AAA Cabinets & Millwork, Inc. v. Accredited Surety & Casualty Co.

¶1 — General contractor Lydig Construction, Inc., made payments by joint-payee checks to a subcontractor and two lower-tier subcontractors and received an assignment of the lower-tier subcontractors’ rights against the subcontractor. In the name of the assignors, Lydig then demanded payment from Accredited Surety & Casualty Co., Inc., which had issued the subcontractor’s license bond. Accredited refused payment, arguing that Lydig was not a valid beneficiary of the bond. On summary judgment, the trial court awarded Lydig one-half of the license bond as well as sizable attorney fees and costs.

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