Hammen v. Hansen & Werhane, Inc.

The appellate court held that Thomas Hammen, an electrical contractor, could unilaterally discharge Fidelity and Deposit Insurance Company, surety on his performance and payment bond, from liability on the bond after he had started to perform his contract, purchased materials and employed laborers. (105 Ill. App. 2d 428.) We granted leave to appeal to determine whether, under the facts of the case, Hammen could discharge the surety without the consent of third-party beneficiaries of the bond. (See Cherry v. Benson, Inc., 264 Ill. App. 199; Danville Hotel Co. v. Benson, Inc., 262 Ill. App.…