Payne v. Standard Acc. Ins. Co.

CLAY, Commissioner.

This controversy involves the limitation period within which a surety on a contractor’s bond may sue his principal for reimbursement. Appellee sought recovery of some $5,000 it had paid-as surety on an obligation of appellant. This payment was made in 1943, and appellee did not proceed against appellant until 1950. The five year statute of limitations was pleaded. KRS 413.120. The trial court sustained a demurrer to this plea, and entered judgment for appellee.

Appellant, a contractor, in 1930 had entered into a written agreement with the City of Ashland to perform certain…