Board of Public Education v. Aetna Casualty & Surety Co.

Rodney, J.,

delivering the opinion of the court:

The precise question is whether a surety on a contractor’s bond is liable for the payment of claims for material or labor furnished to a sub-contractor.

For a long time prior to the passage of the Act in question the right of third party beneficiaries to recover from a surety in a contract bond had been the subject of much discussion and litigation. Professor Corbin in his interesting article in 38 Yale Law Journal 1, has traced the varying views of the question to the new and tentative rules of the American Law Institute. Cleveland Metal Roofing…