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  5. 269 N.W.2d 455 (1978)
 

STATE v. BI-STATES CONST. CO., INC.

No. 60867.

269 N.W.2d 455 (1978)

STATE of Iowa and Iowa State Board of Regents, Appellees, v. BI-STATES CONSTRUCTION COMPANY, INC. and Merchants Mutual Bonding Company, Appellants.

Supreme Court of Iowa.

Rehearing Denied October 12, 1978.

Attorney(s) appearing for the Case

Simmons, Perrine, Albright & Ellwood, Cedar Rapids, for appellants.

Richard C. Turner, Atty. Gen., Elizabeth A. Nolan, Asst. Atty. Gen., and Arthur O. Leff, Iowa City, Sp. Counsel, for appellees.

Considered en banc.

LeGRAND, Justice.

In this case the State of Iowa and Iowa State Board of Regents (hereafter jointly called Regents) sued Bi-States Construction Company, Inc. (hereafter called Bi-States) for breach of contract arising out of a sewer construction job at Oakdale Sanitarium. Merchants Mutual Bonding Company (hereafter called MMB), an Iowa corporation, was made a defendant as surety on Bi-States' construction bond. Trial resulted in judgment for the Regents in the amount...

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