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Contracts Keyed to Burton
Cretex Companies, Inc. v. Construction Leaders, Inc.
Citation:
342 N.W.2d 135Facts
Northland Mortgage Company (“Northland”) hired Construction Leaders, Inc. (defendant) as its general contractor for two construction projects. Travelers Indemnity Company (“Travelers”) (defendant) wrote performance bonds for the construction projects. During the course of the work, Construction Leaders defaulted. Travelers stepped in and hired a new general contractor to complete the work. Some suppliers and subcontractors, including Cretex Companies, Inc. (“Cretex”) (plaintiff), were left unpaid. Cretex sued both Travelers to collect on the performance bonds and Construction Leaders for breach of their subcontracts. The trial court granted summary judgment in favor of Cretex. Travelers alone appealed, raising the issue as to whether Cretex could recover under the performance bonds.
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Topic Resources
Topic Outline
Third Party RightsTopic Refresher Course
Third Party Rights and Obligations