This section contains the nature of the case and procedural background.

Aetna (P) sued Cunningham (D) for $32,000.00 and interest because D failed to complete a building contract, on the performance bond for which P had become his surety. P sued for fraud in the making of the contract and indemnity. The district court found D liable under the indemnity agreement but not guilty of fraud. P appealed.

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