Poultry Producers' Union v. Williams

Citations

• 58 Wash. 64
• 107 P. 1040
• 1910 Wash. LEXIS 890

Syllabus

<p>Corporations—Officers—Representations—Imputed Knowledge. Where a report was made to the directors of a corporation that an employee’s books were examined by a bookkeeper on a certain day and that the cash deposited exceeded the receipts, the corporation is put upon inquiry and charged with such knowledge as a cursory examination would have revealed, so as to be bound by representations to the contrary made by an officer.</p> <p>Insurance —■ Indemnity — Application —Representations—Falsity. An employer seeking indemnity or fidelity insurance fails to exercise the necessary reasonable care to ascertain the truth of statements made in the application that the employee's books balanced and were correct, where an examination of a part of the books disclosed more cash deposited than received, and an inspection would have disclosed the inaccuracy of the other books.</p> <p>Same—Warranties. An employer’s statement, in an application for indemnity insurance that the books of the employee whose fidelity was to be insured were examined on a certain' day and were found correct with funds on hand to balance, is a warranty of a material fact, the breach of which avoids the insurance policy.</p> <p>Same—Representations — Knowledge of Falsity — Evidence— Sufficiency. Such, a statement is known, or should have been known, to be false, where only the cash books and bank book were examined, and showed that more cash was deposited than had been taken in, and the cash and funds were not examined, and an - inspection of all the books would have disclosed their inaccuracy and a misappropriation of cash or merchandise.</p> <p>Reference—Accounting—Jury Trial. Where a case involves a long and complicated account, it may be sent to a referee to return the facts without there being any denial of the right to jury trial.</p>