Sullivan v. Bankers Surety Co.

Plaintiff endeavors to recover the sum of $1,800 deposited with the defendant by plaintiff’s assignor to secure the defendant against any untoward act of plaintiff’s assignor. Defendant resists, protesting that as plaintiff’s assignor had violated his bond (in another matter) and thereby brought upon the defendant the liability for the penalty it had a right to offset that liability against plaintiff’s claim.

There can be no doubt that when plaintiff’s assignor violated the Excise Law he brought upon the defendant, his surety, a liability for the penalty of the bond, which liability the…