U.S. Filter Distribution Group, Inc. v. Katspan, Inc.

A supplier of materials to an insolvent public works contractor can recover attorney fees against the contractor’s surety if the supplier sues to enforce the bond and the surety and supplier have adverse interests in the dispute. U.S. Filter Distribution Group, Inc., supplied materials to a public works contractor. When the contractor became insolvent, U.S. Filter sought reimbursement from the contractor’s surety, Travelers Casualty and Surety Co. of America. Travelers immediately offered to pay, but only if U.S. Filter signed a release that assigned its claims against the contractor to…