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CITY OF TROUTDALE v. PALACE CONST. CORP.

A161879.

429 P.3d 1042 (2018)

293 Or.App. 785

CITY OF TROUTDALE, a municipal corporation of the State of Oregon within Multnomah County, Plaintiff-Appellant, v. PALACE CONSTRUCTION CORPORATION, an Oregon corporation and Insurance Company of the West, a California corporation, Defendants-Respondents.

Court of Appeals of Oregon.

September 6, 2018.

Attorney(s) appearing for the Case

Donald H. Grim , Portland, argued the cause for appellant. On the brief were Ridgway K. Foley, Jr. , Charles R. Markley , and Greene & Markley, P.C. On the reply brief were Steven F. Cade , Ridgway K. Foley, Jr. , Charles R. Markley , and Williams Kastner Greene & Markley.

Lawrence A. Wagner , Portland, argued the cause for respondent Insurance Company of the West. Also on the brief were Mario R. Nicholas , and Stewart Sokol & Larkin LLC.

No appearance for respondent Palace Construction Corporation.

Before DeHoog, Presiding Judge, and Egan, Chief Judge, and Aoyagi, Judge.

This is an action on a performance bond. In 2007, in connection with a proposed subdivision development, defendant Insurance Company of the West (ICW) entered into a bond contract with Palace Construction Corporation (Palace). Essentially, ICW guaranteed Palace's completion of any public improvements to which Palace and the City of Troutdale...

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