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CITY OF PORTLAND, ETC. v. HOFFMAN CONST. CO.

No. 403-515; SC 24760, No. 411-542; SC 24760.

596 P.2d 1305 (1979)

286 Or. 789

CITY OF PORTLAND, a Municipal Corporation, ex rel. Donohue & Fleskes Corporation, a Corporation, Respondent/Cross-Appellant, v. HOFFMAN CONSTRUCTION COMPANY, an Oregon Corporation, and Seaboard Surety Company, a Corporation, Appellants/Cross-Respondents. Hoffman Construction Company, an Oregon Corporation, Appellant, v. Argonaut Insurance Company, a Corporation, and Donohue & Fleskes Corporation, a Corporation, Respondents.

Supreme Court of Oregon.

Rehearing Denied September 5, 1979.

Decided June 26, 1979.

Attorney(s) appearing for the Case

Ellis J. Horvitz, Encino, Cal., argued the cause for appellants/cross-respondents Hoffman Const. and Seaboard Surety and for appellant Hoffman. With him on the briefs were John L. Schwabe, and Souther, Spaulding, Kinsey, Williamson & Schwabe, Portland.

Jack L. Kennedy of Kennedy, King & McClurg, Portland, and Gerald R. Pullen, Portland, argued the cause and filed briefs for respondent/cross-appellant, and for respondent Donohue & Fleskes Corporation.

Paul R. Meyer of Kobin & Meyer, Portland, argued the cause for respondent Argonaut Insurance Company. With him on the brief was Elizabeth Yeats, Portland.

Before DENECKE, C.J., and HOLMAN, HOWELL, BRYSON, LENT, and LINDE, JJ.

HOWELL, Justice.

These two actions, consolidated for trial and on appeal, arise out of the construction of the City of Portland's secondary sewage treatment facilities. Hoffman Construction Company (Hoffman) was the general contractor on the project. Seaboard Surety Company (Seaboard) is its surety. Donohue & Fleskes Corporation (Donohue) was a subcontractor hired by Hoffman to perform mechanical, piping, and equipment...

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