Hanify

On July 6, 1928, the Clarksburg High School District of the County of Yolo entered into an agreement with Daniel R. Hanify as contractor to construct within a fixed period a certain gymnasium for the use of said High School District at the agreed cost- of $56,324. Monthly payments of seventy-five per cent of the value of the labor and materials were to be made to the contractor upon the certificate of the architect. The remaining twenty-five per cent was to be retained by the High School District for a period of thirty-five days after final acceptance of the work. Appellant Globe Indemnity Company, a corporation, became surety for the contractor, Daniel R. Hanify, upon two bonds in the sum of $30,000 each, one in favor of laborers and materialmen and the other conditioned for the faithful performance of the contract.

Upon the completion of said building there remained in the hands of said High School District, owner, the final payment in the sum of $14,524.50, which sum was due and unpaid under the terms of said builder’s contract. The bank had advanced, with the consent of the surety, all of said sum of $14,524.50, but $1133.75 in discharge of material-men’s claims. The cost of…