American Surety Co. of New York v. Butler

Defendants have appealed from a judgment in favor of plaintiff on a bond given by them to indemnify the plaintiff against loss by reason of having executed a “ trackbuyer’s bond” in which the Gallatin Yalley Union is the principal. The undisputed facts are as follows:

In June, 1922, plaintiff agreed to execute a “ trackbuyer’s bond,” which was required by the Gallatin Yalley Union as a prerequisite to doing business as a trackbuyer from and after July 1 of that year, on condition that the union would first secure for it an indemnity bond. The surety prepared and sent to the secretary of the…