Universal Surety of America v. Central Electric Enterprises & Co.

OPINION

BLAIR REEVES, Chief Justice

(Retired).

The pivotal question in this appeal is whether a subcontractor has a cause of action as a consumer against a surety of the general contractor in a DTPA action.

HJG, a general contractor, was awarded a contract on a project of the San Antonio Housing Authority, a public entity. As required by law, HJG obtained a payment and performance bond, which it purchased from Universal Surety of America (USA). In conjunction with USA’s issuance of the bonds, HJG executed a general indemnity agreement in which HJG agreed to indemnify USA for any and all sums…