Butler v. United Pacific Insurance Co.

Plaintiff recovered a judgment for fraud against an automobile dealer. The jury awarded both general and punitive damages. Plaintiff brought this present action against the dealer’s surety to recover the amount of the judgment against the dealer. The trial court gave judgment for the amount of the general damages only. Plaintiff appeals.

The first issue is whether a surety on an automobile dealer’s bond is liable for the punitive damages assessed against the dealer.

The general rule is: “* # * [A] surety is liable only for the payment of actual damages caused by the principal, and may not be…