Monmouth Lumber Company v. Indemnity Insurance Co. of North America…

Summary

The Supreme Court of New Jersey reversed four summary judgments against Indemnity Insurance Co. of North America and remanded the cases for further disposition. The Court held that default judgments against the principal do not bind the surety, that the summary judgments were improperly granted, that a pro rata distribution among creditors is required, and that the surety's liability is limited to the penal sum of the bond.