National Surety Corp. v. Fischer Steel Corp.

This is an appeal by the National Surety Corporation from a decree of the Chancery Court rendering a judgment in the amount of $3,781.38 in favor of Fischer Steel Corporation against the appellant and Fred Young, a contractor. The National Surety Corporation is the surety upon a “labor and material payment bond” executed by Fred Young, as principal, to the Shelby County Board of Education. The facts in the case are stipulated.

On February 27, 1961 Fred Young entered into a contract with the Shelby County Board of Education for construction of an addition to a County school. The National Surety…