Pan American Petroleum Corp. v. McQuary

Mr. Chiee Justice Green

delivered the opinion of the Court.

In this case the general contractors of a State highway project defaulted and their surety took over the job. The Commissioner of Highways turned over to the surety the retained percentage accrued, upon the execution by the surety of an indemnity bond. This bond covered claims against the principal contractor to the same extent practically as the original bond executed by that contractor. The real question presented, therefore, is whether the bond required by law of the principal contractor of a State highway project protects a remote…