Milwaukie Construction Co. (Inc.), a Corporation, F. H. St. Pierre and Mary St. Pierre v. Glens Falls Insurance Company, a Corporation

Pursuant to a decree of specific performance, the defendant-appellant F. H. St. Pierre was ordered on November 17, 1966, to deposit with the clerk of the district court four life insurance policies and assignments thereof to plaintiff-ap-pellee, Glens Falls Insurance Company, and a promissory note payable to F. H. St. Pierre endorsed to the order of Glens Falls Insurance Company. By order entered November 22, 1966, Glens Falls was authorized to withdraw the policies, assignments and promissory note. The defendants appealed from these orders.

Appellee had issued performance and payment bonds to appellant Milwaukie Construction Co. (Inc.) for the construction of public buildings. As a condition to the issuance of the bond appellee required appellants to execute a contract of indemnity. The contract of indemnity provided “ * * * that if the surety (appellee) shall set up a reserve to cover any claim, suit, or judgment under any such bond, the indemnitors will immediately upon demand, deposit with the surety a sum of money or acceptable security equal to such reserve.”

Milwaukie Construction defaulted and various claims were made against the appellee, Glens Falls. Appellee in turn…