Aetna Casualty & Surety Co. v. Bros

Magney, Justice.

In 1932, Bros Steel Products Company of Minneapolis contracted with the United States government to furnish certain laundry equipment for veterans’ hospitals. Plaintiff executed bonds for the faithful performance of these contracts, the bonds here involved being for $500 and $1,000 respectively. Indemnity agreements were then entered into between the defendants and plaintiff. The company defaulted in the performance of its contracts. Because thereof, plaintiff paid the government $1,500, the combined full amount of the two bonds. It then brought suit against defendants on…