appear to express a view regarding this rule but nonetheless concludes, on the basis of an exception to this rule contained in § 82 of the Restatement of the Law of Restitution that the defendant is entitled to contribution from the plaintiff for one half of the $275,000 that the defendant had paid to Wachovia in satisfaction of the deficiency judgment. The Restatement of the Law of Restitution provides in relevant part that, the payor secures a full release from the creditor . . . [he] is entitled to contribution although the amount thus paid is less than what was originally his proportionate share.” (Emphasis added.) Restatement, Restitution § 82, comment (b) (1937). The rationale for this rule is that, if the payor has conveyed a benefit on the nonpaying coobligor, the payor is entitled to restitution to prevent the nonpaying coobligor from becoming unjustly enriched. See, e.g., New Hartford v. Connecticut Resources Recovery Authority,
Chief Justice Rogers, in contravention of the language of the Restatement of the Law of Restitution, claims that the paying coobligor need not secure a full release from the creditor or confer any benefit on the nonpaying coobligor in order to be entitled to contribution for amounts paid that do not exceed the paying coobligor’s contributive share when the nonpaying coobligor is released from his obligations by operation of law. In support of this argument, Chief Justice Rogers relies on 18 Am. Jur. 2d 16, supra, § 6, and the dissenting opinion in Estate of Dresser v. Maine Medical Center,
The second edition of American Jurisprudence provides in relevant part that “[cjontribution actions are based [on] principles of natural justice, which require that persons under a common burden bear responsibility in equal proportions and that one party not be required to bear more than his or her just share to the advantage of his or her co-obligors." (Emphasis added.) When a nonpaying coobligor, like the plaintiff in this case, is released from his obligations by operation of law, he reaps no advantage from the paying coobligor’s payment to the creditor. 18 Am. Jur. 2d 16, supra, § 6. Thus, § 6 does not support Chief Justice Rogers’ claim.
Chief Justice Rogers’ reliance on Estate of Dresser also is misplaced. Unlike the present case, Estate of Dresser involved the right of contribution between joint tortfeasors, as opposed to coobligors. See Estate of Dresser v. Maine Medical Center, supra,
Finally, we note that, regardless of whether we adopt the unique interpretation of the exception contained in § 82 of the Restatement of the Law of Restitution, as Chief Justice Rogers urges, the defendant’s allegations in his counterclaim are insufficient to invoke that exception because the defendant has not alleged that he had secured a full release from Wachovia, that the plaintiff otherwise had been released from his obligations on the note, or that the defendant had conferred any benefit on the plaintiff resulting in the plaintiffs unjust enrichment. When we review an appeal from a trial court’s decision on a motion to strike, “our analysis is . . . limited only to those well-pleaded facts and those facts necessarily implied from the allegations . . . .” (Internal quotation marks omitted.) Coalition for Justice in Education Funding, Inc. v. Rell,
General Statutes § 42a-3-605 provides: “(a) In this section, the term ‘endorser’ includes a drawer having the obligation described in section 42a-3414(d).
“(b) Discharge, under section 42a-3-604, of the obligation of a party to pay an instrument does not discharge the obligation of an endorser or accommodation parly having a right of recourse against the discharged party.
“(c) If a person entitled to enforce an instrument agrees, with or without consideration, to an extension of the due date of the obligation of a party to pay the instrument, the extension discharges an endorser or accommodation party having a right of recourse against the party whose obligation is extended to the extent the endorser or accommodation party proves that the extension caused loss to the endorser or accommodation party with respect to the right of recourse.
“(d) If a person entitled to enforce an instrument agrees, with or without consideration, to a material modification of the obligation of a party other than an extension of the due date, the modification discharges the obligation of an endorser or accommodation party having a right of recourse against the person whose obligation is modified to the extent the modification causes loss to the endorser or accommodation party with respect to the right of recourse. The loss suffered by the endorser or accommodation party as a result of the modification is equal to the amount of the right of recourse unless the person enforcing the instrument proves that no loss was caused by the modification or that the loss caused by the modification was an amount less than the amount of the right of recourse.
“(e) If the obligation of a party to pay an instrument is secured by an interest in collateral and a person entitled to enforce the instrument impairs the value of the interest in collateral, the obligation of an endorser or accommodation party having a right of recourse against the obligor is discharged to the extent of the impairment. The value of an interest in collateral is impaired to the extent (i) the value of the interest is reduced to an amount less than the amount of the right of recourse of the party asserting discharge, or (ii) the reduction in value of the interest causes an increase in the amount by which the amount of the right of recourse exceeds the value of the interest. The burden of proving impairment is on the party asserting discharge.
