Denny v. Spurr

Citations

• 38 Wash. 347
• 80 P. 541
• 1905 Wash. LEXIS 1174

Syllabus

<p>Indemnity—Insurance—Bond Guaranteeing Building Contract—Notice oe Acts Involving Loss—Construction—Release oe Surety. An indemnity bond or policy guaranteeing the performance of a building contract, which stipulates that notice must be given the surety of any act on the part of the contractor which may involve a loss, does not require the giving of notice of the various defaults of the contractor in completing the building on time or paying bills, and a notice given as soon as the claimants sought to make their claims charges against the property is in time to prevent the discharge of the surety.</p> <p>Same—Delay—Interest. In such a case, the surety company cannot complain that it was prejudiced in thp matter of interest by the delay in giving notice, where, on receiving notice, it disputed the claim and did not tender the amount of the damages.</p> <p>Same—Mechanics’ Liens as Breach oe Contract—Waiver by Owner. Where an indemnity bond guarantees the performance of a building contract in which the contractor agrees to furnish all the material, the owner is not obliged to treat the filing of a mechanics’ lien as a breach of the contract, and assume the burden of establishing the lien; but he may waive the same until it is established by a court of competent jurisdiction, in which case his right of action on the bond accrues at that time, and an action begun within the six months limited in the bond after the first lien is established by judgment is in time.</p>