Fidelity & Casualty Co. v. Bisso

153 So. 19, 179 La. 56, 1934 La. LEXIS 1345
CourtSupreme Court of Louisiana
DecidedJanuary 29, 1934
DocketNo. 32623.
StatusPublished
Cited by6 cases

This text of 153 So. 19 (Fidelity & Casualty Co. v. Bisso) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fidelity & Casualty Co. v. Bisso, 153 So. 19, 179 La. 56, 1934 La. LEXIS 1345 (La. 1934).

Opinion

LAND, Justice.

■On June 24, 1925, plaintiff company signed a statutory bond for the Jefferson Construction Company, contractor for an addition to the building of (he O. K. Storage & Transfer Company, and, on the same date, defendant signed “a contract of Indemnity and Personal Warranty” in favor of plaintiff company.

Plaintiff company sues defendant on this contract to recover the sum of $2,367.93, item- ■ ized as follows:

(a) Premium on bond for Jefferson Construction Company ................... $1,052.93

(b) Attorneys’ fees by reason of or in consequence of said .bond ................... 1,000.00

(c) Attorneys’ fees on account of present suit ............ 250.00

(A) Premium of appeal bond signed by American Surety Company .............. 52.50

(e) Cost of printing brief on appeal in suit of American Sheet Metal Works against contractor and surety .............'____ 12.50

Total........ $2,367.98

From a judgment in favor of plaintiff company for the sum of $2,065, with legal interest, defendant has appealed, and plaintiff company has answered the appeal and prays that the judgment be increased to the full amount originally claimed.

1. The contract of indemnity and personal warranty signed 'by defendant is as follows:

“This agreement, made the twenty-fourth day of June, 1925, by and between William A. Bisso of New Orleans, Louisiana, hereinafter called the Indemnitor, and The Fidelity and Casualty Company of New York, hereinafter called the Company, witnesseth:
“Whereas at the special instance and request of the Indemnitor and on the security *59 of this agreement, the Company is or is to become surety for Jefferson Construction Co., Inc., of 823 Poydras St., New Orleans, La., on a certain bond running in favor of O. K. Storage & Transfer Company, a copy of which is attached hereto and made part hereof;
“Now, therefore, in consideration of the premises and of the sum of one dollar in hand paid by. the Company to the Indemnitor, the receipt of which is hereby acknowledged, the Indemnitor hereby agrees and binds himself and his heirs, executors, administrators, successors, and assigns, as follows:
“1. That the Indemnitor within thirty days after the execution of this agreement shall and will pay the Company One Thousand fifty-two 98/100 dollars, unless the said amount is otherwise previously paid. * * * ” The remaining part of this stipulation relates to the payment of other annual premiums thereafter, and has nothing to do with this ease, as plaintiff company sues only for the premium paid on the first bond.

It is clear that the liability of defendant for the premium of $1,052.98 on the bond be- • came fixed, definite, and certain after the lapse of 30 days from June 24, 1925. Defendant does not pretend that the Jefferson Construction Company, the contractor, has paid this premium, nor does the evidence show that either the Jefferson Construction Company or plaintiff company gave to defendant any extension of time, either before or after the premium became a matured liability upon the part of defendant The mere fact that plaintiff company delayed suing defendant for the amount of the premium until January 9, 1931, cannot, in our opinion, affect the right of plaintiff company to recover in this case, any more than forbearance in suing on a matured note would discharge the surety or a mere failure to execute judgment would release the codebtor. Howard v. Finney, 32 La. Ann. 1305; Manice v. Duncan, 12 La. Ann. 715; Monroe v. Richmond, Man. Unrep. Cas. 278; Woodburn v. Friend, 19 La. 496.

The trial judge, in allowing a premium of only $1,000, evidently overlooked the fact that the amount of the premium is $1,052.98. There is no dispute as to the amount due for the premium; the only issue being the liability of defendant for same. Plaintiff is therefore entitled to recover the full amount of the premium.

2. Paragraph 2 of the contract of indemnity and personal warranty provides: “That the Indemnitor shall and will at all times indemnify and keep indemnified the Company from and against any and all claims, demands, losses, damages, costs, charges, counsel fees, expenses, suits, orders, judgments, and adjudications whatsoever, that the Company shall or may for any cause at any time sustain or incur by reason of or in consequence of the said bond or any renewal thereof or any new bond issued in continuation thereof or as a substitute therefor ; and the Indemnitor further covenants and agrees to place the Company in possession of funds whenever necessary for the Company’s protection against such claims, demands, losses, damages, costs, charges, counsel fees,, expenses, suits, orders, judgments, and adjudications whatsoever; and to *61 pay the Company, before the Company shall be compelled to pay the same, all damages, losses, costs, charges, counsel fees, and expenses for which the Company shall become liable by reason of, or in consequence of, the said bond or any renewal thereof or any new bond issued in continuation thereof or as a substitute therefor.”

It is provided in paragraph 7 of the contract of indemnity and personal warranty, signed by defendant: “That the Indemnitor upon requesting the Company to prosecute, defend, or take part in any action, suit, proceeding, appeal, or writ of error, will place in possession of the Company funds or securities sufficient to cover any costs, charges, and expenses that the Company may incur in complying with said request and also sufficient to cover the amount of any liability, order, adjustment, or adjudication that may result from a compliance with the said request.”

It is provided in paragraph 9 of the contract of indemnity and personal warranty, signed by defendant: “That the Company shall decide whether or not it is liable on account of each and every matter arising under said bond or any renewal thereof or any new bond issued in continuation thereof or as a substitute therefor, and shall determine the amount of its liability in ease that it decides that it is liable. It shall settle or compromise any claims and defend, settle, or compromise any suits, and take such other action in connection with each and every matter arising under said bond or any renewal thereof or any new bond issued in continuation thereof or as a substitute therefor, as it may deem expedient. Every such decision, determination, settlement, compromise, de7 fense or other action of the Company shall be final and conclusive and unconditionally binding upon the Indemnitor.”

Defendant contends that the indemnity agreement does not cover the payment of the surety’s own attorneys in any event, that the only place in which attorneys’ fees are specifically called for is in paragraph 2, and that the fees there referred to mean statutory attorneys’ fees under Act No. 225 of 1918.

Defendant argues that, since the indemnitor agreed to indemnify the company against “claims, demands, losses, damages, costs, charges, counsel fees, expenses and adjudications,” the word “adjudications” is used to sum up what went before, and that the only counsel fees covered are those that are or may be the subject of an adjudication against the surety arising out of the bond.

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Bluebook (online)
153 So. 19, 179 La. 56, 1934 La. LEXIS 1345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelity-casualty-co-v-bisso-la-1934.