Continental Casualty Co. v. Burlington Truck Lines, Inc.

This appeal is taken from a judgment for defendant. Plaintiff executed a miscellaneous bond to the State of Illinois guaranteeing the remission of C.O.D. payments collected by Filbey Freight Lines, Inc., from the consignees of Filbey’s customers. Filbey failed to remit collections of $1,000 to its customers, thereby requiring payment by plaintiff of that amount to the unpaid customers. Plaintiff, as subrogee, seeks to recover from Burlington Truck Lines, Inc., the $1,000 paid by plaintiff under its bond obligation.

Prior to January 27, 1959, Filbey was insolvent, its books showing liabilities…