Hayes v. Russell & Hazel Builders, Inc.

AYRES, Judge.

Involved in this action by a materialman against a contractor and the contractor’s surety on performance bonds is a question relating to the imputation of a payment of $1,695.15 made by the contractor to the materialman on an account incurred for materials furnished on an unbonded project. The surety contends that it was prejudiced by the imputation of this payment, which payment resulted in a constructive legal fraud.

From a judgment predicated on a conclusion that the imputation of the payment was proper and legal, the defendant surety .appealed.

Presented on the appeal are…