Superior Finance Corporation v. John A. McCrane Motors Incorporated

• Decision Date: 14 May 1936
• Citation: 184 A. 828,116 N.J.L. 435
• Docket Number: 33
• Court: New Jersey Supreme Court
• Parties: SUPERIOR FINANCE CORPORATION, RESPONDENT, v. JOHN A. McCRANE MOTORS INCORPORATED, A CORPORATION, ET AL., APPELLANTS

184 A. 828

SUPERIOR FINANCE CORPORATION

v. JOHN A. McCRANE MOTORS, Inc., et al.

No. 33.

Court of Errors and Appeals of New Jersey.

May 14, 1936.

Syllabus by the Court.

In cases of absolute guaranty of payment of the obligation of another, the party guaranteed may hold the guarantor without suing on the primary obligation and (in case of the guaranty of an installment note given on conditional sale of an automobile) is not bound as against the guarantor to pursue any of the remedies provided in the contract of conditional sale.

The CHANCELLOR and the CHIEF JUSTICE, dissenting.

Appeal from Supreme Court.

Action by the Superior Finance Corporation against the John A. McCrane Motors, Incorporated, and others.From a judgment of the Supreme Court(115 N.J.Law, 401, 180 A. 842) affirming a judgment for plaintiff, defendants appeal.

Affirmed.

Cohn & Kohlreiter, of Paterson (Peter Cohn, of Paterson, of counsel), for appellants.

Feder & Rinzler, of Passaic, for respondent.

PARKER, Justice.

This is an action on a guaranty of a promissory note, too long to be quoted at length, dated December 21, 1925, and made by one Benny Scortino to the order of J. A. McCrane Motors Company.On. the back of the note was a written guaranty signed by J. A. McCrane Motors Company and another, and which reads as follows: "For value received, we, and each and all of the endorsers hereon, jointly and severally guarantees payment of principal and interest of the within note, as and when the same shall become due, and of any extensions thereof in whole or in part, accepting all its provisions, authorizing the maker without notice to us, or either of us, to obtain an extension or extensions, in whole or in part, and waiving presentment for payment, demand protest and notice of protest and non-payment; also agreeing that in case of non-payment of principal or interest then due such arrearage may be offset by application of any amount, or amounts, whole or in part, which may be due any of us from the holder of such note and suit may be brought by the holder of this note against any one or more or all of us, at the option of said holder, whether such suit has been commenced against the maker or not, and that in any such suit, the maker may be joined with one or more or all of us, at the option of the holder, hereby waiving all exemptions and rights accrued or which may accrue by reason of entering the Military or Naval Service or other service of the United States, 6r any State, under any Federal or State Statute now in effect or at any time hereafter becoming...