Finne v. Maryland Casualty Co.

Citations

• 102 Wash. 651
• 173 P. 501
• 1918 Wash. LEXIS 983

Syllabus

<p>Principal and Surety—Release of Surety-—Contractor’s Bond— Conditions. The surety upon a subcontractor’s bond, entitled to notice and opportunity to complete the work, is not released from liabilities as they existed at the time of the default by reason, of the principal contractor’s assuming control and completing the work after giving notice of the default, where no burden or liability was imposed upon the surety on account of such completion of the work.</p> <p>Same—Release of Surety—Contractor’s Bond — Overpayments. Under a subcontractor’s bond providing for retention of a percentage of the value of all work performed until complete performance, the surety is not released by payments during the progress of the work in excess of the amount due, where they were necessary to protect the property from lien claims and did not prejudice the surety, and more than the amount of the reserved fund had been used to pay creditors and diminish the liability of the surety.</p> <p>Same—Contbactob’s Bond—Liability oe Stjbety—Liens to be Discharged. A surety upon a subcontractor’s bond for the faithful performance of a state contract and full protection to the state against mechanics’ liens and other claims, under Rem. Code, § 4326, is liable for claims duly filed with the state board for materials furnished prior to default the fairness of which was not questioned, although they had not yet been paid.</p>