Shields v. Barrow

58 U.S. (17 How.) 130 (1854)

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Nature of the Case

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Facts

Barrow sold property to Shields for a sum payable in installments with the unpaid balance secured by negotiable papers endorsed by six guarantors (four citizens of Louisiana, and two of Mississippi). Shields defaulted and a compromise settlement was reached in that Barrow would retain the property and certain payments already made and that he would receive specified payments from Shields and each endorser. Shields and all six endorsers were parties to the settlement agreement. A rescission bill was filed, but only the two endorsers from Mississippi were named as defendants. That bill asked that Shields be put back in possession of the property on the basis that the compromise had been procured by fraud. The issue before the court was the ability to make the decree in equity to rescind the compromise contract when Shields and four other endorsers were not parties to the rescission suit. The circuit court granted rescission.