Tony & Leo, Inc. v. United States Fidelity & Guaranty Co.

ROGOSHESKE, Justice.

Defendant AID Insurance Services (AID), surety on a subcontractor’s performance bond, appeals from an adverse judgment in an action on the bond by plaintiff Tony and Leo, Inc. (Tony & Leo). The principal issues raised are whether the trial court erred by permitting Tony & Leo to recover from AID on the bond and by refusing to permit AID to recover indemnity from Tony & Leo. We hold that the trial court decided both issues erroneously and, therefore, we reverse with directions to the trial court to modify its judgment in accordance with this opinion.

This lawsuit grew out of…