The defendant, Beth M. (Sewell) Brown, was an officer and a shareholder of John P. Sewell, Inc. (hereinafter Sewell). On September 16, 1968, Sewell entered into a contract with Blue Cross of Northeastern New York, Inc., for the construction of a headquarters building in Slingerlands, New York, and the plaintiff, Reliance Insurance Company (hereinafter Reliance), issued performance and labor and material payment bonds on Sewell's commitments. During 1969 Sewell encountered...
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