New York Case Law Summaries
In Seneca Insurance Co. v. New York People, 2007 WL 1285741 (New York A.D. May 3, 2007) the defendant was initially indicted on six counts of drug and weapons violations. The surety posted an $80,000 bond, and the defendant was released pending trial. Some eight months later, he was indicted on two additional counts of drug charges, and the court set an additional $10,000 bond, which the surety also posted, and required the surety to state that it would continue to maintain the $80,000 bond. The defendant was acquitted of the charges in the first indictment and did not appear for trial on the second indictment. The court forfeited the entire $90,000, and the surety sought remission of $80,000 on the ground that it covered only the first indictment. The court denied its request, and the surety appealed.
The New York Appellate Division reasoned that a bond is a contract to be interpreted according to its terms, and noted that the terms, “must be construed strictly in the surety’s favor and the surety’s obligations cannot be extended beyond the plain language of the bonds.” The $80,000 bond made no reference to the second indictment. It was unambiguous on its face and should have been enforced as written. Even if the discussion at the time of the second indictment were considered, however, it would be insufficient to modify the surety’s obligation under the first New York bail bond. The Appellate Division reversed the trial court and directed that the order of forfeiture be vacated. |