Peoples Bank v. Elizabethton Trust Co.

The appeal in this case involves the liability of the Fidelity and Casualty Company of New York as surety on the guardianship bond of Elizabethton Trust Company. The Chancellor held nugatory an express provision of the bond that the surety should not be liable for defaults of the guardian prior to the date of the bond and decreed a recovery to the full penalty, if necessary, to make good the guardian’s defaults whether occurring before or after the date of the bond.

The Elizabethton Trust Company was appointed guardian of Arthur A. Cable, a non compos World War Veteran, by the County Court of…