German American State Bank v. Woodward

Citations

• 101 Kan. 172
• 165 P. 854
• 1917 Kan. LEXIS 46

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Baseball Association — Indebted to Bank — Contracts to Indemnify Bank — Individual Liability of Indemnitors. One of a number of parties who each contracts to indemnify a bank against loss to the amount of a certain share of that part of an obligation left after the application of the proceeds of a sale of certain property, or to deposit a sufficient sum to assure the payment of that share of the obligation, is not discharged by reason of the fact that the amount deposited in good faith by another of the contractors finally turns out to be insufficient to pay his share.</p> <p>2. Same. A baseball association was indebted to a bank. Directors of the association individually indemnified the bank against loss, each to the amount of one-seventh of the indebtedness remaining after the application of the proceeds derived from the sale of the assets of the association. The sale contemplated was a private sale. All the assets had been mortgaged to the bank. They were sold to the bank at chattel-mortgage sale for $1000. About five weeks later the bank sold the assets for $7500. Held, that in an action against the indemnitors the $7500 should be credited on the debt of the association to the bank, and judgment should be rendered against the indemnitors for the remainder of the debt, in accordance with the terms of their contracts.</p>