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U.S. FID. & GUARANTY v. NEVADA CEMENT CO.

No. 7732.

561 P.2d 1335 (1977)

UNITED STATES FIDELITY & GUARANTY COMPANY, a corporation, Appellant, v. NEVADA CEMENT COMPANY, a Nevada Corporation, Respondent.

Supreme Court of Nevada.

March 30, 1977.

Attorney(s) appearing for the Case

Richard P. Wait, Ltd., Reno, for appellant.

Vargas, Bartlett & Dixon, Reno, for respondent.

OPINION

GUNDERSON, Justice.

Respondent Nevada Cement Company manufactures and sells cement to concrete manufacturers. In September, 1969, a production error resulted in the manufacture of a quantity of cement with an insufficient amount of a chemical compound needed to give it strength. Relying on Nevada Cement's representation that it met market standards, C.B. Concrete Company purchased and used the defective product in concrete supplied to Brunzell Construction...

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