Opinion ID: 1960431
Heading Depth: 1
Heading Rank: 1

Heading: memorandum on defendant's motion to reargue

Text: After the opinion and decision of the Court was filed in this cause, the plaintiff presented a motion to reargue. The motion contends the opinion exhibits a misapprehension of the law applicable to the case in holding that the defendant Tucker may assert any defense to the present action that could have been raised in the federal action brought by Bottema against the plaintiff. Although this was the claim advanced in defendant appellant's argument, our holding does not reach as far as the plaintiff apprehends. We are dealing with the written contract of a compensated surety. And while the agreement is subject to the rules of construction applicable to insurance contracts generally, the rights and duties of the parties are to be enforced according to the terms of their undertaking as expressed in the bond. Town of Windsor v. Standard Insurance Co., supra, 112 Vt. at 428, 26 A.2d 83; City of Montpelier v. National Surety Company, 97 Vt. 111, 117, 122 A. 484, 33 A.L.R. 489. The existence of a valid defense and the plaintiff's knowledge of such defense, as well as the opportunity afforded the defendant to assert it, were material to the question of bad faith raised in the defendant's answer. The opinion holds that the exclusion of the defendant's evidence addressed to these issues constituted reversible error. A remand is required to permit the court below to receive the defendant's offer on these questions. Motion for reargument denied. Let full entry go down.