Heldenfels Brothers v. City Corpus Christi

This case involves the issue of whether a municipality owed a duty to a subcontractor of requiring the general contractor to provide a "proper" bond on work performed for the municipality. The trial court rendered judgment for the subcontractor, but the court of appeals reversed and rendered. 802 S.W.2d 35. We affirm. The City of Corpus Christi employed La-Man Constructors, Inc., to build a recreation center on the Citys park land. The general contract provided for payment to La-Man of $267,748. La-Man agreed to provide the standard performance and payment bonds as required by former TEX. REV. CIV. STAT. art. 5160. La-Man prepared documents which facially appeared to meet the statutory requirements and the City accepted these bonds.