Peterson v. Schrieber

The issue on this appeal is whether a surety, the defendant-respondent Fidelity & Deposit Company of Maryland, is liable on a performance bond for a contract payment made (June 28, 1971) by the obligee, the plaintiff-appellant Glenn Peterson, prior to the execution of the bond (October 25, 1971) when, also prior to the execution of the bond, the principal contractor, Larry Schrieber, another defendant, had defaulted on the first work to be done under that contract. We conclude that it is not, and therefore affirm the trial court, excusing Fidelity from liability for the $10,000 which was paid…