“(f) If the obligation of a party is secured by an interest in collateral not provided by an accommodation party and a person entitled to enforce the instrument impairs the value of the interest in collateral, the obligation of any party who is jointly and severally liable with respect to the secured obligation is discharged to the extent the impairment causes the party asserting discharge to pay more than that party would have been obliged to pay, taking into account rights of contribution, if impairment had not occurred. If the party asserting discharge is an accommodation party not entitled to discharge under subsection (e), the party is deemed to have a right to contribution based on joint and several liability rather than a right to reimbursement. The burden of proving impairment is on the party asserting discharge.
“(g) Under subsection (e) or (f), impairing value of an interest in collateral includes (i) failure to obtain or maintain perfection or recordation of the interest in collateral, (ii) release of collateral without substitution of collateral of equal value, (iii) failure to perform a duty to preserve the value of collateral owed, under article 9 or other law, to a debtor or surety or other person secondarily liable, or (iv) failure to comply with applicable law in disposing of collateral.
“(h) An accommodation party is not discharged under subsection (c), (d) or (e) unless the person entitled to enforce the instrument knows of the accommodation or has notice under section 42a-3-419(c) that the instrument was signed for accommodation.
“(i) A party is not discharged under this section if (i) the party asserting discharge consents to the event or conduct that is the basis of the discharge, or (ii) the instrument or a separate agreement of the party provides for waiver of discharge under this section either specifically or by general language indicating that parties waive defenses based on suretyship or impairment of collateral.”
General Statutes § 49-14 (a) provides: “At any time within thirty days after the time limited for redemption has expired, any party to a mortgage foreclosure may file a motion seeking a deficiency judgment. Such motion shall be placed on the short calendar for an evidentiary hearing. Such hearing shall be held not less than fifteen days following the filing of the motion, except as the court may otherwise order. At such hearing the court shall hear the evidence, establish a valuation for the mortgaged property and shall render judgment for the plaintiff for the difference, if any, between such valuation and the plaintiffs claim. The plaintiff in any further action upon the debt, note or obligation, shall recover only the amount of such judgment.”
This figure represents the debt owed to Wachovia at the time of foreclosure, that is, $2,400,834.96, less $550,000, which represents one half of the amount that the defendant paid to Wachovia, that is, $275,000, in settlement of the deficiency.
We reached these figures as follows: If the whole outstanding obligation equals $550,000, the defendant’s contributive share is $275,000, which is exactly one half of that amount. Accordingly, the whole outstanding obligation must be less than $550,000 for the defendant to have paid an amount in excess of his contributive share, thus giving rise to a valid cause of action for contribution.
Concurrence in Part
joins, concurring and dissenting. The majority concludes that the Appellate Court properly concluded that the defendant
In support of its conclusion that the defendant is entitled to equitable contribution only for amounts paid in excess of his contributive share, the majority relies in part on the Restatement (Third), Suretyship and Guaranty § 55 (1), p. 236 (1996), under which, “[a]s between cosureties for the same underlying obligation, each cosurety is a principal obligor to the extent of its contributive share . . . and a secondary obligor as to the remainder of its duty pursuant to its secondary obligation.” Accordingly, a cosurety’s right of contribution against the other cosureties does not arise unless it has paid more than its contributive share, and its right to contribution is limited to the amount that is in excess of its contributive share.
The majority concludes that this court previously has adopted the theory expressed in § 55 of the Restatement (Third) of Suretyship and Guaranty, that a coguarantor is entitled to equitable contribution only for amounts paid in excess of its contributive share. In support of this conclusion, it quotes this court’s statement in Waters v. Waters,
I see no equitable or policy reasons why, if two coguarantors are jointly and severally liable to an obligee, and one coguarantor pays less than his contributive share and the other coguarantor pays nothing because his obligation to the obligee has been discharged by operation of law, we should maintain the legal fiction that the nonpaying coguarantor was not jointly liable for the amount paid for purposes of equitable contribution. Rather, I believe that it is more equitable to allow the paying coguarantor to seek equitable contribution under these circumstances; see Estate of Dresser v. Maine Medical Center, supra,
I concur with the majority’s conclusion that we should reverse the judgment of the
See footnote 2 of the majority opinion.
The majority also concludes that the Appellate Court improperly concluded that the fact that the plaintiffs debt to Wachovia was discharged as the result of Wachovia’s failure to serve the plaintiff in the foreclosure action meant that Wachovia was not entitled to collect from the defendant an amount greater than the defendant’s contributive share and, therefore, any payment in excess of that amount was gratuitous. I agree with this conclusion.
