In the summer of 1929 Lundy started working for Walt Disney Productions, first assigned in the ink and paint department. In September he transferred to the animation department as an inbetweener. In March the next year Lundy was promoted to animator and later worked on Three Little Pigs (1933) and Orphan's Benefit (1934). After working on Snow White and the Seven Dwarfs (1937) Lundy became a director at Disney.
In 1943 Lundy departed the Disney studios and worked for Walter Lantz Productions. He started as an animator and again became a director. He directed Andy Panda, Woody Woodpecker, and the Swing Symphonies. Lundy worked for Wolff Productions after the Lantz studio closed in 1949. Here he worked on television commercials. In 1950 Lundy worked for MGM on Barney Bear shorts and the Droopy film Caballero Droopy. In 1959 Lundy worked for Hanna-Barbera on The Flintstones, Yogi Bear, and Scooby Doo. He retired in 1973 but continued to do freelance work for several years thereafter.
Lundy was not the first to draw or even animate Donald Duck. This was done by Art Babbitt and Dick Huemer in the short film The Wise Little Hen, a film in which Lundy also worked. This was Donald's first appearance, although the story offered little opportunity for character development. This would come in Donald's second appearance, Orphan's Benefit, in which Lundy was the sole animator of Donald. According to common animation practice, the audio and voices of the film were recorded first and were then played for the animators to reference. In listening to voice actor Clarence Nash portray the Duck in Orphan's Benefit, Lundy said "[I] decided that [Donald] was an ego-show-off. If anything crossed him, he got mad and blew his top."
Lundy was born in Sault Ste. Marie, Michigan to James and Minnie Lundy, their only child. Shortly after his birth the family moved to Detroit where Lundy's father worked as an inspector for the Burroughs Adding Machine Company. When Lundy was ten years old his parents separated and he and his mother went to live in Port Huron north of Detroit. They later moved back to the city where Lundy's mother worked as a waitress. Lundy moved to Los Angeles in the late 1920s. Lundy was married twice. In 1932 he married Juanita Sheridan who also worked at the Disney studio. This marriage ended in divorce in 1934. By 1939 Lundy was remarried.
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