United States Fidelity & Guarantee Co. v. Thomas J. Gray's Administrators

Citations

• 29 Del. 161
• 97 A. 425
• 6 Boyce 161
• 1916 Del. LEXIS 14

Syllabus

<p>1. Principal and Surety—Rights of Surety After Payment.</p> <p>The employee in an employee’s bond of indemnity against misconduct is liable to the surety company, under an implied contract to save it harmless, for an amount paid to the employer under the bond.</p> <p>2. Limitation of Actions—Actions by Surety Against Principal.</p> <p>In an action by the surety company against the principal in an employee’s bond of indemnity, the liability not being on the bond, but on the implied contract, the statute of limitations governing actions of assumpsit, and not that touching bonds, applies.</p> <p>3. Limitation of Actions—Actions by Surety Against Principal— Accrual.</p> <p>A surety company’s cause of action against the principal in an employee’s bond of indemnity for an amount paid by it to the employer under the bond accrues on the day of such payment.</p>