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CRETEX COMPANIES v. CONSTRUCTION LEADERS

No. CX-82-1676.

342 N.W.2d 135 (1984)

The CRETEX COMPANIES, INC., Respondent, and Ess Brothers & Sons, Inc., Respondent, v. CONSTRUCTION LEADERS, INC., Defendant, Travelers Indemnity Company, Appellant.

Supreme Court of Minnesota.

January 13, 1984.

Attorney(s) appearing for the Case

Fabyanske, Svoboda & Westra, M.T. Fabyanske, St. Paul, for defendant Const. Leaders, Inc., and appellant Travelers Indem. Co.

Dorsey & Whitney, Steven K. Champlin, Minneapolis, for respondent Cretex Companies.

Lang, Pauly & Gregerson, Ltd., Joseph A. Nilan, Minneapolis, for respondent Ess Bros. & Sons, Inc.

Considered and decided by the court en banc without oral argument.

SIMONETT, Justice.

We conclude that unpaid materialmen, plaintiff-respondents on this appeal, are not intended third-party beneficiaries under the defaulting general contractor's performance bond and, therefore, are not entitled to recover from the defendant-appellant surety. We reverse the trial court.

Northland Mortgage Company owns property in Maple Grove and Plymouth, Minnesota. It engaged defendant Construction Leaders, Inc., as its general contractor...

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