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STATE v. EAGLE PETROLEUM COMPANY

No. 52518.

153 N.W.2d 115 (1967)

STATE of Iowa, Plaintiff, v. EAGLE PETROLEUM COMPANY, a corporation, and Capitol Indemnity Corporation, Defendants. Capitol Indemnity Corporation, Cross Petitioner-Appellee, Marshall Smith and Omni Corporation, Cross Defendants-Appellants.

Supreme Court of Iowa.

September 19, 1967.

Attorney(s) appearing for the Case

Ronald L. Saylor, and Betty, Neuman, McMahon, Hellstrom & Bittner, Davenport, for cross defendants-appellants.

A. Fred Berger and A. Fred Berger, Jr., Davenport, for cross petitioner-appellee.

MASON, Justice.

This is an action for state motor fuel taxes due from Eagle Petroleum Company. Eagle had experienced financial difficulties and failed to pay the gasoline tax collected from its customers in December 1962 and January 1963. Capitol Indemnity Corporation, surety on Eagle Petroleum's bond guaranteeing payment of these taxes, was subrogated to the State's claim when it paid a default judgment entered in the State's favor against Eagle.

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