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

Construction Leaders (D) was hired by Northland to be a general contractor on utilities construction for two properties. Travelers wrote the performance bonds for the projects with Northland as the obligee. D eventually defaulted, and the some of its subs were left unpaid. Cretex (P) sued. Cretex could have filed a mechanics lien against Northland but failed to do so. D was insolvent, and P sued Travelers in an attempt to collect on the performance bonds. The trial court granted summary judgment for P. Travelers appealed.

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