New Amsterdam Casualty Co. v. F. Renondo & Co.

SMITH, Chief Justice.

V. H. Gehlbach constructed certain improvements for Corpus Christi Independent School District under a contract the performance of which was secured by a bond obligating him to perform the work and “promptly make payments to all persons supplying him with labor and material in the prosecution of the work provided for in the contract.” New Amsterdam Casualty Company was surety on the bond, witn Gehlbach as principal.

At the completion of the work the School District had on hand the balance due Gehl- bach on his contract, amounting to $9,346, which it withheld pending…