606 Liability of Surety for Labor and Materials

• Jurisdiction: Arizona

Surety bonds are liberally construed with respect to what types of labor and materials are covered.

In U.S. Fidelity & Guar. Co. v. California-Arizona Constr. Co., 21 Ariz. 172, 186 P. 502 (1920), the court, in construing the coverage of a bond, stated that bonds are to be more liberally construed than the mechanics’ lien statutes. This is in accord with the liberal interpretation usually given to the term “labor and materials” on contract bonds.

In this case, the court was called upon to interpret a bond statute which provided for protection to parties providing “materials so furnished for said improvement.” Lumber had been used underneath other materials and was then moved on. Except for some boards which were left in the process, the lumber could be used by the contractor on other projects. The court held that it was an appliance rather than materials furnished for the project; the lumber company had no claim under

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