Fireman's Fund Insurance v. Cozad Construction Co.

The United States Forest Service let a contract to Vinson-Kirby, a partnership, to build roads in the Willamette National Forest. Plaintiff, Fireman’s Fund, issued bonds to secure Vinson-Kirby’s performance of the contract, including payment of subcontractors. The individual partners and the partnership agreed to indemnify plaintiff for any losses sustained under the bonds.

Work under the contract began in late 1978. On December 31, 1980, the partners reorganized their business and incorporated Vinson & Kirby Enterprises, Inc. (V & K). The corporation assumed all of the partnership’s assets…