TRANSAMERICA INS. GROUP v. PAUL

No. 48061.

267 N.W.2d 180 (1978)

TRANSAMERICA INSURANCE GROUP, Respondent, v. Walter J. PAUL, Appellant.

Supreme Court of Minnesota.

June 9, 1978.


Attorney(s) appearing for the Case

Dickel, Johannson, Wall & Taylor, Kenneth F. Johannson, Crookston, for appellant.

Cahill, Gunhus, Streed, Grinnell, Jeffries & Klinger, Moorhead, for respondent.

Heard before TODD, YETKA, and SCOTT, JJ., and considered and decided by the court en banc.


TODD, Justice.

Appellant, Walter J. Paul, made application to the Transamerica Insurance Group (Transamerica) and was issued a wholesale produce dealer's performance bond, representing that he was the owner of a small cheese company. In fact, Paul's son-in-law was the company's owner-operator. The company subsequently became insolvent, and the surety was forced to pay the entire face value of the bond toward suppliers' claims against the cheese company. The surety...

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