State v. Eagle Petroleum Company

This is an action for state motor fuel taxes due from Eagle Petroleum Company. Eagle had experienced financial difficulties and failed to pay the gasoline tax collected from its customers in December 1962 and January 1963. Capitol Indemnity Corporation, surety on Eagle Petroleum’s bond guaranteeing payment of these taxes, was subrogated to the State’s claim when it paid a default judgment entered in the State’s favor against Eagle.

Capitol now seeks to recover the amount paid by it from Marshall Smith and Omni Corporation because of their failure to comply with the Iowa Bulk Sales Act in…