Maryland Casualty Co. v. Klickalumber Co.

This is an appeal from a judgment upon a surety bond indemnifying the appellee against loss by reason of the embezzlement by R. H. Phillips, one of the employees of the appellee. The appellant surety company defended the action upon the ground of a breach of warranty by the appellee. The statements which the appellant relies upon as warranties are contained in written applications for the indemnity bond, and relate to the manner in which the employee would be supervised in handling the funds of the appellee which came into his possession. The ease was tried by the court without a jury in pursuance of a written stipulation to that effect. At the conclusion of the evidence the case was argued by counsel, and at the conclusion of the argument by counsel for the defendant he requested the court to find that the plaintiff had breached the promissory' agreement as set forth in its application for the bond sued upon, and that such promissory agreement was a part of the bond and. would constitute a warranty, and that judgment should be rendered for the defendant. Thereupon the court announced its opinion upon the merits of the action and the judgment which it intended to render. The…