This is an action wherein plaintiffs seek to recover from defendant, as cosurety, his proportionate pаrt of the joint loss paid by plaintiffs. The facts are stipulated.
One Wolverton, in order to engage in business as a securities dealer, was required by statute to make a $5,000 surety bond. The bond was executed by a surety company, only after the execution of a contract, whereby defendant and the four original plaintiffs herein jointly and severally аgreed to save said surety harmless from every claim, demand and liability growing out of the execution of the statutory bоnd. This contract was signed by these five men, but following the signature of defendant was the notation, “$1,000.00 liability limit.”
A loss of $2,344.16 was suffered by thе surety company which was paid by the four original plaintiffs, and this action was brought seeking recovery from defendant of one-fifth of the loss sustained. Judgment was for plaintiffs, and defendant appeals.
Defendant’s theory is that he is liable for only one twenty-first of the loss, which amount he tendered into court. His reasoning is that the surety company could hаve sued any one of the other four sureties individually for the full amount of the bond, $5,000, but could have sued the defendant alоne for only $1,000. That in this manner the individuals were severally bound for a . total of $21,000, of which defendant was bound for only one twеnty-first part. He relies upon the rule stated in
“The general rule is that cosureties who are bound in different amounts must indemnify each other in proportion to the amount for which each stands bound; and if the liability has been created by separate instruments and in different amounts, the sureties on all such obligations must, as between themselves, contribute in proportion to the penalties of their respective obligation. . .
For the purpose of this opinion we assume that defendant is correct in his argument that the wording of the contract limits his liability to $1,000. In the cases cited by defendаnt the surety was held liable for that proportion' of the loss which his individual liability bore to the total liability of all sureties.
The fallacy in defendant’s argument is that the obligee herein could, if the loss was sufficient, collect $5,000 from A, or B, or C or D, thе other obligors, rather than $5,000 from A and'B and C and D. If we follow his reasoning in ' a case where the loss was $5,000, the entire amоunt of the contract, then he would be liable for one twenty-first thereof, or $238.09, and his liability limit could never be reached.
In Rose v. Wollenberg,
In Williams v. Riehl et al., 127 Cal.. 365,
In the present case no testimony was offered to show any agreement between the sureties as to the amount of their liability to each other in respect to contribution. The bond itself shows that the' signature of the defendant is the last one on the bond. There is no evidenсe that any of the other sureties even knew of defendant’s attempted limitation of liability. Our interpretation of the bond, in the absence of evidence to prove an agreement between the sureties as to liability between themselves, is that the defendant inserted the words “$1,000.00 liability limit” after his name, not for the purpose of showing an agreеment between himself and the other cosureties, but to limit his liability to the obligee to that amount. Under the facts in the prеsent case the attempted limitation by defendant would have been effective as between himself and the оbligee, but is ineffective as between him and his cosureties.
The defendant did not discharge the burden placed upon him of proving an agreement with the other sureties to pay less that his prorata part of the loss sustained. The wording of the bond, standing alone, is insufficient.
The judgment is affirmed.
