Dallas-Fort Worth Regional Airport Board v. Superior Court

In 1972, petitioner board, a Texas corporation, entered into a contract with General Automated Systems of Texas, Inc. (Gastex), a California corporation, for the construction of an airport parking control system. That contract was entered into in Texas and was to be performed there. Gastex secured performance bonds from Agricultural Insurance Company (now known as American Empire Insurance Company (AmEmp). AmEmp was located in California. AmEmp secured indemnity agreements from various residents of California, among whom was the real party in interest here, Nina Anderton. Gastex defaulted on its contract, with the result that AmEmp allegedly owes petitioner a large sum of money. AmEmp has sued the California indemnitors, including Anderton, to recover on their indemnity agree *484 ments. Anderton has cross-complained against petitioner, for declaratory relief, on the ground that Gastex, and therefore AmEmp, and therefore Anderton were released from obligation to petitioner because, after Gastex had defaulted, petitioner, instead of constructing the facilities by itself or through another contractor, had abandoned the scheme contemplated by the contract with Gastex and had…