Loyal Order of Moose, Lodge v. International Fidelity Insurance Co.

OPINION

RABINOWITZ, Justice.

The Moose Lodge (“Lodge”) appeals the superior court’s grants of summary judgment and attorney’s fees to International Fidelity Insurance (“IFI”) on the Lodge’s tort claim of bad faith inaction by IFI as surety on performance and payment bonds covering a construction contract between Darling Enterprises (“Darling”), as princi pal, and the Lodge, as obligee. 1 We reverse.

I. FACTS.

In May 1983 the Moose Lodge accepted Darling Enterprises’ proposal for the “[tjurnkey construction” of a new facility in Fairbanks. The price was $559,500. Pursuant to the parties’ contract,…