Commercial Union Ins. Co. v. Spaw-Glass Corp., Inc.

BEA ANN SMITH, Justice.

Appellee Spaw-Glass Corporation, Inc. contracted with Judson Independent School District to complete construction of Judson High School in San Antonio. Appellant Commercial Union Insurance Company was the surety for Kleck Plumbing HVAC, a subcontractor on the project whose default left certain suppliers unpaid. To mitigate damages under its performance and payment bonds, Commercial Union funded Kleck’s remaining obligations under its contract. Commercial Union expected to recover these expenditures from the ten percent retainage Spaw-Glass was required to withhold from…