Independence Indem. Co. v. Industrial Realty Co.
| Decision Date | 04 March 1933 |
| Docket Number | 22365. |
| Parties | INDEPENDENCE INDEMNITY CO. v. INDUSTRIAL REALTY CO. |
| Court | Georgia Court of Appeals |
Syllabus by Editorial Staff.
In petition on indemnity bond, allegation that defendants executed bond held sufficient allegation, as against general demurrer, of execution of bond by surety company through its alleged agents.
Power of attorney authorizing indemnity company's agents to execute "surety bonds and undertakings" created general agency authorizing agents to execute bonds different from bonds indemnity companies customarily execute and to execute amendatory bonds.
Where obligee dealt with agents having written power of attorney to execute bonds and undertakings for indemnity company indemnity company was estopped to deny liability on bond upon ground that agents' authority to execute it had been revoked, where obligee had no notice of revocation (Civ. Code 1910, § 3595).
Where agents of indemnity company had written power of attorney to execute bonds, obligee was not put on inquiry as to agents' authority by facts that bond agents executed was unusual and was executed in obligee's office, and was not executed on regular form (Civ. Code 1910, § 3595).
Court of Appeals has no authority to order that supersedeas bond given by plaintiff in error be strengthened.
Error from Superior Court, Fulton County; G. H. Howard, Judge.
Suit by the Industrial Realty Company against the Independence Indemnity Company. Judgment for plaintiff, defendant's motion for a new trial was overruled, and defendant brings error.
Affirmed.
Little Powell, Reid & Goldstein, of Atlanta, for plaintiff in error.
Alston Alston, Foster & Moise and Geo. & John L. Westmoreland, all of Atlanta, for defendant in error.
Syllabus OPINION.
1. Where, in a suit by the obligee in an indemnity bond, against the purported principal and surety thereon, although it appears from the face of the bond that the surety, which was an indemnity company, executed the bond by and through agents acting under power of attorney from the company, it is alleged in the petition that the defendants executed the bond, this is a sufficient allegation, as against a general demurrer, of the execution of the bond by the surety company through its alleged agents.
2. A power of attorney which authorizes the agents of an indemnity company to make, execute, and deliver in the company's behalf "surety bonds and undertakings" confers upon the agents continuing powers during the continuance of the authority conferred, and thus creates a general agency. The provisions of such power of attorney are broad enough to confer authority upon the agents to execute a bond or undertaking binding upon the principal, where the bond or undertaking is within the scope of the powers conferred, although it may be one in form and character which indemnity companies are not generally accustomed to execute. The provisions are also broad enough to confer upon the agents, not only authority to execute and deliver in behalf of the principal an indemnity bond binding upon the principal, but also authority to execute and deliver in behalf of the principal another bond, respecting the same subject-matter and between the same parties, amendatory of the first bond and containing variant and modifying terms. First National Bank v. Nelson, 38 Ga. 391, 401, 95 Am.Dec. 400; Foster v. Jones, 78 Ga. 150, 1 S.E. 275; Bass, etc., Co. v. Granite City Mfg. Co., 119 Ga. 124, 45 S.E. 980; State v. Powell, 40 La. Ann. 234, 4 So. 46, 8 Am.St.Rep. 522; Cooper v. Cooper, 206 Ala. 519, 91 So. 82; Pacific National Bank v. Aetna Indemnity Co., 33 Wash. 428, 74 P. 590; Denecke v. West, 184 Iowa 600, 169 N.W. 97; 2 C.J. 568.
3. A person who deals with an agent having a written power of attorney to execute bonds and undertakings for and in behalf of his principal may look to the terms of the instrument for the ascertainment of the extent of the agent's authority and is not bound by any limitations upon the agent's authority of which the person dealing with him has no notice. Where the agents upon whom an indemnity company has conferred power of attorney to make, execute, and deliver in the company's behalf "surety bonds and undertakings," have been intrusted by the company with a written power of attorney which authorizes them to execute such powers for and in behalf of the company, and have been intrusted by the company with its corporate seal for the purpose of its use in the execution of the powers conferred, and where they execute a bond which is within the scope of the powers conferred, although it may be one in form and character which indemnity companies are not generally accustomed to execute, the person with whom they deal may rely upon...
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