United States Fidelity & Guaranty Co. v. McFerson

These parties occupy the same relative position here as in the trial court, and we so refer to them.

Plaintiff was surety to the state for a bank in which state funds were deposited. The bank failed. The surety company paid the state, which, by its treasurer, assigned the account to plaintiff. Claiming that the state was a preferred creditor, and that it was subrogated to that status, plaintiff brought this action to enforce that preference. Defendant answered, and plaintiff demurred generally. That demurrer was overruled and plaintiff elected to stand. Thereupon defendant, on his motion, had…