General Electric Credit Corp. v. Wolverine Insurance

This case is concerned with the meaning of the word "fraud” as used in a surety bond whose terms are prescribed by statute. Three questions are presented:

1. Whether the term "fraud” in the expression "fraud, cheating, or misrepresentation,” as used in a surety bond issued pursuant to MCL 257.248(7); MSA 9.1948(7), 1 means only actual fraud or also means constructive fraud;

2. Whether MCL 257.248(7); MSA 9.1948(7) limits the liability of a surety to a total of $10,000 where a $10,000 surety bond is issued in one year, and renewed the following year, and wrongful acts occur in each year…