Insurance Co. of the West v. Gibson Tile Co.

*457OPINION

By the Court,

Gibbons, J.:

Appellant Insurance Company of the West (ICW) entered into a surety contract with respondent Gibson Tile Company, Inc. (Gibson) to provide performance bonds on a construction project. Gibson settled with two suppliers who made claims against the bond and provided the defense on behalf of ICW. However, ICW brought an indemnity action against Gibson, arguing that ICW had incurred costs in enforcing the terms of the surety contract. Gibson *458counterclaimed, asserting various causes of action arising from an alleged oral contract for the issuance of additional bonds.…