Fidelity & Casualty Co. of New York v. Harris-Smith, Inc.

BAILES, Judge.

In October, 1962, The Fidelity & Casualty Company of New York (F&C) became the surety on a bond in favor of Advance, Inc. (Advance) wherein F&C guaranteed the faithful performance by Harris-Smith, Inc., (Harris-Smith) of the conditions of a building contract entered into between Advance and Harris-Smith. This contract was between Advance, as owner, and Harris-Smith, as contractor, for the construction of streets, curbs, gutters, sidewalks and drainage in the development of a residential subdivision known as Park Vista Subdivision.

Prior to April 30, 1963, Harris-Smith became…