THE CRETEX COMPANIES, INC. v. CONSTRUCTION LEADERS, INC. 342 N.W.2d 135 (1984) CASE BRIEF

THE CRETEX COMPANIES, INC. V. CONSTRUCTION LEADERS, INC.

342 N.W.2d 135 (1984)

NATURE OF THE CASE: This was a dispute over the payment of a sub by a general contractor. Travelers (D) challenged a judgment that Cretex (P) were entitled to recover from it as intended third-party beneficiaries under a defaulting contractor's performance bond.

FACTS: Construction Leaders (D) was hired by Northland to be a general contractor on utilities construction for two properties. Travelers wrote the performance bonds for the projects with Northland as the obligee. D eventually defaulted and the some of its subs were left unpaid. Cretex (P) sued. Cretex could have filed a mechanics lien against Northland but failed to do so. D was insolvent and P sued Travelers in an attempt to collect on the performance bonds. The trial court granted summary judgment for P. Travelers appealed.

ISSUE:


RULE OF LAW:


HOLDING AND DECISION:


LEGAL ANALYSIS:





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