R. J. Griffin & Co. v. Continental Insurance

Smith, Judge.

This is an appeal of the grant of summary judgment in favor of the surety on a construction performance bond and the corresponding denial of summary judgment for the general contractor obligee. We must decide whether a subcontractor’s refusal to return funds belonging to the general contractor is covered by the subcontractor’s performance bond issued in favor of the general contractor. Under the plain language of the subcontract and the bond, as well as the final waiver and release executed by the surety, we conclude that the subcontractor’s wrongful retention of funds is a…