Basic Asphalt and Construction Corporation v. Parliament Insurance Company, Defendant-Third-Party v. Ward Ridge Construction Co., Inc., Third-Party

DYER, Circuit Judge:

In this Florida diversity case the sole issue presented by this appeal is whether a compensated surety is automatically discharged by an extension of time to the debtor without the consent of the surety. The district court granted summary judgment for the surety. We disagree and reverse.

Basic Asphalt contracted with Ward Ridge, the prime contractor, to pave a road on land being developed by Treeshore, Inc. in Florida. Parliament was the compensated surety on a performance-payment bond in favor of Treeshore. After the paving was completed Ward Ridge failed to pay Basic…