AGO 1989-029.

• Case Date: March 08, 1989
• Court: Kansas

Kansas Attorney General Opinions 1989. AGO 1989-029. March 8, 1989ATTORNEY GENERAL OPINION NO. 89-29T.D. Wilson Director Kansas Grain Inspection Department 700 Jackson Suite 800 P.O. Box 1918 Topeka, Kansas 66601-1918 Re: Grain and Forage--Inspecting, Sampling, Storing, Weighing and Grading Grain; Terminal and Local Warehouses--Warehouseman's Bond; Release from Liability Synopsis: The Kansas Grain Inspection Department has no authority to release a surety company from all liabilities on a public warehouseman's bond. Cited herein: K.S.A. 34-223; K.S.A.1988 Supp. 34-228; 34-229; K.S.A. 34-230. * * * Dear Mr. Wilson: As Director of the Kansas Grain Inspection Department (KSGID), you have requested our opinion whether the KSGID may release from liability surety companies which provided a public warehouseman's bond. Kansas law requires a public warehouseman to be licensed by the KSGID. K.S.A.1988 Supp. 34-228. A "public warehouseman" is a person "lawfully engaged in the business of storing grain for the public." K.S.A. 34-223(1). Applicants for a public warehouseman license are required to "file with the director a bond with good corporate surety qualified under the laws of the state of Kansas. . . ." K.S.A.1988 Supp. 34-229(a). See K.S.A. 34-230(a)(1). K.S.A.1988 Supp. 34-229(c) provides as follows:

"The bond shall be in favor of the state of Kansas for the benefit of all persons interested, their legal representatives, attorneys or assigns and shall be conditioned on the faithful performance of all the licensee's duties as a public warehouseman and such additional obligations as assumed by the warehouseman under contracts with a federal agency relating to storage of grain in each warehouse. Any person injured by the breach of any obligation of the warehouseman may commence suit on the bond in any court of competent jurisdiction to recover damages that the person has sustained, but any suit commenced shall either be a class action or shall join as parties plaintiff or parties defendant or other persons who may be affected by such suit on the bond. No bond shall be cancelled by the surety on less than 60 days' notice by mail to the director and the principal except

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