People v. Pacific Employers Insurance

Opinion

THOMPSON, J.

Plaintiff, the State of California, acting on behalf of the State Board of Equalization, appeals from a judgment entered in an action to enforce respondent’s liability pursuant to a written contract of surety guaranteeing the payment of sales and use taxes and incidental liabilities incurred by Hadley Alhambra, Inc. We reverse the judgment with directions to enter a new judgment for appellant.

On October 21, 1960, respondent, Pacific Employers Insurance Company, executed and issued a statutory sales tax “Bond of Seller” and “Endorsement to Bond of Seller” in the sum of…