County of Oakland v. Central West Casualty Co.

On Motion eor Rehearing.

We think that the correct conclusion was reached in our former opinion in this case, reported in 266 Mich. 438.

Defendant in its brief on application for rehearing .again contends that this case cannot be distinguished from Lawrence v. American Surety Co., 263 Mich. 586 (88 A. L. R. 535). In the Lawrence Case we upheld a clause in a bond securing State deposits which limited the amount of the surety’s liability to a pro rata fraction of the total loss. The instant case involves the validity of a clause in a county depository bond providing for pro tanto subrogation of…