Woodside v. Johnston

Citations

• 5 Alaska 99

Syllabus

<p>1. Indemnity &wkey;>4—-Bonds—Guaranty—Principal and Surety.</p> <p>On an application to discharge a receiver because improvidently appointed, the court granted a motion to require the plaintiffs in that action (defendants in this action) to furnish a bond “for any and all damages that will result by reason of the detaining and withholding of said money in the hands of the receiver.” The bond was given with surety, and the receiver was continued. On this suit on the bond brought by the defendants in the former case, the principal and surety on the bond (defendants herein) plead, first, the bond is void for want of authority in the court to exact it; and, second, the conditions of the bond have not been broken in that no court has decreed that the money was “wrongfully retained” in the hands of the receiver. Held, the bond was a voluntary contract, entered into by the bondsmen and surety to secure the appointment of the receiver, and is valid; the bond was given to indemnify the plaintiffs herein for their loss of interest on the money held by- the receiver, and is sustained.</p> <p>2. Principal and Surety <&wkey;59—Extent of Liability of Surety.</p> <p>Although, generally speaking, the surety’s contract is strictissimi juris, and cannot be extended by implication, yet the rule is not permitted to go so far as to nullify on slight grounds an instrument solemnly entered into.</p> <p><@=»See same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes</p>