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COPELAND SAND & GRAVEL v. INS. CO. OF N. AM.

No. 75-414-L; CA 11238.

596 P.2d 623 (1979)

40 Or.App. 831

COPELAND SAND and GRAVEL Inc., Appellant, v. INSURANCE COMPANY OF NORTH AMERICA AND TOBIN, Crawford & Mikolavich, Inc., Respondents.

Court of Appeals of Oregon.

Decided June 25, 1979.

Attorney(s) appearing for the Case

Benjamin E. Freudenberg, Grants Pass, argued the cause for appellant. With him on the briefs was Balderree, Killoran & Nelson, Grants Pass.

Hugh B. Collins, Medford, argued the cause for respondent. With him on the brief was Collins, Velure & Heysell, Medford.

Before SCHWAB, C.J., and TANZER, RICHARDSON and ROBERTS, JJ.

ROBERTS, Judge.

In September, 1973, the City of Rogue River contracted with R & W Construction Company (R & W) for the construction of a sewer system. Defendant Insurance Company of North America (INA) was surety on R & W's performance bond. In June, 1974, R & W ceased performance of its contract with the city and assigned its rights under the city contract to INA. Thereafter, the city made all payments under the contract directly to INA, and INA in...

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