Cecil's, Incorporated v. Morris Mechanical Enterprises, Inc., and Transamerica Insurance Company

The relevant facts in this diversity action are not disputed. Cecil’s, Inc., a general contractor, entered into an agreement with Villgreen, a limited partnership, in 1978 for the construction of an apartment complex in Greenville, South Carolina. Several months later, Cecil’s subcontracted the heating, ventilation and air conditioning (HVAC) system for the project to Morris Mechanical Enterprises, Inc. Morris then executed a $160,000 performance bond with Transamerica Insurance Company serving as surety. Several disputes arose between Cecil’s and Villgreen after completion of the project and…