Court Orders Recovery in Favor of Surety Client

Dan Ellerbrock and David Gregerson recently prevailed on a motion for summary judgment, on behalf of a surety client.  The court’s order held that the surety was entitled to recover from the principal and indemnitors for payments made by the surety to settle claims against payment and performance bonds issued on behalf of a contractor.  The court rejected the contractor’s claims that there were disputes of material fact that required trial and prevented judgment in favor of the surety.  The court also rejected the indemnitors’ arguments that the indemnity agreement was unconscionable, and held that the surety acted reasonably and in good faith in investigating and paying the claims.