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TONY AND LEO, INC. v. U. S. FID. & GUAR. CO.

No. 48273.

281 N.W.2d 862 (1979)

TONY AND LEO, INC., Respondent, v. UNITED STATES FIDELITY AND GUARANTY COMPANY and Carl H. Peterson Company, Defendants and Third Party Plaintiffs, Respondents. AID INSURANCE SERVICES, Defendant and Third Party Plaintiff, Appellant, v. MINNEHAHA TERRAZZO & CEMENT CORPORATION, Third Party Defendant, Respondent.

Supreme Court of Minnesota.

July 20, 1979.

Attorney(s) appearing for the Case

Sahr, Kunert & Tambornino and John L. Tambornino, Minneapolis, for appellant.

Stuart E. Gale, Bloomington, for Tony & Leo, Inc.

Moore, Costello & Hart, Larry A. Hanson, and Joan C. Maclin, St. Paul, for United States Fidelity and Guaranty Co. and Carl H. Peterson Co.

J. Robert Nygren, Minneapolis, for Minnehaha Terrazzo & Cement Corp.

Heard before ROGOSHESKE, PETERSON, and SCOTT, JJ., and considered and decided by the court en banc.

ROGOSHESKE, Justice.

Defendant AID Insurance Services (AID), surety on a subcontractor's performance bond, appeals from an adverse judgment in an action on the bond by plaintiff Tony and Leo, Inc. (Tony & Leo). The principal issues raised are whether the trial court erred by permitting Tony & Leo to recover from AID on the bond and by refusing to permit AID to recover indemnity from Tony & Leo. We hold that the trial court decided both issues erroneously...

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