DAMNIFICATION - That which causes
a loss or damage to a society, or to one who has indemnified
another. For example, when a society has entered into
an obligation to pay the debt of the principal, and
the principal has become bound in a bond to indemuify
the surety, the latter has suffered a damnification
the moment he becomes liable to be sued for the debt
of the principal - and it has been held in an action
brought by the surety, upon a bond of indemnity, that
the terror of suit, so that the surety dare not go
about his business, is a damnification.
A judgment fairly obtained against a party for a
cause against which another person is bound to indemnify
him, with timely notice to that person of the bringing
of the action, is admissible as evidence in an action
brought against the guarantor on the indemnity.
