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DEN MAR CONST. CO. v. AMERICAN INS. CO.

Nos. 48990, 49022 and 49299.

290 N.W.2d 737 (1979)

DEN MAR CONSTRUCTION COMPANY, et al., Appellants (48990, 49299), v. The AMERICAN INSURANCE COMPANY, Appellant (49022). COUNTY OF MARSHALL, Minnesota, Respondent, v. AMERICAN INSURANCE COMPANY, Appellant (49022).

Supreme Court of Minnesota.

August 17, 1979.

Attorney(s) appearing for the Case

Rufer, Hefte, Pemberton, Schulze, Sorlie & Sefkow and Gerald S. Rufer, Fergus Falls, for Den Mar Const. Co., et al.

Briggs & Morgan and John L. Devney, St. Paul, Dickel, Johannson, Wall & Taylor and Lee E. Wall, Crookston, for The American Ins. Co.

Harold G. Myhre, County Atty., Warren, for respondent.

Heard before TODD, SCOTT, and MAXWELL, JJ., and considered and decided by the court en banc.

TODD, Justice.

Den Mar Construction Company (Den Mar) was the low bidder on a drainage ditch project in Marshall County, Minnesota. Den Mar's bid was accompanied by a bid bond furnished by American Insurance Company (American). American refused to issue final performance and payment bonds to Den Mar. Because Den Mar had no final bonding, Marshall County awarded the contract to the second lowest bidder who furnished a performance bond which varied from the bidding...

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