Knuth v. Fidelity & Casualty Co. of New York

We are of opinion that the complaint states a cause of action against the Surety Company.

Section 10 of the three-party contract provides that Fidelity guarantees, covenants, and agrees with the city that Donlen will well and truly perform the contract; “and that the said party or parties of the second part [Fidelity] will well and truly pay on demand to the said city of Milwaukee any and all damages, and sums of money, which the said party of the first part [Donlen] shall be liable to pay to the said city under this contract or any clause or agreement therein; and shall promptly make payment…