52 Neb. 20 | Neb. | 1897
This was an action by the appellant, Martha Skinkle, in the district court for York county upon an interest coupon of a prior mortgage paid by her in order to pro- . tect her own security. Appellant, on the 23d day of February, 1891, in an action then pending in- said court in which Melintus H. Kealiher and wife were defendants,
The real question is, as will be observed from the foregoing statement, whether appellant, upon the facts as found, is entitled to be subrogated to the rights of the insurance company with respect to the coupon paid by her. The right of subrogation exists, as a rule, in favor of a creditor who has paid the amount of a mortgage or other incumbrance in order to protect his own subordinate lien. (Bohn Sash & Door Co. v. Case, 42 Neb., 281; South Omaha Nat. Bank v. Wright, 45 Neb., 23; Seieroe v. Hohman, 50 Neb., 601.) Appellees, while conceding the proposition above stated, argue that it can have no application to the facts of this case, since, as they contend, payment of the entire debt is essential to the right of equitable subrogation, whether in favor of a surety, or the holder of a subordinate lien. Subrogation, it is settled, both upon reason and authority, will not, except in case of estoppel, be allowed to the prejudice of other rights. This principle was recognized in the leading case of Kyner v. Kyner, 6 Watts [Pa.], 221, holding that substitution of one creditor for another will be denied so long as the debt, or any part thereof, remains unsatisfied, because, as held therein, until the creditor shall be wholly satisfied, there ought, and can be, no interference with his rights or his securities which might, even by a bare possibility, prejudice or embarrass him in any way in the collection of the residue of his claim. (See, also, Forrest Oil Co’s Appeals, 118 Pa. St., 138; Graff’s Estate, 139 Pa. St., 69; Coson v. Laney, 82 Tex., 317; Swigert v. Bank, 17 B. Mon. [Ky.], 268; Carter v. Neal, 24 Ga., 346; Receivers v. Wortendyke, 27 N. J. Eq., 658; Rice v. Morris, 82 Ind., 204.) But the doctrine of the cases cited has, in every
Reversed.