Walker Process Equipment Co. v. Cooley Building Corp.

In the month of May, 1966, the Village of Northfield, Vermont contracted with Cooley Building Corporation, the prime contractor, for the construction of a sewage treatment facility to be located in Northfield, Vermont. In connection with the execution of this contract the Continental Insurance Company, as surety, by one of its subsidiary and owned corporations, The Fidelity and Casualty Company of New York, and Cooley Building Corporation, as principal obligator, executed and delivered to the Village of Northfield, a labor and materials bond.

Cooley Building Corporation then entered into…