Milwaukie Construction Co. (Inc.), a Corporation, F. H. St. Pierre and Mary St. Pierre v. Glens Falls Insurance Company, a Corporation

HAMLIN, Circuit Judge.

In 1964 F. H. St. Pierre and Mary St. Pierre were officers and directors of Milwaukie Construction Company (Milwaukie), a general construction firm. Between April and July, 1964, Milwaukie had four contracts to build public buildings and made application to Glens Falls Insurance Company, appellee herein, for performance and payment bonds as required by the contracts. To secure the issued bonds totaling more than $600,000, Glens Falls required Milwaukie and the St. Pierres to execute a contract of indemnity. Paragraph four of this contract was as follows:

“ * * * that if…