Heffernan v. United States Fidelity & Guaranty Co.

Citations

• 37 Wash. 477
• 79 P. 1095
• 1905 Wash. LEXIS 757

Syllabus

<p>Contbacts — Building Hull or Vessel — Specifications Part of Contract. A contract to build tbe hull of a vessel in accordance With specifications attached, includes superstructure to be built on the main deck, masts, rigging and other equipment particularly enumerated as part of the hull in the specifications.</p> <p>Indemnity — Principal and Surety — Contractor’s Bond to Complete Vessel — Notice of Default — Failure to Give Within Time — Release of Surety — Demurrage for Delay. Where a contractor’s indemnity bond provided that notice of any-default by the contractor must be given the surety within thirty days, and the contract provided that the hull of the vessel should he ready for machinery September 15, and completed ready for trial October 15, and notice of default in both particulars was given October 17, together with a demand that the surety complete the contract, the failure to give notice of the first default within thirty days releases the surety from liability for the demurrage charged for the non-completion of the vessel on time, since the law cannot say how much of the demurrage would have been saved by timely notice; hut the surety is not released from liability for the cost of completing the vessel, where it refused to complete the same and where the failure to give notice of the first-default did not affect the relation of the surety with reference to the second default; since a compensated surety can only insist upon forfeiture clauses where the failure to comply therewith probably inflicts a loss on the surety.</p>