Hood, Commissioner v. . Rhodes

Stacy, C. J. By the terms of the bond in suit, the right to make claim thereunder expired at the end of six months after its termination. It terminated by mutual consent 1 June, 1929. Claim was not made until more than seventeen months thereafter. The demurrer was properly, sustained. Annotations, 43 A. L. R., 917, and 62 A. L. R., 411; Chicora Bank v. U. S. F. & G. Co., 159 S. E. (S. C.), 454; Ballard Co. v. U. S. F. & G. Co., 150 Ky., 236, 150 S. W., 1, Ann. Cas., 19140, 1208; Baird v. Northwestern Trust Co., 56 N. D., 398, 217 N. W., 538, 56 A. L. R., 1257. The decisions are to the effect, that where the liability of the insurer is expressly limited in an indemnity or fidelity bond to losses occasioned and discovered during a specified time, there is no liability unless the loss not only occurs but is also discovered within the prescribed period, and the mere fact that the discovery is prevented by the concealment of the defaulter will not extend the period of indemnity. 14 R. C. L., 1268. *160 Nor is the case altered by the fact that under C. S., 441, cause of action for fraud as against the defaulting officer, is not deemed to have accrued “until the discovery by the aggrieved’party of the facts constituting the fraud.” This is a statute of limitations and can have no effect upon the valid contractual relations existing between the indemnitor and indemnitee. Williams v. U. S. Cas. Co., 150 N. C., 597, 64 S. E., 510. Affirmed.