St. Paul-Mercury Indemnity Co. v. Dale

To comply with the law relating to the operation of livestock auction agencies, the defendant who operated such agency obtained from the plaintiff a surety bond and in consideration of the execution of such bond by the plaintiff the defendant agreed in writing to indemnify plaintiff and to hold it harmless from all loss and to pay all legal costs, counsel fees and expenses directly or indirectly sustained by plaintiff by reason of it becoming the surety for defendant. On September 23, 1939, while this bond was in force, an involuntary petition in bankruptcy was filed against the defendant and…