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TURNER CONSTR v. SEABOARD

85 A.D.2d 325 (1982)

Turner Construction Company, Respondent, v. Seaboard Surety Company et al., Defendants, and General Reinsurance Corporation et al., Appellants

Appellate Division of the Supreme Court of the State of New York, First Department.

March 16, 1982

Attorney(s) appearing for the Case

Carole A. Burns of counsel (Philip Schlau with her on the brief; Newman & Schlau, P. C., attorneys), for appellants.

Robert T. Carlton, Jr. (Howard D. Venzie, Jr., and K. Gerard Amadio with him on the brief; Sacks, Montgomery, Pastore & Levine and Venzie, Phillips & Warshawer, attorneys), for respondents.

KUPFERMAN, J. P., FEIN and ASCH, JJ., concur.

SULLIVAN, J.

The issue presented is whether the obligee of a performance bond has a direct right of action against the reinsurers of such bond for the surety's alleged wrongful refusal to honor its obligations thereunder.

On January 2, 1979 plaintiff Turner Construction Company, the prime contractor in the construction of a high-rise office building in New York City, subcontracted the electrical construction...

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