German-American Mercantile Bank v. Illinois Surety Co.

Citations

• 99 Wash. 9
• 168 P. 772
• 1917 Wash. LEXIS 1010

Syllabus

<p>Guaranty—Consideration. A judgment against a surety on a guaranty bond is sustained where the bond recites that it was to guarantee the payee of a note to the bank, its successors and assigns, and the faithful and prompt payment of all promissory notes executed by the maker during a stated period in an amount not to exceed $25,000.</p> <p>Fraud—Evidence—Sufficiency. Fraud cannot be inferred nor found upon a mere preponderance of the evidence, where it is asserted that the contract was procured by fraud and collusion.</p> <p>Principal and Agent — Power of Attorney — Construction. Where a power of attorney is susceptible of two different constructions and the agent adopts and acts upon one of them, the principal cannot repudiate the act and escape liability for his negligence in the choice of words.</p> <p>Same. Where a surety company deliberately inserted words in a blank form of power of attorney prepared by and customarily used by it, it is to be construed, in case of doubt, strongly against the company.</p> <p>Same. A typewritten insertion in a general power of attorney by a foreign corporation, empowering the agent to execute “any and all bonds . . . required to be filed in the state of Washington,” is not inconsistent with or a restriction upon broader powers contained in the letters, especially where the circumstances indicated an intent to limit only the territory, rather than the scope of authority conferred, and the company never called in question the agent’s power to write bonds not required to be filed in the state of Washington, after knowledge of his assumption of such power.</p> <p>Same. A caution, at the top of a power of attorney, not to execute any bond “not specifically authorized in this power of attorney,” merely directs attention to the conditions and does not aid in its construction.</p> <p>Same — Authobity of Agent — Evidence — Sufficiency. A renewal of a bond may be assumed to be within the scope of the authority of an agent, where the fir