American Surety Co. v. Venner
American Surety Co. v. Venner
Opinion of the Court
In a case pending in the Supreme Court of the State of New York, an attachment was made upon property of the defendant Venner, and the present plaintiff, at his request, agreed with the plaintiff in that suit to pay the amount
The language of the contract of indemnity, in the material part, is as follows: “ That said parties of the first part [the present defendants] shall and will at all times indemnify, and keep indemnified, and save harmless the said company [the present plaintiff] from and against all loss, damages, costs, charges, counsel fees and expense whatsoever which said company shall or may, for any cause, at any time, sustain or incur by reason or in consequence of said company having executed said instrument; and do further covenant and agree to pay to said company and its representatives, all damages for which said company or its representatives shall become responsible upon the said undertaking before said company or its representatives, shall be compelled to pay the same, any sum so paid, however, to be applied to the payment of such damages ; and in case, any suit, action, or other proceeding shall be commenced or notice served on said parties of the first part, in any manner relating to or growing out of the matter or business for or on account of which the aforesaid instrument was required to be executed, immediate notice thereof shall be given to said company at its office in New York.” There was also a provision that in case of a default on the part of these defendants to perform any of “ the covenants, conditions or agreements” of the contract, they would substitute other sureties on the undertaking within fifteen days after re
It is conceded that the defendants would be liable for the ex- • pense incurred by the plaintiff in litigating this disputed question, except for the fact that at some time they assumed the defence of the suit and saved the plaintiff from incurring expense in maintaining their position. The contract of indemnity is in the broadest conceivable terms. The general provision for indemnity which appears in the first part of our quotation covers the whole subject. It covers the payment of everything which at any time may become payable under the contract. The further provision, “ and do further covenant,” etc., is a stipulation as to the time of payment, namely, for a previous payment of any sums which the company might be called upon to pay to another, so that the company might not be obliged to advance its own money for that purpose. There being a general contract of indemnity, covering in one provision every kind of liability growing out of a single transaction, the question is whether the defendants could select one item, the amount of which was in
The only tender that can be made effectual under a contract is a tender of the whole amount due. The present contract was a single, indivisible undertaking, completely to indemnify the present plaintiff. Until there was a tender of entire relief from liability, the defendants continued liable. Green v. Shurtliff, 19 Vt. 592. Dunning v. Humphrey, 24 Wend. 31. No provision was made, nor attempted to be made, to relieve the -plaintiff from its liability for the interest that was certain to accrue while the suit to determine the disputed question was pending, and it does not appear that there was at any time any legal protection of the plaintiff from its liability for the costs of suit, or for the expenses of the litigation. It is set up in the pleadings, and agreed at the argument that at some time the defendants took upon themselves the defence of the suit and paid the expenses; but this, so far as appears, was by a subsequent voluntary undertaking, and it did not give effect to the previous tender. The defendants have not yet met their obligation to save the plaintiff harmless from its liability for the interest which accrued during the litigation upon the question in dispute.
The principle is analogous to that which, in the absence of statutory authority, prevents an effectual tender in a case where
Judgment for the plaintiff.
Reference
- Full Case Name
- American Surety Company of New York v. Clarence H. Venner & another
- Status
- Published