State of New York v. United States Fidelity and Guaranty Company

—Casey, J.

Cross appeals from an order of the Supreme Court (Kahn, J.), entered June 24, 1994 in Albany County, which, inter alia, partially granted plaintiffs motion for summary judgment on the issue of liability.

*850Plaintiff commenced this action to recover on a performance bond issued by defendant to Colebrook Farms, Inc., a company that contracted with plaintiff to produce prepared foods by processing raw food ingredients donated by the Federal government for school lunch programs. It is undisputed that defendant is liable to plaintiff as a matter of law under the performance bond for the…