Maryland Casualty Co. v. Bower

Citations

• 70 Pa. Super. 304
• 1918 Pa. Super. LEXIS 236

Syllabus

<p>Railroads — Corporations—Authority of chief engineer — Release of contractor — Principal and surety — Termination of contract of suretyship.</p> <p>Where a contractor for railroad work agrees to pay an annual premium to a surety company for executing a surety bond so long as the contractor’s liability on the bond shall continue, and until the plaintiff shall be released from liability by the railroad company, a release of liability executed by the chief engineer of the railroad company will end the contract of suretyship, where it appears that the contractor’s agreement with the railroad company gave the chief engineer great powers over the conduct of the work, with authority to determine when the contract had been completed, and it also appears that it had been the uniform practice of the chief engineers of the company to execute bonds in eases of contract, and to terminate the liability, when in their judgment, the work had progressed far enough to protect the company.</p> <p>When a corporation has delegated to an officer the entire control and management of a particular part of its business, evidence is admissible to establish what had been the uniform practice of that officer, acquiesced in without question by the corporation in dealing with the subject-matter.</p>