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TOWN OF MELVILLE v. SAFECO INS. CO. OF AMERICA

No. 94-1039.

651 So.2d 404 (1995)

TOWN OF MELVILLE, Plaintiff-Appellee, v. SAFECO INSURANCE COMPANY OF AMERICA, Defendant-Appellant.

Court of Appeal of Louisiana, Third Circuit.

March 1, 1995.

Attorney(s) appearing for the Case

Jeffrey Michael Bassett, Opelousas, for Town of Melville.

Richard Mary, Baton Rouge, for Safeco Ins. Co. of America.

Before YELVERTON, THIBODEAUX and DECUIR, JJ.

THIBODEAUX, Judge.

Defendant, Safeco Insurance Company of America, appeals the trial court's judgment of their liability as the surety on a performance bond. The town of Melville contracted with Mar-Len to perform improvements to the town's sewer collection system. Mar-Len defaulted on its contract by leaving the project before completion. Safeco was the surety on the performance bond for Mar-Len.

Mar-Len demanded arbitration under its contract with the town...

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