United States Fidelity & Guaranty Company, a Corporation v. Anderson Construction Co., Inc., a Corporation

In this action brought by United States Fidelity & Guaranty Company, hereinafter referred to as “Guaranty,” against Anderson Construction Co., Inc., hereinafter referred to as “Anderson,” a jury found that an agent of Guaranty orally promised Anderson that the premium for surety bonds to be issued by Guaranty for Anderson in favor of the United States, as obligee, would be based upon reduced rates which the agent stated would soon go into effect and which actually did go into effect about a month after the execution of the bonds.

The questions raised are matters of law. First, was the agent authorized, either expressly or impliedly, to make a promise on behalf of Guaranty which was prohibited by the statutes of the State of Washington, whereby Guaranty would charge and Anderson would pay less than the legal premium for the bonds involved ? Second, was the promise of the agent, that the premium would be based upon rates lower than those in effect when the bond was executed, void under these statutes in that a rebate denounced thereby was agreed to be extended to Anderson? Third, did the facts show as a matter of law that there was an account stated or a ratification?

The first…