Coke
Coke v. Reliance Insurance
Opinion
Opinion
Draper, J.
Defendant is surety upon a bond filed by the principal, Creamerest Dairy Products Company, to secure its license as a milk distributor for portions of the calendar years 1960 and 1961, in the sum of $5,000 for each period. Creamerest has been adjudged a bankrupt. Plaintiff brought this action on behalf of milk producers who were not paid by Creamerest during these periods, and recovered judgment for $10,000. Defendant surety appeals.
Creamerest entered into agreements with the producers to pay them for their milk partly in cash and in part by promissory notes payable several years after delivery of the milk to Creamerest. Appellant now argues that these extensions of time, granted by the producer-creditors, relieve it of liability under the established rule of suretyship law (Civ. Code, §§ 2819, 2820). But we do not deal with the usual type of surety bond. Rather, this statutory bond had a special characteristic which, under the statute authorizing and requiring its filing, renders these civil code sections inapplicable.
The condition of the bond, as required by statute (former Agr. Code, § 4376) is the payment by Creamerest “in the manner required by this chapter, of all…