Alperstein v. National Surety Co.

Headnote

Principal and surety — indemnity bonds —■ motor vehicles — Highway Law — action to recover on bond given pursuant to provision of Highway Law as condition to engaging in business of carrying passengers for hire in cities of first class — defense that bond was canceled by repeal of statute.

Alperstein v. National- Surety Co., 222 App. Div. 664 , affirmed.

Appeal from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered November 23, 1927, affirming a judgment in favor of plaintiff entered upon an order of Special Term granting a motion by plaintiff for summary judgment. The action was to recover upon an indemnity bond filed with the State Tax Commission pursuant to chapter 612 of the Laws of 1922 requiring such a bond from those engaged in the business of carrying or transporting pas

sengers for hire in the city of New York and conditioned that upon default of the principal it would pay any judgment recovered against him for death or injury to property in the operation of a motor vehicle. Plaintiff was struck and injured by the motor vehicle mentioned in the bond and thereafter recovered judgment against the principal. Executions having been returned unsatisfied this action was brought against the surety on its bond. The defense was that chapter 612 of the Laws of 1922 was repealed by chapter 413 of the Laws of 1924, and that consequently the indemnity bond executed and filed pursuant to the former statute was canceled when the latter statute went into effect and that the defendant was thereafter relieved from any liability under said indemnity bond.