Leiendecker v. Aetna Indemnity Co.

Citations

• 52 Wash. 609
• 101 P. 219
• 1909 Wash. LEXIS 1165

Syllabus

<p>Principal and Surety — Indemnity Bonds — Building Contract — • Action on Bond — Defenses—Payment Before Completion of Work— Terms of Contract. It is no defense to an action on an indemnity bond guaranteeing a building contract, that payment for tbe work was made before tbe same was commenced, where no time was mentioned in the contract, and a provision that payment was, in legal contemplation, to be made on completion of the work cannot be read into the contract.</p> <p>Same — Fraud—Stipulation in Bond Requiring Notice of Payment. It is a fraud upon the surety company vitiating an indemnity bond guaranteeing a building contract, for the obligee to pay the contractor in full before the work is commenced, without notice to the surety, although the contract mentioned no time for payment, where the bond provided that the obligee shall “retain the last payment and reserve due said principal” until the work is complete and time for filing liens had expired and shall notify the surety in writing before the last payment shall be made or reserve paid.</p>