A creditor of joint debtors may release one or more of such debtors, and such release shall operate as a full discharge of such debtor so released, but such release shall not release or discharge or affect the liability of the remaining debtor. Such release shall be taken and held to be a payment in the indebtedness of the full proportionate share of the debtor so released.
Source: L. 1899: p. 239, § 1. R.S. 08: § 3605. C.L. § 5125. CSA: C. 92, § 5. CRS 53: § 76-1-2. C.R.S. 1963: § 76-1-2.
ANNOTATION
Release abrogates section's applicability. This section and §§ 13-50-101 and 13-50-103 did not apply where the defendant guarantors expressly agreed that the release of coguarantors would not affect defendants' liability in any way. United States v. Immordino, 386 F. Supp. 611 (D. Colo. 1974), aff'd, 534 F.2d 1378 (10th Cir. 1976).
A plaintiff can lawfully release any coguarantor from liability without thereby releasing the other guarantors from their obligation to contribute their several proportions. Taylor v. Hake, 92 Colo. 330, 20 P.2d 546 (1933).
For the rule as to release of one joint tortfeasor, see Price v. Baker, 143 Colo. 264, 352 P.2d 90 (1960); Hamm v. Thompson, 143 Colo. 298, 353 P.2d 73 (1960).
A co-judgment debtor may take an assignment of the judgment against his codebtor and enforce it to the extent of the latter's proportionate liability thereon under this and the following section, irrespective of the amount paid for the assignment. Simpson v. Morgan, 124 Colo. 441, 238 P.2d 200 (1951).
A loan receipt is not a release. Wilson v. Anderson, 113 Colo. 396, 157 P.2d 690 (1945).
Release of some joint debtors extinguishes the obligation of any remaining joint debtors to pay so much of the debt as was deemed paid by the released joint debtors. Smith v. Weindrop, 833 P.2d 856 (Colo. App. 1992).
Where release of one of the debtors from liability in promissory note included liability for attorney fees, other debtors are each liable for their proportionate share of any liability for fees. A. Tenenbaum & Co., Inc. v. Colantuno, 3 P.3d 456 (Colo. App. 1999), aff'd, 23 P.3d 708 (Colo. 2001).
A creditor may not collect more than the original debt. For example, a creditor is owed $100 by three joint and several debtors. One debtor pays $25 and obtains a complete release from further liability. The remaining debtors are now severally liable for the balance. The proportionate share of each remaining debtor is $33.33. If, however, the settling debtor pays $60, the proportionate share of each of the remaining debtors is still $33.33. The creditor can collect up to $33.33 from each remaining debtor until the obligation is paid in full. This collection could be $33.33 from one and $7.67 from the other. A. Tenenbaum & Co., Inc. v. Colantuno, 117 P.3d 20 (Colo. App. 2004).
Proportionate shares should be determined by dividing the debt equally, per capita, among promissory note judgment debtors who were jointly liable for attorney fees prior to release of one of the debtors and, if a debtor pays more than his percentage share to satisfy the attorney fee indebtedness, the debtor may file an action for contribution against the other debtors. A. Tenenbaum & Co., Inc. v. Colantuno, 3 P.3d 456 (Colo. App. 1999), aff'd, 23 P.3d 708 (Colo. 2001).