Martin v. Empire State Surety Co.

Citations

• 53 Wash. 290
• 101 P. 876
• 1909 Wash. LEXIS 1314

Syllabus

<p>Indemnity — Contractor's Bond — Notice op Acts Involving Loss —Release op Surety. A bond guaranteeing the performance of a building contract, which stipulates for immediate notice of any breach of the contract, does not require notice of every act constituting a default, but the owner may wait until claimants seek to make their claims charges against the property.</p> <p>Same — Actions on Bond — Accrual — Date op First Breach— Waiver — Limitations. A contractor’s bond providing that action must be instituted within six months after the first breach of the contract does not require suit within such time upon any breach that is waived by the owner without prejudice to the surety; and the owner may wait until claims are sought to be made liens upon the property, tender the defense of the actions to the surety, and later sue to recover the judgment paid and expenses.</p> <p>Same — Agreement Altering Contract. A surety on a contractor’s bond is not released by a secret understanding between the owner and contractor to the effect that the owner might desire an accommodation by acceptance of a mortgage, in lieu of the last payment; especially where the contractor defaulted and payment was made in cash.</p> <p>Same — Release op Surety — Failure to Make Payment. A surety on a contractor’s bond cannot claim a release by the owner’s failure to make a payment due the contractor, when it does not appear that the payment was demanded or any certificate presented therefor, or that failure to pay caused the contractor’s default.</p>