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ASSOCIATED INDEM. CORP. v. CAT CONTRACTING

No. 13-93-621-CV.

918 S.W.2d 580 (1996)

ASSOCIATED INDEMNITY CORPORATION, and Fireman's Fund Insurance Company, Appellants, v. CAT CONTRACTING, INC., GTS Equipment, Inc., Michigan Sewer Construction Co., Construction Equipment Co., Mario Diponio, Benjamin Diponio, Phyllis Diponio, Guilio Catallo and Rosemary Catallo, Appellees.

Court of Appeals of Texas, Corpus Christi.

Rehearing Overruled March 28, 1996.

Attorney(s) appearing for the Case

David C. Mattax, Asst. Atty. Gen., Financial Litigation Div., Austin, Christina Stone, Ogden, Lieberman, Gaughan & Stone, Houston, amicus curiae.

James A. Knox, D. Bradley Dickinson, Vial, Hamilton, Koch & Knox, Dallas, Kenneth P. Kosut, C.L. Crawley, Evans & Kosut, Houston, Joseph A. Rodriguez, Rodriguez, Colvin & Chaney, Brownsville, Laird E. Lawrence, Vial, Hamilton, Koch & Knox, Houston, for appellants.

Edward A. Stapleton, III, Frank Costilla, Costilla & Stapleton, Brownsville, Tom Lockhart, Juan A. Gonzalez, Roger W. Hughes, Adams & Graham, Harlingen, for appellees.

Before DORSEY, YAÑEZ and RODRIGUEZ, JJ.

OPINION

YAÑEZ, Justice.

This appeal involves a dispute between a surety and its principal. Associated Indemnity Corporation ("Associated") issued performance and payment bonds when CAT Contracting and Michigan Sewer entered into a contract with the Cameron County Water District Board (the "District") for construction of eight miles of water pipeline. Associated sued CAT Contracting, Michigan Sewer, GTS Equipment, Construction Equipment, Mario, Phyllis...

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