Indemnity Ins. Co. of North America v. South Texas Lumber Co.

On March 21, 1925, A. E. Quay entered into a building contract with the city of Houston to construct certain public improvements and to furnish the material .for said work. The city required Quay to give a bond containing stipulations hereinafter set out. The bond was given with Quay as principal and the Indemnity Insurance Company <jf North America, the plaintiff in error, as surety. The work was completed according to the contract, and final settlement of the contract was had between the city and Quay in June, 1925. No suit on the bond has ever been instituted by the city. The present suit…