121 Iowa 352 | Iowa | 1903
The court instructed that the plaintiff could recover nothing unless it proved that the attorneys’ fees paid by it were reasonably and necessarily expended in defending against the suits, and reasonably necessary to protect it from liability on its bond. The clearly-expressed thought of the charge is that no matter how conscientiously the plaintiff acted in employing and paying counsel to represent its interests in the litigation, it cannot recover under the terms of its agreement with the defendant unless the employment of such counsel was reasonably necessary; or, in other words, that if the defendant had employed competent counsel to represent himself and his bondsmen, the plaintiff could not recover. The plaintiff was asked to become the defendant’s surety for a large sum, and it furnished the bond upon the express condition that the defendant would indemnify and keep it indemnified from and against any and “all loss, counsel fees, and expenses of whatever kind or nature which said company shall, for any causé, sustain, or incur,,
One or two other minor matters are argued, but as our conclusion on the construction of the contract goes to the merits of the controversy, we do not discuss the others.
The instruction complained of is wrong, and the judgment ÍS REVERSED.