Stone v. Indemnity Insurance Co. of North America

Frank A. Stone delivered certain bonds to Karl J. Heinzelman, a broker doing business in Grand Eapids, Michigan, as K. J. Heinzelman & Company, expressly directing him to sell them and invest the proceeds in other designated securities. Heinzelman sold the bonds, but misappropriated the proceeds. The present action, and other companion suits, were brought against the Indemnity Insurance Company of North America, a Pennsylvania corporation, as surety on a $10,000 bond given by Heinzelman as principal in accordance with 2 Comp. Laws 1929, § 9790, a section of Act No. 220, Pub. Acts 1923, as…