All Florida Surety Company v. Coker
Supreme Court of Florida · 1956-06-20 · cited 40×
The case involved a surety company that issued a performance bond for a general contractor after the contractor obtained signed indemnity agreements and financial statements from two subcontractors; the contractor had told the subcontractors the documents were needed for them to be bonded on the project. After the contractor defaulted and the surety incurred costs to complete the work, it sought reimbursement from the subcontractors under the indemnity agreements, but the subcontractors sued in equity to rescind those agreements on grounds of misrepresentation and failure to read the documents. The trial court granted rescission, but the Florida Supreme Court reversed, holding the agreements enforceable. The court reasoned there was no evidence the contractor acted as the surety's agent when procuring the signatures, the subcontractors knew the contractor's independent status, and a party who signs a contract without reading it is bound absent fraud by the other contracting party or special excusing circumstances.