P is an engineering firm which provided services under in construction of a building in Portland for Portland General Electric. P provided his services for Target Dredging and Pile driving who had been adjudicated bankrupt. P was still due $10,891.94 under its subcontract. Target had a bond through Argonaut Insurance Co. (D), and P sued D under a third party status on the bond. A demurrer was sustained, and judgment was entered, and P appealed.

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