Yost v. Empire State Surety Co.
Yost v. Empire State Surety Co.
Opinion of the Court
Appellant became surety for certain contractors who had undertaken to put in a sea gate at Edmonds. The contractors defaulted and the work was completed by others. The concrete question before us is the lia
Admitting that appellant was not informed as to the manner adopted for assessing the cost of the work, and this is all that was denied it by omitting reference to Ordinance No. 177, we think it would be highly technical to hold that there was a variance out of which any prejudice resulted to appellant. Its engagement was to underwrite the contract. It stipulated that the contractors would meet their engagements, and it cannot complain if the parties and the subject-matter of its engagement are sufficiently set out in the bond. We find the fact to be so.
It is next contended and admitted that the right of recovery, the claimants not having filed any liens, depends upon-two conditions; (1) was one Mitchell an agent of the appellant with sufficient authority to bind appellant by his promise; and (2) did he make such promise. It is altogether likely that, as between appellant and Mitchell, his liberty to contract on behalf of the company was limited. It is said that Mr. Mitchell was only an adjuster of claims, and had no authority to settle or promise the payment of claims in excess of $250. We find nothing in the record that would bring this fact home to the claimants, or even put them on notice of the fact. They or their agent, acting upon the unchallenged assumption that Mr. Mitchell in all of his negotiations had full power to meet their demands, treated with appellant. He had a general authority over the states of Washington, Oregon, and a part of California. His office
We think the testimony is ample to sustain the verdict and the judgment of the court that Mr. Mitchell bound appellant to meet the demands of the plaintiff. There is some testimony to show an express promise, but the evidence to sustain an implied promise is so convincing that we think it would be unjust in the extreme if we should hold that those who, because of negotiations invited by appellant’s agents, had let the time for protecting themselves under the statute go by, could not recover.
Judgment affirmed.
Mount, Gose, Parker, and Crow, JJ., concur.
Reference
- Full Case Name
- A. M. Yost v. Empire State Surety Company
- Cited By
- 2 cases
- Status
- Published
- Syllabus
- Municipal Corporations—Public Improvements—Bond oe Contractors—Defenses. In an action on an indemnity bond, it is not a fatal variance that the contract provided that the work should be done under one ordinance, which ordered the improvement and the bond refers to the fulfillment of the contract under another ordinance, which provided for the plan of a special assessment, the engagement of the bond to underwrite the contract being sufficiently set out. Insurance—Agents—Scope of Authority. An adjuster of a bonding company may be assumed to have authority to bind the company by its promise to pay a claim, where he was held out by the company as its adjuster having general authority over several states, and no notice was given that he had no authority to settle claims in excess of $250.