Knights of the Ku Klux Klan Inc. v. Fidelity & Deposit Co.

(After stating the foregoing facts.)

The first contention of the plaintiff is that the negotiations with the surety were for a settlement of the claim, and that they constituted a waiver of the contractual limitation contained in the bond sued on, and that the surety was thereby estopped from urging the same in the present action. This limitation was “that any suit or action to recover against the surety on account of loss hereunder shall be brought before the expiration of twelve months from the discovery of the loss.” Where in a fidelity bond there is a stipulation that suit must be brought…