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PEAVEY COMPANY v. AGRI-SERVICES, INC.

No. 12452.

517 P.2d 718 (1973)

PEAVEY COMPANY and Edward Paine, Jr., Plaintiffs and Appellants, v. AGRI-SERVICES, INC., a Montana corporation, and General Insurance Company of America, et al., Defendants and Respondents.

Supreme Court of Montana.

Decided December 28, 1973.

Rehearing Denied January 21, 1974.

Attorney(s) appearing for the Case

Moulton, Bellingham, Longo & Mather, Ward Swanser (argued), Billings, Holter & Heath, Robert Holter (argued), Bozeman, for plaintiffs and appellants.

Towe, Neely & Ball, Sandall, Moses & Cavan, Bruce R. Toole (argued), Billings, Burns & Solem, Chinook, Stuart C. MacKenzie (argued), William M. Solem, Chinook, Weber, Bosch, Kuhr, Dugdale & Warner, John Warner (argued), Havre, Hickman & Moore, Harlowton, Jones, Olsen & Christensen, Robert L. Zimmerman, Billings, Gallagher & Archambeault, Glasgow, Berger, Anderson, Sinclair & Murphy, Billings, for defendants and respondents.

JOHN C. HARRISON, Justice.

In the latter part of 1971, Agri-Services, a public warehouse operation, got into financial difficulties and ceased operations. At that time it owed an undetermined amount for grain purchased and delivered to it. Agri-Services had previously filed the bond required by section 3-228, R.C.M. 1947, in the amount of $20,000 with the Montana Department of Agriculture. The bondsman was General Insurance Company of America (hereinafter known as...

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