“To the extent that, as between themselves, one cosurety is a secondary obligor and the other is a principal obligor, the former has rights of contribution against the latter. The rights of contribution are the same as the rights of a secondary obligor against a principal obligor . . . .” Restatement (Third), supra, § 55 (2), p. 236. “[T]he [principal obligor’s] duty to reimburse, like the principal obligor’s duty to perform, arises from implied contract. Just as the principal obligor impliedly agrees that it will perform the underlying obligation so that the secondary obligor will not have to perform, the principal obligor also agrees that it will reimburse the secondary obligor to the extent that the secondary obligor does perform, thereby fulfilling all or part of the underlying obligation.” Id., § 22, comment (a), p. 94; see also id., § 58, comment (a), p. 248 (“When one cosurety performs beyond its contributive share and receives contribution from another cosurety, the cosureties are in the same position as if the contributing cosurety had performed the secondary obligation to the same extent as its contribution to the performing cosurety. Under the rule of this section, the rights of the contributing cosurety as against the principal obligor are the same as they would be if the contributing cosurety had performed its secondary obligation to the same extent as its contribution.”).
See Exchange Elevator Co. v. Marshall,
In other words, if a coguarantor pays less than his contributive share of an outstanding debt and fails to obtain from the obligee a release of the other coguarantor, and he then obtains contribution from that coguarantor for one half of the amount paid, the nonpaying guarantor could also be required to pay the remainder of the outstanding debt to the creditor, and would then be entitled to seek contribution from the first coguarantor.
The majority states that the sole rationale for the rule requiring a full release from the creditor before allowing a coguarantor who has paid less than his contributive share to seek contribution from another coguarantor is that the paying coguarantor has conferred a benefit on the nonpaying coguarantor. The majority concludes that, because, in the present case, the plaintiffs debt to Wachovia was discharged by operation of law and not as the result of the defendant’s payment of the debt, the defendant has conferred no benefit on the plaintiff and, therefore, is not entitled to contribution. I disagree. Because I believe that coguarantors are “under a common burden” and generally should “bear responsibility in equal proportions" for payments to the obligee; (emphasis added) 18 Am. Jur. 2d 16, supra, § 6; I believe that the best justification for the general rule that a coguarantor cannot seek contribution from the other coguarantors unless he has paid more than his contributive share is the prevention of double recoveries and multiple proceedings. This concern is allayed both when the nonpaying coguarantor has been released as the result of the paying coguarantor’s actions and when he has been discharged by operation of law.
The majority points out that under 18 Am. Jur. 2d 16, supra, § 6, a paying coguarantor must show that he has acted “ ‘to the advantage’ ” of the nonpaying coguarantor and interprets this to mean that the coguarantor’s actions must have reduced or eliminated the nonpaying coguarantor’s actual liability to the creditor in order to obtain contribution. I disagree. Just as the majority concludes that, because a nonpaying coguarantor has implicitly agreed that he will reimburse the paying coguarantor for stuns paid in excess of the paying coguarantor’s equitable share, a coguarantor who has paid more than his contributive share is entitled to contribution even if the nonpaying coguarantor has been discharged, I would conclude that, because a coguarantor has implicitly agreed that he will pay his proportionate share of any amounts that are paid to the creditor under the joint obligation, any payments by other coguarantors are to his “ ‘advantage’ ” under 18 Am. Jur. 2d 16, supra, § 6, regardless of whether the creditor could have recovered the amounts from the nonpaying coguarantor.
See Humphrey v. O’Connor,
In Waters, the plaintiff paid the full amount of a debt for which he and the defendant were jointly and severally hable. Waters v. Waters, supra,
I recognize that this court’s statement in Bristol Bank & Trust Co. v. Broderick, supra,
The majority concludes that Estate of Dresser has no relevance to this case because it was atort case. In my view, however, the principle underlying that case is the same as the principle underlying the exception set forth in comment (b) to § 82 of the Restatement of Restitution: When A has satisfied a liability to B and seeks contribution from C for that payment, A must establish that C has no potential liability to B for the same claim. Under Estate of Dresser, that fact can be established either by showing that C has been released from liability or that he has been discharged by operation of law. I see no reason why the same reasoning should not apply in cases involving coguarantors of a note.
General Statutes § 49-1 provides: “The foreclosure of a mortgage is a bar to any further action upon the mortgage debt, note or obligation against the person or persons who are hable for the payment thereof who are made parties to the foreclosure and also against any person or persons upon whom service of process to constitute an action in personam could have been made within this state at the commencement of the foreclosure; but the foreclosure is not a bar to any further action upon the mortgage debt, note or obligation as to any person hable for the payment thereof upon whom service of process to constitute an action in personam could not have been made within this state at the commencement of the foreclosure. The judgment in each such case shah state the names of ah persons upon whom service of process has been made as herein provided.”
The majority states that there is no reason to decide in the present case whether to adopt an exception to the general rule that a coguarantor must pay more than his contributive share in order to seek contribution because the defendant did not allege a necessary factual premise for the exception, namely, that the plaintiff has been discharged from his debt. The trial court found, however, that the plaintiffs “liability was extinguished by the foreclosure obtained by Wachovia’s successor in interest” pursuant to § 49-1. That finding has not been challenged on appeal.