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PEOPLE V. NATIONAL SURETY CO., 276 U. S. 238 (1928)

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U.S. Supreme Court

People v. National Surety Co., 276 U.S. 238 (1928)

People v. National Surety Co.,

No.196. Argued January 19, 1928

Decided February 20, 1928

276 U.S. 238


1. The liability of the surety on a bond given by a bank to secure deposits of county funds in Nebraska is not limited by § 6193, Comp.Stats. Nebraska, 1922, forbidding any county treasurer to have such funds on deposit in any bank in excess of 50% of its paid up capital stock, but extends to deposits made in violation of the statute unless otherwise provided in the bond itself. P. 276 U. S. 240.

2. Construction of a state statute by the highest court of the state accepted by this Court, though made subsequently to the decision here under review. P. 276 U. S. 240.

3. The attorney's fees which are directed by § 7811, Nebraska Comp.Stats., 1922, to be allowed and "taxed as part of the costs" in actions on guaranty and other specified insurance contracts are not costs in the ordinary sense, and are not taxable as costs under Rev.Stats. §§ 823, 824, in actions in federal courts, but are to be allowed in those courts by inclusion in their judgments. P. 276 U. S. 242.

4. For the purpose of fixing a reasonable attorney's fee under the statute, regard should be had to the amount substantially involved in the action. P. 276 U. S. 244.

16 F.2d 688 reversed.

Certiorari, 274 U.S. 729, to a judgment of the circuit court of appeals which reversed in part a judgment of chanroblesvirtualawlibrary

Page 276 U. S. 239

the district court against the above-named surety company for the full amount of a bond given to secure deposits of county funds in a bank, later insolvent, and for an attorney's fee.

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