Central Surety & Ins. v. Bagley

HAZEL, District Judge.1

Upon carefully reading the bill, I have become satisfied that complainants were not mere contract creditors, as claimed by the objecting defendants. The gravamen of the bill arises from complainants’ liability under a surety bond, a so-called lender’s bond, by which complainants obligated themselves to advance $100,000, to construct and complete the apartment building and garages erected by the principals who are primary defendants herein and who agreed on their part to pay off the debts, claims, and liens arising from the construction. Their alleged failure so to do…