In re the Bankruptcy of Spector-Red Ball, Inc.

Court of Appeals of North Carolina

In re the Bankruptcy of Spector-Red Ball, Inc.

301 S.E.2d 533, 61 N.C. App. 745, 1983 N.C. App. LEXIS 2746

CourtCourt of Appeals of North Carolina

DecidedApril 19, 1983

DocketNo. 8210IC878

StatusPublished

This text of 301 S.E.2d 533 (In re the Bankruptcy of Spector-Red Ball, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In re the Bankruptcy of Spector-Red Ball, Inc., 301 S.E.2d 533, 61 N.C. App. 745, 1983 N.C. App. LEXIS 2746 (N.C. Ct. App. 1983).

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Opinion

WEBB, Judge.

This appeal raises the question of the extent of the obligation of Transport Insurance Company as surety on the bond filed by Spector-Red Ball, Inc. with the Industrial Commission. Transport bound itself to be liable for any default of Spector-Red Ball within the penal sum, which is $100,000.00. Transport’s liability is thus limited to $100,000.00. It was error for the Industrial Commission to order Transport to bring all claims to a conclusion in addition to paying $100,000.00 on the claims. We believe that Transport by becoming surety on the bond obligated itself only to pay money in the event Spector-Red Ball defaulted. Under the terms of the bond, Spector-Red Ball agreed to perform the acts required by the Workers’ Compensation Act and Transport agreed to pay money if Spector-Red Ball did not so perform. All Transport can be required to do is pay up to $100,000.00 for the default of Spector-Red Ball.

We reverse and remand for further proceedings consistent with this opinion.

Reversed and remanded.

Judges BECTON and PHILLIPS concur.

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WEBB, Judge.

This appeal raises the question of the extent of the obligation of Transport Insurance Company as surety on the bond filed by Spector-Red Ball, Inc. with the Industrial Commission. Transport bound itself to be liable for any default of Spector-Red Ball within the penal sum, which is $100,000.00. Transport’s liability is thus limited to $100,000.00. It was error for the Industrial Commission to order Transport to bring all claims to a conclusion in addition to paying $100,000.00 on the claims. We believe that Transport by becoming surety on the bond obligated itself only to pay money in the event Spector-Red Ball defaulted. Under the terms of the bond, Spector-Red Ball agreed to perform the acts required by the Workers’ Compensation Act and Transport agreed to pay money if Spector-Red Ball did not so perform. All Transport can be required to do is pay up to $100,000.00 for the default of Spector-Red Ball.

We reverse and remand for further proceedings consistent with this opinion.

Reversed and remanded.

Judges BECTON and PHILLIPS concur.

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301 S.E.2d 533, 61 N.C. App. 745, 1983 N.C. App. LEXIS 2746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-bankruptcy-of-spector-red-ball-inc-ncctapp-1983.