J.W.D., Inc. v. Federal Insurance Co.

JONES, Justice.

This appeal presents the question of whether or not the indorsee of wage checks paid to laborers on a public construction project may, after the checks are dishonored, recover on the general contractor’s payment bond. J.W.D., Inc., The Money Store, Inc., and Crestview Minimax Food Mart, Inc. (“the stores”) are three small businesses that cashed payroll checks for laborers working on a nearby public construction project. When the checks were returned for insufficient funds, the stores brought suit to recover on the payment bond for the project. Defendants below were the general…