Archive by Month: October 2022

Incorporated Indemnity Language Doesn't Shoehorn Other Contracts Into Bond

By Gregory R. Veal October 19, 2022 Articles

A recent decision from the Northern District of Georgia confirmed important suretyship principles in granting partial summary judgment against an obligee’s attempt to expand the performance bond scope.  IHI E&C Int’l Corp. v. Robinson Mech. Contrs., Inc. and Fidelity & Deposit Co. of Md., 2022 U.S. Dist. LEXIS 180174 (Sept. 30, 2022).  The court carefully examined the terms of the bond, the language of the incorporated subcontract, and the context of the parties’ dealings in ruling that the bond covered only the $24 million installation subcontract, not an additional $40 million in fabrication purchase orders by the same principal on the same project.

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