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  5. 571 S.W.2d 644 (1978)
 

U. S. FIDELITY & GUAR. CO. v. NAPIER ELEC.

Nos. 76-316, 76-348.

571 S.W.2d 644 (1978)

UNITED STATES FIDELITY & GUARANTY COMPANY, Appellant and Cross-Appellee, v. NAPIER ELECTRIC & CONSTRUCTION COMPANY, INC., Hadward Napier and Frances Napier, Appellees and Cross-Appellants.

Court of Appeals of Kentucky.

July 7, 1978.

Attorney(s) appearing for the Case

C. Dant Kearns, John W. Potter, Stites, McElwain & Fowler, Louisville, Richard D. Cooper, Cooper, Gullet, Combs & Engle, Hazard, for appellant.

Lohren F. Martin, Jr., Rose, Martin & Scalf, Williamsburg, for appellees.

Before GANT, HOWARD and HOWERTON, JJ.

GANT, Judge.

The corporate appellee contracted to construct the sewer lines, water lines and a sewage treatment facility for Woodson Bend, Inc., near Somerset, Kentucky. Appellant, United States Fidelity & Guaranty Company, was surety on two bonds for the corporate appellee, one being a Labor and Material Payment Bond in the face amount of $778,000, obligating the appellant to pay all materialmen and suppliers should the appellee default; the other being a Performance...

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