Glens Falls Indemnity Co. v. Perscallo

Plaintiff bonded the defendant Nick Pers eallo for the faithful performance of a contract with the State of California to build a portion of the state highway. The defendant failed to complete his contract, and the plaintiff was required under the terms of the bond to pay for its completion. Plaintiff advanced money to the defendant for payments to workmen and for material. Then, after the defendant was put off the job, plaintiff compromised with the state for payments made by the state to contractors who finished the work.

Defendant delivered to plaintiff his promissory note for $40,000, for…