OPINION
LIVERMORE, Presiding Judge.
Defendant City of Tucson contracted with defendant Yellow Rose Development & Construction, Inc., for certain improvements on Speedway Boulevard. Yellow Rose posted payment and performance bonds, obtained from Pacific States Casualty Co., pursuant to A.R.S. § 34-222. In mid-April 1993, one of Yellow Rose's subcontractors notified Tucson that it had not been paid, and also reported that another subcontractor...
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