Harlan F. Stone

“ Whether, in any case, an indemnitor is discharged by the mere failure of his obligee to sue the principal debtor until suit is barred by the statute of limitations, remains an open question in this court. ”

“ Upon election of the employee to take compensation, the employer is entitled to be subrogated to the rights of the employee against the third person. The insurer, who, as an indemnitor of the employer, and, by the act, stands in the place of the employer, is similarly entitled to subrogation. ”

“ Moreover, respondent is a compensated surety, whose premiums the employer is required to pay by section 32 (33 U.S.C.A. § 932) . The rule that any modification of the principal obligation releases the surety is also abated in the case of a compensated surety or indemnitor, who is discharged only so far as his right is shown to be in fact prejudiced by action of the indemnitee. One who engages in the business of insurance for compensation may properly be held more rigidly to his obligation to indemnify the insured than one whose suretyship is an undertaking uncompensated and casual. ”