South Seattle Auto Auction Inc. v. Western Casualty & Surety Co.

Defendant, the surety of an automobile dealer, appeals from a judgment determining it is liable on the bond based on its principal’s fraudulent act. The questions on appeal concern: (1) the interpretation of the automobile dealer’s bond, ORS 481.305, 1 481.310; 2 (2) whether evidence of automobile dealer’s subequent acts were admissible in a trial for fraud to show his fraudulent intent at the time of the transaction; and (3) whether there was clear and convincing proof of the elements necessary to establish fraud.

The undisputed facts are that on Wednesday, October 1, 1975, Barber, a Salem…