Peerless Insurance v. South Boston Storage & Warehouse, Inc.

In this case of first impression in Massachusetts, we are asked to decide whether a surety on a public warehouse-men’s licensing bond is liable for all claims filed against it on a “per occurrence” basis or for the maximum of the penal sum *326of the bond. We hold that the surety’s total liability is limited to the penal sum of the bond.

The plaintiff, Peerless Insurance Company (bonding company), is the surety on a bond in the penal sum of $10,000 (increased from $5,000) in which the principals on the bond are the defendants, South Boston Storage and Warehouse, Inc. (South Boston), and Louis…